GST in Media

GST collections has grown in June, 2021 by 7% as compared to June, 2020.

This is despite several relaxations given by the Govt. in the filing of GST returns due to prevailing pandemic situation.

The GST collection in June, 2021 is Rs. 246 Crores and in June 2020 it was Rs. 230 Crores. Read more

• In the Finance Budget 2021 the section 44 of Central Goods and Services Tax Act, 2021 was substituted to provide the furnishing of reconciliation statement in GSTR-9C with self certification.
• The change indicates that the necessary to get the reconciliation certified from a Chartered Accountants or a Cost Accountants is not required.
• In concern with this change in the law the Office-bearers of the Institute of Chartered Accountants of India met FM on Sunday to discuss the implications of the move to dispense with audit under the GST Act.
• The CAs said the move to suspend GST audit will not only lead to huge leakage in tax revenue, but also increased litigation and corruption.
• The FM expressed that this concern will be given due consideration. Read

• The Central Board of Indirect Taxes and Customs (CBIC) and the Ministry of Corporate Affairs (MCA) signed a Memorandum of Understanding on February 25, 2021, for the exchange of data between the two organisations.
• The memorandum was signed by ADG, CBIC, and Joint Secretary, MCA, in the presence of Chairman of CBIC and Secretary, Corporate Affairs Ministry.
• The MoU came into force from the date it was signed and is also an ongoing initiative of MCA and CBIC who have already been collaborating through various existing mechanisms.
• The latest MoU will mark the beginning of a new era of cooperation between the MCA and CBIC.
• The memorandum will facilitate the exchange of information and data between CBIC and MCA on an automatic and regular basis. Read

Anand Mahindra, Chairman Mahindra & Mahindra has urged the government to revise the GST rate on automotive industry or remove cess. Source: Livemint

• The issue of whether the recipient of services can be penalised for non-compliance by the vendor remains open and unanswered
• The eligibility of credit has been a constant matter of dispute (a) wherever there is a non-payment of GST by the supplier and (b) on account of the restriction imposed by Rule 36(4) of the CGST Rules.
• Per the said Rules, the credit of GST charged on invoices which have not been reported by the vendors can be taken only to the extent of 5% of cumulative GST charged on reported invoices.
• An amendment is proposed to Section 16 of the Central Goods and Services tax Act, 2017 (CGST Act), introducing a new condition that (a) the details of the invoice must be furnished by the supplier in the statement of outward supplies and (b) that such details must be communicated to the recipient of such invoice. READ MORE

• Schedule 3 of the Central GST (CGST) Act 2017 deals with activities or transactions that shall not be treated as supply. One entry specifies “services provided by an employee to the employer in the course of or in relation to his employment”.
• So, the consideration paid by an employer to the employee — i.e., salary paid for rendering services in the course of employment — would not be taxable under GST.
• But what all can be treated as services in the context of employment? Will components covered in the cost-to-company (CTC) of an employee — house rent allowance, dearness allowance, etc — not attract GST, since this would be pure consideration to an employee for his employment? Also, what would be the treatment of, say, club fees reimbursed over and above the CTC? READ MORE

• The Budget does not impose any new personal or corporate direct tax.
• Though there were strong chances of more taxes, cesses or surcharge in post Covid era, Government only levied one visible Cess called Agricultural and Infrastructure Development Cess (AIDC), which will be levied on one and all.
• The budget also facilitates to provide a boost to public spending or expenditure for asset creation in infrastructure like roads, ports etc. Read more

• The Union Minister for Finance & Corporate Affairs, Smt Nirmala Sitharaman presented the Union Budget 2021-22 in Parliament today.
• GST – Some measure taken till date are –
• Nil return through SMS
• Quarterly return and monthly Payment scheme for small taxpayers
• Electronic Invoice System (E-Invoice)
• Validated Input Tax Statement
• Summary of Budget 2021-22 Click

• In order to compensate revenue loss the Govt may increase tax rate, introduce new cess and increase in excise duty.
• Covid-19 cess is likely to be introduced. However there could be last changes, the official said.
• The official further added that the GST system is also tightened and therefore tax collection is likely to get increased.
• The Union Budget is to be presented on 01.02.2021 and the budget session will be held between January 29 and April 8, 2021. Read more

• The electronic industry is expecting for either extending the benefits under the remission of duties and taxes on exported products (RoDTEP) scheme or for reduction in goods and services tax in the upcoming budget on 1 February.
• Television manufacturers are also looking for reduction in GST rates for TVs. At present, 18% GST is charged for TVs up to 32 inches, and 28% for those above 32 inches.
• Along with TV manufacturers many others are also asking for a relief in GST rates. Read more

• The Ministry of Finance, Department of Expenditure has released the 13th weekly instalment of Rs. 6,000 crore to the States today to meet the GST compensation shortfall.
• Till now, 70 percent of the total estimated GST compensation shortfall has been released to the States & Union Territories with Legislative Assembly by the Central Govt.
• The amount released by Government this week was the 13th instalment of such funds provided to the States. Read more

