After two high courts flayed the government over the working of the GST Network — the firm handling the IT infrastructure for GST — the government has decided to allow individual firms to continue to claim transitional credits even though an earlier deadline was December 27, officials told FE.
The government could turn less ambitious on the invoice-matching mechanism, one of the crucial anti-evasion measures in the goods and services tax (GST) regime, as it now reckons that cost of complying with then system to taxpayers and the tax department far outweighed the potential gains by way of plugging revenue leakages.
The pace of goods and services tax (GST) revenue, which gathered momentum in December after hitting a nadir in November, has accelerated further in January.
Budget 2018-19 has gone a step further: It clarified that foreign companies in specified infrastructure sectors, which operate in the country with permanent establishment (PE) — read branch offices — but are under Section 44BB, given the facility of paying tax on a presumptive income basis won’t have to dread MAT.
Analysts said given that the crash of the e-way bill portal on February 1 led to stoppage of merchandise movements across the country, a non-synchronous launch of the system could cost the industry dear.
Budget 2018: After a hiatus, the Budget 2018 brought back a 10% tax (without indexation) on long-term capital gains (LTCG) arising from sale of listed equity if the amount is above Rs 1 lakh.
To encourage compliance in the face of most taxpayers, especially SMEs, complaining that filing GST returns is very complicated, GST Network has decided to provide free accounting/billing software to firms that also has the facility to auto-generate the necessary GST reports.
The easier returns-filing system being put in place by the Goods and Services Tax (GST) Council may even dispense with the summary return form GSTR 3B eventually.
Budget 2018: In case of health insurance policies, the taxpayer is entitled to a deduction of Rs 25,000 (Rs 30,000 for senior citizens) which was last changed in Finance Act 2015, considering the current inflation in healthcare cost there is a further need to increase the deduction limit.
If the Goods and Services Tax (GST) Council insists on electronic way (e-way) bill for moving goods above certain worth along certain distance despite a section of the industry calling it disruptive of trade and economic activity, it is not for nothing.
Even after the tax department casting a critical eye on the unexpectedly high claims of transitional credits by businesses paying the goods and services tax (GST), such credits have soared to upwards of Rs 90,000 crore till the December 27 deadline, up nearly 40% from September, sources told FE.
Firms asked to submit FY17 P&L, balance sheets and invoices of raw materials used in the products.
After spending nearly a decade in the workshop, the Goods and Services Tax (GST) completed six months of existence by 2017-end.
This means their average sales are Rs 8 lakh a year, but firms with turnover below Rs 20 lakh don’t need to file anyway
The Goods and Services Tax Council may consider merging triplicate comprehensive tax return forms (GSTR-1, 2 and 3) into one consolidated form.
The chances of at least a modest fiscal slippage for the Centre in 2017-18 appeared increasingly likely on Tuesday, after official data said November goods and services tax (GST) collections were just Rs 80,808 crore, down from around Rs 83,350 crore revenue garnered in October till the
corresponding reporting time, and much lower than a comparable monthly average of close to Rs 92,000 crore in the July-September period.
This was when salary income — the largest source among individual taxpayers — was shown as nil by a substantial 54% of the 4.07 crore people who filed tax returns in the year. For a comparison, none reported salary income higher than Rs 100 crore in FY12.
All start-ups have to register with the government and there is a tedious procedure to get tax exemptions; the definitions were also subjective since, for instance, the start-ups had to be ‘innovative’.
Under GST, movement of goods worth above Rs 50,000 beyond 10 kilometres requires the supplier/transporter to generate an e-way bill number on the GSTN portal and carry it or its virtual form during the course of transit and present it to tax inspectors on demand.
Even though the tax department has set aside a clutch of orders sent to IT companies reversing their tax exemptions in respect of IT/IT-enabled services (IT/ITes) provided to clients abroad and also slapping service tax and penalty on them, tax experts said the “technical issue” could linger.
Saddled with a massive amount of unverified input tax credit (ITC) claims from the taxpayers, the government fears that the goods and services tax (GST) revenue for November could be lower than Rs 80,000 crore. Government officials told FE that deferment in filing comprehensive triplicate forms (GSTR-1,2 and 3) has left the government with no viable option to check veracity of taxes paid and credits claimed.
The finance ministry on Monday moved the Supreme Court seeking a stay on the Delhi High Court’s October order that allowed the Vodafone Group to go ahead with its second arbitration proceedings against India under a treaty with the UK in connection with a tax demand, Rs 20,000 crore when last reported, on the company over its $11-billion acquisition of Hutch’s stake in Hutchison-Essar in 2007.
The government may have no option but to abandon its soft approach to a section of taxpayers who are presumably evading payment of their due share of goods and services tax.
CBEC has mentioned certain objections raised by the taxpayers in sharing the required information and also suggested ways to counter such resistance.
Tax commissioners to collect granular data of taxes paid, credit availed for July-Oct and compare the same with figures from corresponding period of last fiscal.
FE had recently reported there have been a few complaints lodged at the state-level screening committees before the NAA was set up.
While the October revenue mop-up declined to `83,000 crore, the government as well as tax experts believe that it could be impacted further for at least two subsequent months