CA in Jaipur | CA. Yogesh Jangid |ITR Filing 2023 | Company Registration | NGO Registration | Income Tax Raid Cases | Audit | Inc Incroporation | CPA in India | Subsidy | Project Funding | GST | GST Raid Cases | Income Tax Notice Faceless | DRI Cases |

GTRI Proposes GST Reforms: Higher Exemption Limits

editor — Tue, 25 Jun 2024 04:59:03 +0000

The Global Trade Research Initiative (GTRI) on Friday proposed several reforms to enhance the efficiency and business-friendliness of the Goods and Services Tax (GST) system. Among these suggestions are increasing the GST exemption limit for firms with up to Rs 1.5 crore turnover, reducing the number of GST slabs, and eliminating the need for state-wise registration. These changes aim to contribute to economic growth and streamline GST processes.

As GST marks its 7th anniversary since its launch on July 1, 2017, it has evolved into the world’s largest indirect tax platform, boasting over 1.46 crore registrations, according to GTRI. In the fiscal year 2024, GST collections reached Rs 20.18 lakh crore (USD 243.13 billion), with 29.85% from imports, 26.92% from inter-state supplies, and 43.23% from within-state supplies. The prominence of within-state supplies underscores the necessity of simplifying GST rules to bolster inter-state trade, GTRI noted.

The think tank also recommended increasing the GST exemption limit for firms with an annual turnover of up to Rs 1.5 crore from the current threshold of Rs 40 lakh. This move is expected to be transformative for the MSME sector, fostering job creation and growth. Notably, firms with less than Rs 1.5 crore turnover comprise over 80% of registrations but contribute less than 7% of the overall tax collection.

GTRI explained that a yearly turnover of Rs 1.5 crore equates to Rs 12-13 lakh monthly turnover, resulting in just Rs 1.2 lakh at a 10% profit margin. Raising the exemption limit would decrease the GST system’s burden from 1.4 crore taxpayers to under 23 lakh. This reduction would enable the implementation of invoice-matching for 100% compliance, effectively curbing fake invoices and tax evasion. GTRI believes that the increase in tax collection would offset the 7% tax loss.

Furthermore, GTRI suggested reducing GST on basic food items, healthcare services, and educational materials to make these essentials more affordable and boost consumption. They emphasized that tax collection on these necessities is minimal.

category

Delhi High Court Alters Retrospective Revocation of GST Registration

editor — Thu, 28 Mar 2024 04:52:32 +0000

In the legal case of Supreme Enterprises versus Principal Commissioner of Goods and Service Tax, North Delhi, the Delhi High Court recently deliberated on the matter of retroactively canceling GST registration.

Facts of the case:

The petitioner contested an order issued on 07.07.2023, which retroactively annulled their GST registration starting from 18.01.2022. This cancellation stemmed from a show cause notice dated 06.06.2023, citing non-compliance with return filing requirements. However, the notice lacked specificity and failed to afford the petitioner adequate opportunity to respond.

The petitioner had previously sought cancellation of their GST registration multiple times due to business closure, but these requests were denied. Subsequently, they received a show cause notice lacking in detailed explanations or justifications.

The order for cancellation lacked clarity and reasoning, casting doubt on its validity. It did not sufficiently explain the grounds for cancellation or the resulting liabilities, nor did it justify the retroactive nature of the cancellation.

Held:

The court stressed that retrospective cancellation of GST registration must be grounded in objective criteria and not solely on non-compliance with return filing obligations. It recognized the significant ramifications of such cancellations for both the taxpayer and their customers, particularly concerning input tax credit.

Taking into account the petitioner’s cessation of business operations, the court amended the contested order to cancel the registration effective from the date of business closure, i.e., 26.07.2022. The petitioner was instructed to adhere to the necessary regulations outlined in Section 29 of the CGST Act, 2017.

Nevertheless, the court clarified that the authorities could still pursue steps for recovering any outstanding dues, including retrospective cancellation, in accordance with the law.

category

Centre, States to initiate special drive against fake GST registration from 16th May

editor — Sat, 20 May 2023 09:11:14 +0000

The Centre and States together are launching two months special drive from Tuesday against GST fraudsters. Experts say every GST assessee needs not panic on such a move.
“A Special All-India Drive may be launched by all Central and State tax administrations from May 16, 2023, to July 15, 2023, to detect suspicious/fake GSTINs and to conduct requisite verification and further remedial action to weed out these fake billers from the GST ecosystem and to safeguard Government revenue,” Central Board of Indirect Taxes & Customs (CBIC) said in an instruction to all of its field formation.
As of date, there are 1.39 crore registered taxpayers, which is more than double of assesses registered during the pre-GST or Central Excise-VAT regime. However, the worrying part is mounting evasion. Last month, officials conceded that GST evasion detection by tax officers almost doubled YoY to over ₹1.01 lakh crore in FY23, out of which a recovery of ₹21,000 crore was made by the officers of the Directorate General of GST Intelligence (DGGI).
In FY22, DGGI, the investigative agency under the Goods and Services Tax (GST) regime, detected evasion of over ₹54,000 crore and made a tax recovery of over ₹21,000 crore. The total number of Goods and Services Tax (GST) evasion cases has gone up this fiscal with about 14,000 cases detected in FY23, up from 12,574 cases in FY22 and 12,596 cases in FY21.

Source: https://www.thehindubusinessline.com/economy/centre-states-to-initiate-special-drive-against-fake-gst-registration-from-tuesday/article66852277.ece

category

Businessmen hail drive against fake GST registrations

editor — Sat, 20 May 2023 05:21:12 +0000

Industrialists, who had been asking GST departments to take action against rising menace of bogus billing, have welcomed the central government’s move on holding special all-India drive to detect suspicious and fake companies registered under GST.
The drive will be executed by the GST authorities and will run for a period of two months from May 16 till July 15. Businessmen and tax professionals are happy over the development, but they said the departments should ensure that during this drive, owners of genuine and bonafide companies are not harassed.
Giving more information about the drive, tax expert N K Thamman said, “In GST, the menace of fake registrations and issuance of bogus invoices for passing of fake input tax credit (ITC) has become a serious problem. This is causing a tremendous loss to the government revenue and also leading to harassment and litigation for genuine buyers. So in wake of this menace, an all-India drive will be organised from May 16 to July 15 to detect suspicious and fake GST registrations.”

Source: https://m.timesofindia.com/city/ludhiana/bizmen-hail-drive-against-fake-gst-registrations/amp_articleshow/100199223.cms

category