In December 2019, the Centre had released Rs 35,298 crore to states to compensate for the revenue loss on account of GST rollout.
Multiple rates, exemptions and implementation challenges are affecting goods and services tax (GST) collections in India, an analysis by an International Monetary Fund (IMF) team has said.
About 91.3% of eligible taxpayers with over Rs 2-crore turnover or about 9.11 lakh, had filed their annual goods and services tax (GST) returns for 2017-18 by February 12, while 92.3% or 8.42 lakh of the eligible base had filed their reconciliation statements.
The tax authorities have started sending out notices for service tax and GST on the unpaid AGR dues. The carriers are seeking legal advice on the next steps.
Apart from a late payment fee of Rs 100 a day for central GST and a matching amount for state GST, the law also provides for a levy of 18% penal interest.
Several private equity firms, strategic investors and others that have bought businesses and entered into these contracts with the sellers have received notices from the indirect tax department, demanding that they pay goods and services tax at 18% on the non-compete fee.
The Goods and Services Tax Network (GSTN) has set up a consultation committee to provide feedback on new functionalities in the GST system.
Under the Goods and Services Tax (GST) law, states are guaranteed compensation for revenue loss for 5 years if their revenue does not increase 14 per cent on the base year of 2015-16. However, with revenue mop-up from compensation cess falling inadequate, the Centre held back fund transfer to states for revenue shortage beginning August.
Hacking into the government’s India's goods and services tax (GST) database and its associated infrastructure dependencies installed at GST Network (GSTN) can now lead to 10-year imprisonment, as the assets have been declared as 'protected systems' by the finance ministry, under the IT Act.
The HC considered the bottleneck with respect to the GSTN server capacity to handle the filing of pending returns within the deadline and also perused the screenshots submitted by the Petitioner regarding the unsuccessful attempts of the tax professionals time and again during the extended period.
The new due dates for Chandigarh, Delhi, Gujarat, Haryana, Jammu and Kashmir, Ladakh, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh, and Uttarakhand is now February 5, 2020.
By evening of January 31, #gstnfailed was the top trend on Twitter. At 10 30 pm CBIC tweeted the extension dates, but early reports suggest the portal is still not working.
This is in line with the target set by Revenue Secretary Ajay Bhushan Pandey after high-level meetings with senior officials of the tax department.
Last week, the indirect tax wing of the revenue department blocked the credits within four hours, CBIC chairman John Joseph said at an event on Monday. Companies are entitled to credits on tax paid on inputs in the production chain so that there is no cascading effect of taxes. Instances of a large number of frauds prompted the govt to crack the whip.
Adopting e- invoicing will save the government a staggering 450 million dollars annually.
With the new compliance regulations, including e-invoicing, proposed from April 2020, the revenue collection is likely to improve with real-time tracking of input credits claimed by businesses.
The govt has eased filing of GST returns for taxpayers by allowing them to file in a staggered manner.
GSTR 3B is a monthly return to be filed under GST in which every taxable person has to summarize the details of outward and inward supplies. “This month’s return filing data till date shows that the GSTN return filing system was working within its expected limits, evident by the fact that till Jan 14, a total of 24.66L GSTR-3B were filed,” an official said.
The target has been raised to Rs 1.15 lakh crore over the next two months and Rs 1.25 lakh crore in March.
GST Rule 138E, which took effect in November, doesn’t allow an entity that hasn’t filed returns for two straight months to generate an e-waybill. While the rule won’t impact direct deliveries to ecommerce customers, business-to-business (B2B) orders from overseas will likely get hit.
A slowdown in consumption is also hurting tax collections and a prolong period of economic uncertainty will further pressure.
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CXOs, directors or employees directly responsible for making such claims can also be penalised.
More than 54 lakh filings under goods and services tax (GST) were received by authorities, the finance ministry said through its Twitter handle Friday, more than double from the monthly average of 25 lakh filings, prompting the move.
India Inc is set to face first ever tax audit under the GST regime. The taxpayers are being asked to furnish detailed records of GST forms, income tax papers and other documents for detailed records for FY2018. Tax authorities had issued a detailed GST manual telling at least 70% of taxpayers in each commissionerate have to be audited.
The action plan was finalised after a meeting of state and central GST chief commissioners.
By the Centre's own estimates, the administration succumbed to Rs 45,682 cr in GST fraud by mid last year.
The board said that out of about 1.85 lakh exporters, a total of 6,421 exporters (about 3.4% only) including some ‘star exporters’ have been identified as risky and hence, red flagged. Even some of the ‘star exporters’ are not traceable at the addresses given by them.
A cut in personal I-T will put more money in the hands of people, lift overall sentiment, and perk up demand. However, while this story may play out with some time lag, tax loss would be immediate, adding to the Rs 1.45 lakh crore giveaway on account of corporate tax.
The CBIC, in a three-page SOP issued on Tuesday has decided to go strong against "defaulters".
The panel suggested two slabs of 10% and 20%. Alternatively, some goods could be moved from the 18% slab back to 28%, the panel said in a presentation to Bihar deputy CM Sushil Modi in Bengaluru on Monday. The GST Council had, at its recent meeting, asked Modi to look into revenue augmentation measures.
Framework on cards to allow firms to pay current levies without clearing past dues. Ministry of Corporate Affairs and Department of Revenue (DoR) officials have begun talks on the matter and a framework is likely to be unveiled soon. Tax authorities are treated on a par with operational creditors and eligible to receive payments with others.
The change has led to another set of compliance on a monthly basis i.e. check GSTR 2A if the credit claimed doesn’t exceed GSTR 2A by 10% and also determine the credit which are ‘eligible’ out of the GSTR 2A before applying this 10% rule.
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