GST Return defaulter attempts to file returns, attempts to increase GST collection



New Delhi:  The revenue department’s effort to increase GST collections has intensified. Under this, the revenue department officials are privately contacting all the businesses who filed returns last month to file GSTR-3B returns, but in November they have not filed GSTR-3B returns. The last date for filing returns was 20 November.

Also Read: Sitharaman to chair GST council meeting today, likely to face opposition flak over proposed borrowing option

Now the officials of the revenue department are trying to get these businessmen to file their returns by 30 November. The number of such traders is said to be 25,000. These traders were identified from the previous month’s return data. Businessmen not filing GST returns are also being asked to fill returns through SMS and email.

Businesses with a turnover of more than 50 million have to file GSTR-3B returns by 20th of every month. With the efforts of the revenue department, the GST collection for November is expected to cross one lakh crore. The GST collection in October was Rs 1.05 lakh crore.

Order for physical verification of deemed GST registration

The Central Board of Indirect Taxes and Customs (CBIC) has asked the tax authorities to carry out physical verification of the deemed and valid GST registrations and their businesses from August 21 to November 16. Its purpose is to find out their actual position. The CBIC has also told the authorities that applicants who have not opted for Aadhaar verification or whose verification has failed, should not get GST registration on deemed basis.

Under the current provisions of GST, if the authorities do not issue any notice to the applicant within 21 days of the application, then its registration is considered acceptable, which is called deemed registration. The CBIC has stated that according to the data, a number of deemed GST registrations were issued between August 21 and November 16, in which the option of Aadhaar verification was not taken. The board wants to ensure that these registrations are for the business currently running or that traders intend to start business soon. 

Sitharaman to chair GST council meeting today, likely to face opposition flak over proposed borrowing option



The meeting is likely to get heated as non-BJP ruled states are still in disagreement with the Centre on the GST compensation issue.

Union Finance Minister Nirmala Sitharaman will chair the 42nd GST Council meeting via video conferencing at 11 AM in New Delhi on Monday. The meeting will be attended by MoS Anurag Thakur besides Finance Ministers of States & UTs along with senior officers from the Centre.

The meeting is likely to get heated as non-BJP ruled states are still in disagreement with the Centre on the compensation issue.

Opposition states like West Bengal, Punjab, and Kerala are not happy with the borrowing option proposed by the Centre to meet GST revenue shortfall. Meanwhile, as many as 21 states had till mid-September opted to borrow Rs 97,000 crore to meet the shortfall.

Sources have stated that opposition-ruled states would object to the Centre’s borrowing options and demand an alternative mechanism for funding the GST compensation deficit in the GST council meeting. In the current fiscal year, the states are at a staggering Rs 2.35 lakh crore Goods and Services Tax (GST) revenue shortfall, and they feel that the constitutional liability of compensating states lies with the government.

Chief Ministers of six non-BJP ruled states–West Bengal, Kerala, Delhi, Telangana, Chhattisgarh and Tamil Nadu–have expressed their disapproval over the issue by writing to the Centre opposing the option of borrowing to meet the shortfall.

While these states want the Centre to borrow to meet the shortfall, the Centre has argued that the revenue accruing from GST compensation cess goes to the states and the Centre cannot borrow on the security of the tax it does not own.

The payment of GST compensation to states became an issue after revenues from the imposition of cess started dwindling since August 2019. The Centre had to dive into the excess cess amount collected during 2017-18 and 2018-19.

During April-July of the current fiscal, the total compensation due to states stands at over Rs 1.51 lakh crore.

Step-by-step guide to GST registration through Aadhaar authentication



Aadhaar authentication for new registration is expected to substantially enhance ease of doing businesses for genuine businesses.

The GST Council in its 39th meeting held on March 14, 2020 approved operationalisation of Aadhaar authentication for new taxpayers. The implementation of the same was postponed keeping the lockdown on account of COVID pandemic in view.

However, the facility has been rolled out from August 21, 2020. Aadhaar authentication for new registration is expected to substantially enhance ease of doing businesses for genuine businesses. A person opting for Aadhaar authentication for New GST registration would get it within three working days, if no notice is issued and would not need to wait for physical verification.

While the applicants not opting for Aadhaar authentication for GST registration would be granted only after physical verification of the place of business or documentary verification, which may take up to 21 working days or more if notice is issued.

Keeping the COVID pandemic in view, it has been provided that the Officer may if the circumstances warrant opt for asking for additional documents in lieu of the pre-registration for physical verification of the premises.

Here is a step by step guide for those opting Aadhaar Authentication for GST registration –

(1) Here is how it works:

  • At the time of applying for GST registration, the applicant is given an option to select if he wishes to authenticate Aadhaar.
  • The applicant can either select a YES or a NO for Aadhaar Authentication.
  • If s/he clicks YES, an authentication link will be shared on GST registered mobile number and e-mail IDs of the Promoters/ Partners and Authorized Signatories.
  • Upon clicking the authentication link, a screen will come with a declaration where the applicant needs to enter an Aadhaar number and click on “validate”.
  • On successful matching of the details in registration form with the UAIDI, an OTP will be sent on their email and mobile registered with the Aadhaar that has been entered by the applicant. On entering the OTP in the box provided on the screen validation will be complete and a message of successful e-KYC authentication will be shown.
  • It is important to ensure that a user’s Aadhaar has an updated registered mobile number and email for expeditiously completing the process.
  • OTP for Aadhaar authentication would be sent on the mobile number and e-mail address registered with Aadhaar. Mobile numbers registered with Aadhaar can be verified at where the last three digits of the registered mobile number are shown.
  • Where the applicant for GST registration chooses not to go through the process of Aadhaar authentication, he may choose NO for this step. The GST registration application would then be sent to the jurisdictional tax authority that may carry out necessary documentary and/or physical site verification before approving registration. Where no action is initiated by the Tax Authority within 21 days, the registration application shall be deemed as approved.

