If goods and services tax (GST) rates are increased on non-essential items, sources said it will further bring down their demand and impede the overall economic recovery.
Ministry sources said that in the present economic scenario during the COVID-19 pandemic, any purported proposal of introducing a calamity cess would be nothing less than an adversity itself. This would prove to be counter-productive, as sales are already at low volume and the industry is facing a deep crisis for want of demand and likely labour challenges, a source said.
Tax authorities have been issuing deficiency memos for some incomplete refund claims beyond the stipulated time of 15 days, forcing taxpayers to refile applications, people familiar with the development said. However, the refiled applications are treated as new and in many cases.
The inquiries come on the heels of conflicting orders passed by the Authority of Advance Ruling in two states on the applicability of GST on the remuneration of directors. The AAR Rajasthan said director remuneration is under the ambit of GST, while the AAR Karnataka ruled it was not.
Tax considerations resulting in cost saving measures, credit optimisation etc would fall under the new ‘must haves’ category vis-a-vis routine compliance and filings matters, which may not warrant any significant attention or management time.
In a letter to Finance Minister Nirmala Sitharaman, the Confederation of ATM Industry (CATMi) mentioned that it has been recognised by the government as a crucial player to further the financial inclusion. The COVID-19 situation has caused a sharp decline in the ATM transactions and has posed severe business challenges to the ATM industry, the CATMi stated.
In a notification dated May 5, the Central Board of Indirect Taxes and Customs (CBIC) has allowed registered persons to furnish GSTR-3B verified through electronic verification code between April 21 and June 30. This was not permitted earlier.
India Inc’s first attempts to move goods across states after the easing of lockdown curbs were hobbled by expired e-way bills which made it near impossible for transporters to cross checkpoints.
As per the current goods and services tax (GST) audit guidelines, taxpayers have been broadly categorised into three groups based on their annual turnover -- large, medium and small.
State finance ministers, during a video conference on Monday, also discussed issues arising out of the lockdown, including the urgent requirement of some form of aid for micro, small and medium enterprises, which have been affected the most, besides relief for the services sectors.
Other proposals include switch to a cash-based tax system from current invoice-based one.
On the day of announcement of lockdown, most of these investigations were underway and have now been stalled as most lower level revenue authorities were operating on the conventional printed document model.
The Government also said it would provide immediate relief to the business entities and individuals by releasing all the pending income-tax refunds up to Rs. 5 lakh, immediately.
Mobile phones will be charged 18% GST from April 1, compared to 12% earlier, while all kinds of matchsticks will be charged a 12% GST versus a range of 5% to 18%. Maintenance and repair operations (MRO) services required for aircraft will be charged 5% GST, lower from the earlier rate of 18%, with full input tax credit.
An intelligence firm that tracks the smartphone market has cut this year’s growth estimate to 5.5% from 8% earlier. Realme has estimated that phone prices could go up by 12-15% for reasons including fluctuation in rupee-dollar exchange rates, impact of Covid-19 on the supply chain for components, an increase in memory prices of smartphones, and higher GST.
Finance Minister Nirmala Sitharaman said companies which have less than Rs 5 crore turnover will not have to pay interest, late fee or penalty.
Addressing the media after the meeting, Finance Minister Nirmala Sitharaman also said that a better GSTN system to be ensured by Infosys by July 2020.
Measures to check export valuation, including capping of value for calculating export benefits and incentives, were also discussed and proposed for further examination.
The Council would also discuss operational glitches on the GST Network portal and seek a resolution plan from Infosys, which has won the contract for managing back-end for GSTN in 2015. The Council would also discuss the integration of the GST e-way bill system with the NHAI's FASTag mechanism from April to help track movement of goods and check GST evasion
As per reports, Infy chairman Nandan Nilekani will have to make a presentation during next GST Council meet.
The government is considering deferring the implementation of e-invoicing under goods and services tax (GST) by three months to July 1.
Amid slowdown in the sector, the committee, among other things, recommended to either suspend or postpone the upfront payment of insurance for 5 years for the time being and reduction in GST rate to a lower slab "at least till the revival of the auto sector". Further, it made a case for introduction of incentive-based scrappage policy for creating purchase demand for new vehicles.
Officers of the Central GST Delhi East Commissionerate detected that the fraudulently availed input tax credit by these firms was used to file refund claims to the tune of Rs 11.55 crore, an official statement said.
Small business owners often voice a few queries related to input tax credit (ITC). This article seeks to answer some of the commonly asked questions and list out the key changes in the process.
The customers remain in custody of their business data, while getting access to it using a simple web browser. It is our first major product release towards the journey of bringing even more powerful solutions which leverage the internet for our customers.
Jerseys, pullovers, cardigans, waistcoats made of cotton/ man-made fibres (MMF), trousers, shorts made of cotton/ synthetic fibres, hosiery, T-shirts, singlet and tracksuits are the top ten Chinese products exported to the US where India also has a presence.
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.
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