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Tag: GST

  • GST Panel Deliberates On Lowering Rate On Health Insurance, Tractors | Economy News

    New Delhi: As the government focuses on GST 2.0 which further eases tax laws, enhance tax simplification and adoption of technology, the ministerial panel tasked to rationalise rates is deliberating on lowering GST on essential items like health insurance and tractors up to 5 per cent. 

    As tractor segment volumes saw marginal growth (year-on-year) in September, a reduction in GST on tractors will offset the revenue loss, according to industry experts. Tractors currently attract 12-28 per cent GST, depending on their classification.

    Similarly, a cut in GST on health and term insurance – a long-pending demand of the sector — will further make them more affordable for the masses. As per experts, health insurance is likely to see a decrease from 18 per cent to 12 per cent, while term insurance may attract a GST of 5 per cent.

    According to reports, the panel, chaired by Bihar Deputy Chief Minister Samrat Chaudhary, is focused on moving certain items from the 12 per cent slab to 5 per cent. The panel is expected to meet on October 19 over the insurance issue, followed by discussions on rate rationalisation on October 20.

    Last month, the GST Council, headed by Finance Minister Nirmala Sitharaman, set up a Group of Ministers (GoM) on slashing the tax rate on life and health insurance, as well as reducing the GST on cancer drugs.

    The GoM on life and health insurance is headed by Choudhary, who is currently heading the panel on GST rate rationalisation. The 54th GST Council meeting, held on September 9, reached a “broad consensus” to bring relief to individuals and senior citizens with a decision on the GST applied to health insurance premiums. The current GST rate on health and life insurance policies stands at 18 per cent.

    However, the GST Council announced to reduce the rate on cancer drugs to 5 per cent from 12 per cent. The life and health insurance industry is hopeful that the reduction would alleviate the tax burden on both insurers and policyholders.

  • GST Revenue Growth Rate Slows In Sep, Collections At Rs 1.73 Lakh Crore | Economy News

    New Delhi: Goods and services tax (GST) revenue growth rate declined to 6.5 per cent in September at Rs 1.73 lakh crore as the rise in collections from domestic transactions as well as imports slowed.

    However, with the festival season ahead, collections are expected to be better in the coming months, tax experts said. According to government data released on Tuesday, GST revenues in September last year was Rs 1.63 lakh crore, while the In August 2024, the mop-up was Rs 1.75 lakh crore.

    Gross domestic revenue grew 5.9 per cent to about Rs 1.27 lakh crore. Revenue from import of goods was up 8 per cent to Rs 45,390 crore. Refunds worth Rs 20,458 crore were issued during the month, an increase of 31 per cent over the year-ago period.

    After adjusting refunds, the net GST revenue in September stood at Rs 1.53 lakh crore, 3.9 per cent higher than the year-ago period. GST collections during the April-September period of the current fiscal year grew 9.5 per cent to over Rs 10.87 lakh crore.

    PwC India Partner Pratik Jain said while the year-to-date GST revenues (September 2024) grew over 9 per cent, the monthly growth is perhaps less than expected.

    “This may need a closer look by the GST Council, particularly in the wake of rate rationalisation exercise. However, with festive seasons coming, the collection for next couple of months might be better,” Jain said.

    Deloitte India Partner MS Mani said the GST revenues for the coming months will be eagerly watched as they are also a proxy for the economic growth and can be correlated with the GDP numbers.

    However, the significant increase in GST refunds, especially IGST Export refunds, depicts the efforts of tax authorities in expediting refunds and the policymakers in simplifying the refund process.

    “The tepid single-digit growth in GST revenues in many of the large states should, hopefully, be corrected in the coming months,” Mani added.

    EY Tax Partner Saurabh Agarwal said the significant increase in GST refunds for exports suggests a substantial rise in exports from India. Adding further, the overall increase in GST refunds demonstrates the government’s commitment to timely release funds to support the working capital of exporters and industries facing an inverted duty structure.