(2) How to avail the facility?

  • Log on to and navigate to Services > Registration > New Registration option.
  • Alternatively, the taxpayer can also click REGISTER NOW link.

(3) Who can do this?
The facility of quick approval of GST registration through Aadhaar authentication can be availed by all Indian citizens. However, it is not required for tax deductors, tax collectors, Online Information Database Access and Retrieval services (OIDARs), taxpayers having Unique Identification Number (UIN) and non-resident taxpayers.

In both cases, the officer concerned needs to act within a specified time – 3 days for a person opting for Aadhaar authentication and 21 days for those opting not to undergo Aadhaar authentication. If the registration application has neither been accepted, nor a notice for rejection has been issued, after the specified period, the application shall be deemed to be approved.



Big news for the common man- Natural gas can come under the purview of GST, these benefits will be



Preparations to bring Natural Gas in the ambit of GST (Goods and Service Tax) soon have been accelerated. If sources are to be believed, this can be considered in the 41st meeting of GST Council to be held on August 26. If this happens, the common man will get a big relief.

new Delhi. The practice of bringing natural gas under the purview of GST (Goods and Service Tax) has been going on for a long time. But now it can be decided soon. According to information received from sources to CNBC Awaaz, it can be decided before Gas Trading Regulations. Because companies say that, every state has different taxes. It will be very difficult to trade in such a situation. That is why they have suggested to bring it under the purview of GST.

What will happen to customers?It is expected that PNG (piped natural gas) and CNG (compressed natural gas) may be cheaper if natural gas is brought under the purview of GST. Let us also tell you here that at present five petroleum products are out of GST, Diesel, Petrol, ATF and Natural Gas. Now it is for the GST Council to decide when to impose GST on these five products. Because the demand to bring these petroleum products under the purview of GST has been arising for quite some time.

What will happen when GST comes under the purview – Earlier, the Petroleum Ministry has also asked to bring natural gas under the GST ambit. If natural gas is now brought under GST, then it will be taxed at the same rate at any place in the country. After coming under GST, the excise duty and VAT on this will be eliminated. The booklet states that this will increase economic activities, which will increase the state domestic product and accelerate socio-economic development. Ultimately, this will create employment opportunities.




Government allowed monthly GST returns to be verified through EVC

GST, News Update, Savings


New Delhi Due to the need for digital signature, filing of monthly GST return and delay in tax payment, the government has allowed businesses to verify returns through EVC by 30 June.

In a notification, the Central Board of Indirect Taxes and Customs (CBIC) stated that during the period from April 21, 2020 to June 30, 2020, any registered person was verified Form GSTR-3B through Electronic Verification Code (EVC). Filing of returns will be allowed under Section 39. 

Currently, the GSTR-3B form has to be digitally signed while filing monthly returns and paying taxes. However, businesses are not able to digitally sign due to the closure of the office due to the lockdown, causing delays in filing returns.

The government has not released the monthly GST revenue data on 1 May due to low GST collection in April. Apart from this, CBIC has also introduced a new rule in the Central GST Rules.

It is known that businesses with zero or no entry in all tables as GSTR-3B can file returns through SMS using registered mobile number and the said returns are verified by registered mobile number based one time password (OTP) facility. Will go.

Government gave big relief to businessmen, extended the date of filling GST Return till 30 September

GST, News Update, Savings


New Delhi, Business Desk. The government has provided great relief to the traders. The government has extended the annual GST return filing date for the financial year 2018-19 to 30 September 2020. The Finance Ministry has issued this announcement by issuing a notification. The announcement comes after the nationwide lockdown extended to May 17, implemented to prevent corona virus infection. Significantly, the lockdown has been in force in the country since 25 March. However, Lockdown 3.0 has some leeway in terms of red, orange and green zones.

The GST return filing date has brought a lot of relief to businessmen with annual turnover of over five crore. Earlier, the finance minister had given time till May 5, 2020 to file the GST return for the month of March. The Finance Ministry has provided another relief to the traders. The Ministry has reduced the late fees for late returns. The ministry has reduced it to 9 percent, compared to 12 percent earlier.

According to the Department of Revenue of the Ministry of Finance, people registered under the Companies Act 2013 can submit their GSTR-3B through Electronic Verification Code (EVC). Significantly, businessmen have been demanding exemption from GST for several days in view of the critical time of corona virus epidemic. At the same time, the government believes that waiving the entire tax will cause problems in the credit chain. According to sources, the government is also considering giving GST relief package to the areas most affected by this epidemic. These areas include tourism, aviation and restaurants.

GST collection data not released in April, government will wait till the extended period of filing returns

GST, News Update, Savings


New Delhi The government did not release the data related to the collection of Goods and Services Tax (GST) in April on Friday. The government has postponed it for the time being. Sources said that GST collection in April has come down considerably due to the applicable lockdown and nationwide filing deadline for filing GST returns. In March, the government announced an additional 15 days for filing GST returns for businesses with a turnover of more than Rs 5 crore. The GST return for March transactions could be filed by 20 April. The government extended its deadline to May 5. This means that traders are not required to pay any late fee, interest or penalty till May 5. However, on filing returns from May 5 to June 30, traders will have to pay interest at a discounted rate of nine percent.

