17 Mar 2025 07:08 PM
New

GST Reforms in India: Recent Measures & Industry Suggestions

Source: https://taxguru.in/goods-and-service-tax/gst-reforms-india-recent-measures-industry-suggestions.html

Indian government, through the GST Council, continuously reviews and implements reforms to improve GST compliance and ease of doing business. In response to industry suggestions, several measures have been introduced. These include a retrospective amendment to Section 16(4) of the CGST Act, 2017, extending the time limit for availing input tax credit for financial years 2017-18 to 2020-21. Additionally, a new Section 128A provides waivers on interest and penalties for demand notices under Section 73 if tax dues are settled by March 31, 2025. To streamline the appeals process, amendments to Sections 107 and 112 have reduced pre-deposit requirements for filing GST appeals. Further, to support small taxpayers and e-commerce businesses, the mandatory registration requirement for intra-state supply of goods through e-commerce operators has been conditionally waived from October 1, 2023. Composition taxpayers are also permitted to make intra-state supplies through e-commerce operators under specific conditions. These reforms aim to reduce the compliance burden, simplify tax regulations, and create a more business-friendly GST framework.

17 Mar 2025 06:57 PM
New

Outstanding Tax Dues and Government Recovery Measures

Source: https://taxguru.in/goods-and-service-tax/outstanding-tax-dues-government-recovery-measures.html

As per CAG reports, India’s total outstanding tax dues include ₹14.41 lakh crore in direct taxes (as of March 2021), ₹2.26 lakh crore in central excise and service tax, and ₹42,601 crore in customs duties (as of March 2022). No outstanding GST dues have been reported. The accumulation is attributed to litigation, untraceable defaulters, inadequate assets for recovery, and pending appeals. To improve tax collection, the government has introduced digital reforms, simplified tax laws, widened the tax base, and promoted voluntary compliance. Measures such as pre-filled tax returns, expanded TDS/TCS, and digital payment options have been implemented. For tax recovery, authorities monitor top defaulters, enforce asset tracing, and issue legal notices. Indirect tax recovery efforts include tracking defaulters, restricting e-way bills for non-compliant taxpayers, enforcing biometric verification, and using AI to detect fraudulent transactions. GST reforms, including structural rate changes and compliance enhancements, have contributed to increased collections.

17 Mar 2025 06:50 PM
New

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 06:45 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 07:13 PM

Odisha Govt Clarifies GST Exemption on compensation for Land Acquisition

Source: https://taxguru.in/goods-and-service-tax/odisha-govt-clarifies-gst-exemption-on-compensation-for-land-acquisition.html

The Odisha Finance Department has issued a clarification regarding the non-applicability of Goods and Services Tax (GST) on compensation paid for land and structural acquisition. According to the Central GST Act, 2017, and Odisha GST Act, 2017, the sale of land or buildings is neither considered a supply of goods nor a supply of services, thereby placing it outside the scope of GST.

The notice highlights a recent case where government authorities erroneously paid GST on compensation amounts provided to private landowners during the acquisition process. The department has emphasized that such payments are incorrect and unnecessary, urging all government departments and subordinate offices to ensure compliance with GST regulations.

17 Mar 2025 07:11 PM

GST on Education: Coaching, Books & Exemptions

Source: https://taxguru.in/goods-and-service-tax/gst-education-coaching-books-exemptions.html

The Indian government applies an 18% Goods and Services Tax (GST) on commercial coaching and training services. However, services provided by educational institutions to their students, faculty, and staff are exempt from GST. Printed educational books under HSN Code 4901 are also exempt. GST revenue from taxable education services, specifically commercial coaching, has increased over the past three years, rising from ₹2,859.49 crore in 2021-22 to ₹4,793.24 crore in 2023-24. The GST Council, comprising Union and State/UT members, determines GST rates and exemptions. Additional exemptions exist for services provided to educational institutions up to higher secondary level, including student transportation, catering (mid-day meals), security, cleaning, examination services, and online educational journals (with some exceptions). No further measures to provide relief in GST to the education related services are proposed other than the current exemptions.

17 Mar 2025 07:01 PM

TN Traders Seek GST Cut on Food Items, Camphor & Chit Fund Services Exemption

Source: https://taxguru.in/goods-and-service-tax/tn-traders-seek-gst-cut-food-items-camphor-chit-fund-services-exemption.html

Government has received requests from trade associations in Tamil Nadu, including the Tamil Nadu Foodgrains Merchants Association and the Camphor Tableters Association, for reductions in GST rates on essential food items and camphor used in religious practices. There is also a request to exempt services provided by chit fund foremen. Additionally, some stakeholders have sought a reduction in GST rates for certain service products from 18% to 12% and 12% to 5%. However, changes in GST rates and exemptions require recommendations from the GST Council, a constitutional body comprising representatives from both the Union and State Governments. Regarding medical equipment, including stents, no recommendations for GST rate reductions have been made by the GST Council at this time.

13 Mar 2025 05:38 PM

AI, capital, startups & reforms will drive India’s growth to $8 trillion: Infosys’ Nandan Nilekani

Source: https://www.livemint.com/economy/ai-capital-startups-reforms-will-drive-india-s-growth-to-8-trillion-infosys-nandan-nilekani-11741788488305.html

India can accelerate to an $8 trillion economy by 2035 by unlocking AI, digital public infrastructure, capital access, entrepreneurship, and policy reforms, says Infosys co-founder Nandan Nilekani.

13 Mar 2025 05:31 PM

Centre ready to exempt health and life insurance from GST. Then why is the industry pitching for 12%?

Source: https://www.livemint.com/industry/health-life-insurance-gst-insurance-centre-medical-inflation-finance-ministry-irdai-prudent-insurance-brokers-11741768593022.html

New Delhi: There is unanimity on the need to reduce the goods and services tax (GST) on health and life insurance premia from 18%, but consensus eludes on what the final rate should be: nil, 5% or 12%.

12 Mar 2025 06:09 PM

India’s GDP growth revisions shouldn’t raise eyebrows: They’re routine

Source: https://www.livemint.com/opinion/online-views/india-gdp-growth-revisions-gdp-estimates-gdp-growth-rate-gst-goods-and-services-tax-gross-domestic-product-nso-nss-data-11741689547635.html

The National Statistical Office (NSO) recently released the first revised estimates of India’s gross domestic product (GDP) for 2023-24, revising the GDP growth rate at constant prices from the earlier provisional estimate of 8.2% to 9.2%.