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GST compensation
Central govt releases Rs 19,950 crore GST compensation to states

Central govt releases Rs 19,950 crore GST compensation to states

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The central government has released Rs 19,950 crore as GST compensation to states, taking the total amount released to them to over Rs 1.2 lakh crore. In a statement, the finance ministry said Rs 19,950 crore was released to states and union territories last Monday.

When the Goods and Services Tax (GST) came into force in July 2017, states, which lost powers to levy taxes such as VAT, were guaranteed to be compensated for any loss of revenue in the first five years of GST implementation.

This compensation was to come out of a pool that is to be created by levy of cess on certain sin and luxury goods over and above the GST tax rate. The shortfall is calculated assuming a 14 percent annual growth in GST collections by states over the base year of 2015-16.

“With this release of GST compensation, the central government has released a total of Rs 1,20,498 crore towards GST compensation to the states/UTs during current fiscal,” the statement said.

The money released compares to only Rs 78,874 crore having been collected as compensation cess in the current FY (till January 31, 2020).

Finance Ministry officials said total GST compensation cess of Rs 62,611 crore was collected in the FY 2017-18, out of which Rs 41,146 crore was released to the states/UTs that fiscal as GST compensation.

In FY 2018-19, Rs 95,081 crore was collected as GST compensation cess of which Rs 69,275 crore was released to the states/UTs as Good and Services Tax GST compensation.

Officials said that as on March 31, 2019, an amount of Rs 47,271 crore compensation cess collected had remained unutilised after the release of GST compensation to the states/UTs in the 2017-18 and 2018-19.

Source: Money-Control.

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GST Return
UT ranks first in GST return compliance

UT ranks first in GST return compliance

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In a major achievement, the UT Excise and the Taxation Department has topped the country in the GST 3B monthly tax return compliance rating of 92.44 per cent among all states and UTs in the first four months of the current financial year. This has been revealed in the latest report of the GST collection and compliance. In this category, Punjab (87.72 per cent) stood second and Gujarat (86.35 per cent) third.

Sources said the city had around 18,000 registered dealers and it was ensured that maximum dealers filed the returns under the GST law. The department has recently carried out an intensive physical checking of the dealers who had not been filing their returns. After the checking, the GST registration of over 806 dealers, who failed to file return for more than six months, was cancelled. Notices have been issued to other dealers who did not file their returns.

Sources said the checking was started on the direction of Excise and Taxation Commissioner Mandeep Singh Brar, who now directed the department officials to achieve the target of up to 95 per cent GST return compliance.
The steps have been taken to ensure there was no tax evasion at the dealers’ end.

The department has collected Rs 466.94 crore as tax in the last four months with a hike of over 12 per cent against the corresponding period last year. RK Chaudhary, Assistant Excise and Taxation Commissioner, said the department also carried out a survey in various markets and directed dealers to issue proper bills to consumers.

Source: Tribune-India


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GST Council to finalise rules for new tax regime

GST Council to finalise rules for new tax regime

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gst council meeting

With GST rollout looking imminent from July 1 after the Lok Sabha’s approval, the Centre and states will tomorrow sit together to finalise rules and regulations of the new indirect tax regime.

The Lok Sabha cleared four supplementary GST legislations — Central GST (CGST), Integrated GST (IGST), Union Territory GST (UTGST) and the Compensation law.

These laws would have supporting rules which would be notified by the Centre and states before the Goods and Services Tax (GST) is implemented.

The GST Council has already approved five sets of rules relating to registration, payments, refund, invoice and returns. However, these rules would still require some minor tweaking as the legislations were approved by the Council earlier this month and the five set of rules were framed before that.

There are four more rules on composition, valuation, input tax credit and transitions which will be discussed in tomorrow’s meeting of the Council. Before the formal meeting of the GST Council, the officers committee will meet and deliberate on the rules.

