FinMin considers steps to prevent composition dealers from charging GST from buyers 

FinMin considers steps 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. The revenue department is also planning to launch a campaign to educate consumers that the…

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Companies may soon be able to rectify GST returns for Non-IT errors

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 the 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. The…

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Major Decisions taken by the GST Council in its 32nd Meeting

Major Decisions taken by the GST Council in its 32nd Meeting

The GST Council in its 32nd Meeting held today under the Chairmanship of the Union Minister of Finance & Corporate Affairs, Shri Arun Jaitley in New Delhi took the following major decisions to give relief to MSME (including Small Traders) among others – 1.   Increase in Turnover Limit for the existing Composition Scheme: The limit of Annual Turnover in the preceding Financial Year for availing Composition Scheme for Goods shall be increased to Rs 1.5 crore. Special category States would decide, within one…

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60% may escape GST net if turnover threshold doubled

60% may escape GST net if turnover threshold doubled

The move to double the threshold for goods and services tax (GST) registration to an annual turnover of Rs 40 lakh may result in up to 60% of the registered dealers falling out of the net, but will have only a negligible impact on revenue. At the end of last March, there were over 87 lakh registered dealers with nearly 45 lakh reporting around Rs 20-lakh turnover. Another 10 lakh had a turnover of up to Rs 40 lakh, data…

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GST Council meet today: PM Modi wants exemption limit raised to Rs 75 lakh

GST Council meet today: PM Modi wants exemption limit raised to Rs 75 lakh

A day ahead of a meeting of the Goods and Services Tax Council, Prime Minister Narendra Modi on Wednesday revealed that he had urged the Council to raise the threshold for exemption from the levy’s registration, to Rs 75 lakh annual turnover from the current Rs 20 lakh. “Besides, I have urged the Council to club houses meant for the middle class in the 5 percent GST slab. The Council has all the state governments on board,” the PM said at a…

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GST returns non-filers grow faster than tax base

GST returns non-filers grow faster than tax base

The number of tax filers failing to file their returns has been increasing in the 17 months of GST implementation until November 2018, according to an answer submitted by the Finance Ministry in the Lok Sabha. While the number of people required to file monthly returns has grown 32% from July 2017 to about 98.5 lakh in November 2018, the number of people not filing these returns has grown 167% during that time, the latest Goods and Services Tax filing…

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GST rules: No e-way bill if returns not filed for two months

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…

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GST cut likely for incomplete realty projects

GST cut likely for incomplete realty projects

The New Year has opened on a positive note for homebuyers with the government extending the benefit of Credit Linked Subsidy Scheme (CLSS) for mid-segment home buyers up to March 2020. More cheers are awaited, however, since the Goods and Services Tax (GST) Council in its meeting on January 10 is likely to announce a reduction in GST to 5 percent on an under-construction property. Currently, 12 percent GST is levied only on under-construction real estate projects. While residential real…

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Ministerial Panel Approves Disaster Cess For Kerala Under GST

Ministerial Panel Approves Disaster Cess For Kerala Under GST

A ministerial panel allowed Kerala to levy an additional 1 percent calamity cess on the value of goods and services under the new indirect tax regime. “Kerala will be permitted to have 1 percent cess on the value of goods and services across all or select items for two years,” state’s Finance Minister Thomas Isaac told reporters after the meeting of group of ministers in Delhi today. The items on which the additional cess will be levied will be selected…

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Not just lower taxes, evasion too a factor in the GST shortfall

Not just lower taxes, evasion too a factor in the GST shortfall

It’s fairly clear by now that goods and services tax (GST) collections are falling way short of the government’s initial expectations. The monthly run rate of collections until November was less than ₹90,000 crore, far lower than the monthly average of ₹1.05 trillion required to meet the annual target. One reason, of course, is the downward revision of tax rates on various products. But another, and more worrying cause is widespread tax evasion despite measures such as e-way bills. Shiv Pratap Shukla, minister of…

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