As per the tradition till now, the government releases data related to GST collection on the basis of cash collected in a given month. A source said that under the circumstances arising out of Kovid-19, the government has decided to wait for the extended deadline before releasing the collection figures.

Sources said that it has been decided to postpone the April GST collection figures due to ‘unprecedented circumstances’ arising out of coronavirus. No date has been set for the release of this figure.

According to the source, the government expects more returns to be filed by May 5. He said that a decision has to be taken to extend this deadline. Talking about the financial year 2019-20, in seven months in 12 months, the GST collection figure went up to Rs 1 lakh crore. In March this year, the government earned Rs 97,597 crore from GST.

According to another source, low tax collection in April may also be the reason for postponing the release date.

Center helps for Corona, will states get GST compensation?

GST, News Update


The Finance Ministry has released Rs 17,287 crore to the states amid Corona crisis. This will help the states to strengthen their financial resources.

  • Government released Rs 17,287 crore to states
  • Will help strengthen financial resources

For the past few days, the Indian government has intensified its war against the corona virus. Many such decisions have been taken by the government, including the relief package, which will help the common people a lot. With this, now the government has also released Rs 17,287 crore to the states.

The government has given this help at a time when some states have demanded their GST dues. Actually, recently Punjab Chief Minister Amarinder Singh has written a letter to Prime Minister Narendra Modi. He said in this letter that the amount of GST compensation of 6,752.83 crore has not been received since October last year. In the letter, Amarinder Singh appealed to PM Modi to direct Finance Minister Nirmala Sitharaman to release this amount soon.

Why get GST compensation

Significantly, GST accounts for about 60 percent of the total revenue of states. According to the agreement reached by the Center with the State Governments while implementing GST, the Central Government compensates the loss of revenue from it.

6,195 crores to 14 states

Explain that out of Rs 17,287 crore of the Center, Rs 11,092 crore has been given to the States for the State Disaster Response Relief Fund (SDRMF). At the same time, an amount of Rs 6,195 crore has been released to 14 states as ‘Distribution of Revenue Loss Grant’. These states are Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Sikkim, Tamil Nadu, Tripura, Uttarakhand and West Bengal.

Which state got what

In a tweet made by Finance Minister Nirmala Sitharaman’s office, it was stated that Andhra Pradesh is worth Rs 491.41 crore, Assam Rs 631.58 crore, Himachal Pradesh Rs 952.58 crore, Punjab Rs 638.25 crore and Uttarakhand Rs 423 crore, Kerala 1276.91 crore has been released.

Read this – Emergency meeting of OPEC countries on 6 April, will talk on crude oil

Similarly, an amount of Rs 37.33 crore was released to Sikkim. Apart from this, 14 states including Manipur, Meghalaya, Mizoram, Nagaland, Tamil Nadu, Tripura and West Bengal have been given a share. The remaining Rs 11,092 crore has been given to all states in the first installment of SDRMF as advance payment of the Centre’s share.

Click here for full coverage on Corona

Encourage Corona Commandos and thank them …

Of this, Rs 1,611 crore has been released to Maharashtra, Rs 966 crore to Uttar Pradesh, Rs 910 crore to Madhya Pradesh, Rs 708 crore to Bihar, Rs 802 crore to Odisha, Rs 740.50 crore to Rajasthan and Rs 505.50 crore to West Bengal.

GST की मार: 5,900 रुपये तक महंगे हुए आईफोन, देखें सभी मॉडल्स की कीमतें

GST, News Update, Smartphone News


Apple has increased prices of many of its iPhones after the Goods and Services Tax (GST) hike from April 1. After the introduction of new GST rates, the initial price of iPhone 11 Pro Max has now become Rs 1,17,100. At the same time, the initial price of iPhone 11 Pro has gone up to Rs 1,06,600. Let us know how much the prices of all iPhones have become.
New apple iphone prices

The price of iPhone 11 Pro Max was earlier Rs 1,11,200 which has now become Rs 1,17,100. This price is of 64 GB storage variant. If seen, the price of this phone has increased by Rs 5,900. At the same time, the initial price of iPhone 11 Pro has increased by Rs 5,400 to Rs 1,06,600. Earlier it was priced at Rs 1,01,200.


Iphone model old price new price
iPhone 11 Pro Max 64GB Rs 1,11,200 Rs 1,17,100
iPhone 11 Pro 64GB 1,01,200 rupees 1,06,600
iPhone 11 64GB 64,900 rupees 68,300 rupees
iPhone XR 64GB 49,900 rupees Rs 52,500
iPhone 7 32GB Rs 29,900 Rs 31,500

Let us know that earlier smartphones of companies like Reality, Xiaomi and Oppo have also become expensive by 18 percent. The price of Reality X2 Pro has increased by up to Rs 2,000. This is the first time Realme’s smartphones have become expensive in India.

GST collection dips, auto sales fall as Covid-19 takes toll on economy

GST, News Update


The numbers are significant because they are among the first available so-called high-frequency indicators of the economic impact of the pandemic.

Goods and Services Tax (GST) collections for March saw an 8% decline over the same month a year ago to the lowest in five months, and auto sales in the month for India’s largest carmaker Maruti Suzuki were down almost by half as the lockdown imposed to combat the spread of the coronavirus disease (Covid-19) took a toll on the economy.