Officials said that the similar set of rules for registration, payment of tax, returns, invoice, filing of refund could be clubbed together and presented before the Council. The GST will subsume excise, service tax and other local levies.

Existing service tax, excise and VAT assessees would have to migrate to the new tax regime by registering on the GSTN portal. As many as 60 percents of those assessees have already migrated to the Goods and Services Tax Network. The GST Council has recommended a four-tier tax structure — 5, 12, 18 and 28 per cent.

On the highest rate, a cess will be imposed on luxury and demerit goods to compensate states for revenue loss in the first five years of GST implementation.

A 15 per cent cess cap would apply on luxury cars and aerated drinks. On pan masala, the cess has been capped at 135 per cent ad valorem.

Tobacco cess will be capped at a mixture of Rs 4,170 per 1,000 sticks or ad valorem of 290 per cent. Cess on coal would be at Rs 400 per tonne. However, the Central GST (CGST) law has pegged the peak rate at 20 per cent and a similar rate has been prescribed in the State GST (SGST) law, which takes the peak rate to 40 per cent which will come into force only in financial exigencies.

The government has already set up 10 working groups to understand issues faced by trade and industry in various sectors to ensure a smooth transition to GST regime.

Source : Money Control

Arun Jaitley introduces CGST, GST Compensation Bills in Lok Sabha

Arun Jaitley introduces CGST, GST Compensation Bills in Lok Sabha

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Finance Minister Arun Jaitley today tabled a batch of supplementary Goods and Services Tax (GST) legislations in Lok Sabha. The discussion on the four bills – C-GST, I-GST, UT-GST and the compensation law – could be taken up on Tuesday.

GST Bill

The S-GST has been prepared as a model of the central GST (C-GST), with each state incorporating state-specific exemptions. The integrated GST (I-GST) deals in taxation of inter-state movement of goods and services, while the Union Territory GST (UT-GST) Bill covers taxation in the UTs. The compensation law has been prepared to give a legislative backing to the Centre’s promise to compensate the states for five years for any revenue loss arising out of GST implementation.

The government is looking at the passage of the GST Bills in the Lower House by March 29 or latest by March 30. Then, these will move to the Rajya Sabha and this gives the government enough time to bring back any amendment adopted by the Upper House to the Lok Sabha. The amendments can either be rejected or incorporated by the Lok Sabha.

Once these Bills are cleared by Parliament, the states will then take the state GST (S-GST) Bill to their respective assemblies. The current session of Parliament ends on April 12.

The government has set a target of July 1 for the rollout of GST, which will subsume excise, service tax, VAT and and other local levies to create one of the world’s biggest single markets.

Source : India Today

Cabinet clears 4 GST supplementary legislations, to be introduced as Money Bills in Parliament

Cabinet clears 4 GST supplementary legislations, to be introduced as Money Bills in Parliament

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The Union Cabinet today approved four legislation to implement the Goods and Services Tax (GST), ahead of their introduction in Parliament this week to enable roll out of the tax reform from July 1.

Approval of the bills by Parliament and a separate one by all state assemblies will complete the legislative process for roll out of one-nation-one-tax regime by merging central taxes like excise duty and service tax and state levies like VAT.

The GST Council has already approved four-tier tax slabs of 5, 12, 18 and 28 percent plus an additional cess on demerit goods like luxury cars, aerated drinks and tobacco products. The work on for putting various goods and services in different slabs is slated to begin next month.

“The Union Cabinet chaired by Prime Minister Narendra Modi has approved the four GST related bills — The Central Goods and Services Tax Bill 2017 (The CGST Bill), The Integrated Goods and Services Tax Bill 2017 (The IGST Bill), The Union Territory Goods and Services Tax Bill 2017 (The UTGST Bill) and The Goods and Services Tax (Compensation to the States) Bill 2017 (The Compensation Bill),” an official statement said.

“These bills would be introduced as Money Bills in Parliament this week, could be even today,” a source said, adding that discussion on the four legislations could happen together.

