GOODS AND SERVICES TAX GST REFORM
GST Council clears "track and trace" mechanism, cigarettes and pan masala likely first targets
The GST Council will track cigarettes and pan masala to stop tax evasion. A unique code will be placed on products. This will help the government follow the products. The government loses lots of money from illegal cigarette sales. This new system will help recover that money. Similar systems are used in other countries.
New advisory by GSTN: GST E-Way Bill rules changed; Buyers¡¯ input tax credit is at risk if seller does not follow these new rules
GST: A new advisory by GSTN alerted taxpayers about changes being made with E-Way Bill generation time limits which is now reduced to 180 days from the date of the base document. ¡°For instance, documents dated earlier than July 5, 2024, will not be eligible for e-waybill generation starting January 1, 2025.¡±
Unique ID to be deployed to check GST evasion in select commodities
India is introducing Unique Identification Marking (UIM) for specific goods like tobacco to combat tax evasion. Non-compliance will result in penalties. The GST Council approved this 'track & trace' mechanism, defining UIM as a secure, non-removable digital mark. This system, inspired by the WHO protocol, will track products throughout the supply chain, detailing manufacturing information and pricing.
GST Council meet: Ordering from Swiggy, Zomato may get cheaper; health insurance exemption on cards
The GST Council is set to discuss several changes, including reducing tax on life and health insurance premiums, food delivery platforms, and aviation turbine fuel. It may raise taxes on luxury goods like wristwatches, shoes, and apparel, and introduce a 35% tax for sin goods.
GST Council defers decision on insurance tax cuts amid lack of consensus among states
The GST Council postponed a decision on lowering GST rates for life and health insurance premiums during its 55th meeting. The Group of Ministers (GoM) will reconvene in January to address technicalities concerning the taxation of various insurance policies. A proposal to exempt certain premiums from GST was discussed, but a final decision is pending further consultations.
GST Council meeting begins: Tax rate on electric cars, food delivery apps and flavoured popcorn on cards
The 55th GST Council meeting in Jaisalmer deliberated on tax relief for insurance, increasing the tax rate on used EVs to 18%, clarifying the levy on food delivery apps, and potentially exempting gift vouchers from GST. A final decision on reducing insurance premiums and raising taxes on luxury items is pending, with states holding divergent views on certain proposals.
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Budget 2025: Understanding GST and its impact on India's Budget
India's Goods and Services Tax (GST), implemented in 2017, is a crucial revenue source for the government. Strong GST collections, like the ?1.82 lakh crore in November 2024, indicate a healthy economy. These collections directly impact government spending and budget planning, influencing development and welfare programs. Meeting or exceeding collection targets is vital for funding national growth initiatives.
Budget 2025: Will FM Nirmala Sitharaman increase 'sin tax'?
The Indian government held steady on sin taxes for tobacco in the latest budget. Cigarette taxes remained unchanged. A proposed 35% GST on sin goods like tobacco and aerated drinks is under consideration. This could hike prices. India's tobacco taxes are below the WHO's recommended 75% of retail price.
Realty developers urge govt to reconsider proposal to bring FSI, additional FSI under GST
Indian real estate developers are worried. A proposed 18% GST on floor space index could increase housing prices. The developers' body, CREDAI, warns of a 7-10% price hike. This impacts affordability and the 'Housing for All' mission. CREDAI says the tax will hurt both supply and demand. A GST council meeting will discuss the issue.
Realtors get notices questioning ?3,500 cr input tax credit claims
GST authorities have issued show cause notices to several property developers, questioning roughly ?3,500 crore in input tax credit claims following a Supreme Court ruling. Developers are contesting the notices, arguing that officials are misinterpreting the ruling and unfairly denying legitimate credits. The court's decision allows ITC claims for rental properties under specific conditions, leading to disputes over eligibility.
No late fees for filing GSTR-7 after deadline; Here¡¯s why these taxpayers still need to file it to avoid serious consequences
GSTR-7 due date: New advisory by GSTN says even if the due date for filing GSTR-7 is missed, taxpayers filing a 'Nil' GSTR-7 return will not have to pay any late fees. The deadline to file GSTR-7 is December 10, 2024 for November 2024 tax period. Read below to know why you must file GSTR-7, which has been made sequential from October 2024 onwards.
GST registration: Register for GST via biometric-based Aadhaar authentication and document verification in these states
GST registration in Haryana, Manipur, Meghalaya, and Tripura will now involve biometric Aadhaar authentication and document verification. Under this, some applicants might be required to visit a GST Suvidha Kendra to complete biometric verification. Read on to find out who will be required to visit the GST Suvidha Kendra for biometric verification, and in which states is this facility already active.
Govt hiking tax rates for common man, giving concessions to billionaires: Rahul Gandhi
Rahul Gandhi criticizes the Modi government for increasing income tax and GST rates for the common man while providing concessions to billionaires. He highlights the proposed GST slab increase and the rise in GST on clothes, calling it an injustice. Gandhi pledges to oppose these tax hikes and fight for the poor and middle class.
Deadline for filing GSTR-7 is December 10, 2024 for these GST registered taxpayers even if TDS was not deducted
GST return: Now you need to file GSTR-7 even if no TDS (tax deducted at source) was deducted. "GSTR-7 return is to be filed in chronological order, beginning with the return period of October 2024. It is pertinent to mention that for a month in which no deduction has been made, deductors need to file Nil return for the same month," said GSTN.
Have high hopes from GST cut on health, life insurance? Here's why a drastic fall is unlikely to benefit policyholders
GST on insurance: The public demands lowering of GST rate on insurance products as it is too high. However industry experts warn that if the GST rate is cut from 18% to 5% without input tax credit is not given then instead of making the premium affordable, the premiums will rise.