The numbers are significant because they are among the first available so-called high-frequency indicators of the economic impact of the pandemic and the hard lockdown that India has imposed for three weeks till April 14 to slow its progress. Over the next few days, more indicators, including Purchasing Managers Index, a measure of economic health, will become available.

GST collections in March fell to Rs 97,597 crore. Apart from Maruti, which has a close-to-50% share of the Indian car market, Tata Motors, the leading maker of trucks and buses, said sales of these commercial vehicles were down 87% in the month. Demand for commercial vehicles is considered an indicator of economic activity. India imposed a lockdown starting March 25. The lockdown has exacerbated an existing slowdown in vehicle sales. Sales at Hyundai Motor were down 47% in the month and at SUV-maker Mahindra & Mahindra by 88%.

Analysts and economists say India is unlikely to meet its target of 5% growth in 2019-20 and have revised downward their estimates for 2020-21 too. SBI Research said in a report that India could grow by 4.5% in 2019-20 and 2.6% in 2020-21. Nomura has said in a report that it expects India’s GDP to fall by 0.5% in 2020 (calendar year), revising its earlier estimate of 4.5% growth.

Total GST for the financial year 2019-20 has increased by 3.8% to Rs 12,22,131 crore compared to Rs 11,77,369 crore collected in 2018-19.

Experts said things could get worse. Abhishek Jain, tax partner at consulting firm EY, said, “With most businesses being non-operational for a considerable period in March and the relaxation of delayed payments being allowed, the collections in the coming quarter would see quite a fall.”

The fall in March breaks the trend of four months of robust GST collections since November that saw monthly revenue figures crossing the Rs 1 lakh crore benchmark.

Out of the gross GST revenue for March, the share of central GST is Rs 19,183 crore, state GST is Rs 25,601 crore, integrated GST is Rs 44,508 crore (including Rs 18,056 crore collected on imports) and cess is Rs 8,306 crore, a finance ministry statement said.

Pratik Jain, partner and leader of Indirect Tax practice at PwC India said although the March collection has seen some impact of the Covid-19 lockdown, the real impact would be reflected in April. “There is around 7% reduction in filing of GSTR 3B (returns) over last month. It seems that many businesses may not have been able to pay GST because of liquidity issues.”

Vishal Raheja, deputy general manager (DGM), Taxmann said: “It is noteworthy that the import of goods has also shown a negative growth of 23% as compared to March 2019. It has also played a crucial role to push back the GST collections.”

Experts said the impact of coronavirus and consequent lockdown of major economies will continue to be a drag for global growth and India will also be impacted. International Monetary Fund (IMF) managing director Kristalina Georgieva said last week that the outlook for global growth in 2020 is negative and remarked it a recession “at least as bad as during the global financial crisis (2008) or worse”. Moody’s Investors Service on Friday slashed India’s economic growth projection for calendar 2020 from 5.3% to 2.5% and ICRA Ltd estimated India’s growth at 2% for FY-21.

7 key income tax changes effective April 1, 2020: All about FY, PPF, tax savings you need to know

GST, Income Tax, News Update, PF


The government has allowed taxpayers to invest in PPF, NSC, ELSS or any other tax saving scheme by June 30, 2020, and yet claim tax benefit for the FY 2019-20.

Even while the country is in a complete lockdown to control the spread of Coronavirus in the country, the new financial year (FY) 2020-21 has sneaked in from April 1. For income tax purpose, while the FY 2020-21 has begun on April 1 and will end on March 31, 2021, the relevant assessment year (AY) will be AY 2021-22. All income earned during the FY is assessed in the AY and income tax return for FY 2020-21 is accordingly filed in the AY 2021-22.

As a taxpayer and even if one is not a taxpayer, there have been several important changes that one needs to be aware of. Here are a few of those key income tax changes effective April 1, 2020.

1. Financial Year not extended

Firstly, it is important to note that contrary to the concern raised about a change in the financial year, the government had clarified on March 30, 2020, that the financial year has not been extended and the status quo on the same is being maintained. The government had extended the date related to the Indian Stamp Act for certain amendments to be effective from April 1, 2020, which has now been extended to July 1, 2020.

2. Last date for I-T savings extended

If you were not able to make income tax saving for FY 2019-20 because of the lockdown, there’s a piece of good news. The government has allowed taxpayers to invest in PPF, NSC, ELSS or any other tax saving scheme by June 30, 2020, and yet claim tax benefit for the FY 2019-20. The tax benefit under Section 80C, for FY 2019-20 may, therefore, be availed even if the investment is done between April 1, 2020, and June 30, 2020. However, for those who have already made tax-saving investments, can invest till June 30 or anytime later in the FY and avail tax benefit for FY 2020-21.

3. New Tax Regime in-force

Starting FY 2020-21, the income taxpayers will have an option to pay lower income tax rates by foregoing income tax exemptions and deductions or continue paying the same tax rates by availing the deductions. For those availing lower rates will be assessed under the New Tax Regime else the assessee will continue to pay taxes as per Old Tax Regime.

Under the new tax regime, the following will be the new income slabs and tax rates:

Up to Rs 2.5 lakh – Nil

From 2,50,001 to Rs 5 lakh – 5 per cent.

From 5,00,001 to Rs 7.5 lakh – 10 per cent.

From 7,50,001 to Rs 10 lakh -15 per cent.

From 10,00,001 to Rs 12.5 lakh – 20 per cent.

From 12,50,001 to Rs 15 lakh – 25 per cent.

Above Rs 15 lakh – 30 per cent.

