Business Standard

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

(Illustration: Ajay Mohanty)

Illustration: Ajay Mohanty

Indivjal Dhasmana New Delhi
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

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Dec 27 2020 | 4:50 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to