PTI

The GST legislations were the only agenda in today’s meeting of the Union Cabinet. “The Government is committed to introduction of GST, one of the biggest reforms, in the country as early as possible. GST Council has decided July 1 as the date of commencement of GST,” the statement said.

These four legislations had been cleared by the Council in its last two meetings this month.

“The CGST Bill makes provisions for levy and collection of tax on intra-state supply of goods or services or both by the central government. On the other hand, IGST Bill makes provisions for levy and collection of tax on inter-state supply of goods or services or both by the central government,” the statement said.

The UTGST Bill makes provisions for levy on collection of tax on intra-UT supply of goods and services in the Union Territories without legislature.

Union Territory GST is akin to States Goods and Services Tax (SGST) which shall be levied and collected by the States/Union Territories on intra-state supply of goods or services or both.

The Compensation Bill provides for compensation to the states for loss of revenue arising on account of implementation of the GST for a period of five years.

While the four bills approved by the Cabinet today have to be passed by Parliament, the SGST law has to be approved by each of the state assemblies.

Finance Minister Arun Jaitley in his Budget for 2017-18 mentioned that country-wide outreach efforts will be made to explain the provisions of GST to trade and industry.

The biggest tax reform since independence is expected to boost the rate of economic growth by at least 0.5 percentage points, broaden the revenue base and cut compliance cost for firms.

Commenting on the development, Abhishek Rastogi, Partner, Khaitan & Co, said: “The GST plan is well on time and July 1 looks realistic!”

“The timely approval of the Bills by the Cabinet ensures that the industry would have reasonable time to peruse the details of the law impacting them. As a corollary, the assesses will be better prepared for implementation. It is hoped that all the State Assemblies clear SGST on time as well,” he added.

Source : http://www.firstpost.com/business/cabinet-clears-4-gst-supplementary-legislations-may-be-introduced-in-parliament-today-3342866.html

GST Council clears State GST and Union Territory GST laws

GST Council clears State GST and Union Territory GST laws

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The UTGST (Union Territory GST) and sGST (state GST) enables a likely rollout of the new indirect tax regime from July 1 this year.

GST Council

With the Goods and Service Tax (GST) Council today approving the remaining two draft bills – UTGST (Union Territory GST) and SGST (state GST) – all the five enabling draft bills stand approved to enable a likely rollout of the new indirect tax regime from July 1 this year.

Finance Minister Arun Jaitley today said that the supporting GST laws will now be taken to the Union Cabinet and then to Parliament for approval. He said the Council will now meet on March 31 for the framing of the rules for the ambitious Goods and Service Tax regime.

The UTGST (Union Territory GST) and sGST (state GST) enables a likely rollout of the new indirect tax regime from July 1 this year.

“The tax rates for various goods and services will be taken up after the framing of rules. Hopefully GST will be implemented from July 1,” Jaitley said.

The cess on demerit goods has been capped at 15 per cent, Jaitley said after he emerged from the GST Council meeting in New Delhi.

The other three draft laws — central cGST (cGST), integrated GST (iGST) and compensation draft laws — have already been approved by the Council.

sGST DRAFT LAW NEEDS APPROVAL

Meanwhile, the sGST draft law will have to be approved by the legislative assemblies of states and union territories (Delhi, Puducherry).

The UTGST draft law is for the union territories like Andaman and Nicobar Islands, Lakshadweep, Daman and Diu and Dadra and Nagar Haveli, which do not have legislative assemblies.

With the approval of the five draft laws, the legislative action of the GST Council will be over, after which there will be another meeting for fitment of the goods and services in the tax slabs – 5 per cent, 12 per cent, 18 per cent, 28 per cent.

The Council has approved raising the cGST, sGST peak tax rate from 14 per cent to 20 per cent each, amounting to a peak rate of 40 per cent, though Revenue Secretary Hasmukh Adhia has assured that the maximum ceiling is only for future contingencies.

Source : India Today