Some important exemptions, deductions available under Income-tax Act that the taxpayer will have to forgo will include – Investments in PPF, ELSS, Life insurance etc, and expense such as home loan repayments, tuition fees etc.

4. Belated return last date extended

The last date to file ITR without late filing fee for AY 2020-21(FY 18-19) was August 31, 2020. The late filers could file their belated return by March 31, 2020, which now has been extended by the government to June 30, 2020. The penalty of Rs 10,000 as a late filing fee for those with income above Rs 5 lakh will, however, needs to be paid.

5. Interest on due tax

If as a taxpayer you have delayed payments of advanced tax, self-assessment tax,  regular tax, TDS, TCS made between 20th March 2020  and  30th June 2020,  the government has reduced interest rate at 9 per cent instead of 12 per cent per annum ( i.e. 0.75 per cent per month instead of 1 per cent per month.

6. Dividend taxable

From this FY, the dividend received by equity shareholders and equity mutual fund investors will become taxable as per one’s income tax slab. Till now, the company declaring the dividend was levying
Dividend Distribution Tax (DDT) before the distribution of dividends to the investor but now that will stop. The tax on dividend will be paid by investor now. For equity MF investors, the DDT of 11.64 per cent was deducted before receiving the dividend amount. Those investors in higher tax slab will be impacted more because of this new rule.

7. Home loan for first-time buyers

For the first time buyer of a home, the government has extended the tax benefit available on interest payment of the home loan. Under Section 80EEA, the borrower can avail a deduction of up to Rs 1.5 lakh on home loan interest payment subject to certain conditions. One such condition is that the home loan needs to be sanctioned by the lending institution during the period from 1st April 2019 to 31st March 2020 which has now been extended to March 31, 2021. Importantly, the value of the home as per the stamp duty needs to be within Rs 45 lakh.

Xiaomi, Redmi increase phone prices to counter 50% hike in GST

GST, News Update, Smartphone News


The GST on mobile phones has now increased from 12 to 18 per cent. This move is expected to see all major phone makers announce price hikes on their phones in the coming days.
  • Xiaomi has increased the price of its phones owing to the hike in GST
  • GST on phones was recently increased from 12 to 18 per cent
  • The new prices have come in to effect already and will be gradually updated on the company’s website

Chinese phone maker, Xiaomi, appears to have buckled under the pressure and announced a price hike on it Mi and Redmi branded phones in the country. The new prices have come into effect already with the company promising them to start updating them on soon.

The company explained that the step has been taken after factoring in the 50% jump in GST recently announced by the government. The increase in GST on mobile phones now sees the rate being increased from 12 per cent last financial year to 18 per cent from April 1, 2020.

The company further informed that the move to increase the price of their phones was being taken after much deliberation and to maintain the company’s policy of more than 5 per cent margin on their phones and other hardware products.

The move comes after the GST Council, headed by Finance Minister Nirmala Sitharaman, hade earlier, increased GST on smartphones from 12 per cent to 18 per cent. The India Cellular and Electronics Association (ICEA) had previously warned that the move is bound to see many phone makers increase the prices of their products in the country.

While it is not clear how much the prices will increase for now, when combined with the weakening rupee against the dollar, the price hike could be between 5 to 10 per cent. Pankaj Mohindroo, ICEA chairman had also told IANS last week that the 6 per cent GST increase will be detrimental to the vision of digital India. Consumption will be stymied and our domestic consumption target of $80 billion (Rs 6,00,000 crores) by 2025 will not be achieved as India will fall short by at least Rs 2,00,000 crores.

ICEA, in a letter to the Finance Minister, wrote that the mobile handsets sector was already in deep stress due to supply-chain disruption happened after coronavirus outbreak in China. The GST rate increase will affect the market adversely. The industry body said that it was the most inappropriate time to increase the GST.

PMI, GST data for February a mixed bag

GST, News Update


  • Goods and services tax (GST) collections of February are hardly signalling a revival in gross domestic product
  • About 8.35 million returns were filed in February against 8.1 million last December

India’s low exposure to China has saved the day for manufacturers for now, but it is still early days to rejoice. The official manufacturing Purchasing Managers’ Index (PMI) held up at 54.5 in February, just slightly lower than the 55.3 recorded in January. The numbers suggest that manufacturing operations are improving, which is quite heartening in a weak global economy.

But much of this is because New Delhi remains insulated from Beijing as India’s exports to China constitute about 5% of its total exports. So while a few Asian countries managed to buck the trend, March may still twist the narrative if the global economic conditions worsen.

“The impact of Covid-19 (coronavirus) remains uncertain and could hit us hardest in March. The sharp drop in China’s manufacturing PMI in February and likely production outage in India’s auto industry indicates an impact is pending,” economists at Axis Capital Ltd said in a note to clients.

Besides, goods and services tax (GST) collections of February are hardly signalling a revival in gross domestic product. In fact, GST collections slipped to 1.05 trillion in February against the government’s target of 1.15 trillion. Month-on-month collections were lower by about 6,000 crore.

However, GST return filers have increased. About 8.35 million returns were filed in February against 8.1 million last December. Besides, this suggests that while compliance is improving with a rise in returns filed, actual business activity for companies may have contracted.

Two lakh youth to be benefited by Government’s GST training program



Two lakh youth to be benefited by Government’s GST training programme

GST training program

Government pushed a GST preparing program under the Pradhan Mantri Kaushal Vikas Yojna. Through this program around two lakh people will be readied, and those readied people will then further help in associations especially in domains, for instance, selection and calculation of cost hazard under the new obligation organization. Skill development minister Rajiv Pratap Rudy said at an event, the second recognition of Skill India Mission, that this readiness program will be completed in 14 states.