Reports of GST rate changes on various goods and services speculative: CBIC
The Central Board of Indirect Taxes & Customs (CBIC) clarified that media reports about GST rate changes recommended by the Group of Ministers (GoM) are speculative. The GoM, composed of state ministers, is yet to finalize and present its recommendations to the GST Council. The Council will consider these recommendations in their next meeting.
Central tax officers book 12,803 GST evasion cases in Gujarat in 4 years, 101 persons arrested
Finance Minister Nirmala Sitharaman revealed that 12,803 GST evasion cases were booked in Gujarat from 2021-2024, with 101 arrests. In a related update, Minister Pankaj Chaudhary provided GST collection details, noting a significant rise in gross revenues and issued refunds over the past five financial years, with current fiscal collections reaching Rs 12.74 lakh crore.
Up to 75 pc of GST revenue comes from 18 pc slab: MoS Finance
Around 70-75 percent of GST revenues in 2023-24 came from the 18 percent slab. Only 5-6 percent was from the 12 percent slab. The highest 28 percent slab contributed 13-15 percent. The 5 percent slab accounted for 6-8 percent. The GST Council is considering rate rationalization to boost GST revenues.
GST e-invoicing: GSTN releases list of 5 approved mobile apps for fast verification of GST invoices, easy input tax credit claim
GST invoice verification: New advisory by GSTN in respect of availability of five official apps for e-invoice verification. Experts say that these apps solve a lot of problems like faster verification of e-invoices which may lead to faster claim of input tax credit and also help in reducing litigations and subdue the problem of fake GST invoices.
GST collection rises 8.5 pc to Rs 1.82 lk cr in November
GST collection increased to Rs 1.82 lakh crore in November, an 8.5 per cent rise from the previous year. Central GST was Rs 34,141 crore, State GST at Rs 43,047 crore, Integrated IGST at Rs 91,828 crore, and cess at Rs 13,253 crore. The total collections from April to November stood at Rs 14.57 lakh crore.
Attention GST taxpayers: November 30, 2024 is last day to claim pending input tax credit by filing GSTR 3B
GST input tax credit: GST taxpayers who are yet to claim any pending input tax credit for FY 2023-24 can do so by filing the GSTR 3B form today. If today's date is missed in claiming the input tax credit, then he/she may lose out on the benefit of ITC to offset the GST liablity.
Need to simplify GST and reduce cess: Ex CEA Subramanian
India's GST regime is highly complex with over 50 different cess rates, possibly reaching 100, highlighting the need for reform. Former Chief Economic Adviser Arvind Subramanian emphasizes the need for simplification and rate rationalization, while addressing issues of excessive tax demands and tax terrorism under the current system.
Government earned Rs 4,792 crore GST on education services in FY24; check which services are exempt
Goods and Services tax: Pankaj Chaudhary, minister of state in the ministry of finance said in Lok Sabha that the government has earned Rs 4792.4 crore on taxing various education services which are currently not exemtp from GST. However certain education services still attract nil GST, read below to find what the minister said.
Dabur India shares in focus after receiving Rs 320.6 crore GST demand
Dabur India faces a confirmed GST demand of ?320.6 crore plus interest from the CGST Commissionerate, Chandigarh. While the penalty has been dropped, the company is reviewing the order and exploring legal options. Dabur assures this won't affect operations and the financial impact is limited to the final tax liability.
This change in GST annual return if not checked properly can result in input tax credit mismatch
Goods and services tax: GST annual form GSTR-9 has a significant change which if not properly checked can result in input tax credit mismatch. ?Manmeet Kaur, Partner, Karanjawala & Co says: "Under the revised instructions, table 8A of GSTR-9 will now be based on GSTR-2B, replacing the previous reliance on GSTR-2A The input tax credit will be reported based on actual utilisation under table 6 based on returns filed under the same financial year."
GSTR-3B deadline expired: File now to avoid input tax credit loss, GST registration cancellation
Goods and services tax: The deadline to file GSTR-3B was November 20, 2024 and November 21, 2024 for Maharashtra and Jharkhand. If you have missed filing this return then do note the penalty for non filing of GST return may even result in cancellation of GST registration if you do this for straight six months. File GSTR-3B by paying a late fee by November 30, 2024 to claim any pending input tax credit for FY 2023-24.
GSTR 2B input tax issue: A new advisory by GSTN on how to fix it for FY 2023-24
Goods and services tax (GST): The GSTN in an advisory said that if you are facing the issue of non-generation of GSTR 2B which is a statement of input tax credit you can avail then the following might be the reason. ?Chartered Accountant Akhil Pachori says that buyers will not be able to claim input tax credit for pending invoices of FY 2023-24 if the supplier has not filed GSTR 1.
Faster ITC claim: Now suppliers can see & take action on whether buyer rejected the invoice or accepted it on the new IMS portal of GST
Goods and services tax (GST): The goods and services tax network (GSTN) has implemented a new feature inside the invoice management system (IMS) on the GST portal where suppliers can see whether the buyer has accepted or rejected the invoice saved by them. Experts say this is positive for buyers as now they will be able to claim input tax credit faster due to faster rectification of errors.
New GSTN feature to correct mistakes in GST invoice matching process for claiming input tax credit; Know how it works
Input tax credit: The goods and services tax network (GSTN) has introduced a solution to help GST registered taxpayers into claiming the correct amount of input tax credit despite human error by the supplier in the invoice. GSTN said that the Invoice Management System (IMS) is still new so GST registered recipients may take some time getting used to this system.
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