08 Feb 2025 06:39 PM
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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 06:42 PM
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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 06:18 PM
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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.

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 06:45 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 06:49 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.

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.

07 Feb 2025 06:17 PM

India’s taxation crisis: Can 1% bear such a large country’s burden?

Source: https://www.livemint.com/opinion/online-views/india-taxation-crisis-1-bearing-tax-burden-budget-2025-nirmala-sitharaman-james-mirrlees-zero-income-tax-new-regime-11738846397183.html

With just about 1% of Indians expected to fund about a third of the government’s gross tax revenue next fiscal year, India has a taxation problem. It is not about high rates, but about who actually pays.

03 Feb 2025 05:44 PM

Net GST collection in January rises 11% to ₹1.71 trillion

Source: https://www.livemint.com/economy/net-gst-collection-in-january-rises-11-to-1-71-trillion-11738423431731.html

The gross collection last month stood at ₹1.95 trillion, the highest since the record ₹2.1 trillion recorded in the same month last fiscal. This upward movement in revenue collection comes after a drop in December, when collections fell to a three-month low.

03 Feb 2025 05:56 PM

Arvind Chari: This is a budget to optimize growth within constraints

Source: https://www.livemint.com/opinion/online-views/union-budget-2025-speech-nirmala-sitharaman-gdp-growth-fiscal-prudence-rbi-zero-income-tax-middle-class-consumption-11738247926176.html

The first full-year budget of India’s new National Democratic Alliance government, sworn in after the 2024 general election, was presented against the backdrop of a noticeable slowdown in economic growth over the last four quarters. I discussed the issue of whether this slowdown is cyclical or structural in a recent column for Mint, summarizing it as being an issue of expectations.