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.
Read MoreThe 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.
Read MoreIndia’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.
Read MoreSource: 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.
Read MoreThe looming possibility of a retrospective tax order, which could pose an existential threat to companies like Dream11, MPL, My11Circle, and BalleBaazi
Read MoreSource: 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.
Read MoreSource: 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.
Read MoreThe 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.
Read MoreSource: 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.
Read MoreSource: 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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