  • GST Council Forms GoM To Review Tax Rate On Health, Life Insurance; Report By Oct 30 | Economy News

    New Delhi: The GST Council on Sunday constituted a 13-member Group of Ministers (GoM) to suggest GST rate on premiums of various health and life insurance products and submit its report by October 30.

    Bihar Deputy Chief Minister Samrat Choudhary is the convenor of the GoM. The members of the panel include members from Uttar Pradesh, Rajasthan, West Bengal, Karnataka, Kerala, Andhra Pradesh, Goa, Gujarat, Meghalaya, Punjab, Tamil Nadu and Telangana.

    The 54th GST Council meeting on September 9 decided to set up a GoM to examine and review the present tax structure of GST on life and medical insurance. A final call by the Council on the taxation of insurance premiums is likely to be taken in the next meeting in November based on the GoM report.

    Currently, 18 per cent of Goods and Services Tax (GST) is levied on insurance premiums. The Terms of Reference (ToR) of the panel also include suggesting tax rate of health/medical insurance including individual, group, family floater and other medical insurance for various categories like senior citizens, middle class, persons with mental illness. Also, suggest tax rates on life insurance, including term insurance, life insurance with investment plans whether individual or group and re-insurance.

    “The GoM is to submit its report by October 30,” 2024,” said the Office Memorandum issued by the GST Council Secretariat on the Constitution of GoM on Life and Health insurance.

    Some opposition-ruled states, including West Bengal, had demanded complete exemption of GST on health and life insurance premiums, while some other states were in favour of lowering the tax to 5 per cent. Even Transport Minister Nitin Gadkari had in July written to Finance Miniter Nirmala Sitharaman on the issue saying “levying GST on life insurance premium amounts to levying tax on the uncertainties of life.” 

    In 2023-24, the centre and states collected Rs 8,262.94 crore through GST on health insurance premiums, while Rs 1,484.36 crore was collected on account of GST on health reinsurance premiums. Sitharaman in her reply to a discussion on the Finance Bill in the Lok Sabha in August had said that 75 per cent of the GST collected goes to states and the Opposition members should ask their state finance ministers to bring the proposal to the GST Council.

  • GST Collections In August Rise 10% Year-On-Year At Rs 1.74 Lakh Crore | Economy News

    New Delhi: Goods and Services Tax (GST) collections in August, in gross terms, were at Rs 1.74 lakh crore, with a yearly jump of 10 per cent, data showed on Sunday. In August 2023, the total collection was to the tune of Rs 1.59 lakh crore. CGST, SGST, IGST, and cess all increased year-on-year in August, official data made available showed today.

    So far in 2024, the total GST collection has been 10.1 per cent higher at Rs 9.13 lakh crore, as against Rs 8.29 lakh crore mopped up in the corresponding period of 2023. In April, the total GST mop-up surged to a record high of Rs 2.10 lakh crore.

    Goods and Services Tax (GST) collections in July were Rs 1.82 lakh crore. In May and June, the collections were at Rs 1.73 lakh crore and Rs 1.74 lakh crore, respectively. During the financial year 2023-24, the total gross GST collection was recorded at Rs 20.18 lakh crore, with an 11.7 per cent increase compared to the previous fiscal year.

    The average monthly collection for the fiscal year, that ended in March 2024 stood at Rs 1.68 lakh crore, surpassing the previous year’s average of Rs 1.5 lakh crore. The surge in recent GST collections reflects a positive trajectory for India’s economy, underscoring robust domestic consumption and buoyant import activity. The figures bode well for the country’s fiscal health and economic recovery efforts, signalling resilience amidst global uncertainties.

    The Goods and Services Tax was introduced in the country with effect from July 1, 2017, and states were assured compensation for loss of any revenue arising on account of the implementation of GST as per the provisions of the GST (Compensation to States) Act, 2017 for five years.

    Hair oil, toothpaste, soap; detergents and washing powder; wheat; rice; curd, lassi, buttermilk; wristwatches; TV up to 32 inches; refrigerators; washing machines, mobile phones, are among key items on which GST rates have been slashed substantially, or for some kept at zero, benefiting people of this country.

