Sumit Jha

Articles By Sumit Jha

571 Articles

Undue Protection? State GST ‘shortfall’ for March-May at a whopping Rs 80,000 crore

What has inflated the compensation requirement is a sharp fall in revenue in April-May due to the Covid lockdown: the gross GST collections shortfall during the two month was over 50%.

New GST registration approvals get delayed

While the cause of delay wasn’t clear even to individual tax officials FE spoke with, a central tax official said the lack of manpower due to Covid-19 could be one the reasons, even though the number of applications drastic

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Govt firm on ‘equalisation levy’, CBDT empowers staff

The levy is often referred to as ‘Google tax’ and is applied at the rate of 6% on payments for digital advertisement services received by non-resident companies without a permanent establishment (PE) here if these exceede

Business picking up: GST compliance rise to half of usual level

CRISIL predicts India’s growth to fall off the cliff and contract 5% in fiscal 2021, mowed down by the Covid-19 pandemic.

Bihar, Jharkhand transfer via apps Rs 1,000 each to 21 lakh migrant workers

Faced with the challenge of providing relief to migrant labourers stuck in other states during April — before transportation became available on May 1 — Bihar has developed a mobile application (app) which could perform b

Jharkhand followed suit with a similar app, and both the states between them transferred Rs 1,000 each to nearly 21 lakh recipients.

GST Council to mull market borrowings to bridge shortfall in compensation cess collection

Apart from the Centre and states which have raised their market borrowing plan for the current fiscal year amid a big revenue shortfall, the Goods and Services Tax (GST) Council may also take an unprecedented step by resolvin

The borrowed funds could be repaid by extending collection of cess, which is now limited to the five years till 2022, to one or two subsequent years.

Covid crisis: Why Centre feels GST waiver could be a bad idea

However, some experts said instead of GST waiver across the board, an exemption on certain essential items could be implemented.

Demand for GST waiver a bad idea, say govt officials

Furthermore, keeping GST in abeyance would allow imports to gain an unfair advantage over domestically manufactured goods, they felt.

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Bihar claims to have spent Rs 5,000 crore to fight Covid-19

Bihar has estimated that relief measures so far in the wake of Covid-19 stand at a minimum of Rs 5,000 crore, which includes direct cash transfers, transportation cost and expenditure involved in keeping returnees in isolatio

Rs 7,800-crore revenue loss on tax-related relief measures

The government has lost `7,800 crore in revenue due to tax-related relief measures announced since March 22 — when the lockdown began.

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GST on director salaries: Firms receive notices despite diverse AAR rulings

Even as authorities of advance rulings (AARs) differ on the liability to pay the GST on salaries paid by firms to directors, some states have already started issuing notices to companies.

GST, goods and services tax, indirect tax, tax cut, gst cut

Economic activities picking up? E-way bills on GST site double from April level

However, in March, which is otherwise the busiest month of the financial year, the average e-way bills generated dropped to 13.1 lakh/day due to lockdown imposed in the last week of month.

GST, goods and services tax, indirect tax, tax cut, gst cut

Tax collections to decline further in May, state’s fiscal deficit may touch 4% in FY21: Sushil Modi

The revenue situation will only get worse next month as the lockdown in the whole of April would be reflected in collections in May, said Bihar Deputy CM Sushil Kumar Modi.

We are looking at about 20% of “own tax” revenue collection in April compared with the collection in the same period a year ago.

Lockdown effect: States’ tax receipts shrink nearly 80% in April, May could be worse

State governments seem to have collected the lowest-ever inflation-adjusted monthly tax revenue in April.

Supposing the buoyancy in FY21 to be 0.5, the same level as in FY20, and nominal GDP growth at 8%, the shortfall from the budgeted gross tax receipts in FY21would be a massive Rs 2.2 lakh crore.

SEZ units may get I-GST waiver for DTA supplies

Additionally, the revenue department is also considering treating a section of MSMEs under the GST scheme for composition dealers, so that they are taxed at concessional rates till the Covid-19 crisis blows away.

