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GST council begins review of rates, items to raise revenue

GST council begins review of rates, items to raise revenue

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The government has begun discussions with states for a possible revamp of the goods and services tax (GST), which may include bringing a few exempted items under the levy while reviewing the rates and the cess on all goods and services, as part of an exercise to shore up revenue.

In a letter to states, the GST council has given a full menu of options and suggested their feedback ahead of a meeting of ministers expected before the end of the month. The move comes at a time when tax collections have been hit, which authorities believe is due to a massive reduction in rates. The RBI had recently estimated that the effective GST rate in India has come down from 14.4% in May 2017 to 11.6% now.

Officials said this has robbed the government of potential revenue of around Rs 2 lakh crore annually and also increased compensation payout to states as the Centre had assured them to make good on any “losses” in case collection growth was less than 14% a year. The economic slowdown, along with tax leakage, has added to the government’s woes and the growth has been lower than anticipated despite an expansion in taxpayer base.

“The effective indirect tax rate on many products in the pre-GST era was around 25%, which has reduced to 18% in GST. In the absence of a significant increase in volumes, there would be an impact on revenues,” said M S Mani, a partner at consulting firm India.

gst rates

Another tax consultant said the services sector revenue has not seen a significant expansion in the base as investments have slowed down. As a result, the GST council has asked states to review the list of products that are currently exempted, which includes some of the items that were earlier subject to tax.

With states complaining about the Centre holding up compensation, the government is also seeking a review of the items that can face the levy apart from looking at the possibility of enhancing the levy on existing items like tobacco, soft drinks and cars.

With the compensation cess kitty eroded, states have little choice but to either agree to settle their bills over a longer period than the five years that was provided for or agree to higher cess or expanding its scope, said officials.

Source: Times-of-India

Telangana State tops in GST collection

Telangana State tops in GST collection

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The State has achieved another distinction as number one in the country in terms of tax collection under the  GST (Goods and Services Tax) regime.GST: direct tax collection

The State had successfully brought down the revenue gap in GST collections to 2.4% by the end of the financial year 2018 from 27.8% witnessed during July 2017, the month when the GST regime was put in place.

Union Finance Secretary Dr.Hasmukh Adhia addressed a letter to the State government, congratulating it on the achievement. The Union official hoped that the State would soon become revenue-surplus from the present revenue-deficit status.

Mr. Adhia said the performance of GST collection was improving with some ups and downs. The overall revenue gap in the country which was 28.3% in July came down to 17.9% in March. There have been spikes in the revenue gaps in November, December, and February. It was important to bring down the revenue gap figure steadily with better compliance and supervision, he said.

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Source :  The Hindu
GST collections rise to Rs 92,150 cr in September from 43 lakh taxpayers

GST collections rise to Rs 92,150 cr in September from 43 lakh taxpayers

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First collection numbers show GST off to a smooth start

The government collected Rs 92,150 crore as goods and services tax (GST) for September from nearly 43 lakh taxpayers as of Monday, reports fe Bureau in New Delhi. The collections include central GST of Rs 14,042 crore, state GST of Rs 21,172 crore, integrated GST of Rs 48,948 crore and compensation cess of nearly Rs 8,000 crore, officials said. In July, the first month since GST was launched, the tax collection was over Rs 95,000 crore and the figure stood at a little over `91,000 crore in August. The Centre has already released about Rs 9,000 crore to the states as compensation for July-August, with the bulk of the amount meant to bridge the revenue gap in August.

The higher component of integrated GST — a little over half of the total collections in all three months — would mean that how much revenue goes to the Centre and each state will be clear only after the goods are consumed in the state concerned. I-GST, an interim tax, is paid when goods are sold/transferred from one state to another but when the goods are used in the second state, full I-GST credit can be taken to pay GST (CGST and SGST) to that state. The state that collects I-GST transfers it to the one where the goods are moved using the GST’s IT network. However, in the three months so far, only about 60-65% of eligible taxpayers filed returns till the last day. The government Monday extended the waiver from late-filing fee to August and September as well.

Source: Financial Express
Govt collects Rs 65,000 cr GST, over 36 lakh businesses file returns so far

Govt collects Rs 65,000 cr GST, over 36 lakh businesses file returns so far

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Govt collects Rs 65,000 cr GST

Over 36 lakh businesses have so far filed their first tax returns under the Goods and Services Tax (GST) regime, a top tax official said on Monday.

Tax collected in the maiden filings under the GST regime, which kicked in from 1 July, are still being compiled as the last date for filings under different rules is not yet over, he said.

The revenue department had estimated collection of around Rs 65,000 crore from maiden Goods and Services Tax, the official said.

The deadline for filing first monthly return and payment of taxes under GST – the new indirect tax regime that unifies over a dozen state and central taxes, including excise duty, service tax and VAT – ended on 25 August.

However, businesses that availed transitional credit were allowed to file returns till 28 August after paying taxes on self-assessment basis by 25 August.


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“At the start of the day today, over 36.32 lakh returns had been filed. Final tax collection numbers would be known once all the returns are in,” the official said.

Under GST, businesses are supposed to file monthly sales returns and pay due taxes online. Since this was the maiden return after GST was rolled out on 1 July, the government gave companies extra time to file returns and pay taxes.

Central Board of Excise and Customs (CBEC) Chairperson Vanaja Sarna, in her weekly letter to tax officials, had said the last date for payment of GST for July 2017 was extended up to 25 August.

But for those taxpayers who want to fill TRAN-I this month, the last date for filing GSTR-3B is 28 August, she had said.

GST Network, the company managing the tax filing apparatus, had uploaded form TRAN-1 last week on its portal for businesses to claim credit on taxes paid prior to GST rollout on 1 July.

Another official said businesses can continue to file returns and pay taxes even after the deadline ends, much like what happens in case of income tax returns and payment.

As per the Goods and Services Tax law, any registered person who fails to furnish details of outward or inward supplies or returns required by the due date will have to pay a late fee of Rs 100 for every day during which such failure continues subject to a maximum Rs 5,000.

Besides, every person who fails to pay the tax within the period prescribed will be required to pay interest at 18 percent from the day succeeding the day on which such tax was due to be paid.

While 72 lakh assessees of the old indirect tax regime have migrated to the GST Network portal, nearly 50 lakh have completed the migration process.

Besides, of the 15 lakh fresh registrations, as many as 10 lakh are expected to file returns for July.


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Source: http://www.firstpost.com/business/govt-collects-rs-65000-cr-gst-over-36-lakh-businesses-file-returns-so-far-3982569.html