Also Read : Get Free Jio Phone

Rudy alongside Water Resources Minister Uma Bharti, Oil Minister Dharmendra Pradhan, Health Minister J P Nadda, Textiles Minister Smriti Irani and Rural Development Minister Narendra Singh Tomar carefully initiated the training course at 100 focuses in the nation.

The service likewise propelled a national entrance for assessors and mentors other than 51 new PMKVY focuses. With this, the aggregate number of PMKVY focuses has expanded to 200.

Just a few days back government similarly launched an app ‘GST Rate Finder’, through which one can without much of a stretch check what is the GST rate on a specific thing. All these efforts can be viewed as government’s activity to encourage the business and everyday action in new GST administration.


e-way bill: Movement of goods set to be easy from February 1



gst e-way bill

e-way bill: Movement of goods set to be easy from February 1 

As confirmed by GST Network , from 1st of February transporters will not need separate transit passes for transporting goods from one state to another as the e-way bill issued to them will be valid pan India.

Under the Goods and Services Tax made effective from July last year, inter-state transportation of goods beyond 10 kms of range, with a value of Rs 50,000 and above, will mandatorily require e-way bill from February 1 2018.

GSTN CEO Prakash Kumar said: “Taxpayers and transporters need not visit any check post or tax office as the e-way Bill can be generated electronically in a self-service mode.

“The new system makes generation of e-Way bill very easy on the portal, via mobile App, SMS and for large number of users using offline tool.”
The e-way bill system has already been launched in four states — Rajasthan, Karnataka, Uttarakhand and Kerala. These states together generate approximately 1.4 lakh e-way bills per day.

“The remaining states will join during in next two weeks. The trial period will run till January 31 for all stakeholders,” GSTN said in a statement.

It said transporters who want to generate e-way bill can visit the ‘’ portal and would need to register themselves by giving the GSTIN. Those who are not registered under GST can get themselves enrolled under e-way bill system by providing their Aadhaar or PAN to generate the eWay Bill.

Alert messages are also issued to the users through online and SMS facility.

“Vehicle number can be entered by those who generate E- way Bill or transporter and they can also update the vehicle number in case of vehicle breakdown or transshipment,” said GSTN, the company handling the technology project for GST roll out.

There is also a provision for cancellation of e-way Bill within 24 hours of time.
“No E-way Bill is required for transportation of goods in non- motorised conveyance and also for certain class of goods like fruits, vegetables, fish and water,” the report added.

The e-way bill rules provide for random verification which can be done by a any tax officer on duty. However, he has to upload and provide the requisite report within the specified time frame.

Also, the new rule also says that if a transporter faces detention of more than 30 minutes, he can go online and upload a report on the portal.

Rules, User Manual, Notification, FAQs and Computer based tutorials (CBTs) are available online.

GSTN has invited suggestions from stakeholders on the e-way bill system.

Government all set to include petrol, diesel under GST, says FM Arun Jaitley



Petrol_diesel under GST

Government all set to include petrol, diesel under GST, says FM Arun Jaitley

As a result of the consistent demand for the inclusion of petroleum products like petrol, diesel under GST, the government may soon include these products under the uniform tax regime. The first clear hint on this came from Union Finance Minister in Parliament a couple of days back when Mr. Arun Jaitley said the government was willing to include petrol, diesel under GST, and that before the GST Council took a decision, the government was awaiting confirmation response from different states of the country. A couple of days ago, Bihar Finance Minister and GST Council member Sushil Modi had stated that the government should include petroleum under the GST domain. Also, the Petroleum Ministry has been suggesting for a uniformity of taxes on petroleum products due to price difference in states after imposing of Value Added Tax (VAT).

On December 15, Sushil Modi Finance Minister of Bihar and GST Council member had said real estate, electricity, stamp duty and petroleum products should become a part of the GST regime. He also added that the GST council could merge tax slabs of 18% and 12% into one and reduce the highest tax slab from 28% to 25% once the tax collection is stabilised. Sushil Modi had also assured the states that their revenues would remain unaffected as they would be free to levy addition cess to the petroleum products.

During the Rajya Sabha sessions, P Chidambaram the former finance minister also asked Jaitley to tell the House when the final decision would be taken this new inclusion. Jaitley replied saying the previous Congress regime knew that the petroleum inclusion in the GST could be a “deal breaker”, and so it was kept out of the GST draft. He said he was hopeful that the centre government and states would soon reach a consensus on the issue.

In its biggest GST tax rate change, the GST Council on November 10 had slashed tax rates on over 200 items but kept the petroleum products out of the GST domain. Close to 178 items of daily use were shifted to low tax bracket, bringing them down from 28% to 18%, while a uniform 5% tax was prescribed for all type of restaurants.

Besides, several reports said the government had not paid attention to several warnings from private companies that the complex technology required for a nationwide goods and services tax GST) to work smoothly was not ready for launch. Weeks before the launch of GST, the government did not listen to industry experts who said more time was required to prepare for the changes, reports said. More than IT and tax consultant professionals who worked on the GST project said that the government was deliberately ignoring warnings for more testing of the complex system even as it was pushing through late changes.