    A Finance Ministry study suggested that consumers saved at least four per cent of their household monthly expenses on an aggregate after GST. Thus, consumers now spend less on daily consumables like cereals, edible oils, sugar, sweets and snacks.

    The GST regime removed the inefficiencies and complexities of the previous archaic taxation system. Over the years, GST has, among others, simplified compliance and reduced the cascading impact of tax. Before July 1, 2017, the indirect tax regime was highly fragmented. The Centre and States were separately taxing goods and services. The GST Council, a federal body comprising the Union Finance Minister as its Chairman and Finance Ministers of all States as members, has played its part in the forum. 

  • GST Collection For May At Rs 1.73 Lakh Crore, Up 10% YoY | Economy News

    New Delhi: The Goods and Services Tax (GST) collections for May came in at Rs 1.73 lakh crore, a 10 per cent growth (year-on-year), driven by a strong increase in domestic transactions and slowing of imports, the Centre said on Saturday. 

    The gross GST collections in the FY2024-25, till May, stood at Rs 3.83 lakh crore, representing an 11.3 per cent year-on-year growth, according to the Ministry of Finance. After accounting for refunds, the net GST revenue in the FY 2024-25 till May 2024 stood at Rs 3.36 lakh crore, reflecting a growth of 11.6 per cent compared to the same period last year. (Also Read: ATF Price Slashed By 6.5% To Rs 94,969.01/kl; Windfall Tax On Crude Petroleum Reduced To Rs 5,200/Tonne)

    For May, after accounting for refunds, the net GST revenue stood at Rs 1.44 lakh crore, reflecting a growth of 6.9 per cent compared to the same period last year. While central Goods and Services Tax (CGST) was at Rs 32,409 crore, the state GST was Rs 40,265 crore and integrated IGST stood at Rs 87,781 crore, including Rs 39,879 crore collected on imported goods, said the ministry. (Also Read: Lok Sabha Elections 2024: Are Banks Closed Today, June 1? Check State-Wise List)

    The Cess stood at Rs 12,284 crore, including Rs 1,076 crore collected on imported goods.  For the FY 2024-25 till May, the CGST was Rs 76,255 crore; SGST was Rs 93,804 crore; IGST Rs 1,87,404 crore, and Cess was Rs 25,544 crore. 

    In the month of May, the government settled Rs 38,519 crore to CGST and Rs 32,733 crore to SGST from the net IGST collected of Rs 67,204 crore. This translates to a total revenue of Rs 70,928 crore for CGST and Rs 72,999 crore for SGST in May, after regular settlement. 

    “Similarly, in the FY 2024-25 till May 2024, the Central government settled Rs 88,827 crore to CGST and Rs 74,333 crore to SGST from the net IGST collected of Rs 154,671 crore,” said the ministry.  This translates to a total revenue of Rs 1,65,081 crore for CGST and Rs 1,68,137 crore for SGST in FY 2024-25 till May. 

  • Five States Including Karnataka Show Interest In Implementing Aadhaar-Based Authentication For GST Registration | Economy News

    New Delhi: Five states, including Karnataka, Tamil Nadu and Telangana, have shown interest in rolling out Aadhaar-based authentication for GST registration, an official said on Monday. The biometric-based authentication was discussed at the third National Co-ordination Meeting of senior Central and State GST officers earlier this month.

    Currently, two states, Gujarat and Andhra Pradesh, and the Union Territory of Puducherry have launched the Aadhaar authentication of taxpayers on a pilot basis. “Around five states, including Karnataka, Tamil Nadu and Telangana, have shown interest in implementing Aadhaar-based authentication for GST registration,” an official told PTI.

