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Deep dives and practical guides written by the WFYI team.
Comprehensive explanations, FAQs, and updates about GST regulations, returns, and compliance.
The 46th GST Council meeting, an emergency session held on December 31, 2021, primarily focused on the proposed GST rate hike for textiles. Chaired by the Union Finance Minister, the Council decided to defer the increase of GST on textiles from 5% to 12%, tasking the Group of Ministers with a further review. The meeting clarified that the 12% GST on footwear would proceed as planned, and discussed various other rate rationalization proposals and the extension of the GST Compensation Cess.
The 47th GST Council meeting, held in June 2022, addressed crucial updates and reforms concerning India's Goods and Services Tax. Key outcomes included permitting GSTR-3B amendments and offering compliance relief to e-commerce suppliers, alongside extending deadlines for composition taxpayers. The Council also rationalized GST rates by correcting inverted tax structures, increasing taxes on certain goods and services, and withdrawing several exemptions. Expectations prior to the meeting focused on refining ITC reporting, addressing crypto taxation, and further simplifying compliance for businesses.
Rule 86A of the CGST Act empowers tax authorities to block fraudulently availed Input Tax Credit (ITC) to protect government revenue. This measure can be enacted when there are clear reasons to suspect ineligible or false ITC claims, such as those from non-existent suppliers or without actual supply. While taxpayers have a legal right to ITC, this rule, introduced under Section 164, provides a legal basis for restriction. The blocking of ITC under Rule 86A automatically ceases after one year.
The GST Department has made it compulsory to provide exact geolocation details for business premises during new GST registrations or when adding new places of business. The GSTN introduced a 'Geolocation' feature to enhance address accuracy and ease the update process. The GST REG-01 application's user interface has been improved with features like map integration for precise pinning, auto-population of address fields, and suggestive input options to streamline address entry.
The 45th GST Council meeting, held physically in Lucknow, marked a significant session chaired by Union Finance Minister Nirmala Sitharaman. Key decisions included GST exemptions for life-saving drugs and COVID-19 medications, rate reductions for cancer drugs and specific goods, and corrections to inverted duty structures in various sectors. The Council also addressed procedural simplifications for compliance and discussed strategies for revenue augmentation, though the inclusion of petrol and diesel under GST was deferred.
India's Goods and Services Tax (GST) collections for August 2022 exceeded Rs. 1.4 lakh crore, as announced by the Ministry of Finance. This significant figure represents a 28% increase compared to August 2021, driven by factors like robust imports and enhanced compliance measures. While there was a slight dip from the previous month, the overall six-month trend indicates stable revenue growth, with several states reporting substantial year-on-year increases in their collections.
The Central Board of Indirect Taxes and Customs (CBIC) has launched a redesigned tax information portal, offering simplified access to tax data for a wide range of stakeholders. This user-friendly platform features updated information, comprehensive search tools, and dedicated sections for various tax categories like GST and Customs. It aims to provide a seamless experience, allowing users to easily find and download official tax documents and updates.
The GST Council, on June 11, 2017, revised tax rates for 66 items and increased the Composition Scheme threshold from INR 50 lakhs to INR 75 lakhs. These adjustments aimed to align GST rates with pre-existing taxes and reclassify essential goods from luxury categories. Additionally, the Council introduced new rates for various industrial and machine-related items to alleviate tax burdens, while the Composition Scheme remains unavailable for service providers.