Gem, jewellery exporters exempted from 3% IGST

Source: The Hindu Business Line, Jan 02, 2019

In a major relief to the sector, the Union government has accepted the Gem and Jewelry Export Promotion Council’s (GJEPC’s) demand to grant IGST-related exemption on the supply of gold by nominated agencies to exporters of articles of gold.

The GST Council recently announced that gem and jewellery exporters will no longer have to pay the 3 per cent Integrated Goods and Services Tax (IGST) to nominated agencies (banks) from January 1, 2019, said Pramod Kumar Agrawal, Chairman, GJEPC, on Wednesday.

He said the GST Council found it necessary to exempt the intra-State supply of gold as per the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when supplied by the nominated agency under the scheme for “Export Against Supply by Nominated Agency”. Read the rest of this entry »


GST rates of over 370 items reviewed in last 18 months

Source: The Hindu Business Line, Dec 30, 2018

Eighteen months after the rollout of the goods and services tax, the government had to revise rates and exempt or issue clarifications on close to 400 of the 1,216 items under the new indirect tax levy. The reduction in rates of 23 items by the GST Council in its meeting on December 22 has been preceded by at least four rounds of rate reviews on July 21 and January 18 this year, and November 10 and October 6 last year.

An analysis by BusinessLine showed that the GST rates on over 370 goods and services have been reviewed over the last 18 months, and at least 50 clarifications have been issued by government authorities on the rates of various products.

“While there has been an extensive movement of products across rate slabs after the introduction of the GST, these movements have helped businesses in having very reasonable rates for many products compared to the pre-GST situation. Since the intention is to eventually converge the 12 per cent and 18 per cent slabs into one rate, these movements serve as steps in that direction, ” said MS Mani, Partner, Deloitte India. Read the rest of this entry »

MNC units, Indian firms get tax notices for receiving FDI

Source: The Economic Times, Dec 22, 2018

MUMBAI: After slapping ‘angel tax’ notices on startups, the taxman’s attention seems to have turned to foreign direct investment (FDI) in multinationals and Indian companies where a ‘premium’ was paid over and above the ‘fair market value’ of shares.

The income tax department has started issuing notices to several companies that have received FDI, claiming that the ‘premiums’ they received on such transactions are ‘unexplained credits’ that can be held as income, people familiar with the development told ET.

This is similar to the so-called angel tax, which is applicable on capital raised by unlisted startups against issue of shares in excess of ‘fair market value’, on the ground that this excess amount is akin to “income from other sources”. Read the rest of this entry »

Govt orders restructuring of tax department

Source:, Dec 19, 2018

New Delhi: The government has ordered a fresh cadre review and restructuring of the income tax department with an aim to create a “caring but strict” direct taxes regime in the country.

The Central Board of Direct Taxes (CBDT), that frames policy for the I-T department, on Monday ordered the creation of a 12-member committee of senior officials to accomplish the task within the next three months.

The development assumes significance as another committee or task force to draft a new direct tax law to replace the existing Income Tax Act is already a work in progress, and has been asked by the government to submit its report by February 28. The new committee to undertake cadre review and restructuring of the department has been given a specific four-point charter to follow.

A copy of the terms of reference of the committee has been accessed by PTI and it said the panel will suggest ways to “organise the I-T department in a manner which will further promote compliance with direct tax laws through caring taxpayer service and strict enforcement.” Read the rest of this entry »

India finds a new way to tax Google, Facebook

Source: The Economic Times, Dec 17, 2018

New Delhi: India may be pushing Internet firms such as Facebook and Google to store data locally not just to safeguard critical data of its citizens but also to ensure due taxes are paid by these digital firms for services including advertisements sold to local clients, a senior official told ET.

The government’s push for internet companies to host data of Indian users in local servers is also due to concerns that they deliver services mostly from overseas, outside India’s tax jurisdiction.

“Who can the government tax? Any entity with presence here.  Read the rest of this entry »

Playing safe, govt may defer rollout of new GST returns system

Source: The Hindu Business Line, Dec 02, 2018

Mumbai: In what could well turn into a pre-poll relief for traders and businesses, the Centre may opt to delay the rollout of the new format of simplified monthly returns for the Goods and Services Tax (GST).

“This will have to be a decision by the GST Council. But given that businesses have struggled significantly with GST returns in the past, it may not be right to upset them, with State elections and more importantly, general elections just around the corner,” said two persons familiar with the development.

Current system to continue

This could potentially mean that taxpayers under GST are likely to be allowed to continue with the current system of filing GSTR-3B returns until May or June next year. A final decision on the issue will be taken by the GST Council. Read the rest of this entry »

₹29,088-crore indirect tax evasion detected in April-October period

Source: The Hindu Business Line, Nov 21, 2018

New Delhi: The investigation arm of the Finance Ministry has detected tax evasion of ₹29,088 crore in 1,835 cases during April-October period of the current financial year, a senior official said Wednesday.

Of this, the Directorate-General of GST Intelligence (DGGI), the enforcement agency for checking indirect tax evasion, has detected evasion of GST of ₹4,562 crore in 571 cases.

However, the bulk of the evasion was detected in case of service tax. The total number of cases where service tax was evaded stood at 1,145 involving ₹22,973 crore.

In case of central excise duty, the DGGI detected 119 cases where tax evaded was worth ₹1,553 crore. Read the rest of this entry »