GST on electric vehicles set to be slashed from 12 per cent to 5 per cent

Source: IBEF.org, Jul 22, 2019

The government is set to cut Goods and Services Tax (GST) on electric vehicles to 5 per cent this week. A specially assembled GST Council meeting by means of video conferencing will take up the proposition on July 25, a senior government official privy of the development said. The committee of authorities looking at fitment of GST rates “has overall concurred that rate on EV should be cut to 5 per cent from 12 per cent.

Those purchasing electric vehicles will get an extra income tax deduction of Rs 1.5 lakh (US$ 0.002 million) on the interest paid on loans taken to purchase EVs. “This adds up to an advantage of around 2.5 lakh (US$ 0.003 million) over the loan period to the citizens who take loans to buy electric, said by finance minister Nirmala Sitharaman. The government is presently quick to push tax changes on the indirect tax side to complement the measures taken in the budget. Read the rest of this entry »

Breather for exporters as Centre to pay ITC refund for State GST

Source: The Economic Times, Jul 09, 2019

New Delhi: In a major relief to exporters, the Centre will now pay the input tax credit (ITC) refunds of state taxes, thereby reducing transaction time and costs, and manual interface in claim processing.

As per industry, there is a huge difference in the amount claimed, state goods and services tax (SGST) sanction amount received from central tax authority and the amount actually disbursed.

“The central government has been authorised to pay the amount of refund towards state taxes to the taxpayers,” according to the 2019-20 budget. At present, the taxpayers file refund claims with the central tax officer, who clears half the claims, and the rest are cleared by the state tax authorities, leading to higher time taken in claim processing and refund sanctioning. Read the rest of this entry »

GST evasion: Govt plans big move to stop large-scale dodging

Source: Financial Express, Jun 11, 2019

With a foolproof system to match all transaction invoices being delayed inordinately, the Goods and Services Tax (GST) Council will soon have a facility to capture transactions of large B2B businesses on a real-time basis. The move will enable tax officials to close most routes of large-scale tax evasion, even as they fear the wait for nationwide invoice-matching system, that missed several deadlines, may get longer.

Once real-time reporting of transactions to a central portal starts, it will be practically difficult for the businesses concerned to reduce their tax liability by inflating the claims for input tax credits. According to official sources, the system would be implemented in phases and could finally cover most of the taxpayer base. Initially, it would be made mandatory only for relatively large companies involved in business-to-business (B2B) transactions, they added. Read the rest of this entry »

More items likely to go off highest GST slab

Source: ETRetail.com, Jun 10, 2019

NEW DELHI: India could review the goods and services tax (GST) structure to further prune the number of items in the highest slab of 28% as it attempts to stave off a slump in demand.

Some states have favoured a reduction in tax rates, worried that the slowdown may get entrenched, and have communicated their concern to the Centre.

The GST Council may meet on June 20, ahead of the budget presentation on July 5, and these issues could figure in the discussions. This will be the first meeting of the council to be chaired by Nirmala Sitharaman after she took over as union finance minister in the new government. Read the rest of this entry »

Government collects Rs 1,00,289 crore GST in May

Source: The Economic Times, Jun 01, 2019

For the third month in a row, government has managed to collect over Rs 1 lakh Goods and Services Tax (GST). India’s gross GST revenues in month of May, 2019 stood at Rs 1,00,289 crore, the finance ministry said today. The gross collection in May is, however, lower than Rs 1,13,865 crore collected in April, when it hit an all-time high. GST collections in March was Rs 1,06,577 crore.

The May collection figures are 6.67% higher in comparison to May, 2018. GST revenue in May, 2018 stood at Rs 94,016 crore. Revenue in May, 2019 is 2.21% higher than the monthly average of GST revenue in FY 2018-19, an official statement said on Saturday.

Central GST revenues in May, 2019 stood at Rs 17,811 crore, State GST at Rs 24,462 crore and Integrated GST at Rs 49,891 crore(including Rs 24,875 crore collected on imports) and Cess collections at is Rs 8,125 crore (including Rs 953 crore collected on imports).

“Total number of GSTR 3B Returns filed for the month of April up to 31st May, 2019 is 72.45 lakh,”Ministry of Finance said in a statement.

GST collection jumps to Rs 1.13 lakh crore in April, the highest since its rollout

Source: The Economic Times, May 01, 2019

The GST collections in April jumped to its highest level of Rs 1,13,865 crore since its roll out in 2017. While collections have been gradually increasing since August, they hit a record high last month of Rs 1.06 lakh crore, up from Rs 97,247 crore in the previous month, on the back of high compliance and increased number of returns.

The total gross GST revenue collected in the month of April, 2019, is Rs 1,13,865 crore of which CGST is Rs 21,163 crore, SGST is Rs 28,801 crore, IGST is Rs 54,733 crore, the ministry of finance said in a statement.

The ministry said the total number of GSTR 3B Returns filed for the month of March up to 30th April, 2019 is 72.13 lakh. The Centre has settled Rs 20,370 crore to CGST and Rs 15,975 crore to SGST from IGST as regular settlement. Rs 12,000 crore has been settled from the balance IGST available with the Centre on provisional basis in the ratio of 50:50 between Centre and the States.

Finance Ministry brings in changes in e-way bill system to check GST evasion

Source: ETRetail.com, Apr 24, 2019

The Finance Ministry has introduced changes in the e-way bill system, including auto calculation of distance based on PIN codes for generation of e-way bill and blocking generation of multiple bills on one invoice, as it seeks to crack down on GST evaders.

Touted as an anti-evasion tool, the electronic way or e-way bill was rolled out on April 1, 2018, for moving goods worth over Rs 50,000 from one state to another. The same for intra or within the state movement was rolled out in a phased manner from April 15.

With instances of malpractices in e-way bill generation getting detected, the revenue department decided to rework the system for generation of e-way bill by transporters and business. Read the rest of this entry »