    The official further said that these states wanted to assess the cost involved, the infrastructure and manpower requirement for implementing the requirement of biometric authentication for registration. The data has been provided to them and based on the assessment, these states will have to put the proposal up before the state Cabinets for approval. (Also Read: Tata Motors Shares Tank Over 8%; Mcap Declines By Rs 29,016 Crore)

    Goods and Services Tax (GST) authorities have so far been using OTP-based Aadhaar authentication to establish the identity of the applicants, seeking registration. However, with instances coming to light wherein other people’s identity was misused to create bogus firms for claiming input tax credit (ITC), the Central Board of Indirect Taxes and Customs (CBIC) had decided to move towards biometric authentication under which in certain suspicious cases, the person seeking registration will be asked to go to an Aadhaar centre to have his biometrics verified.

    As per the analysis of April GST revenues, Karnataka is the second biggest contributor, followed by Uttar Pradesh and Tamil Nadu. Maharashtra garnered the largest chunk of revenue during the month. (Also Read: Paytm Focuses On UPI Lite Wallet For Low-Value Daily Payments)

    The GST collections, which include central and state mop-up, breached the Rs 2 lakh crore milestone in a month in April since the rollout of the unified tax system. Goods and Services Tax collections grew 12.4 per cent to a record high of Rs 2.10 lakh crore in April. The revenue growth was aided by strong economic momentum and increased domestic transactions and imports.

  • BIFA’s eye on GST thieves, 1789 firms centered, circumstances stuck in 3 years with the assistance of AI software

    Noida: Synthetic Intelligence (AI), which has turn out to be a subject of dialogue some of the other people in the previous few months, has been utilized by the GST division for the remaining 3 years. Many people have no longer even discovered to make use of Chat GPT and Google Bard correctly, however the GST division of Noida has no longer best stored a watch on GST evaders for 3 years thru its AI software BIFA (Industry Intelligence and Fraud Research). No longer best has he been arrested, however the division has additionally recovered a fantastic of about Rs 78 crore.Joint Commissioner of GST Yogesh Vijay stated that with the assistance of AI software BIFA, a report has been created for catching most GST evaders in Gautam Budh Nagar. Already took place. Via BIFA, 1789 fraudulent firms were stuck within the district. Of those, 800 have been the ones by which registration used to be achieved with faux Aadhaar card and PAN.

    He instructed that Bifa device additionally assists in keeping a watch on such businessmen who take enhance of affiliate marketing or social media to advertise their product or established order. The device displays in a second and tells whether or not the selling corporate has were given GST registration achieved or no longer. Additionally, when did he record the GST go back. He instructed that the marketing campaign used to be carried out from Might 16 to July 15. By which BIFA stuck masses of robbery circumstances. 76 crore rupees have been recovered by means of taking motion in those.

    That is how motion is taken
    The report of acquire and sale of each registered dealer is maintained at the portal of the dept. This information is checked each month. Tax evaders are monitored with the assistance of Industry Intelligence and Fraud Research (BIFA) device. Via this, the technology and use of e-way invoice of prime worth (acquire and sale of greater than Rs 40 lakh) of the newly registered dealer is investigated. Reviewing the turnover of non-filers (unregistered), maintaining a tally of whether or not the due income has been deposited at the side of the submitting of returns. Institutions that don’t observe the principles come beneath the objective of AI.

    291 circumstances stuck thus far
    Within the monetary yr 2020-21, a fantastic of Rs 18.04 crore used to be recovered in 66 circumstances of tax evasion. Within the monetary yr 2021-22, forgery of Rs 11.56 crore used to be detected in 91 circumstances. After this, within the monetary yr 2022-23, the Particular Analysis Department of the State Tax Division stuck 134 tax evasion circumstances. By which fantastic of Rs 45.72 crore has been recovered. After the yr 2020 until now, the collection of thefts is expanding yr by means of yr. Fraud of crores of rupees has been detected in 291 circumstances of GST evasion in Noida in 3 years. By which a fantastic of Rs 75.82 crore has been recovered.

  • GST mop-up rises 12 consistent with cent to over Rs 1.61 lakh crore in June

    By means of PTI

    NEW DELHI: GST collections rose 12 consistent with cent to over Rs 1.61 lakh crore in June, the Finance Ministry mentioned on Saturday.

