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Feb 06, 2025
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GST Council to soon take decision on rates, number of slabs: FM Sitharaman
The GST Council will soon take a decision on having fewer and lower rates as the review work is almost complete, Finance Minister Nirmala Sitharaman said on Tuesday.
Currently, Goods and Services Tax (GST) is a four-tier tax structure with slabs at 5, 12, 18 and 28 per cent. Luxury and demerit goods are taxed at the highest bracket of 28 per cent, while packed food and essential items are in the lowest 5 per cent slab.
The Council, chaired by Sitharaman and comprising her state counterparts, has set up a group of ministers (GoM) to suggest changes in GST rates as well as reduce slabs.
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Feb 06, 2025
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Jammu and Kashmir Bank receives GST notice of over Rs 16,000 crore
Jammu and Kashmir Bank (J&K Bank) announced on Wednesday that it has received a Goods and Services Tax (GST) notice amounting to over Rs 16,000 crore. Of this, Rs 8,130.66 crore pertains to the GST demand, with an equal amount imposed as a penalty, issued by the joint commissioner of the central GST commissionerate in Jammu.
The bank has stated that it has taken appropriate legal action in the matter, as it believes that it has a strong case on merit. Expert opinions on the subject have stated that the demand is without legal justification and will be set aside by a court of appropriate jurisdiction.
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Feb 03, 2025
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GST rate rationalisation process underway, say sources
After rationalising income tax rates in the Union Budget, the government may also be looking at rationalising the Goods and Services Tax (GST) rates, sources told Moneycontrol. The process has already begun, with the Centre working towards bringing all states on board, sources said.
"The process is already underway to rationalise GST, and we want to ensure a consensus among states before finalising any changes," a source aware of the matter said on condition of anonymity.
The move follows Finance Minister Nirmala Sitharaman’s recent Budget announcement on February 1, where she offered significant relief to the middle class by exempting individuals earning up to Rs 12 lakh from income tax while also tweaking tax slabs for others.
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Feb 03, 2025
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More tax relief? Centre may push for a leaner GST machine
After delivering significant relief to the middle class on personal income tax and customs tariff rationalisation, the Centre is likely to make a renewed push for revamping the goods and services tax (GST) structure to make it simpler to implement and comply with, officials said.
The focus will be on revamping the slabs to ensure that the exercise is meaningful, they said.
The Centre is likely to take up the issue of simplification and rationalisation with the group of ministers (GoM) mandated to examine the rates, a person familiar with the deliberations said.
The person said the focus within the GoM so far has been on moving goods from one slab to another but for an impactful simplification the current structure will have to be rationalised.
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Feb 03, 2025
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Obsolete GST norms on gift coupons deleted
Following the stipulation in a recent GST council meeting and issue of a circular, Budget 2025 has deleted obsolete provisions relating to goods and services tax (GST) on gift vouchers. However, it should be noted that allied activities like marketing of these vouchers will still be subject to gift tax.
Rohit Jain, deputy managing partner, at Economic Laws Practice said, "The Karnataka high court had held that vouchers do not fall in the category of goods or services and cannot be subject to GST. Subsequently, a circular issued in Dece, stated that GST does not apply on vouchers. Consequently there is no need to determine the time of supply.
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Feb 03, 2025
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GST rules for credit notes tightened to stop leakage
A supplier of goods or services can issue a credit note to the buyer in several instances. Typically this happens if the supplier has made mistakes in the original invoice, such as declaring a value higher than the value of goods or services actually provided or has mentioned an incorrect higher GST rate. A credit note is also issued when goods are returned by the buyer.
Rohit Jain, deputy managing partner, at Economic Laws Practice explains, "There exists a possibility that the recipient (buyer) could have taken input tax credit (ITC) based on the original invoice and subsequently, the supplier issues a credit note and claims adjustment (refund). The Budget proposes that it is now necessary for the supplier to ensure that the recipient reverses ITC before such adjustment is claimed."