Supplies from SEZ to DTA are considered to be imports and are levied with integrated GST (IGST), which is in addition to basic customs duty.

April GST collections seen down 40%, May mop-up too to be hit

The situation could persist in April too, hitting May collections. Currently, collections are only a fifth of normal, a state government functionary told FE.

Another source of GST revenue that is likely to be completely decimated is integrated GST on imports.

Double Whammy: Tax slump and Central funds cut hit states

The interim report of 15th Finance Commission for FY21 doesn’t provide for extra headroom over and above the mandated fiscal deficit ceiling of 3% of respective state GDP.

fiscal defcit

COVID-19 Fallout: Direct tax receipts decline after 20 years

The sluggish receipts also imply a fall in direct tax buoyancy to a multi-year low of (-)1 in FY20, a sharp slide from a creditable 1.6 in FY18 (thanks to demonetisation) and 1.2 in FY19.

The last time the Centre's direct tax receipts contracted was in FY99, when these were down 3.5%, on year.

Covid-19 impact: Centre’s FY21 fiscal deficit seen at 5% or higher

Actual combined government deficit — Centre and states — could even reach double digit level next fiscal, frustrating FRBM mandate

Covid-19 impact, fiscal deficit,FY21, GDP size, FY21 deficit, nomura, PSUs, FCI, GDP growth, ACTUAL DEFECIT, FRBM

Tax evaders fill coffers with empty beer bottles

Margin scheme is employed in such transactions to avoid double taxation, as the goods, having once borne the incidence of tax, re-enter the supply and the economic supply chain.

They are sold to breweries at a price which is almost always fixed for a specific buyer for a certain period under a contract.

Growth pangs: Budget plans may go haywire as Covid-19 wreaks havoc

If buoyancy doesn’t improve — it likely won’t — growth slump to depress FY21 gross tax by a massive Rs 2.2 lakh crore

Supposing the buoyancy in FY21 to be 0.5, the same level as in FY20, and nominal GDP growth at 8%, the shortfall from the budgeted gross tax receipts in FY21would be a massive Rs 2.2 lakh crore.

Centre’s FY20 revenue seen Rs 75,000 crore less than budgeted

Last year, the RBI gave an interim dividend of Rs 28,000 crore to the Centre in March, allowing it to prevent the deficits from enlarging from the RE levels. It is possible that RBI could issue an interim dividend by March 31

The Centre’s share from the indirect tax dispute resolution scheme, that was under implementation between October 2019 and January 15, 2020, is estimated to be Rs 20,000 crore.

SGST short of FY20 target by a quarter

The states’ own GST revenues — SGST receipts minus the compensation from the Centre — were short of the aggregate protected level by `1.15 lakh crore or 23% in April-February this year, according to data reviewed by FE.

GST query: Vendors on e-commerce platforms get notices

Large-scale evasion is suspected as taxpayers seem to have under-reported sales and paid lower taxes in self-declared returns.

More GST funds for states: New imposts, cess hikes preferred ways

As a comprehensive GST rates overhaul may be postponed for a later date — finance minister Nirmala Sitharaman recently said she preferred the system to stabilise before another major rates rejig.

GST receipts get a compliance boost as efforts to increase collections pay off

Despite slowdown and below-RNR rate structure, a slew of steps by govt help improve collections

This has aided collections from domestic transactions even as GST collections from imports have taken a hit from deep contractions in inward shipments since June.

ITC-invoices mismatch: Huge sums sought as GST credit denied

An analysis by the GST department showed that as much as 39% or Rs. 2.5 lakh crore of ITC claimed by taxpayers in FY18 remained unmatched with the invoices uploaded by their suppliers.

In October, the government inserted a a clause in GST rule saying that a taxpayer filing GSTR-3B (monthly summary return) can claim provisional input tax credit only to the extent of 10% of the eligible credit available in GSTR-2A.
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