GST Ready India

GST Ready India’s Latest News and Updates

GST Council to select hybrid model for simplifying filing returns on Friday

May 03, 2018

Another cess coming? GST Council may approve imposition of Sugar cess

Running against the principles of the Goods and Services Tax, the Council’s 27th meeting being held via video-conferencing on Friday may clear the imposition of a 5% Sugar cess. Currently, the government levies GST Compensation cess to compensate States that may incur losses in the first five years of GST implementation.

Sugar cess is a part of the GST Council’s agenda, but gains significance after the Cabinet meeting on Wednesday approved financial assistance at the rate of Rs. 5.50 per quintal of cane crushed in sugar season 2017-18 to sugar mills to offset the cost of cane and in order to help sugar mills to clear cane dues of farmers. Click to read more

Now, transfer of commercial tenancy rights put under GST

In what has implications for commercial rental space and businesses in general, the government has said transfer of tenancy rights is a service liable to tax. A finance ministry circular has said such activity against consideration in the form of tenancy premium constitutes a “supply of service”, which is liable to Goods and Services Tax (GST) “Merely because a transaction or a supply involves execution of documents which may require registration and payment of registration fee and stamp duty. Click to read more

Gujarat HC issues notices Centre, state govts on plea on GST

The Gujarat High Court has issued notices to the central and state governments and the GST Council on a petition challenging the “absence of provisions” under the GST Act which “blocks” advocates from availing the input tax credit.

A bench of Justices Akil Kureshi and B N Karia issued notices yesterday and sought the response of both the governments on June 21. Click to read more

Delivering the goods: on GST collections

Collections from the Goods and Services Tax crossed the ₹1 lakh crore mark in April, according to data released by the Finance Ministry on tax receipts that accrued in March but were payable in April. To be precise, the total revenue from the new indirect tax in April was ₹1,03,458 crore, the highest recorded in a single month since its implementation in July 2017. Finance Minister Arun Jaitley has called this a “landmark achievement” and a “confirmation of increased economic activity”. Click to read more

GST Council to select hybrid model for simplifying filing returns on Friday

In a relief for businesses, the Goods and Services Tax Council is to simplify filing of returns at a meeting on Friday, through a ‘hybrid model’ recommended by a panel led by Bihar deputy chief minister Sushil Modi.

The proposed model is a fusion between the recommendation by Infosys Chairman Nandan Nilekani and the ‘provisional credit model’ suggested by government officers. A buyer will get input tax credit based on the seller’s uploading of invoices, including missing ones. Click to read more

Record GST Collection In April Due To Seasonality

The government mopped up its highest ever monthly Goods and Services Tax collection last month due to seasonal strength in March industrial activity and not because of the quarterly payments from the composition scheme.

That’s the word from financial major Credit Suisse. GST collection in the month of April crossed the Rs 1 lakh crore mark for the first time since the new tax regime was rolled out on July 1 last year, the finance ministry said in a statement. That can be attributed to the the seasonal strength in industrial output in March, Neelkanth Mishra and Prateek Singh of Credit Suisse said in a report. Click to read more

Guj HC issues notices Centre, state govts on plea on GST

The Gujarat High Court has issued notices to the central and state governments and the GST Council on a petition challenging the “absence of provisions” under the GST Act which “blocks” advocates from availing the input tax credit.

A bench of Justices Akil Kureshi and B N Karia issued notices yesterday and sought the response of both the governments on June 21.

Petitioner Nipun Singhvi, a lawyer, said the absence of provisions for availing the input tax credit by advocates was resulting in a cascading effect. Click to read more

Taxpayers may file GST Tran-1 by May 10

The Bombay High Court has extended the deadline for filing of GST Tran-1 by 10 days after it was highlighted that technical glitches made it impossible for many to make the submission before the due date of April 30.

“… interest of justice would be served if we extend this date of 30th April, 2018 in relation to filing of TRAN-1 and which filing was not possible due to technical glitches / IT related glitches. We extend it to 10th May, 2018,” said the bench comprising Justice S.C. Dharmadhikari and Justice Anuja Prabhudesai. Click to read more

Rane Engine Valve loss widens on GST impact

Rane Engine Valve Ltd. has reported a net loss of ₹8.8 crore, after exceptional items, for the quarter ended March 31 compared with a loss of ₹28 lakh a year earlier.

It attributed the loss to the negative impact of the implementation of the GST on the after-market business. Total net revenue in the quarter fell to ₹101 crore from ₹104 crore. “The turnaround of REVL is under way and likely to take another 18-24 months,” said group chairman L. Ganesh. Click to read more

1 trillion GST mop-up, not enough! Here’s why Modi’s worry is far from over

For the first time, the GST collection in the month of April surpassed a whopping Rs 1 lakh crore mark, which Finance Minister Arun Jaitley dubbed “a landmark achievement”. However, analysts are still concerned over low tax compliance. The GST tax compliance has stayed around 69% for the past few months. The compliance showed a little improvement in the month of March as it increased to 69.5% until April 30, analysts say that the Narendra Modi government needs better taxpayer numbers to meet its FY19 target. Click to read more

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