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Jan 30, 2025
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File GSTR-9C by March 31 to get late fee waive-off and avoid GST notice
The Finance Ministry recently issued a notification about Goods and Services Tax (GST) payers who have not filed the annual reconciliation statement using the GSTR-9C form.
According to the circular, such taxpayers have an opportunity not to pay any outstanding late fees for failing to file GSTR-9C for FY 2017-18, FY 2018-19, FY 2019-20, FY 2020-21, FY 2021-22, or FY 2022-23. To avail of the waive-off, the pending GSTR-9C must be filed by March 31, 2025.
Who needs to file GSTR-9C and GSTR-9?
GSTR-9 is an annual return to be filed by taxpayers who are registered under GST. This return consolidates the information furnished in the monthly or quarterly returns (GSTR-1, GSTR-2A, GSTR-3B) during the financial year.
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Jan 30, 2025
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Advisory for Biometric-Based Aadhaar Authentication and Document Verification for GST Registration Applicants of Tamil Nadu and Himachal Pradesh
This is to inform taxpayers about recent developments concerning the application process for GST registration. It is advised to keep the following key points in mind during the registration process.
1. Rule 8 of the CGST Rules, 2017 has been amended to provide that an applicant can be identified on the common portal, based on data analysis and risk parameters for Biometric-based Aadhaar Authentication and taking a photograph of the applicant along with the verification of the original copy of the documents uploaded with the application.
2. The above-said functionality has been developed by GSTN. It has been rolled out in Tamil Nadu and Himachal Pradesh on 28th January 2025.
3. The said functionality also provides for the document verification and appointment booking process. After the submission of the application in Form GST REG-01, the applicant will receive either of the following links in the e-mail,
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Jan 29, 2025
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No GST on penal charges levied by banks, NBFCs: CBIC
Goods and Services Tax (GST) will not be applicable on penal charges levied by banks and non-banking finance companies (NBFCs), the CBIC has said. The Central Board of Indirect Taxes and Customs (CBIC) through a circular has also clarified that GST will not be levied on transactions of up to Rs 2,000 facilitated by payment aggregators on online platforms.
Clarifying the issue of GST applicability on penal charges levied by banks and NBFCs, the CBIC said penal charges levied by Regulated Entities governed by the RBI are essentially in the nature of charges for breach of terms of contract and hence, do not attract GST.
"As recommended by the 55th GST Council, it is hereby clarified that no GST is payable on the penal charges levied by Regulated Entities... for non-compliance with material terms and conditions of loan contract by the borrower," the CBIC said.
AMRG & Associates Senior Partner Rajat Mohan said this clarification is significant as it settles interpretational disputes at the field level.
"By reiterating the essence of contractual obligations' that contracts are meant for performance and not breach' the GST Council has eliminated ambiguity regarding the taxability of such charges.
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Jan 29, 2025
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Advisory for Biometric-Based Aadhaar Authentication and Document Verification for GST Registration Applicants of Tamil Nadu and Himachal Pradesh
Dear Taxpayers,
This is to inform taxpayers about recent developments concerning the application process for GST registration. It is advised to keep the following key points in mind during the registration process.
1. Rule 8 of the CGST Rules, 2017 has been amended to provide that an applicant can be identified on the common portal, based on data analysis and risk parameters for Biometric-based Aadhaar Authentication and taking a photograph of the applicant along with the verification of the original copy of the documents uploaded with the application.
2. The above-said functionality has been developed by GSTN. It has been rolled out in Tamil Nadu and Himachal Pradesh on 28th January 2025.
3. The said functionality also provides for the document verification and appointment booking process. After the submission of the application in Form GST REG-01, the applicant will receive either of the following links in the e-mail,
(a) A Link for OTP-based Aadhaar Authentication OR
(b) A link for booking an appointment with a message to visit a GST Suvidha Kendra (GSK) along with the details of the GSK and jurisdiction, for Biometric-based Aadhaar Authentication and document verification (the intimation e-mail)
4. If the applicant receives the link for OTP-based Aadhaar Authentication as mentioned in point 3(a), she/he can proceed with the application as per the existing process.
