After a tax cut and a rate cut, it's time now for a GST cut
  • 14 Feb 2025 06:12 PM
  • New

After a tax cut and a rate cut, it's time now for a GST cut

Source: https://www.livemint.com/economy/gst-council-to-balance-consumption-boost-tax-simplicity-revenue-goals-while-recasting-rates-11739364239235.html

After the Union government reduced the tax burden on individuals and the central bank followed with an interest rate cut, it's over to the states now.

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India’s Income Tax Bill sets the stage for significant reforms
  • 14 Feb 2025 06:35 PM
  • New

India’s Income Tax Bill sets the stage for significant reforms

Source: https://www.livemint.com/opinion/online-views/india-income-tax-bill-tax-reforms-nirmala-sitharaman-new-regime-income-tax-deductions-compliance-corporate-tax-gst-claim-11739450020966.html

The Income Tax Act of 1961 has undergone innumerable amendments since its inception (4,000, as stated by the finance minister in Parliament). Historically, successive governments have used tax as an instrument to incentivize specific industries, promote investments in certain regions, or to encourage foreign exchange earnings. As a result, numerous provisions were added over the years to provide sectoral, regional or specific activity-related benefits. Additionally, various explanations, provisos and exceptions were introduced to clarify or nullify the impact of judicial pronouncements.

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Mint Quick Edit | Finally, a tax law we may be able to grasp
  • 14 Feb 2025 06:15 PM
  • New

Mint Quick Edit | Finally, a tax law we may be able to grasp

Source: https://www.livemint.com/opinion/online-views/new-income-tax-bill-nirmala-sitharaman-tax-law-simplification-taxpayers-financial-year-zero-income-tax-new-regime-gst-11739462177581.html

India’s move to simplify its income tax law promises us relief from something even experts found hard to comprehend. And it’s unjust for anybody to be hauled up for breaking rules they can’t understand.

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Exemption of GST On Health & Life Insurance Premium
  • 13 Feb 2025 06:24 PM

Exemption of GST On Health & Life Insurance Premium

Source: https://taxguru.in/goods-and-service-tax/exemption-gst-health-life-insurance-premium.html

The Government of India recently addressed questions regarding the exemption of GST on health and life insurance premiums to improve affordability for middle and lower-income groups. GST rates and exemptions are determined by the GST Council, a constitutional body. During its 54th meeting on September 9, 2024, the Council discussed GST on insurance and recommended forming a Group of Ministers (GoM) under Bihar’s Deputy Chief Minister, Sh. Samrat Chaudhary. The GoM is tasked with a comprehensive review of GST on life and health insurance. At the 55th GST Council meeting on December 21, 2024, the GoM requested additional time to finalize its recommendations.

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Fantasy sports revenue may drop 10% in FY25 amid tax policy shifts: Report
  • 13 Feb 2025 05:56 PM

Fantasy sports revenue may drop 10% in FY25 amid tax policy shifts: Report

Source: https://www.livemint.com/companies/news/fantasy-sports-industry-india-tax-policy-online-gaming-tax-deloitte-dream11-mpl-my11circle-ballebaazi-11739427704066.html

The looming possibility of a retrospective tax order, which could pose an existential threat to companies like Dream11, MPL, My11Circle, and BalleBaazi

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GST Simplification Efforts and MSME Compliance Relief
  • 13 Feb 2025 06:19 PM

GST Simplification Efforts and MSME Compliance Relief

Source: https://taxguru.in/goods-and-service-tax/gst-simplification-efforts-msme-compliance-relief.html

The Indian government refutes claims that GST complexities hinder business operations, stating that the tax structure follows GST Council recommendations, comprising four main slabs—5%, 12%, 18%, and 28%—with additional special rates for specific goods. Measures have been taken to counter GST fraud, including special drives in 2023 and 2024, leading to the detection of fake registrations and tax evasion cases. To support MSMEs, exemptions from GST registration apply to small businesses based on turnover, and simplified compliance schemes, such as the Composition Scheme and QRMP, have been introduced. Additionally, retrospective amendments and penalty waivers aim to ease compliance burdens.

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GST on Educational Services and Exemptions
  • 13 Feb 2025 06:10 PM

GST on Educational Services and Exemptions

Source: https://taxguru.in/goods-and-service-tax/gst-educational-services-exemptions.html

Goods and Services Tax (GST) applies differently across educational services. Commercial coaching and training services are taxable at 18% under Notification No. 8/2017, while services provided by educational institutions to students, faculty, and staff, as well as printed books under HSN Code 4901, are exempt from GST. The GST revenue collected from taxable education services such as commercial training amounted to ₹2,859.49 crore in 2021-22, ₹4,342.28 crore in 2022-23, and ₹4,793.24 crore in 2023-24. Various exemptions exist to support educational institutions, such as transportation, catering (including mid-day meals), security, cleaning, admission, and examination-related services for schools up to the higher secondary level. The GST Council, a constitutional body, prescribes rates and exemptions to ensure affordability in the sector. These measures aim to maintain accessibility and affordability in education services.

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Bogus companies, fake invoices: ₹1,196 crore GST fraud unearthed by DGGI Pune Zonal Unit; check details
  • 13 Feb 2025 05:50 PM

Bogus companies, fake invoices: ₹1,196 crore GST fraud unearthed by DGGI Pune Zonal Unit; check details

Source: https://www.livemint.com/economy/bogus-companies-fake-invoices-rs-1-196-crore-input-tax-credits-gst-fraud-unearthed-by-dgci-pune-zonal-unit-11739366592197.html

The Pune Zonal Unit of DGGI has uncovered a GST evasion scheme involving ₹1,196 crore, arresting one individual. A director of a private firm based in Muzaffarnagar as been identified as the mastermind behind the operation.

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GST on Leased Properties: Government’s Position and Changes
  • 13 Feb 2025 06:16 PM

GST on Leased Properties: Government’s Position and Changes

Source: https://taxguru.in/goods-and-service-tax/gst-leased-properties-governments-position.html

The government has no plans to roll back the 18% GST on leased properties, which has been in place since GST’s introduction in 2017. The GST Council, in its 54th meeting, recommended shifting the tax on non-residential property leases from forward charge to reverse charge basis. However, concerns arose regarding the financial burden on composition taxpayers, who cannot claim input tax credit. In response, the 55th GST Council meeting on December 21, 2024, recommended excluding composition taxpayers from this requirement. Consequently, Notification No. 07/2025-CT(R) was issued on January 16, 2025, exempting them from reverse charge obligations on leasing services received from unregistered persons. The Central Government does not maintain nationwide data on leased properties.

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Decline in West Bengal’s GST Share and Government Response
  • 13 Feb 2025 06:27 PM

Decline in West Bengal’s GST Share and Government Response

Source: https://taxguru.in/goods-and-service-tax/decline-west-bengals-gst-share-government-response.html

West Bengal’s share in national GST collections has declined from 4.6% in 2019-20 to 4% in 2024-25, despite an increase in absolute revenue. Factors influencing GST revenue include economic conditions and consumption patterns, though no specific study has been conducted on the state. To improve collections and compliance, the government has introduced measures such as mandatory e-way bills, ITC matching, e-invoicing for B2C suppliers, Aadhaar authentication, and AI-driven analytics. Actions against tax evasion include suspending fraudulent registrations, blocking ITC, and enforcing penalties. Enforcement conferences have also been held to streamline anti-evasion efforts while maintaining business ease.

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