Companies rush to match input tax credit with vendor returns

Companies rush to match input tax credit with vendor returns

Indian companies are scrambling to retain hundreds of crores of input tax credit for last financial year under the Goods and Services Tax (GST) regime that it could lose if it fails to substantiate the claim with vendor returns. The deadline to file this claim is October 20, while vendors can file their sales return till October 31. This has created a situation where vendor returns are not available for reconciliation. Industry associations have represented to the government seeking an…

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Calamity tax under GST: Panel gives states 3 options to raise extra funds

Calamity tax under GST: Panel gives states 3 options to raise extra funds

A panel, headed by Bihar Deputy Chief Minister Sushil Modi, on Monday put on table three options to raise additional funds under the goods and services tax (GST) to help Kerala and other states in their post-disaster relief and rehabilitation work. The levy could either be a state-specific tax levied as state GST, or there could be a supplementary disaster response fund, parallel to the existing national disaster response fund (NDRF). As a third option, the group of ministers (GoM) would consider strengthening the…

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GST: 1 year on, firms yet to set up infra for compliance

GST: 1 year on, firms yet to set up infra for compliance

‘There is a need to transform outlook’ Corporates are now realizing that coming to terms with GST means a more drastic change to their tax infrastructure than the basic compliance-related changes they have made so far, Vishal Parekh, regional head, South Asia, Thomson Reuters said in an interview. “In the last several months, we have had discussions with CFOs and tax heads, and post one year of GST, there is a very different mood around tax and finance,” Mr. Parekh…

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Some GST-laden private banks up charges on remittances

Some GST-laden private banks up charges on remittances

Private banks that are being charged GST on transactions undertaken by their business correspondents are starting to increase their charges on remittances, two people aware of the development said. At least two large private sector lenders in the domestic money remittance business have increased charges by at least 20 basis points, they said, declining to name the banks. A basis point is one-hundredth of a percentage point. Some banks have sought legal opinion on the matter and are looking to…

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GST refunds worth Rs 22,000 cr pending with govt: FIEO

GST refunds worth Rs 22,000 cr pending with govt: FIEO

As much as Rs 22,000 crore GST refund is pending with the government, creating a liquidity problem for exporters and impacting overseas shipments, FIEO said. Federation of Indian Export Organisations (FIEO) President Ganesh Gupta said the delay in refund is mainly impacting small exporters who provide jobs in labor-intensive sectors.   “Refunds of about Rs 7,000 crore are pending on account of IGST (integrated GST) and about Rs 15,000 crore ITC (input tax credit) as of September 30. This is…

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Central, State officials can act against GST evaders irrespective of jurisdiction: CBIC

Central, State officials can act against GST evaders irrespective of jurisdiction: CBIC

The Central Board of Indirect Taxes and Custom (CBIC) has made it clear that irrespective of assessees assigned under the Goods and Services Tax (GST) regime, officials from the Centre or State can initiate enforcement action against tax evaders and take it to its logical conclusion.   The directive will remove the ambiguity on initiation of enforcement action by the Central tax officers in case of taxpayers assigned to the State tax authority and vice versa. It is also meant…

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GSTN makes PIN code must for transporters, businesses for e-way bill

GSTN makes PIN code must for transporters, businesses for e-way bill

Tightening the norms for issuance of the e-way bill, the GST Network has made it mandatory for businesses and transporters to mention PIN codes of places of loading and unloading of consignments.   Quoting of PIN codes, according to officials, will help in calculating the correct distance and determine the validity of the electronic way or e-way bill, which is used by businesses to transport goods worth over Rs 50,000 both within and outside a state. So far, businesses and transporters are required to broadly…

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GST policy on e-commerce may make life difficult for cab startups: Experts

GST policy on e-commerce may make life difficult for cab startups: Experts

A Bengaluru-based startup has filed an appeal questioning a July 27 ruling by GST authorities in Karnataka which said app-based cab aggregators must pay GST on trip fares collected by private cab drivers/owners tied to their e-commerce platforms. Opta Cabs, a startup that plans to offer app-based cab hailing services, has preferred an appeal to the ruling by the GST Authority on Advance Ruling in Karnataka. Its founder Chandrakaladhar Reddy (44) said: “This kind of regulations impose huge legal costs,…

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GST cheer for government as states’ shortfall drops

GST cheer for government as states’ shortfall drops

Amid a sense of doom and gloom spread by the falling rupee, rising oil prices and widening current account deficit, the government has at least one reason to cheer: compensation due to state governments for loss of revenue stemming from introduction of the goods and services tax (GST) in July 2017 is dropping sharply. Latest calculations by the ministry of finance show the shortfall in revenue of states because of GST, or compensation due to the states from the Centre, stands…

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Govt may extend term of GST anti-profiteering watchdog

Govt may extend term of GST anti-profiteering watchdog

The government may extend the term of the National Anti-profiteering Authority (NAA) beyond its original two-year mandate, with policymakers arguing that the watchdog needs to function for a longer period in light of the frequent rate changes in the goods and services tax (GST) and the unfinished task of bringing petroleum products under the new indirect tax regime. Policy makers believe that the benefit of tax rate cuts on 178 items from 28% to 18% announced last November in one of…

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