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9 important changes and key takeaways from the 53rd GST Council meeting

<ul><li>Companies won’t be allowed e-way bills if they fail to file their GST returns for 6 months. </li><li>The e-way bill is required for businesses transporting goods worth in excess of ₹50,000 across state borders. </li><li>The move is aimed at plugging a shortfall in GST receipts. </li></ul>The Indian government is planning to prohibit companies from generating e-way bills for the transport of goods in the event that they fail to file their GST returns for six months in succession, or two consecutive filing cycles, officials told the news agency, Press Trust of India (PTI). The e-way bill, or electronic way bill, came into force in April 2018. It is required for businesses that are transporting goods between states with a value in excess of ₹50,000. The e-way bill system will also be implemented into the National Highway Authority’s <a href="https://economictimes.indiatimes.com/news/economy/policy/e-way-bill-to-be-integrated-with-nhais-fastag-to-track-gst-evasion-from-april/articleshow/67541384.cms">Fast Tag </a>programme, an electronic toll system, in order to prevent trucks from making multiple trips on the same bill. The Goods and Services Tax authorities are currently in the process of developing the IT infrastructure to enable the revocation of e-way bill privileges. A formal notification is reportedly expected soon. The move is aimed at preventing businesses from evading taxes. Since the GST was implemented in April 2017, there have reportedly been over 3,600 instances of tax evasion and a violation of compliance norms. The policy will likely help plug the leakages as the government tries to bridge a shortfall in GST receipts. At ₹968 billion, the monthly average collections between April and December 2018 have consistently come in below the government’s target of <a href="https://www.thehindu.com/opinion/editorial/gst-shortfall/article25892792.ece">₹1.06 trillion</a> owing to both evasion and reductions in tax rates on various products. A similar attempt to penalise alleged tax evaders by the then government in Madhya Pradesh (MP), led by the Bharatiya Janata Party (BJP), led to severe unrest from the state’s business community. A lobby representing nearly a million truck operators, the All India Motor Transport Congress, called for a <a href="https://www.financialexpress.com/economy/whopping-rs-1-3-crore-fine-for-e-way-bill-error-triggers-transport-strike-just-a-day-before-gst-council-meet/1249415/">nationwide strike</a> in July 2018 against the MP government’s hefty penalty of ₹1.35 lakh crores ($19.2 billion) for lapses in e-way bills. Less than six months later, the incumbent state government under Shivraj Singh Chauhan lost the elections to rival Indian National Congress (INC). The Narendra Modi government may want to avoid the risk of losing further ground among its core voter base, the trading community, in an election year. Therefore, there is a chance that the policy to penalise non-compliance with e-way bills may be enforced after general elections. The issue with e-way bill is at times more than an intent to evade taxes. “Currently, in many companies, there is a confusion as to whether these compliances should be undertaken by the supply chain team or the finance/ tax teams and in the process, chances of error is high. Given these developments, treating the e-way bills as merely a ‘procedural’ requirement would be fraught with risk,” Pratik Jain, Indirect Tax Partner at PwC, told the Financial Express in July 2018. The government is trying to<a href="https://www.businessinsider.in/author_articles_all.cms?query=%22Dilsher%20Dhillon%22&amp;author=Dilsher%20Dhillon"> secure the votes of small business owners</a> with rate cuts and less stringent filing norms. Earlier this year, the GST Council decided to double the minimum revenue threshold for compliance with the tax to ₹4 million for producers of goods. At the end of 2018, Finance Minister Arun Jaitley also said the government was mulling the possibility <a href="https://www.businessinsider.in/indias-finance-minister-moots-the-possibility-of-a-single-tax-rate-on-standard-items-amid-continued-criticism-of-the-governments-gst-regime/articleshow/67253716.cms">of merging two tax rates on standard items</a>, which are 12% and 18%, into a single rate of 15% to make the filing of returns easier. SEE ALSO: <a href="https://www.businessinsider.in/indias-finance-minister-moots-the-possibility-of-a-single-tax-rate-on-standard-items-amid-continued-criticism-of-the-governments-gst-regime/articleshow/67253716.cms">India’s Finance Minister moots the possibility of a single tax rate on standard items amid continued criticism of the government’s GST regime</a> <a href="https://www.businessinsider.in/heres-how-the-proposed-changes-to-gst-could-affect-businesses/articleshow/64935707.cms">Here’s how the proposed changes to GST could affect businesses</a>

The Indian government is risking a tighter noose on 'tax evaders' as GST collections remain short of target

