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 06:38 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.

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 06:22 PM

GST Reduction on Health Insurance: Government’s Stand

Source: https://taxguru.in/goods-and-service-tax/gst-reduction-health-insurance-governments-stand.html

Indian government has stated that any reduction in GST on health insurance policies is expected to benefit consumers directly, as GST is charged over and above the insurance premium. The government has a regulatory framework to oversee insurance pricing and ensure fair market competition. The GST rates and exemptions are determined by the GST Council, which includes representatives from both the Union and State governments. The issue of GST on health and life insurance was discussed in the GST Council’s 54th meeting in September 2024, leading to the formation of a Group of Ministers (GoM) to examine the matter in detail. During the 55th meeting in December 2024, the GoM requested additional time to finalize its recommendations. Consequently, the government has not yet made any decisions on tax benefits, anti-profiteering measures, or potential revenue losses for states due to GST reduction on health insurance. Further steps will depend on the final recommendations of the GST Council.

20 Mar 2025 06:27 PM

GST on Jeevan Rakshak Policy: Government’s Position

Source: https://taxguru.in/goods-and-service-tax/gst-jeevan-rakshak-policy-governments-position.html

Indian government has stated that any decision on abolishing the 18% GST on Jeevan Rakshak life insurance policies will depend on recommendations from the GST Council, which includes representatives from both Union and State governments. The issue of GST on life and health insurance was discussed in the GST Council’s 54th meeting in September 2024, leading to the formation of a Group of Ministers (GoM) to examine the matter further. During the 55th meeting in December 2024, the GoM requested additional time to finalize its recommendations. As a result, no decision has been made regarding GST exemptions for Jeevan Rakshak policies. Additionally, the government has clarified that there is no proposal to extend tax deductions under the Income Tax Act for premiums paid on Jeevan Rakshak life insurance policies. However, deductions for health insurance premiums continue to be available under Section 80D of the Income-Tax Act, 1961.

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 06:45 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 06:36 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 06:40 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.

17 Mar 2025 06:42 PM

State-wise list of GST And Other Taxes Received in Year 2019 to 2024

Source: https://taxguru.in/goods-and-service-tax/state-wise-list-gst-taxes-received-year-2019-2024.html

Lok Sabha addressed a query regarding state-wise tax contributions and allocations from 2019 to 2024. It covered GST, direct, and indirect tax collections. Gross CGST collections and net central indirect taxes, including Customs Duty, Union Excise Duty, and Service Tax, showed a year-on-year increase. However, state-wise data for certain components like Customs Duty and Union Excise Duty is unavailable. The government highlighted that the inter-se allocation of taxes is determined by the Finance Commission under Article 280 of the Constitution. Details of funds allocated to states, based on central tax collections, were provided, indicating a systematic distribution over the years. The government also clarified that no changes to the tax allocation formula are currently under consideration despite requests from various states, as the formula follows constitutional and statutory guidelines. Detailed annexures for tax contributions and allocations were included to provide transparency.