08 Feb 2025 06:36 PM
New

GST reduction on health and life insurance premiums: Pending Decisions

Source: https://taxguru.in/goods-and-service-tax/gst-reduction-health-life-insurance-premiums-pending-decisions.html

In the 55th GST Council meeting held on December 21, 2024, in Jaisalmer, the Group of Ministers (GoM) on Life and Health Insurance requested additional time to finalize their recommendations regarding reducing GST on health and life insurance premiums. The GST Council approved this request, deferring any decisions on the matter until the GoM submits its finalized report. As of now, no changes in GST rates on these insurance premiums have been made.

08 Feb 2025 06:12 PM
New

Drilling borewells for agricultural purposes exempt from GST

Source: https://taxguru.in/goods-and-service-tax/drilling-borewells-agricultural-purposes-exempt-gst.html

Government of India has reaffirmed that drilling borewells for agricultural purposes remains exempt from GST. This exemption was carried over from the Service Tax regime, where such services were included in the negative list under Section 66D(d)(i) of the Finance Act, 1994. Under GST, the exemption continues through Notification No. 12/2017-CT(R), specifically under Sl. No. 54(a), covering services directly related to agricultural production. The Rajya Sabha inquiry sought clarity on guidelines for smooth implementation and concerns over potential misinterpretation leading to undue taxation. In response, the government clarified that any such guidelines or clarifications would be issued only upon recommendation by the GST Council, which includes representatives from both central and state governments. As of now, no such recommendation has been made.

08 Feb 2025 06:21 PM
New

GST Collections and Impact on Income Groups

Source: https://taxguru.in/goods-and-service-tax/gst-collections-impact-income-groups.html

Government of India provided details on GST collections over the past five financial years, showing a steady increase in revenue from both domestic sources and imports. However, it does not maintain data on the proportional contribution of different income groups to GST payments. In response to concerns about the tax burden on economically weaker sections, the government clarified that GST rates are not based on consumer income levels but have been structured to exempt or lower taxes on essential goods primarily used by lower-income groups. Any changes to GST rates or exemptions are made based on recommendations from the GST Council, which includes representatives from both the central and state governments. The Council periodically reviews and amends tax rates to ensure fair implementation.

08 Feb 2025 06:39 PM

Tax Revenue from Tobacco Products (2016-2024)

Source: https://taxguru.in/goods-and-service-tax/tax-collected-tobacco-products-2016-2024.html

The share of tax revenue from tobacco products, including cigarettes and bidi, in India’s Gross Tax Revenue ranged from 1.27% in 2016-17 to a peak of 2.75% in 2019-20, before settling at 2.2% in 2023-24 (based on revised estimates). This includes GST, excise duty, compensation cess, and other levies. The Government does not earmark tobacco tax revenue for healthcare but uses it as part of the overall Gross Tax Revenue. In Budget 2024-25, ₹87,657 crore has been allocated to the Department of Health and Family Welfare, funded from general government receipts.

08 Feb 2025 06:45 PM

GST Exemptions for Tirumala Tirupati Devasthanam

Source: https://taxguru.in/goods-and-service-tax/gst-exemptions-tirumala-tirupati-devasthanam.html

Government states that Tirumala Tirupati Devasthanam (TTD) benefits from certain GST exemptions, like all religious institutions. Exemptions include GST-free supply of prasadam, conduct of religious ceremonies, and renting of religious precincts under specified conditions. These conditions include room rentals below ₹1,000 per day, venue rentals below ₹10,000 per day, and shop rentals under ₹10,000 per month. However, TTD still pays GST on taxable activities. The GST collected from TTD in the last five years was ₹36.28 crore in 2024-25 (until December 31, 2024), ₹32.95 crore in 2023-24, ₹32.15 crore in 2022-23, ₹15.58 crore in 2021-22, and ₹14.70 crore in 2020-21.

08 Feb 2025 06:42 PM

GST on NBEMS Fees: Refund Process and Court Order

Source: https://taxguru.in/goods-and-service-tax/gst-nbems-fees-refund-process-court-order.html

National Board of Examinations in Medical Sciences (NBEMS) collected ₹39 crore as GST from Diplomate of National Board (DNB) candidates and ₹29 crore from Foreign Medical Graduate Examination (FMGE) candidates on course fee payments. Following a High Court order dated November 1, 2023, NBEMS has stopped levying GST on these fees. The refund process has begun, but detailed data on processed refunds and the breakdown of collected amounts are still being compiled. The Government has not initiated an enquiry on the issue.

08 Feb 2025 06:49 PM

GST on Insurance Premium: Status of GoM Recommendations

Source: https://taxguru.in/goods-and-service-tax/gst-insurance-premium-status-gom-recommendations.html

During the 55th GST Council meeting on December 21, 2024, in Jaisalmer, the Group of Ministers (GoM) on Life and Health Insurance requested additional time to finalize its recommendations regarding GST on insurance premiums. The issue concerns the impact of GST on social security and insurance penetration among the general public. The Council agreed to extend the timeline for the GoM to present its recommendations. No final decision has been made on the matter yet.

08 Feb 2025 06:32 PM

GST Evasion in Punjab: Cases, Arrests and Government Measures

Source: https://taxguru.in/goods-and-service-tax/gst-evasion-punjab-cases-arrests-government-measures.html

Between July 2017 and December 2024, 1,386 cases of GST evasion were recorded in Punjab, involving approximately ₹6,454 crore. Authorities arrested 72 individuals linked to these cases. To address GST evasion, the government has implemented multiple measures. These include restricting input tax credit (ITC) to invoices listed in the supplier’s GSTR-1 and visible in GSTR-2B, mandating sequential filing of GSTR-1 before GSTR-3B, and enforcing electronic invoicing for B2B transactions for businesses with over ₹5 crore turnover. Additionally, Aadhaar-based biometric authentication for GST registration is now risk-based and extended nationwide. Applicants not opting for Aadhaar authentication must visit GST Suvidha Kendras for photo and document verification. High-risk applications may undergo physical verification even after Aadhaar authentication. Other steps include centralized suspension of non-compliant registrations and penalties for masterminds of GST fraud schemes. Bank account details must also be furnished within 30 days of registration or before filing outward supply details. These efforts aim to ensure robust compliance and reduce GST evasion.

08 Feb 2025 06:18 PM

GST on Health Insurance: Government Review Underway

Source: https://taxguru.in/goods-and-service-tax/gst-health-insurance-government-review-underway.html

Government of India acknowledged concerns regarding the 18% GST on health and life insurance policies. In response, the issue was discussed in the 54th GST Council meeting held on September 9, 2024. The Council decided to form a Group of Ministers (GoM) to review GST on life and health insurance comprehensively. The GoM, led by Bihar Deputy CM Samrat Chaudhary, was tasked with examining potential changes to tax rates. During the 55th GST Council meeting on December 21, 2024, the GoM requested additional time to finalize its recommendations. The Council agreed to extend the timeline, and as of now, no decision has been made regarding a reduction or removal of GST on health or term insurance policies. Any future changes will depend on the GoM’s recommendations and the Council’s approval.

07 Feb 2025 06:10 PM

Big Brother watching: Optional GST invoice reconciliation to be made mandatory

Source: https://www.livemint.com/news/india/gst-credit-invoice-management-system-ims-gst-gst-reconciliation-tax-credit-claims-gst-compliance-input-tax-credit-11738759410934.html

NEW DELHI : An optional, online system to reconcile transaction details for availing GST credit may soon be made mandatory, according to two persons aware of the development.