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Jan 28, 2025
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Attention – Hard - Locking of auto-populated liability in GSTR-3B
1. Please refer to the advisory dated October 17, 2024 , regarding the restricting the editing of auto-populated liability in GSTR-3B from the January 2025 tax period.
2. However, various requests have been received from the trade seeking time for the same. Therefore, the decision of making non-editable of auto-populated liability in GSTR-3B is currently not being implemented from January tax period, on the GST Portal.
3. It may be noted that the above change will be introduced soon and trade will be informed accordingly. Taxpayers are encouraged to prepare for the said change.
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Jan 27, 2025
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Got a GST violation notice? Check the notice as it can be fraudulent notice as well
The Central Board of Indirect Taxes and Customs (CBIC) cautioned citizens and GST-registered taxpayers against fraudsters issuing fake and fraudulent summons for Goods and Services Tax (GST) violations. The CBIC has recently noticed that some individuals with malicious intent are fabricating and distributing fake summons to taxpayers, regardless of whether they are under investigation by the Directorate General of GST Intelligence (DGGI).
The caution has been issued by CBIC so that GST taxpayers do not get fraud and lose their money according to the Press Information Bureau (PIB) release on January 24, 2025.
The fake summons, issued by fraudsters, closely resemble the genuine ones, as they incorporate the department's logo and us a fabricated Document Identification Number (DIN).
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Jan 27, 2025
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Advisory on the Introduction of E-Way Bill (EWB) for Gold in Kerala State
It is hereby informed that a new option for generating E-Way Bills (EWB) for gold has been introduced in the EWB system, effective from January 20, 2025. This feature has been made available to facilitate taxpayers in Kerala State to generate EWB for goods classified under Chapter 71, excluding Imitation Jewellery, for intrastate movement, in compliance with the notification issued by the Government of Kerala.
Key Points for Taxpayers:
1.Scope of Coverage:
a)The EWB can be generated for goods covered under Chapter 71, excluding HSN 7117 (Imitation Jewellery) under the “EWB for gold” option only.
b)This feature is applicable only for intrastate movement of such goods within Kerala.
2.Generation of EWB for Imitation Jewellery (HSN 7117):
a) Taxpayers can continue to generate EWB for goods under HSN 7117 (Imitation Jewellery) using the usual option in the EWB system.
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Jan 25, 2025
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GST late fee waiver: Last opportunity to avoid GST notice due to non-filing of GSTR-9C, do this now
The Ministry of Finance has issued a notification relevant for Goods and Service Tax (GST) registered taxpayers who failed to file the annual reconciliation statement through the GSTR-9C form. As per the circular eligible GST taxpayers now have an opportunity to get a waiver of any pending late fees for filing GSTR-9C for FY 2017-18, FY 2018-19, FY 2019-20, FY 2020-21, FY 2021-22 or FY 2022-23. However, there is a catch which is you need to file any pending GSTR-9C on or before March 31, 2025, if you want the benefit of waiver of late fees.
The original deadline to file GSTR-9 and GSTR-9C, both for any particular financial year is December 31. While the GSTR-9 annual return can very well be filed without the GSTR-9C return, the law recommends both the returns be filed together. The present notification is relevant for those taxpayers who didn’t follow this recommendation and skipped filing GSTR-9C.
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Jan 25, 2025
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Advisory on Business Continuity for e-Invoice and e-Waybill Systems
This advisory is issued to highlight the alternate mechanisms and business continuity plans available for both the e-Invoice and e-Waybill systems.
If you have not integrated these alternate mechanisms into your existing systems or are not currently utilising them, GSTN suggest coordinating with your system integrators, IRPs, ERPs, GSPs, or ASPs to enable these redundancies. This would ensure that these mechanisms are fully operational and accessible when needed.