    The gross GST assortment has crossed Rs 1.60 lakh crore mark for the fourth time for the reason that roll-out of the oblique tax regime six years in the past on July 1, 2017.

    The common per month gross GST assortment for the primary (April-June) quarter of the 2021-22, 2022-23 and 2023-24 are Rs 1.10 lakh crore, Rs 1.51 lakh crore and Rs 1.69 lakh crore, respectively, the Finance Ministry mentioned in a commentary.

    “The gross GST income accumulated within the month of June 2023 is Rs 1,61,497 crore of which Central GST is Rs 31,013 crore, State GST is Rs 38,292 crore, Built-in GST is Rs 80,292 crore (together with Rs 39,035 crore accumulated on import of products) and cess is Rs 11,900 crore (together with Rs 1,028 crore accumulated on import of products),” the commentary mentioned.

    ALSO READ | Six years of GST: Executive sees upper collections, higher compliance

    The revenues for June 2023 are 12 consistent with cent upper than the GST revenues in the similar month closing yr.

    All through the month, the revenues from home transactions (together with import of services and products) are 18 consistent with cent upper than the revenues from those resources right through the similar month closing yr.

    The revenues had touched a file prime of Rs 1.87 lakh crore in April. In Might, it used to be Rs 1.57 lakh crore.

    NEW DELHI: GST collections rose 12 consistent with cent to over Rs 1.61 lakh crore in June, the Finance Ministry mentioned on Saturday.

    The gross GST assortment has crossed Rs 1.60 lakh crore mark for the fourth time for the reason that roll-out of the oblique tax regime six years in the past on July 1, 2017.

    The common per month gross GST assortment for the primary (April-June) quarter of the 2021-22, 2022-23 and 2023-24 are Rs 1.10 lakh crore, Rs 1.51 lakh crore and Rs 1.69 lakh crore, respectively, the Finance Ministry mentioned in a commentary.googletag.cmd.push(serve as() googletag.show(‘div-gpt-ad-8052921-2’); );

    “The gross GST income accumulated within the month of June 2023 is Rs 1,61,497 crore of which Central GST is Rs 31,013 crore, State GST is Rs 38,292 crore, Built-in GST is Rs 80,292 crore (together with Rs 39,035 crore accumulated on import of products) and cess is Rs 11,900 crore (together with Rs 1,028 crore accumulated on import of products),” the commentary mentioned.

    ALSO READ | Six years of GST: Executive sees upper collections, higher compliance

    The revenues for June 2023 are 12 consistent with cent upper than the GST revenues in the similar month closing yr.

    All through the month, the revenues from home transactions (together with import of services and products) are 18 consistent with cent upper than the revenues from those resources right through the similar month closing yr.

    The revenues had touched a file prime of Rs 1.87 lakh crore in April. In Might, it used to be Rs 1.57 lakh crore.

  • Demonetisation, wrongly designed GST in the back of top unemployment fee: Jairam Ramesh

    Through PTI

    BUNDI, RAJASTHAN: Demonetisation, wrongly designed GST and inaccurate financial insurance policies of the Narendra Modi executive are the the explanation why the rustic is going through the perfect unemployment fee in 45 years, Congress chief Jairam Ramesh alleged on Sunday.

    He was once addressing a press convention in Bundi district’s Laban village, the place Bharat Jodo Yatra halted for the morning ruin after clocking 12.8 km from Baldevpura.

    “Demonetisation was once the most important issue adopted through GST (Items and Products and services Tax) that destroyed small and Micro, Small and Medium Enterprises which generate most employment,” he stated.

    At the Bharat Jodo Yatra, Ramesh stated one in every of its important facets is to lift problems corresponding to financial disparities and inequalities.

    “We’re elevating our voice in opposition to emerging costs, unemployment fee and wrongly designed and applied GST and closure of small scale industries,” Ramesh stated as he launched a film on unemployment.

    The Congress chief stated it was once suitable to unlock the film in Rajasthan because it was once the primary state to release an city employment grantee scheme, which was once named after Indira Gandhi, in September.

