Fake invoices to evade GST pose a big challenge, tax officials looking at different strategies to curb menace

Fake invoices to evade GST pose a big challenge, tax officials looking at different strategies to curb menace

Faced with the big challenge of tackling fake invoicing in GST regime, tax officials are looking at different strategies to curb this menace and shore up revenue collections. Central Board of Indirect Taxes and Customs (CBIC) Member (Investigation) had recently said that between April and February 2018-19, GST evasion to the tune of ₹20,000 crore was detected, of which ₹10,000 crore was recovered. Officials estimate that evasion through fake and under-invoicing could be pegged at anywhere between one percent and…

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Forthcoming changes in E-Waybill system

Forthcoming changes in E-Waybill system

1. Auto calculation of route distance based on PIN code for generation of EWB Now, E-waybill system is being enabled to auto calculate the route distance for movement of goods, based on the Postal PIN codes of the source and destination locations. That is, the e-waybill system will calculate and display the actual distance between the supplier and recipient addresses. The user is allowed to enter the actual distance as per his movement of goods. However, it will be limited…

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No Consensus On Why Consumer Goods Demand Rose After GST

No Consensus On Why Consumer Goods Demand Rose After GST

Consumer goods makers’ volumes jumped as the supply-chain emerged from the initial disruption of goods and services tax. There’s no consensus on why. Makers of soaps to biscuits say lower GST tax rates drove higher demand. But distributors and retailers aren’t sure if that was the trigger and attribute it largely to recovery after the twin disruptions of demonetization and GST. Wholesale demand had slowed as distributors pared inventory ahead of the July 2017 rollout of GST, fearing losses on…

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Government extends IGST, compensation cess exemption under various export promotion plans

Government extends IGST, compensation cess exemption under various export promotion plans

Giving relief to exporters, the government has extended IGST (Integrated Goods and Service Tax) and compensation cess exemptions for goods procurement under certain export promotion schemes till March 2020. These exemptions have been extended for exporters buying inputs domestically or importing for export purposes under export oriented unit (EOU) scheme, Export Promotion Capital Goods (EPCG) scheme and advance authorization. EPCG is an export promotion scheme under which an exporter can import a certain amount of capital goods at zero duty…

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GST appellate body clears air on tax credit for sweet shop vs restaurant

GST appellate body clears air on tax credit for sweet shop vs restaurant

An owner of a restaurant and sweet shop who runs both set-ups from the same premises will be eligible for an input tax credit (ITC) for his sweet shop under the GST regime, as long as the accounts of the two businesses are maintained separately, at least in Uttarakhand. The appellate authority for an advance ruling (AAAR) of the state set aside AAR ruling in this matter. Explaining the case, Harpreet Singh, Partner, Indirect tax, KPMG, said AAR had ruled…

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Telangana State GST collections soar

Telangana State GST collections soar

Telangana continues to register impressive growth in the collection of Goods and Services Tax (GST) in the current year, maintaining more than 20 per cent growth till the end of February. Interestingly, the State collected a whopping Rs 1,040 crore of State GST (SGST) in February when the national level GST collections were Rs 97,246 crore, down from Rs 1.02 lakh crore collected in January. In GST era, February 2019 has been the best month for the Commercial Taxes Department…

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No arrest can be made without following procedures in GST evasion cases: HC

No arrest can be made without following procedures in GST evasion cases: HC

The Bombay High Court on Wednesday gave an ad interim relief that no arrest can be made without following the procedures in cases of GST evasion. The court direction came in a matter involving allegations of evading GST by circular trading and claiming an input tax credit (ITC) through fake invoices. The matter is based on Section 132 of the Central GST (CGST) Act. It clearly says that if the amount of tax evaded or ITC availed on the basis…

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Arun Jaitley favours GST council-like structure for healthcare, agriculture

Arun Jaitley favours GST council-like structure for healthcare, agriculture

Finance minister Arun Jaitley argued a case for setting up GST Council-like federal institutions to promote healthcare, rural development and agriculture sectors to allow the Centre and states to supplement each other’s efforts instead of competing. In the 10th and concluding part of his ‘Agenda 2019’ series titled ‘Why Agriculture, Rural Development and Healthcare Require a GST Council-Type Structure?’ Jaitley urges pooling of resources to avoid overlap and duplication. “The question, thus, is why can’t this experiment be replicated elsewhere?”…

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Small biz pays the price for ambiguity over GST norm

Small biz pays the price for ambiguity over GST norm

Enhanced threshold limit for registration under Goods and Services Tax (GTS) to Rs 40 lakh from Rs 20 lakh to provide relief to small local business has led to ambiguity hitting return filings as dealers into supply services are excluded from the benefit. The amended threshold limit that comes into effect from new financial year starting April 1 is applicable only for sales of goods. For service providers limit continues to be Rs 20 lakh. Experts said over 60 percent…

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GST Council meet: Realtors get two options to tax under construction house

GST Council meet: Realtors get two options to tax under construction house

Real estate developers with unsold housing inventories can now choose either the old rate or the new one if the project is still under construction on March 31. This option was given on Tuesday at the Goods and Services Tax Council meeting. The decision also cleared the air on possible loss in input-tax credit for projects that are underway if realtors choose the new rate structure. The Council approved a formula, based on four parameters, which will determine the extent…

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