Department has raised order for the recovery of ITC as they were not appearing in GSTR 2A. The petitioner requested that ITC cannot be blocked for the fault of his supplier. If the amount is recoverable then it has to be made from supplier. However, the Chhattisgarh High Court stayed the order provided the petitioner pays 5% of the ITC in dispute within 15 days. Read more

• The Govt. has for the second time extended the due date for filing GST Annual return for the financial year 2019-20 till 31.03.2021
• This is in view of the difficulties expressed by the tax payers in meeting the timeline.
• This extension is with the approval from Election Commission of India.
• GSTR 9 is an annual return to be filed yearly by taxpayers registered under the Goods and Services Tax (GST). It consists of details regarding the outward and inward supplies made or received under different tax heads.
• GSTR-9C is a statement of reconciliation between GSTR-9 and the audited annual financial statement.
• EY Tax Partner Abhishek Jain said most of the industry players were struggling to meet this statutory deadline and had represented to the govt. for an extension of the annual return. Read

1. New GST return was proposed to be implemented from 01.10.2020. However, Govt. is now proposing to improve the current GST returns forms instead of introducing new return.
2. GSTR-2B will be introduced which will be alike GSTR-2A but with additional features.
3. GSTR-1 will be added with some more informations.
4. GSTR-3B will be auto-prepared .
5. GSTR-1 and GSTR-2A will be linked with GSTR-3B so that there will be no difference in the returns and notices from department on mismatches will be reduced.
6. Communication facility will be for there for supplier and buyer to re-solve invoice mismatches issue.
7. E-invoicing will come into effect from 01.10.2020. Applicable for those taxpayers who are having turnover more than Rs.500 Crores. Previously e-invoicing was made applicable for taxpayers having turnover more that Rs.100 Crores. Refer 1 : Click Refer Click

• The Bombay high court on Friday declined to extend the last date for filing annual returns of Goods and Services Tax (GST) for 2019-20 in Maharashtra till June 30.
• The last date to file GSTR-9 and 9C for FY 2019-20 is February 28, 2021.
• A bench of Justices Ujjal Bhuyan and Milind Jadhav heard a petition by the Goods and Services Tax Practitioners’ Association to extend the period of filing in Maharashtra “until the period of lockdown is lifted or until the Covid-19 pandemic situation improves completely.”
• The association’s petition said Maharashtra is still the worst affected state and has seen a surge in cases. Even in Mumbai fresh guidelines are issued and there is fresh lockdown in some districts with sealing of buildings. READ MORE

• CGPI is a national alliance of Advocates, Chartered Accountants and other GST Professionals focused exclusively on GST.
• CGPI is been approached by many of the denizens of our country including professionals and our own members frantically imploring us to file representation for seeking extension of time to effect the aforesaid compliance.
• Madam, in this severly trying circumstances, to wait till the last day to extend the time limit for compliance would cause unavoidable widespread panic, unrest and stress amongst businesses and professionals involved in the process.
• We earnestly urge and plead and we would remain greatful if our request for extension is granted by appropriate notification considering grassroot reality faced by all the stakeholders which would act as a win win situation for all. READ MORE

• Finance Minister on Sunday said that the country require at least 20 institutions of the size of the nation’s largest lender, State Bank of India (SBI), to be able to meet its aspiration.
• FM said that the government would work with the Reserve Bank for execution of the bank privatisation plan announced in the Budget.
• GST revenues have shown handsome growth in the last three months on overall recovery in the economy and on help from technology in plugging leakages, she said. Read more

• The Chairman of the Commission said that number of important suggestions on how to restructure the GST was already given and these have been favorably commented upon by the finance minister.
• The GST certainly requires a very fundamental restructuring and the finance secretary has said that they are quite conscious of this and that the GST council would consider many of the suggestions which have been made on the basis of our priority. Read more.

• The revenue of GST during the Jan, 2021 are the highest since the introduction of GST.
• In line with the trend of recovery in the GST revenues over past 5 months, the revenues for Jan, 2021 are 8% higher than the GST revenues in the same month last year.
• The average YoY growth in GST revenue over the first 4 months in the 2nd half of the FY has been 8% as compared to (-) 24% during the first half of the year.
• The total GSTR-3B filed for Dec. up to 31.01.2021 is 90 lakhs. Read more

• The auto sector expects that the GST rate on raw material be reduced.
• One of the start up founder said that he expects the GST rate on lithium batteries be reduced from 18% to 5%.
• “BWR Pre-Budget Expectations FY22 ” in this report it is suggested that the ITC of the GST on automobiles should be allowed to businesses so that the sale to corporates increases.
• It was requested earlier that the GST rate on automobiles be brought down to 18%. Read more.

• The Gem and jewellery industry is requesting the Govt to reduce customs duty on gold, withdraw of tax collected at source (TCS), reduce import duty on polished precious and semi-precious gemstones.
• The Chairman of All India Gem and Jewellery Domestic Council (GJC) is requesting the Govt to reduce the customs duty to 4% from current duty of 12.5%.
• One, diamond owner, said that the sector expects that the taxation procedure be simplified so that every businessman can understand it easily. Read more