    Ramesh additionally referred to the Mahatma Gandhi Nationwide Rural Employment Ensure Scheme, announcing it gave aid to a number of lakh other people within the two to 3 Covid-hit years, however the scheme was once criticised through some other people, together with Top Minister Narendra Modi.

    Ramesh congratulated Ashok Gehlot for imposing the Indira Gandhi City Employment Ensure scheme to eliminate unemployment in city spaces.

    “Financial disparities are expanding amongst states, between deficient and wealthy, and the center elegance is suppressed. We’re highlighting this within the Bharat Jodo Yatra,” Ramesh stated.

    Responding to a query on Gehlot and his nemesis and previous deputy leader minister Sachin Pilot travelling through the similar helicopter to Shimla to wait the oath-taking rite of the brand new Himachal CM, Ramesh all birthday party leaders are already “united” and the 2 leaders travelling in combination was once no longer only for pictures.

    “Each leaders are property for us. One is skilled and is at a top place within the organisation and within the state. Sachin Pilot is younger and lively. The folk and the organisation want either one of them. What you’re seeing (Gehlot-Sachin in the similar chopper) isn’t a hypocrisy or a display,” Ramesh stated.

    On Bharat Jodo Yatra, Ramesh stated best girls contributors will march on its 96th day on Monday, which shall be kicked off from Babai in Bundi district.

    BUNDI, RAJASTHAN: Demonetisation, wrongly designed GST and inaccurate financial insurance policies of the Narendra Modi executive are the the explanation why the rustic is going through the perfect unemployment fee in 45 years, Congress chief Jairam Ramesh alleged on Sunday.

    He was once addressing a press convention in Bundi district’s Laban village, the place Bharat Jodo Yatra halted for the morning ruin after clocking 12.8 km from Baldevpura.

    “Demonetisation was once the most important issue adopted through GST (Items and Products and services Tax) that destroyed small and Micro, Small and Medium Enterprises which generate most employment,” he stated.

    At the Bharat Jodo Yatra, Ramesh stated one in every of its important facets is to lift problems corresponding to financial disparities and inequalities.

    “We’re elevating our voice in opposition to emerging costs, unemployment fee and wrongly designed and applied GST and closure of small scale industries,” Ramesh stated as he launched a film on unemployment.

    The Congress chief stated it was once suitable to unlock the film in Rajasthan because it was once the primary state to release an city employment grantee scheme, which was once named after Indira Gandhi, in September.

    Ramesh additionally referred to the Mahatma Gandhi Nationwide Rural Employment Ensure Scheme, announcing it gave aid to a number of lakh other people within the two to 3 Covid-hit years, however the scheme was once criticised through some other people, together with Top Minister Narendra Modi.

    Ramesh congratulated Ashok Gehlot for imposing the Indira Gandhi City Employment Ensure scheme to eliminate unemployment in city spaces.

    “Financial disparities are expanding amongst states, between deficient and wealthy, and the center elegance is suppressed. We’re highlighting this within the Bharat Jodo Yatra,” Ramesh stated.

    Responding to a query on Gehlot and his nemesis and previous deputy leader minister Sachin Pilot travelling through the similar helicopter to Shimla to wait the oath-taking rite of the brand new Himachal CM, Ramesh all birthday party leaders are already “united” and the 2 leaders travelling in combination was once no longer only for pictures.

    “Each leaders are property for us. One is skilled and is at a top place within the organisation and within the state. Sachin Pilot is younger and lively. The folk and the organisation want either one of them. What you’re seeing (Gehlot-Sachin in the similar chopper) isn’t a hypocrisy or a display,” Ramesh stated.

    On Bharat Jodo Yatra, Ramesh stated best girls contributors will march on its 96th day on Monday, which shall be kicked off from Babai in Bundi district.

  • GST Raid in UP: GST workforce raids in UP, raids concurrently in 71 districts

    Gst Raids In 71 Districts Of Up: In 71 districts of Uttar Pradesh, 248 groups of GST raided lately. GST groups have raided other institutions. That is the primary time GST motion is being taken towards tax evaders.