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News Indirect Tax-GST

  • Jan 21, 2019
  • Soon, no e-way bills for non-filers of GST returns

    Non-filers of GST returns for six consecutive months will soon be barred from generating e-way bills for movement of goods. The Goods and Services Tax Network is developing an IT system such that businesses that have not filed returns for two straight returns filing cycles, which is six months, would be barred from generating e-way bills, an official said. “As soon as the new IT system is put in place, the new rules will be notified.”

  • Jan 19, 2019
  • Several states opt to double GST threshold

    Kerala is so far the only state to retain the GST threshold at an annual turnover of Rs 20 lakh for businesses in the state, even as half-adozen states agreed to double the registration and tax limit for manufacturers to Rs 40 lakh. So far, six states have decided to double the threshold after the GST Council last week agreed to the move aimed at reducing the compliance burden on small businesses, sources told TOI. An interesting addition to the list is Congress-ruled Chhattisgarh, which had initially argued against raising the limit on the grounds that revenues would be impacted.

  • Jan 16, 2019
  • E-way bill to be integrated with NHAI's FASTag to track GST evasion from April

    The GST e-way bill system is likely to be integrated with NHAI's FASTag mechanism from April to help track movement of goods and check GST evasion. The revenue department has set up an officers committee to integrate e-way bill, FASTag and DMIC's Logistics Data Bank (LDB) services, after consultation with transporters. "It has come to our notice that some transporters are doing multiple trips by generating a single e-way bill. Integration of e-way bill with FASTag would help find the location of the vehicle and when and how many times it has crossed NHAI's toll plazas," the official said.

  • Jan 14, 2019
  • FinMin plans to prevent composition dealers from charging GST from buyers

    In a consumer-friendly measure, the revenue department is planning to make it mandatory for composition dealers and service providers to declare their GST registration status in invoices to ensure that they do not charge any tax from buyers. The measure, once implemented, would check the widespread practice of composition dealers of charging GST from purchasers and not depositing it with the exchequer, an official said.

  • Jan 14, 2019
  • Companies may soon be able to rectify GST returns for Non-IT errors

    Indian businesses may soon be able to amend goods and services tax (GST) return mandated for carrying forward tax credit from the previous regime for non-IT related errors as well. The GST Council has directed a committee for IT grievance redressal to quickly draw up a solution that will give relief to industry. Thousands of crores of tax credit claimed by businesses have been denied because of errors in the filing of returns, prompting many to approach judiciary.

  • Jan 11, 2019
  • GST relief to MSMEs: Council raises exemption threshold

    Bracing itself for the general elections, the Narendra Modi government is showering goodies on the micro, small and medium enterprises (MSMEs) and small traders that have suffered under the note ban and a hastily implemented GST. Over 20 lakh GST-registrant businesses dealing in goods have now got the option to move out of the tax’s ambit as the GST Council on Thursday raised the aggregate turnover threshold for exemption to Rs 40 lakh from the present Rs 20 lakh.

  • Jan 11, 2019
  • Kerala to levy calamity cess up to 1% over and above GST

    Kerala will be the first State to impose calamity cess after the introduction of Goods and Services Tax (GST). This will mean buying various goods will become costlier and services such as staying in a hotel will get expensive. The GST Council has approved levy of cess on intra-State supply of goods and services within the State of Kerala at a rate not exceeding one per cent for a period not exceeding 2 years, Finance Minister Arun Jaitley, said after the Council meeting.“It (imposition of cess by a State) is already provided under law,” he added.

  • Jan 10, 2019
  • GST Council meet: Small businesses likely to get tax relief

    In its 32nd meeting on Thursday, the Goods and Services Tax (GST) Council will likely consider several proposals aimed at providing relief to smaller taxpayers — a segment that is believed to be struggling after losing exemptions enjoyed by them in the pre-GST regime. One of the major proposals that is likely to be approved by the Council is raising the annual revenue threshold for GST to Rs 75 lakh from Rs 20 lakh currently. The group of ministers (GoM) had also considered a proposal to partially refund taxes paid by these firms as relief measure but decided that raising exemptions was a more practical solution.

  • Jan 10, 2019
  • ‘Charitable trusts selling books, CDs have to pay GST’

    Appellate Authority upholds AAR ruling The Appellate Authority for Advance Ruling (AAAR) for GST has upheld that a charitable trust whose main objective is the advancement of religion, spirituality or yoga can be said to be in businesses, and so fall under the purview of GST. Also, the sale of spiritual products by such institutions attract GST.

  • Jan 10, 2019
  • GST exemption limit doubled to give relief to small businesses

    In a bid to give relief to small businesses, the GST Council Thursday doubled the exemption limit and raised the threshold for availing the composition scheme. The GST Council doubled the GST exemption limit to Rs 20 lakh for north eastern states and Rs 40 lakh for the rest of the country, Finance Minister Arun Jaitley told reporters here. The scope of the GST Composition Scheme, under which small traders and businesses pay a small tax based on turnover rather than value addition, was raised to Rs 1.5 crore from Rs 1 crore.

