20 Mar 2025 06:35 PM
New

GST Simplification and Financial Inclusion Updates

Source: https://taxguru.in/goods-and-service-tax/simplifying-gst-structure.html

The GST Council formed a Group of Ministers (GoM) in September 2021 to review GST rate rationalization, aiming to simplify tax slabs, reduce exemptions, and improve compliance. The GoM submitted an interim report, which was reviewed in the 47th GST Council meeting, and no pending proposals are currently under consideration. On financial inclusion, the government has expanded banking services using the Jan Dhan Darshak (JDD) App, ensuring banking outlets are within 5 km of nearly all inhabited villages. As of February 2025, 99.90% of the country’s 6,01,328 villages have access to banking services. Additionally, 107 Digital Banking Units (DBUs) have been established to enhance digital banking infrastructure, following the launch of 75 DBUs in October 2022 as part of India’s 75th Independence celebrations.

20 Mar 2025 06:31 PM
New

Impact of GST Hike on Agricultural Pump-Sets

Source: https://taxguru.in/goods-and-service-tax/impact-gst-hike-agricultural-pump-sets.html

Indian government has acknowledged that manufacturers of agricultural pump-sets have reported a decline in sales due to the increase in GST from 12% to 18%. However, no official data on a 10% decline in sales has been brought to the government’s notice. The GST rate hike was implemented following the 47th GST Council meeting in June 2022, based on recommendations from the Group of Ministers on Rate Rationalization. The increase aimed to correct the inverted duty structure. Regarding concerns over claiming input tax credit refunds, the government clarified that since both pumps and their parts now fall under the 18% GST bracket, the issue of refunds does not arise. Any future changes in GST rates will depend on further recommendations from the GST Council.

20 Mar 2025 06:38 PM
New

GST Compliance Simplification for MSMEs and Small Taxpayers

Source: https://taxguru.in/goods-and-service-tax/ease-compliance-gst.html

The government has implemented various measures to simplify GST compliance for MSMEs and small taxpayers, based on recommendations from the GST Council. Key initiatives include raising the GST registration threshold for goods suppliers to ₹40 lakh and increasing the turnover limit for the composition scheme to ₹1.5 crore. Small taxpayers can opt for quarterly return filing under the QRMP scheme, while NIL returns can be filed via SMS. The refund process has been fully digitized, and taxpayers with turnover up to ₹2 crore are exempt from filing annual returns. Automated return generation, UPI and credit card payment options, and the waiver of mandatory registration for intra-state e-commerce suppliers have further eased compliance. Retrospective amendments extend input tax credit deadlines, and late fee structures have been revised to reduce the burden on smaller businesses. Additionally, certain GST offences have been decriminalized to facilitate smoother business operations.

19 Mar 2025 05:51 PM

India needs a better way to track its micro-enterprises

Source: https://www.livemint.com/opinion/online-views/india-micro-enterprises-nso-national-statistical-office-informal-economy-directorates-of-economics-and-statistics-data-11742281866382.html

Even before we could get to see the results of the seventh economic census (conducted in 2019-20), plans are afoot to conduct the eighth one in the coming months. India’s economic census is supposed to be a comprehensive database of all firms in the country, including micro-enterprises. It is supposed to be conducted every five years and serve as a sampling frame for informal-sector surveys. These surveys are then used to estimate the informal sector’s contribution to national output.

17 Mar 2025 06:50 PM

GST Exemption for Autism Centres: Current Status & Policy

Source: https://taxguru.in/goods-and-service-tax/gst-exemption-autism-centres-current-status-policy.html

The Government clarified that Autism Centres providing education, care, and counseling without profit are not exempt from GST under existing laws. GST exemptions, as per Notification No. 12/2017, apply only to specific educational institutions, charitable organizations, and healthcare services. Currently, only healthcare services for terminally ill individuals or those with severe physical or mental disabilities (80% or more impairment) qualify as charitable activities for GST exemption. Autism does not automatically fall under this category, though severe autism (ISAA score >153) may be classified as an 80% disability under the RPwD Act, 2016. The decision to expand GST exemptions rests with the GST Council, which has made no such recommendations to date.