Both NIC-IRP 1 & 2 portals are interoperable, allowing seamless switch-over between them during service disruptions. Additionally, if NIC-IRP is down any of the other e-Invoice IRPs listed above could also be used.
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Jan 24, 2025
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Government waives late fee for delayed GST filings
The Central Board of Indirect Taxes and Customs (CBIC) Thursday announced a waiver of late fees for delayed filings of reconciliation statements and annual returns for the financial years 2017-18 to 2022-23.
To avail this waiver, taxpayers must file reconciliation statement Form GSTR-9C on or before March 31, 2025, CBIC said in a late night notification.
Additionally, no refund will be provided for any late fees already paid for the delayed furnishing of GSTR-9C for these financial years, the notification said.
This move is expected to bring relief to taxpayers who have delayed filing reconciliation statements in the past.
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Jan 24, 2025
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Panacea Biotec not to pay 18% GST on leasehold land, says Bombay HC
After Gujarat High Court, in a yet again landmark judgment, the Bombay High Court on January 21 quashed the GST demand on the assigning of leasehold land under the Maharashtra Industrial Development Corporation (MIDC).
The Court was hearing a matter as to whether 18% GST should be applicable to such leasehold land deals or not. Even the industry had continuously contended that it would lead to double taxation of stamp duty and GST payable on the assignment and transfer of leasehold land, which meant that GST should not be levied.
WHAT WAS THE CASE?
The dispute arose from a transaction in which MIDC initially assigned leasehold land to Panacea Biotec Ltd.
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Jan 23, 2025
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Implementation of mandatory mentioning of HSN codes in GSTR-1 & GSTR 1A
After successful implementation of Phase-I & Phase-II now Phase-III regarding Table 12 of GSTR-1 & 1A is being implemented, from return period February 2025. In this phase manual entry of HSN has been replaced by choosing correct HSN from given Drop down. Also, Table-12 has been bifurcated into two tabs namely B2B and B2C, to report these supplies separately. Further, validation regarding values of the supplies and tax amounts involved in the same, have also been introduced for both the tabs of Table-12. However in initial period these validations have been kept in warning mode only, which means failing the validation will not be a blocker for filling of GSTR-1& 1A.
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Jan 22, 2025
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Insurers want GST to continue on term plans
At a time when the ministerial panel on GST rationalisation is seeking to ensure that the benefits of lower tax are passed on to consumers, life insurance companies have petitioned against exempting term insurance policies from the levy.
The life insurance industry has argued that the move will result in withdrawal of input tax credit (ITC) benefit for taxes paid on goods and services and services used by them and will increase costs for them. Estimating that ITC adds up to 11%, the companies have told the group of ministers, led by Bihar deputy chief minister Samrat Chaudhary, as well as officials at the Centre that at least 12% GST should be imposed. Besides, they want the full benefit of ITC to be available to offset any cost disadvantage.
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Jan 17, 2025
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Big relief for GST taxpayers: Protection against arbitrary arrest and coercion by GST officers; CBIC changes arrest and bail guidelines under GST
Now a Goods and Service Tax (GST) proper officer can't arbitrarily arrest a GST registered person due to a recent amendment in GST arrest instructions. Moreover, now GST proper officers have to explain to the taxpayers about the 'grounds of arrest' and also obtain a written acknowledgement from them about their understanding of the explanation.
The Goods and Services Tax Investigation wing has amended para 4.2.1 of its instruction dated August 17, 2022. Amended para 4.2.1 now reads as follows: "The grounds of arrest must be explained to the arrested person and also furnished to him in writing as an Annexure to the Arrest Memo. Acknowledgement of the same should be taken from the arrested person at the time of service of the Arrest Memo." A notification intimating this amendment in guidelines for arrest and bail in relation to offences punishable under CGST Act, 2017 was published on January 13, 2025 by Central Board of Indirect Taxes and Customs (CBIC).
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