Unbranded namkeen products to attract 12% GST, not 5%, rules Gujarat AAR
Feb 11, 2023
Unbranded salted snacks, or namkeens and related products,
such as potato chips, bhujiya and gathiya, would suffer 12 per cent goods and
services tax (GST), not five per cent, ruled the Gujarat authority for advance
rulings (AAR).
One Prjajapati Keval Dineshbhai, who intended to
make such snacks, submitted before the AAR that the products are unbranded and
hence should be taxed at five per cent.
The GST rate for various products is set on the
basis of the harmonised system nomenclature (HSN) code. The applicant said that
namkeens fall under the code 210690 and hence would draw the five per cent GST.
GST kitty set to rise
Feb 10, 2023
The
finance ministry has projected collections under the goods and services tax
(GST) at an average Rs 1.6 lakh crore per month in the next fiscal against an
estimated Rs 1.4 lakh crore in 2022-23, an increase of about 14 per cent.
The budget has estimated collection under
central GST including compensation cess for the entire fiscal at Rs 9.6- lakh
crore — 12 per cent higher than the revised estimate of FY23, which is Rs
8.5-lakh crore.
Ministry officials has extrapolated state GST
collections from the central one to arrive at the target for the next fiscal.
Collections in the first 10 months of the fiscal
were encouraging with an all-time high monthly collection touching Rs 1.68-lakh
crore in April and the second all-time high of Rs 1.56-lakh crore in January.
So far, in the first ten months, average monthly
gross collection has been Rs 1.49-lakh crore, higher than the requirement of
achieving revised estimate in FY23.
GST council may consider setting up tribunal for indirect tax litigation
Feb 09, 2023
Finance minister Nirmala Sitharaman on Tuesday told the
industry that suggestions for lowering the 28% goods and services tax (GST) on
cement will be looked into as a step toward easing construction costs.
The minister said this in response to a suggestion
made at a post-budget interaction organised by the Confederation of Indian
Industry (CII). The industry suggestion was that lowering GST on cement could
help both government infrastructure projects as well as projects by the private
sector and by individuals.
India will not merge GST tax rates in 2023/24, government official says
Feb 07, 2023
India will not overhaul its Goods and Services Tax (GST)
regime in the next fiscal year, a senior official said on Monday, delaying a
move it has been considering for more than a year to simplify its tax structure
and reduce the burden on consumers.
The country currently has five tax rates for
GST, which was introduced in 2017, bringing numerous state taxes under one
umbrella. They range from 0% to 28%.
In 2021, the government considered overhauling the
tax by merging two of the tax rates, and lowering the levy on a host of items.
Some have criticised the five-year old regime for having too many tiers.
"Right now, we are just looking to maintain
stability (in tax rates), a stable tax regime. Minor changes will always be
there... major taxation change like merger of tax rates, we are not
contemplating in 2023/24,"
Ease of GST compliance: Still a distant dream
Feb 07, 2023
India’s
biggest tax reform, the Goods & Services Tax (GST) was introduced on 1 July
2017. The journey of GST in India has been a roller-coaster ride with many hits
and misses. Since its inception, the Government has considered several legal
and procedural changes to simplify the tax system for the smooth functioning of
GST in the country. GST has also brought with it a paradigm shift in the use of
technology in tax administration and compliance. However, even 5 years and
multiple policy amendments, it seems that not everything has unfolded as
planned.
GST compliances which were envisaged to be
easier and less complex, have turned out to be a compliance nightmare with
multiple and frequent changes in the tax returns and reporting requirements.
Further, the GST portal has been a puzzle and cause of concern for many
taxpayers since its inception. Harmony between the provisions of the law and
the functionality offered on the GST portal remains elusive. It took months to
update the portal on account of changes in the law and process and still, it
continued to face technical glitches.
How automated notices under GST is leading to proliferation of disputes and litigations
Feb 04, 2023
The Goods and Service Tax (GST) has been one of the most
complex yet progressive indirect tax reforms implemented in the history of
India. The reform involved the integration of the nation’s diverse indirect tax
horizon into a single indirect taxation code bringing about a massive
responsibility of developing a robust, unified and interactive IT architecture
to not just integrate the taxation platform of 36 States, Union Territories and
the Union Government, but also to sculpt a single interface structure for all
the taxpayers for compliances and reporting.
The Goods and Services Tax Network (GSTN) was
entrusted with the complex and herculean task of building the platform to
service the needs of diverse stakeholders, be it taxpayers, tax authorities or
other governmental agencies, featuring interoperability with other systems such
as that of Customs authorities. The responsibilities included the taxpayer
migration from the erstwhile regime to GST, registrations, filings, tax
remittance, refunds, validating appropriateness of Input Tax Credit (ITC), etc.
How automated notices under GST is leading to proliferation of disputes and litigations
Feb 04, 2023
The Goods and Service Tax (GST) has been one of the most
complex yet progressive indirect tax reforms implemented in the history of
India. The reform involved the integration of the nation’s diverse indirect tax
horizon into a single indirect taxation code bringing about a massive
responsibility of developing a robust, unified and interactive IT architecture
to not just integrate the taxation platform of 36 States, Union Territories and
the Union Government, but also to sculpt a single interface structure for all
the taxpayers for compliances and reporting.
The Goods and Services Tax Network (GSTN) was
entrusted with the complex and herculean task of building the platform to
service the needs of diverse stakeholders, be it taxpayers, tax authorities or
other governmental agencies, featuring interoperability with other systems such
as that of Customs authorities. The responsibilities included the taxpayer
migration from the erstwhile regime to GST, registrations, filings, tax
remittance, refunds, validating appropriateness of Input Tax Credit (ITC), etc.
Tax base to be widened with stricter audits: CBIC Chief Vivek Johri
Feb 03, 2023
After record goods and services tax (GST) collection, the
Central Board of Indirect Taxes and Customs (CBIC) is preparing a roadmap to
widen the tax base with stricter audits and scrutiny.
There is much scope to widen the tax base and
check tax evasion with active use of digital forensic tools and use of data
integration and artificial intelligence, CBIC chairman Vivek Johri said in a
post-budget interaction with ET.
So far, the board has detected a revenue
shortfall of ?22,000 crore from the tax audits of 51,000 GST return filings and
?2,200 crore from tax scrutiny of 31,000 GST returns. "We are looking at
actively using audits and scrutiny for improving compliances. We have been able
to achieve a big breakthrough in return filing percentage but it is not
enough," Johri said. "We also need to look at the quality of data
that the values taxpayers are putting in the return."
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