Gst

MDR on UPI payments face 18% GST; registered biz can claim input tax credit

Experts say GST will raise the upfront cost of accepting eligible UPI payments, but registered businesses can offset the tax through input tax credit, subject to applicable rules.

UPI MDR above ₹2,000 may attract 18% GST; merchants can claim ITC

Merchants would have to pay 18 per cent GST on the Merchant Discount Rate (MDR) charges for UPI payments above Rs 2,000, but can claim input tax credit (ITC), thereby easing the overall tax burden, tax experts said on Wednesday. Effective October 15, UPI payments to merchants (P2M) above Rs 2,000 will attract a 0.4 per cent merchant discount rate with an overall cap of Rs 300. Besides, a flat concessional MDR rate of Rs 5 would be applicable on specific merchant categories such as railways, telecom services, insurance, and fuel for transaction above Rs 2,000. The share of P2M UPI transactions above Rs 2,000 has steadily increased from 15.1 per cent in FY23 to 20.1 per cent in the June quarter of FY27, reflecting a sustained shift towards higher-value merchant payments on UPI. Under the proposed framework, the MDR would be borne by the merchants as a charge for payment settlement services. Since the charge is to be borne by merchants for processing and settling digital payment ...

Mobile phone makers seek 13% GST cut amid demand dip, rising memory prices

Mobile phone industry body ICEA has written to the government seeking a reduction in GST on mobile phones to 5 per cent from the current 18 per cent amid a decline in domestic demand, especially due to rising memory chip prices. India Cellular and Electronics Association (ICEA) in a letter to Finance Minister Nirmala Sitharaman dated September 2 said India is now the world's second-largest mobile-phone manufacturer by volume, and mobile phones became the country's largest export product in FY 2025-26. The industry body, which represents the majority of mobile phone manufacturers, said domestic demand, however, has not kept pace with manufacturing and exports, as handset consumption has declined, replacement cycles have lengthened and the affordable smartphone segment remains under pressure. "This imbalance will constrain the next phase of manufacturing growth unless India restores momentum in its domestic market. ICEA therefore seeks the Government's intervention to reduce GST on ..

Madras HC order offers new hope for GST credit on properties built for rent

In the latest case, ESNP Property had built commercial properties for leasing and claimed credit for GST paid on construction. The tax department rejected the claim.

Delhi HC bars GST registration without biometric Aadhaar authentication

The Delhi High Court has ordered that Goods and Services Tax (GST) registration is no longer permissible without biometric-based Aadhaar authentication. A bench of Justices Anil Kshetarpal and Shail Jain passed the order on petitions alleging fraudulent GST registrations using the petitioners' PAN card and Aadhaar card numbers. In the order passed on September 8, the bench observed that earlier, while answering a question on fraudulent GST registration in Parliament, the minister concerned disclosed that in 2023-2024, there were 2,800 fraudulent GST registrations involving Rs 15,085 crore of tax evasion, and that in 20242025, there were 1,654 fraudulent registrations and 13,109 crore of tax evasion were detected. The bench said although it was also disclosed that biometric authentication through Aadhaar would be mandatory for GST registration, the statement had not yet been implemented, which resulted in continuous fake registrations using stolen or frozen PAN/Aadhaar details. Notin

West Bengal AAR says actual-cost electricity recovery not liable to GST

Authority says electricity charges recovered without any markup or profit, including for HVAC and common areas, can be excluded from the value of maintenance services

GST Council meet on Oct 7: Businesses seek seamless tax credit use

Businesses are seeking the ability to set off the tax liability of their unit in one state with the unused tax credit available with its arm other states.

Rajasthan govt seizes 44 vehicles in 3 weeks in tax evasion crackdown

Rajasthan tax department seizes 44 vehicles in three-week crackdown on suspected tax evasion

GST Council meeting postponed, likely to be held in Delhi on October 7

GST Council meeting postponed, likely to be held in Delhi on October 7

Eway bills rise 7.7% to 139.08 mn in August, third highest on record

August recorded the third-highest monthly eway bill count, signalling sustained momentum in goods movement and formal economic activity ahead of the festive season

Net GST revenue receipt up 8.3% in August at ₹1.68 trillion, shows data

Import-related GST revenue surged 29 per cent year-on-year, outpacing domestic growth, while net collections rose 8.3 per cent to ₹1.68 trillion

SC sets aside Tata Steel GST notice, flags mechanical plea of suppression

Supreme Court says tax authorities must establish foundational facts to allege fraud, wilful misrepresentation or suppression before invoking extended limitation

Govt examines easing blocked GST credit on construction for own use

Centre is discussing the issue with states amid industry concerns that denial of input tax credit on construction of own-use assets raises the cost of large investments

Gujarat High Court bars retrospective GST on corporate guarantees

Gujarat High Court has barred GST on corporate guarantees issued before October 26, 2023, while retaining the 1% valuation mechanism for guarantees continuing beyond that date

Best of BS Opinion: Time to rethink Tata Sons, Tata Trusts relationship

Today's pieces examine Tata Sons' governance, India's compliance maze, the next phase of GST reforms, West Bengal's investment record and a book on entrepreneurial failure

CAG flags ₹401 cr GST lapses in works contracts; revenue dept accepts

The CBIC accepted observations in 903 of the 1,334 cases detected by the auditor, involving Rs 268.36 crore, and has recovered Rs 15.88 crore so far.

Nine years on, GST needs a more ambitious reform agenda starting now

The discussion on addressing its remaining shortcomings, including features adopted as compromises at the time of implementation, should start now policy pillars

FISME urges CBIC to introduce safe harbour for bona fide buyers

Industry body FISME has urged the CBIC to protect bona fide GST buyers from suppliers' defaults, expedite refunds and simplify compliance to improve ease of doing business

Pending GST refund claims decline sharply over past two years: Govt

The pendency of GST refund claims has come down significantly over the past two years as of March 31, 2026, Parliament was informed on Monday. In a written reply to the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said 64 claims involving a refund amount of about Rs 164 crore were pending for more than 60 days but up to 90 days as of March 31, 2026. This is significantly lower than 907 claims involving a refund amount of Rs 274 crore at the end of FY24; and 374 claims involving a refund amount of Rs 246 crore as of FY25. With regard to GST refunds, which are pending for more than 90 days, the number of claims has come down to 110 involving a claim of Rs 64 crore as of March 31, 2026. This corresponds to 1,592 claims involving a refund of Rs 696 crore as of FY24 and 712 claims worth Rs 560 crore as of FY25. Chaudhary said the delay in processing of refund claims is mainly on account of delayed submission of documents and delayed submission of replies by the taxpayers i

Gross GST collection kitty swells 15.4% to over ₹2.11 trillion in July

Gross GST collections grew 15.4 per cent to over Rs 2.11 lakh crore in July on higher mop-up from domestic transactions and imports. Gross GST collections were Rs 1.83 lakh crore in July 2025. It was about Rs 1.95 lakh crore last month. Gross Central Goods and Services Tax (CGST) revenue during the month stood at Rs 39,835 crore, while State GST (SGST) and Integrated GST (IGST) mop-up were Rs 47,881 crore and over Rs 1.23 lakh crore, respectively. Total refunds during July grew 13.1 per cent to Rs 29,968 crore. After adjusting refunds, net GST revenue stood at over Rs 1.81 lakh crore.