17 Mar 2025 06:36 PM

Indian gig workers who offer mobility services deserve GST relief

Source: https://www.livemint.com/opinion/online-views/indian-gig-workers-mobility-services-gst-council-uber-drivers-ola-rapido-income-tax-union-budget-nirmala-sitharaman-saas-11741853798383.html

The Union Budget for 2024-25 rightly focused on promoting inclusive growth and enabling employment-led development in India. With a goal of assisting the poor and vulnerable groups, finance minister Nirmala Sitharaman proposed a scheme for the socioeconomic upliftment of Indian workers as the government tries to help them raise their incomes and attain sustainable livelihoods for a better quality of life.

17 Mar 2025 06:53 PM

Government has no plans to roll back GST on leased properties

Source: https://taxguru.in/goods-and-service-tax/government-plans-roll-gst-leased-properties.html

The Government has no plans to roll back GST on leased properties, which has been applicable at 18% since 2017. The GST Council, a constitutional body, reviews such policies. In its 54th meeting, the Council shifted GST on non-residential property leases to a reverse charge mechanism. However, concerns were raised that this change increased costs for Composition Scheme taxpayers, as they cannot claim Input Tax Credit (ITC). To address this, the 55th GST Council meeting (Dec 2024) recommended excluding Composition Scheme taxpayers from this requirement. A new notification (No. 07/2025-CT(R)) was issued in January 2025, exempting them from reverse charge GST liability. The Central Government does not maintain nationwide data on leased properties.

17 Mar 2025 06:45 PM

GST Revenue Collection and Evasion Measures

Source: https://taxguru.in/goods-and-service-tax/gst-revenue-collection-evasion-measures.html

Ministry of Finance shared data on GST revenue collection targets and actual collections from FY 2019-20 to FY 2023-24. Collections ranged from 79.5% to 110.8% of budget estimates, with consistent improvements in compliance over the years. Between 2020 and January 2025, 86,711 GST evasion cases were detected, leading to tax recoveries totaling ₹6.8 lakh crore. Additionally, 42,673 cases of Input Tax Credit (ITC) fraud were identified, recovering ₹12,367 crore. Key measures to improve compliance include e-invoicing, GST analytics, risk-based audit selection, and initiatives like “Project Anveshan,” which leverages advanced tools like facial recognition and anomaly detection. These steps aim to identify systemic gaps, prevent evasion, and enhance revenue collection. While these measures support compliance and safeguard revenue, their exact contribution is influenced by factors like global economic conditions, domestic consumption, and tax rates, making it challenging to isolate their individual impact on revenue growth.

17 Mar 2025 06:47 PM

GST Revenue Growth and Compliance Measures (2017-2025)

Source: https://taxguru.in/goods-and-service-tax/gst-revenue-growth-compliance-measures-2017-2025.html

India’s GST collection has shown a steady increase since its implementation in 2017, reflecting its role in enhancing fiscal health and formalizing the economy. The gross GST collection rose from ₹7.41 lakh crore in 2017-18 to ₹20.18 lakh crore in 2023-24. This growth is attributed to streamlining tax credits, reducing cascading taxes, and fostering a unified national market. Maharashtra, Karnataka, and Gujarat are among the top contributors to GST revenue, driven by key sectors like manufacturing and services. The government has implemented various measures to support underperforming states, including targeted reforms and sector-specific interventions. Efforts to curb tax evasion include legal provisions under the CGST Act, data analytics, and enforcement actions, along with technical upgrades to the GST portal for seamless compliance. Challenges such as complexity, ITC mismatches, and compliance burdens persist but are being addressed through structural changes, e-invoicing mandates, and technological integration. These steps have significantly boosted GST compliance and revenue while supporting taxpayers through extended filing periods and grievance redressal mechanisms.

17 Mar 2025 06:40 PM

GST Revenue from Andaman & Nicobar Islands: 5-Year Data

Source: https://taxguru.in/goods-and-service-tax/gst-revenue-andaman-nicobar-islands-5-year-data.html

In response to Lok Sabha Unstarred Question No. 1837 on 10th March 2025, the Ministry of Finance provided details on GST revenue collected from the Andaman & Nicobar Islands over the past five years. The gross GST collection, including contributions from the hotel and tourism industry, increased year-on-year, with Rs. 255 crores collected in 2020-21, rising to Rs. 431 crores by February 2025. Net UTGST collections from the region during the same period were also detailed, with Rs. 192 crores collected in 2019-20 and Rs. 190 crores in 2023-24. All GST revenue collected from the Islands is credited to the Consolidated Fund of India. However, specific records of allocation or utilization of these funds for the development and welfare of the Islands are not maintained. The government highlighted the absence of detailed tracking for such allocations.