While the sources mentioned Infosys, a leading technology company which built the GST technological network, made “basic errors”, they said government officials did not accept any responsibility for the glitches in the GST roll out. Till date the government is making changes to filing deadlines, tax rates and other features, making it hard to bring stability in the system, they said. The finance ministry and GSTN, the government authority managing the GST network, refused to comment on specific problems about the GST rollout or specific warnings by industry related to testing. The GST law was debated for decades, industry had enough time to prepare, and glitches are being fixed, a finance ministry spokesman said.

Government reduces GST rate on 27 items, announces several relief measures for traders and exporters



Government reduces GST rate on 27 items, announces several relief measures for traders and exporters

The GST Council, headed by Finance Minister Arun Jaitley yesterday made a series of announcements on the new tax regime to provide relief to thousands of small business owners and exporters.

This meeting was the result of the discussion which happened between Jaitley, Prime Minister Narendra Modi and BJP President Amit Shah about the economy.

Confirming to reporters, Jaitley said, “GST doesn’t have exemptions, and hence there will be an e-wallet for each exporter with a notional advance refund amount. E-wallet for exporters are expected to be implemented by 1st April 2018, till then they can file GST on the rate of nominal 0.1%.”
Later he also added that ‘starting from October 10, tax refunds of July and August for exporters will be processed’. GST rates of 27 items reviewed by the GST Council, including sliced dry mangoes, khakhra, unbranded namkeen, chapati have been cut to a considerable low rate. E-way bill to be implemented from April 1, said the finance minister – Arun Jaitley.

GST rate on some diesel engine parts, stationery items have been reduced to as low as 18% from a raging 28%.

He also added that a group of Ministers are going to study taxation regime for restaurants. The decision will be taken while keeping the bifurcation on basis of AC and non-AC restaurants in mind.

Jaitley said reverse charge mechanism for transactions between registered and unregistered businesses has been postponed till March 31, 2018.

Limit for composition scheme in GST has been increased from Rs. 75 lakh to Rs. 1 crore so as to reduce compliance burden on medium and small taxpayers, as confirmed by Jaitley.

However, responses of business owners are yet to come on this news and let’s see how the general public reacts to this change.

Stay tuned for more updates from Discountwalas about latest news related to GST.


All eyes are on GST as Centre plans higher social pension



All eyes are on GST as Centre plans higher social pension


  • A draft proposal is readied by the government to proliferate the quantum of the three key “social pensions”.
  • It will however, depend largely on whether there are resources with the Centre to fund the revision.
  • In the first quarter after GST, revenue collections far exceeded the Centre’s expectations.

NEW DELHI: A draft proposal is readied by the government so as to increase the three key social pensions’ quantum but everything relies on the revenues of the Centre post-GST, with the reconstruction being dependent on whether there are resources with the Centre to fund the revision.

The estimates say that restructuring of NSAP (National Social Assistance Programme) — disability pension, widow pension and old-age pension— will invite an extra expenditure of approx. Rs 10,000 crore over and above the present annual budget of Rs 9,500 crore.

While the proposal has been worked out by the rural development ministry, but it will be put forward to the Expenditure Finance Committee when there is a clearer picture on the availability of funds.

As per a source, “The fate of the proposal will be decided majorly by GST. We are ready, if there is availability of funds”.

Observers mentioned that in the first quarter, revenue collections were above the Centre’s expectations, which raises hope that in such revisions, funds will not be a hurdle. Recommendations of the Sumit Bose committee mentions that the government should link the pensions given to BPL households, under NSAP, to the CPI (consumer price index) and should reduce the age eligibility from 40 years to 18 years for widow pension.

At the time of accepting the recommendations, the ministry should also try to absorb the rising outgo on pensions, which can be done by restructuring the pattern of funding.

The Centre may ask states to share 40 % of the bill in contrast to the existing arrangement of total cost being borne by the Centre alone. The extent of coverage needs to be finalized crucially, probably viewing the uncertainty over resources.

As per the expert panel, pensions should be extended to all households except for those “automatically excluded” under the ‘socio-economic caste census’ — the measure of deprivation levels — the rural development ministry has kept it open whether to limit its schemes to families with “one deprivation” or “two deprivations”.

As a pilot proposal, the ministry may increase the old-age pension to Rs 500 from Rs 200, of which the states will pay Rs 300 and Centre Rs 200.

Currently 3.5 crore households are included by the pension. Extending it to people with “one deprivation” will increase the net to 8.72 crore households and extending it to those with “two deprivations” will spread it to 5.5 crore households. The ministry favors instituting widow pension for those aged 18-39 years while agreeing to pay a one-time grant in case of remarriage. On disability, the ministry has agreed to change the eligibility criteria from 18 years to the person’s date of birth, and from 80% disability to 40% disability. The pension too is to be raised from Rs.300 to Rs.500. There are estimations, that the Centre will need around Rs.22,000 crore to fund the revamped pensions. Introduction of state’s share of 40% will bring in Rs.10,000 crore and considerably ease the Centre’s burden.

GST basics: 7 misconceptions cleared

GST, News Update, Save Tax Tips


GST basics: 7 misconceptions cleared

The rumour mills have gone on an overdrive mode since the launch of GST.

Here’s a reality check by ET Wealth for both GST supporters and its detractors.

1. Now it’s one nation one tax 

Myth : Since GST will replace all other taxes on all goods and services, we are in a single tax regime.

Reality : Though this was the original idea, petroleum products—petrol, diesel—are still outside GST’s ambit and, therefore, their tax rates vary significantly across states. 

For example, petrol is still sold in Mumbai at Rs 74.30 per litre (as on 5 July) compared to Rs 63.12 in New Delhi. Similarly, some other items, such as liquor, have also been kept out of GST for now.

