GST Compensation to States likely to get a Five-Year Extension

GST Compensation to States likely to get a Five-Year Extension

Witnessing a sharp decline in the GST revenue due to the pandemic and the following lockdown and disruptions in economic activities across the country, the States are likely to request the Centre for an extension in the GST compensation period, by up to five years beyond FY22. The GST Council is expected to meet this month to discuss alternative compensation mechanisms, amid inadequate cess collections. Reports said that the States may write to the 15th Finance Commission, seeking the extension. They are likely to point out…

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Alcohol-based hand sanitisers to attract 18% GST: AAR

Alcohol-based hand sanitisers to attract 18% GST: AAR

The Authority for Advance Ruling (AAR) has said that a GST of 18 per cent will be levied on all alcohol-based hand sanitisers. Springfield India Distilleries had approached the Goa-bench of AAR to seek classification of hand sanitisers supplied by the company, and contended that the product is taxed at 12 per cent. It also sought to know if sanitisers would be exempt from GST since it is now an essential commodity. The AAR, in its ruling, said since hand sanitisers…

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Exporters facing GST refund issues as govt makes invoice matching compulsory for input tax credit

Exporters facing GST refund issues as govt makes invoice matching compulsory for input tax credit

Many exporters are facing a working capital crunch as they have run into refund problems after a recent government circular said exporters would not be eligible for input tax credit refunds in cases where they are unable to match invoices from the vendors. This situation is a result of the government waiving off late fees for companies and suppliers to upload certain forms under the goods and service tax, tax experts said. That led to several cases where these forms were not…

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Govt extends FY20 GST return filing date for composition dealers till Aug 31

Govt extends FY20 GST return filing date for composition dealers till Aug 31

The government has extended the due date for filing annual return by composition dealers for 2019-20 till August 31. The Central Board of Indirect Taxes and Customs (CBIC) issued a notification, extending the deadline for filing GSTR-4 annual returns for 2019-20 by composition dealers from July 15 to August 31. GST composition scheme can be opted by any taxpayer whose turnover is less than Rs 1.5 crore. Under the scheme, manufacturers and traders are required to pay GST at 1 per cent,…

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Alcohol-based hand-sanitiser makers under scanner for alleged GST evasion

Alcohol-based hand-sanitiser makers under scanner for alleged GST evasion

The Goods & Services Tax (GST) Authority has initiated a probe into alleged tax evasion by alcohol-based hand sanitiser manufacturers. “Intelligence gathered indicates that some manufacturers, including alcohol-based hand sanitiser makers, are resorting to tax evasion/non-payment of GST by misclassifying the product,” a government source told BusinessLine. The Directorate General of GST Intelligence (DGGI), using information from the Central Economic Intelligence Bureau and with the help of online shopping platforms, has prepared a list of 62 manufacturers and suppliers who…

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GSTN issues Statistical Report on 3 years of GST implementation

GSTN issues Statistical Report on 3 years of GST implementation

The Goods and Service Tax Network (GSTN) releases a Statistical Report on completion of 3 years of GST Implementation. The report highlights the key statistics regarding registration trend from April 2018 to June 2020; active taxpayers as on June 30, 2020; month-wise returns filed since July 2017; GSTR-1 return filing trend from July 2017 to May 2020; GSTR-3B filing compliance as on June 30, 2020; and Invoice Count as per Turnover Slab. The report in relation to payment highlights from April 2018 to March…

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Public limited companies just 0.6% of GST taxpayer base but pay 35% of revenue

Public limited companies just 0.6% of GST taxpayer base but pay 35% of revenue

Public limited companies, which account for only 0.6% (72,151) of total GST-registered taxpayers, contribute about 35% to the GST revenue collection, data released by the GST Network showed. About 1.2 crore taxpayers are currently under the GST ambit. Similarly, only 0.2% taxpayers are public sector undertakings but contribute above 9% of revenue under GST. Other top revenue contributors are firms constituted as private limited companies — about 6.75 lakh or 5.9% of total taxpayers have paid 27.5% of the revenue…

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June GST collections stand at Rs 90,917 crore

June GST collections stand at Rs 90,917 crore

Goods and service tax (GST) collections for June 2020 clocked Rs 90,917 crore at gross levels, 9% lower than the same month last year, the department of revenue said Wednesday. The collections are higher than those recorded in April and May – the peak months of lockdown due to the Covid 19 pandemic – where GST collection for April was Rs 32,294 crore and Rs 62,009 crore for May. However, for both months, the collections were lower than those in 2019. Collections…

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FM asks GST officers to proactively address issues faced by biz in tax compliance

FM asks GST officers to proactively address issues faced by biz in tax compliance

Finance Minister Nirmala Sitharaman on Wednesday asked GST officers to foresee the issues faced by domestic businesses and address them proactively so that they can compete on a global scale and build a self-reliant India. In a message to tax officers on the third anniversary of Goods and Services Tax (GST), Sitharaman also said there is scope for easing compliance further for taxpayers, especially MSMEs. Asking taxmen to focus on the clarion call by Prime Minister Narendra Modi for an ‘Atmanirbhar Bharat’, she said for this…

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Nil Late Fee on GSTR-3B: System not Updated, Excess Amount would be re-credited soon

Nil Late Fee on GSTR-3B: System not Updated, Excess Amount would be re-credited soon

The Goods and Services Tax portal has today said that the system has not been updated according to the change in the late fee for the delay in GSTR-3B. The Central Board of Indirect Taxes and Customs ( CBIC ) has notified that late fees on GSTR-3B would be waived off with Nill Liabilities. In a Notification issued by CBIC said that, For the period from July 2017 to Jan 2020, which is prior to the COVID period, a lot…

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