Page 50 - Gst

Traders' body CAIT makes a case for lowering GST rate on beverages from 28%

Traders' body CAIT on Monday made a case for lowering the GST rate on beverages from 28 per cent, which comes to 40 per cent after inclusion of cess, arguing that it blocks the working capital of small retailers. The Confederation of All India Traders (CAIT) urged the union finance minister to consider reducing GST rate on beverages and suggested that India should move to a Sugar Based Tax (SBT) system keeping the tax slabs proportional to the sugar in products, which means, higher the sugar in products, higher the tax. "For beverages that are in the low and no sugar category, this will reduce taxes, opening up capital for the retailers to make more purchases, increase sales and double their incomes. This also benefits the common man significantly, by reducing their household costs at the same time," CAIT stated. The traders' body said it will launch a campaign among stakeholders and citizens to forge an alliance with other verticals of the economy like farmers, transporters, SMEs,

Weekend Bites: Corporate Samurai keels over, and big deal that's Met Gala

In which we munch over the week's platter of news and views

Taxmen to conduct special drive to weed out fake GST registrations

The CBIC will undertake a two-month-long special drive to detect fake GST registrations and take action to identify the masterminds/beneficiaries as it aims to weed out fake ITC claims. Fake/non-genuine registrations are being used to fraudulently pass on input tax credit (ITC) to unscrupulous recipients by issuing invoices without any underlying supply of goods or services or both. This menace of fake registrations and issuance of bogus invoices for passing fake ITC has become a serious problem, wherein fraudulent people engage in dubious and complex transactions, causing revenue loss to the government, the GST Policy wing of the CBIC said. "A Special All-India Drive may be launched by all Central and State Tax administrations during the period 16th May 2023 to 15th July 2023 to detect suspicious/fake GSTINs and to conduct requisite verification and further remedial action to weed out these fake billers from the GST eco-system and to safeguard Government revenue, the Central Board

GSTN advises taxpayers to plan return filing to avoid last-minute rush

GST Network has advised taxpayers to plan return filing and invoice uploading better and avoid the last-minute rush, which results in the clogging of GST systems. It said that 20.05 lakh GSTR-3B returns were filed on April 20 -- the last day for filing tax returns for sales in March, resulting in a waiting queue on the GST system and causing inconvenience to some of the taxpayers. Around 45 per cent of the returns filed on April 20 were either NIL returns (no tax liability and no ITC availment) or were such returns where no tax was paid in cash. It also highlighted that some taxpayers are uploading a large number of invoices (up to 27 lakhs) of the past period in one GSTR-1 on the due date of filing. "Taxpayers are advised to inculcate a month-wise return filing discipline for all the B2B invoices for the month and avoid reporting invoices of the past period in one go, as such behaviour can adversely impact the queue (waiting time) on the GST system," GSTN said in an advisory to ..

GST and states, a reality check of how indirect tax system is working

Early fears about the regime have not come true, but there is room for improvement

Record GST collection but IGST on imports fell 5% on lower commodity prices

If this trend continues, the decline in IGST might indicate weak customs duty collections in FY24

April GST collection of Rs 1.87 trn is robust, reasonable, says Icra

According to Jalan, the Central Board of Indirect Taxes and Customs (CBIC) is expected to achieve more, which it has not in April 2023 wherein the growth in GST Collections is exactly 12 per cent

GST collection hits an all-time high of Rs 1.87 trillion in April

April 2023 also saw the highest ever tax collection on a single day. "On April 20, Rs 68,228 crore was paid through 9.8 lakh transactions," the ministry said in a release

CBIC to introduce automated GST scrutiny system by next week: FM Sitharaman

Finance Minister Nirmala Sitharaman on Saturday asked the Central Board of Indirect Taxes & Customs (CBIC) to increase the taxpayer base and introduce an automated GST return scrutiny system by next week. The total Indirect Tax collections for the 2022-23 fiscal stood at Rs 13.82 lakh crore, up from Rs 12.89 Lakh crore in 2021-22. The average gross monthly GST collection for 2022-23 stood at Rs 1.51 lakh crore and monthly GST revenue collections exceeded Rs 1.4 lakh crore for 12 months in a row. In a review meeting with the CBIC, Sitharaman desired that the indirect tax body may undertake a comprehensive root cause analysis of fake billing and input tax credit claims by studying the typology of cases already booked and come up with recommendations on technology-based solutions to address the menace and prevent its occurrence. The Finance Minister directed CBIC to introduce its automated GST return scrutiny by next week and to implement an action plan to increase the taxpayer base .

