13 Feb 2025 06:03 PM
New

Government’s Approach to Future GST Reforms in India

Source: https://taxguru.in/goods-and-service-tax/governments-approach-future-gst-reforms-india.html

In response to an unstarred question in Rajya Sabha on February 11, 2025, the Ministry of Finance addressed the government’s approach to potential GST reforms. The government stated that any changes to the GST framework are made based on the recommendations of the GST Council, a constitutional body under Article 279A. It acknowledged industry concerns and emphasized its commitment to reducing compliance burdens, simplifying tax procedures, and enhancing the ease of doing business. Several recent measures have been implemented following GST Council recommendations, including a retrospective amendment to Section 16(4) of the CGST Act, 2017, extending the time limit for availing input tax credit for past financial years. Additionally, Section 128A has been introduced to waive interest and penalties for certain tax demand notices if dues are cleared by March 31, 2025. Further, amendments to Sections 107 and 112 have reduced pre-deposit requirements for GST appeals. For small businesses, the mandatory registration requirement for intra-state supply through e-commerce operators has been conditionally waived from October 1, 2023, allowing composition taxpayers to make intra-state supplies under specified conditions. The government continues to assess stakeholder suggestions to improve GST implementation.

13 Feb 2025 05:50 PM
New

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.

13 Feb 2025 06:10 PM
New

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.

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.

12 Feb 2025 05:57 PM

Toyota India head's tax sop pitch: don't make consumers pay more for cleaner vehicles

Source: https://www.livemint.com/companies/toyota-kirloskar-india-lower-tax-gst-evs-hybrid-vehicles-flex-fuel-hydrogen-fuel-cell-11739272829922.html

New Delhi: Tax incentives for green mobility should continue for the benefit of consumers, according to the India head of Toyota Kirloskar Motor Pvt. Ltd, as the company continues to focus on electric and ethanol-powered vehicles.

12 Feb 2025 06:28 PM

GST Taxpayers, Stay Alert: Protect Against GST Phishing Scams

Source: https://taxguru.in/goods-and-service-tax/gst-taxpayers-stay-alert-protect-gst-phishing-scams.html

The Goods and Services Tax Network (GSTN) has issued a crucial alert regarding a surge in phishing attacks targeting GST taxpayers. These attacks aim to steal sensitive personal and financial information, potentially leading to fraud and financial loss. This article details the nature of these phishing attempts, provides tips on how to identify them, and outlines the steps you can take to protect yourself.

11 Feb 2025 06:19 PM

Tax officers told to give relief to businesses on GST interest, penalty

Source: https://www.livemint.com/economy/cbic-officers-told-to-give-relief-to-businesses-on-interest-penalty-on-tax-dues-11739198687732.html

NEW DELHI : The Central Board of Indirect Taxes and Customs (CBIC) has told field officers that businesses which have paid tax dues in time are eligible for relief on interest and even penalty where the department has gone on appeal.

10 Feb 2025 06:03 PM

GST evasion of ₹1.88 lakh cr detected by CGST officers during April-Dec 2024

Source: https://www.livemint.com/focus/gst-evasion-of-rs-1-88-lakh-cr-detected-by-cgst-officers-during-april-dec-2024-11739182702014.html

New Delhi, Feb 10 (PTI) GST evasion of over ₹1.88 lakh crore was detected by Central GST officers during April-December 2024, the Lok Sabha was informed on Monday.

08 Feb 2025 06:21 PM

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 06:18 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.