For the consumer electronics industry in India, festive season has come early this year, as they have seen manyfold rise in the number of televisions, refrigerators and air-conditioners sold in June, right before <keyword id="6359833" type="ORGANIZATION" weightage="20" keywordseo="Goods-and-Services-Tax">goods and services tax</keyword> (<keyword id="6354679" type="ORGANIZATION" weightage="20" keywordseo="GST">GST</keyword>) is rolled out from July 1. The number of these appliances sold matches with what they sell in the peak festive season around Diwali, with monthly sales increasing 85-90% from the year earlier. The reason behind this jump in sales is the big discounts that these sellers have offered to attract customers and clear their stocks before GST rollout. Expecting a rise in prices of consumer durables after GST, customers went berserk in shopping and the discounts further helped. "It has certainly been a huge month with sales growing 80-90% over the same period last year, considering June is usually a month when consumer durable sales tend to dip," Brian Bade, chief executive at Reliance Retail’s digital formats told <a href="http://economictimes.indiatimes.com/industry/cons-products/electronics/pre-gst-offers-ensure-leading-consumer-electronic-retail-chains-rake-in-the-moolah/articleshow/59344969.cms">ET</a>. Nilesh Gupta, MD of Vijay Sales said that the sales match with that of last year’s Diwali and Dhanteras put together. "However, it's not profitable growth as bulk of the merchandise was sold on discounts," he said.Moreover, the industry would face a slump next month since customers have already purchased what they wanted and those who haven’t would probably postpone buying costlier appliances post GST. (Image source: Global Retailer)

Leading consumer electronic retail chains are getting richer before GST

If you are earning Rs 20 lakh annually from renting or leasing commercial property, you’ll have to pay tax. Under the new norms, GST will be levied on commercial rental income beyond Rs 20 lakh. Revenue Secretary Hasmukh Adhia said that if the house property is rent out for shop or office purpose, no Goods and Service Tax (GST) will be levied up to Rs 20 lakh. "Rental income received from residential house is exempt. But if you have given your unit to commercial enterprise, then it is taxable if you are getting more than Rs 20 lakh as rent," said Adhia. The taxpayers will have to register themselves with the GST Network and pay taxes. So far, nearly 69.32 lakh registered excise, service tax and VAT payers have migrated to the GSTN portal. There are over 80 lakh such assessees in the earlier indirect taxation regime. GSTN Chief Executive Prakash Kumar said out of the 69.32 lakh, as many as 38.51 lakh have completed the entire registration process and registration certicate is being issued to them. The remaining 30.8 lakh taxpayers are being sent SMS and emails by GSTN so that they complete the registration process by giving the details of the business like main place of business, additional place of business, promoters details. Besides, over 4.5 lakh new assessees have registered on the GSTN portal since June 25. Adhia further said that the facility to amend the details of businesses provided to the GSTN portal at the time of registration will open on July 17. Also, registration for GST practioners will open on the same day. Besides, cancellation of registration can be done online.

Earning income by renting commercial properties? Be ready to shell out GST. Here are the details

'Make in India' will get a push with the government's latest move to impose a 10 per cent basic customs duty on mobile phones imported into the country, according to <keyword id="6367495" type="COMPANY" weightage="20" keywordseo="PTI">PTI</keyword> news report. The levy is also applicable on parts like chargers, headsets, battery and USB cable, with immediate effect. "The duty differential earlier was about 11.5 per cent in favour of local manufacturing. But with GST subsuming SAD and countervailing duties, that benefit was taken away. The 10 per cent customs duty will help push local manufacturing once again," Intex Chief Financial Officer and Director, Rajeev Jain told PTI. With this, status quo will be maintained (in favour of domestic manufacturing), he added. The announcement on the duty came in simultaneously with the midnight roll-out of Goods and Services Tax (GST) on the intervening night of June 30 and July 1. Many phone makers, who assemble their devices at facilities in the country, also import small quantities of phones from countries like China. "The (import) quantities, at least for us, is very small and therefore, the customs duty will not make much difference. For the end-customer, there is no impact as he/she pays 12 per cent GST for the handset," Jain explained. The government , however, has kept certain parts like printed circuit board assembly (PCBA), camera module, touch panel, cover glass assembly, vibrator motor and ringer, out of the levy of basic customs duty. Echoing a similar view, BMR Advisors Partner, <keyword id="3424677" type="UNKNOWN" weightage="20" keywordseo="Mahesh-Jaising">Mahesh Jaising</keyword> said till yesterday, companies importing handsets were of the view they would have benefited under GST, given the manufacturing duty differential scheme going away. "Consequently, consumers were expecting (prices of) imported phones (typically the high end phones which are usually imported) to have come down. However, with the 10 per cent customs duty last night, the tax structure is again in favour of local manufacturing," he added. Incidentally, telephone bills of consumers will go up under GST regime, while prepaid customers are getting lesser talktime than before. This is because, under GST, telecom services are being taxed at 18 per cent compared to 15 per cent, earlier. Users are now getting talktime of about Rs 80 on a recharge of Rs 100, compared to about Rs 83 earlier. Similarly, costs for postpaid users will also go up to the extent of three percentage points, starting this month. So, for a monthly usage of Rs 1,000, users will have to pay Rs 1,180 instead of Rs 1,150 earlier. With the GST rolling out at midnight, some consumers faced issues getting recharges in early hours today. Some retailers complained of slow recharge processing initially but these issues seemed to be ironed out as the day progressed.

You Searched For "GST latest news" and got 5 results

9 important changes and key takeaways from the 53rd GST Council meeting

Kunal Kambli

The Indian government is risking a tighter noose on 'tax evaders' as GST collections remain short of target

Dilsher Dhillon

Leading consumer electronic retail chains are getting richer before GST

BI India Bureau

Earning income by renting commercial properties? Be ready to shell out GST. Here are the details

BI India Bureau

Local phone manufacturing to get a boost with 10% customs duty

BI India Bureau

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