FinMin backs new GST rule, says it's not for MSMEs, certain I-T payers

Asserts that the move to ask companies above a threshold to pay one per cent of GST liability in cash targets fake invoicing

The Finance ministry today defended the recent move of asking companies above a threshold to pay at least one per cent tax liability through cash under the goods and services tax system, on the grounds that it will impact only risky or fly-by-night operators. Earlier a section of traders cried foul over the new rule, sayin it would apply to just 40,000-45,000 taxpayers, representing 0.37 per cent of the total GST base.

Last week, the Central Board of Indirect Taxes and Customs (CBIC) had inserted a rule under the Central GST Act that businesses with monthly turnover of over Rs