  • Jan 09, 2019
  • Centre releases Rs 48,202 cr GST compensation in Apr-Nov, higher than FY18

    The central government has released Rs 48,202 crore as GST compensation to states during April-November 2018, higher than the Rs 48,178 crore paid in the previous financial year. Minister of State for Finance Shiv Pratap Shukla said Section 7 of the GST (Compensation to States) Act, 2017, states that compensation payable to a state for loss of revenue shall be provisionally calculated and released at the end of every two months.

  • Jan 08, 2019
  • GST rules: No e-way bill if returns not filed for two months

    In a bid to force non-compliant businesses to file returns regularly, the finance ministry has barred e-way bill generation while transporting consignment if the supplier or recipient of the cargo has not furnished returns for two consecutive tax periods under Goods and Services Tax (GST). The e-way bill is required to be generated from a common portal by a business for movement of consignment worth more than `50,000. For this, the supplier/recipient furnishes part A of the form with details of GST identification number, value of goods and invoice number among others. Further, part B of the e-way bill form is furnished by the transporter with details of vehicle used.

  • Jan 07, 2019
  • GST ministerial panel favours Kerala levying 1% cess for 2 years

    The ministerial panel under Bihar Deputy Chief Minister Sushil Modi Sunday approved levy of 1 per cent 'calamity cess' by Kerala for a period of two years to fund rehabilitation work in the state hit by floods. The goods and services, which will attract the 1 per cent cess, would be decided by Kerala, Modi said, adding that if any other state wants to levy the 'calamity cess' it has to approach the GST Council for approval.

  • Jan 05, 2019
  • GST: About 16% of assessees do not file monthly returns, shows Govt data

    On an average nearly 16 per cent of Goods and Services Tax (GST) return assessees are non-filers of monthly returns, while in the composition scheme, one out of every five assessees is a non-filer.According to data made available to the Lok Sabha by the government on Friday, August 2017 was the best among the 17 months of GST when non-filers’ percentage was less than 7.5 per cent. The percentage of non-filers was 28.75 in November 2018, the highest in the 17 months of GST.According to the law, every person registered under the GST will have to file returns in some form or the other. A registered person will have to file returns either on a monthly (normal supplier) or quarterly basis (supplier opting for composition scheme).

  • Jan 04, 2019
  • Finance Ministry allows businesses to claim GST input credit benefit for FY'18 till Mar 2019

    The Finance Ministry has allowed businesses to claim input tax credit benefit for the first financial year of Goods and Services Tax roll out, till March 2019, provided it matches with the return filed by their suppliers. The deadline for claiming input tax credit (ITCNSE 0.39 %) ended on October 25, 2018. Tax experts said that ITC claims were allowed to businesses earlier provided businesses had generated invoice, paid taxes and filed returns.

  • Jan 04, 2019
  • CGST shortfall may force govt to cut spending to meet fiscal deficit target

    Despite crossing the Rs 1-trillion mark twice this year, the goods and services tax (GST) collections are running well behind the budgeted target. As opposed to a monthly target of Rs 1.04 trillion, the monthly run rate adjusting for refunds, works out to around Rs 89,600 crore according to a report by Kotak Institutional Equities. While the report pegs the Centre’s GST shortfall at Rs 1 trillion, adjusting for tax devolution to states, the Centre is possibly staring at a shortfall of Rs 58,000 crore.

  • Jan 04, 2019

    According to a new directive by the Central Board of Indirect Taxes and Customs (CBIC), Indians will have to shell out more for cars priced above Rs 10 lakh. This comes after a government clarification that GSt is payable on the invoice value of the car as well as the tax collected at source as income tax. Consequently, buyers will now have to additionally pay GST on the value of tax collected by the dealer and not just on the value of the car sold.

  • Jan 03, 2019
  • Your dream home to get cheaper: Tax relief in the offing for housing projects

    In a move that could give a fillip to the real estate sector, the Goods and Services Tax (GST) Council is set to bring down the tax incidence on under-construction houses/flats. One option is bringing the tax rate from 12% to 5% for all such projects but deny the input tax credit (ITC). Alternatively, the Council at its 32nd meeting on January 10 may also allow ITC to those builders who buy 80% or more of inputs from registered dealers, even with the reduced tax rate.

  • Jan 02, 2019
  • GST collection drops to Rs 94,726 cr in December

    GST collection dropped to Rs 94,726 crore in December 2018, lower than Rs 97,637 crore collected in the previous month. The total number of sales returns or GSTR-3B filed till December 30, 2018, is 72.44 lakh, the finance ministry said in a statement. Compensation released to states for August-September stood at Rs 11,922 crore.Of the Rs 94,726 crore collected, Central GST (CGST)collection is Rs 16,442 crore, State GST (SGST) is Rs 22,459 crore, Integrated GST (IGST) is Rs 47,936 crore and Cess is Rs 7,888 crore.

  • Jan 02, 2019
  • Government notifies new annual GST return forms

    The government has notified new annual GST return forms, which are required to be filed by businesses registered under the Goods and Services Tax regime by June 30, 2019. In the annual return forms, businesses have to provide consolidated details of sales, purchases and input tax credit (ITC) benefits accrued to them during the 2017-18 fiscal. The Central Board of Indirect Taxes and Customs (CBIC) on December 31, 2018, notified form GSTR-9, GSTR-9A and GSTR-9C. GSTR-9 is the annual return form for normal taxpayers, GSTR-9A is for composition taxpayers, while GSTR-9C is a reconciliation statement.