2. Small businesses will suffer 

Myth : The life of small businessmen will become difficult under GST because of computerised billing, need for Internet connectivity.

Reality : Shops can do manual billing under GST and Net connectivity is needed only at the time of filing monthly return and can be managed from a cyber cafe.

3. Prices will shoot up 

Myth : Personal expenses will go up on account of GST making it inflationary because tax rates have been fixed at higher levels—18%, 28%.

Reality : Though the GST rates seem high, it is only because the entire tax is now visible to the consumer. Earlier most taxes—central and state excise, additional excise, purchase tax, etc.—did not reflect on your bill. If one adds up all the taxes, it would have been more for most items (ie effective tax rates will be lower for most products).

For example, the price of chicken dish in Kerala should fall because there was a 14.5% tax on live chicken earlier, which has come down to zero now under GST.

4. Corporates may try to profiteer but govt won’t 

Myth : Business will try to rob you of the GST benefits, but the government won’t make money at your expense.

Reality : Some state governments are also acting greedy and not passing on the GST benefits to consumers. For example, the Maharashtra government has increased the vehicle registration tax by 2% after auto firms passed on the GST benefit by cutting prices by 2-3%.

5. No tax other than GST is now a reality 

Myth : For every good or service that has been brought under GST, there won’t be any additional tax.

Reality : GST only subsumes central and state taxes and the levies charged by local bodies are still outside its ambit. Using this loophole, the Tamil Nadu government has allowed its local bodies to charge 30% tax on movie tickets over and above GST. GST is 18% for movie tickets up to Rs 100 and 28% for tickets that cost more than Rs 100.

But because of local body levies, tax in Tamil Nadu will be 48% for tickets up to Rs 100 and 58% for tickets that cost more. Not surprisingly, the cinema hall owners in the state went on strike. “Action of the Tamil Nadu government is against the spirit of the GST and the GST council should take action against it,” says Amit Sarkar, Partner and Head, Indirect Taxes, BDO India.

6. Economic growth will rise 

Myth : GST will push up the economic growth.

Reality : Real economic growth comes from both organised and unorganised sectors. Tax evasion becomes difficult in GST, so cost advantage of unorganised sector goes and this will result in some businesses shifting to the organised sector. So, what happens will not be an in increase in ‘real’ economic growth but an increase in ‘recorded’ economic growth. However, there will be a small uptick in ‘real’ economic growth due to the improvement in the ease of doing business.

7. Pay GST twice for card payments 

Myth : GST will be charged twice, if you make payments via credit card.

Reality : There is no additional GST for credit card payments and the confusion arose only because there is GST on additional fees—convenience charges—levied by companies. For example, you make a Rs 10,000 payment and a company charges Rs 50 as convenience fee for helping you make the payment via the credit card, you have to pay 18% GST on that fee too—earlier you paid a 15% tax on it. So the 3% increase is very small—just Rs 1.5 on Rs 50.

Impact Of GST On Your Household Budget

GST, Save Tax Tips


Impact Of GST On Your Household Budget

The tax system in India has seen an overhaul with the launch of Goods and Services Tax (GST) from July 1. The GST, in its making, was met with both inhibitions and excitement. While the country is still debating the impact of the four-structure tax system, some of its benefits have already started to trickle down to the masses.

India now has four tax slabs – 5%, 12%, 18% and 28% and an exempt and additional cesses category. Though GST will impact the budget of everyone differently, depending on their lifestyle patterns, the change in household expense is set to be more or less the same for everyone.

Some household articles have seen a price increase, while the prices of many others have come down. Food products have seen a GST imposition of 0-5%, while toiletries have seen an imposition of 18%. Let us take a look at the overall impact of GST on your basic household expenditure:

Groceries –While some grocery items like milk, bread, pulses, flour, fruits and vegetables, tea, coffee and basmati rice have been left outside the ambit of GST, other items like packaged curd, paneer, cheese, biscuits, corn flakes, shampoos, face creams, hair oils, medicines, etc. have become cheaper. Things which have become expensive include packaged chicken, butter, bhujia, etc.

Lifestyle expenses – Entertainment expenses have come down as the tax has been reduced to 28% from 30% earlier.

Airfares – The economy class airfare too has come down as the new tax regime levies 5% tax on airfare against the old rate of 9%.

Cab rides – Your monthly expense on travel is sure to come down if you take cabs for regular commute as the service tax has now been reduced to 5% from 6%.

Telecommunication services – DTH and cable TV charges have become dearer as these services will charge 18 per cent GST instead of 15% service tax.

Education – Pre-schools and school education will remain tax free under GST. Services offered by colleges and higher universities will attract 18% GST levy as compared to 15 % earlier.

Luxury spending – Stay in 5-star hotels, restaurant bills etc have gone up with the implementation of GST. Luxury expenses are now taxed at 28%.

Car prices – Many companies have revised the prices of their car models after the GST roll out. Now car purchases are taxed at 28 per cent GST with an additional cess between 1% and 15%. Cars with diesel engines less than 1,500 cc will attract 3 per cent cess, while small cars with petrol engines less than 1200 cc will be imposed with 1% cess. Big cars with engines over 1,500 cc and SUVs with length over 4 metres will be imposed with 15% cess in addition to 28% GST. Electric vehicles have been kept at 12%.

GST has certainly brought in changes in prices of various items, but what you need to do is plan your household budget smartly to avoid getting into any financial mess.


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