ICICI Pru refutes GST dept contention of tax liability due to ITC claims

ICICI Prudential Life Insurance on Wednesday said it has refuted the contention of the GST department with regard to tax liability due to input tax credit (ITC) claims. In a filing to stock exchanges, ICICI Prudential Life said it had last fiscal received an intimation from the Directorate General of GST Intelligence (DGGI) of estimated tax liability to the company. "The company has filed a response refuting the claim," it said. ICICI Prudential also clarified that it has not received any 'show cause notice with regard to the tax liability from DGGI' for evasion of taxes and/or unpaid dues and hence has not made any provision or contingent liability for the same in the financial statements for the year ended March 31, 2023. In the last fiscal, the Directorate General of GST Intelligence (DGGI) initiated a GST enquiry into certain expenses for which input GST credit had been claimed by the company. "The ongoing enquiries of DGGI is part of an investigation on an insurance industry-

Mattresses supplied to school hostels not exempt from GST: Tamil Nadu AAR

Hosur Coir Foams' supplies will draw 18 per cent integrated GST, rules authority

Top headlines: GST authorities quiz auto dealers, electronics exports up

Business Standard brings you top news at this hour

Taxmen issuing notices to insurers for availing tax credit on fake invoices

GST officers have started sending notices to over a dozen insurance companies for availing input tax credit on the basis of bogus invoices in the last six years, sources said. These insurers have availed input tax credit (ITC) on the basis of invoices issued by intermediaries for providing services like advertising and marketing, although no such services were actually provided. As per the GST law, such availment of the ITC is not permissible as the supply of said service did not actually take place. As per the investigations by the Mumbai unit of the Directorate General of GST Intelligence, ITC of Rs 824 crore has been availed by 16 insurance companies. Out of this, the insurers had voluntarily paid Rs 217 crore. Sources said notices are being issued to these insurance companies for wrongful availment of ITC. Investigations revealed that these insurers were actually paying commission beyond IRDAI's permissible limit to their corporate agents in the garb of expenses related to ...

Tax trouble: GST authorities quiz auto dealers on fake invoicing

Certain automobile dealers appointed by insurers/insurance intermediaries allegedly billed commission in excess of Irdai cap

Issue of GST on intermediary services to foreign clients may get resolved

However, there could be issues in claiming input tax credit by these intermediaries

GST officers find tax evasion by offshore entities offering online betting

Tax officers have detected violation of GST law by offshore entities offering online betting and gambling platforms to Indian residents through mobile apps and are working on ways to tackle such mode of tax evasion, a source said. As per the prescribed procedure, all offshore entities providing services in India are required to register as supplier of OIDAR (Online Information Database Access and Retrieval) services under the Goods and Services Tax (GST) law. According to the source, there are many offshore entities providing platforms for online betting and gambling in the country but are not GST-registered and hence are not paying the required GST. "Although several overseas educational bodies offering online courses in India are registered as OIDAR, the entities providing online gaming, betting ad gambling platforms are not registered under GST. We are pursuing such cases and hope to bring them under the GST net," the source told PTI. These online betting and gambling apps are .

Under the scanner: Clutch of fund houses in a spot over tax credit claims

DGGI alleges tax credit claimed on expenses was much higher than prescribed limit

GST fraud a new challenge for UP govt; Noida sees cases double in 3 yrs

In the last three years, GST fraud in Noida has doubled as irregularities have been detected in 291 cases of GST evasion, for which a fine of Rs 75.82 crore has been collected

GST not applicable on transfer of Jaipur Int'l airport biz to Adani group

The transfer of Jaipur international airport operations by Airports Authority of India (AAI) to the Adani group is exempt from Goods and Services Tax (GST), the Authority for Advance Ruling has said. The AAI had approached the Rajasthan-bench of the Authority for Advance Ruling (AAR) seeking ruling on whether transfer of business to M/s Adani Jaipur International Airport Ltd is treated as supply as 'going concern' and whether GST is leviable on transfer of assets. Transfer of business as a going concern, as a whole, or independent part thereof, is considered as service under GST law and such supplies are exempt from goods and services tax. In its ruling dated March 20, 2023, the AAR said the business arrangement entered vide concession agreement dated January 16, 2021, between the applicant (AAI) and M/s Adani Jaipur International Airport is a transfer of going concern. The Adani Group had in October, 2021, taken over the operations, management and development of the Jaipur ...

GST evasion detection nearly doubles to Rs 1.01 trillion in FY23

GST evasion detection by tax officers almost doubled year-on-year to over Rs 1.01 lakh crore in the just concluded 2022-23 fiscal, an official said. During the last fiscal, a recovery of Rs 21,000 crore was made by the officers of the Directorate General of GST Intelligence (DGGI). The official said the government is taking steps to increase compliance and using data analytics and human intelligence to identify fraud. "DGGI officers have detected evasion to the tune of Rs 1,01,300 crore in 2022-23. Of this, recovery of Rs 21,000 crore have been made," the official told PTI. In 2021-22, DGGI, the investigative agency under the Goods and Services Tax (GST) regime, detected evasion of over Rs 54,000 crore and made a tax recovery of over Rs 21,000 crore. The total number of Goods and Services Tax (GST) evasion cases has gone up this fiscal with about 14,000 cases detected in 2022-23, up from 12,574 cases in 2021-22 and 12,596 cases in 2020-21. The modus operandi adopted by fraudsters