KSA Infomatrix

GST officers have started seeking clarification from companies whose tax payments did not match with the e-way bills generated, as revenue authorities start matching supplies data to check tax evasion, sources said.  Touted as an anti-evasion measure, e-way bill system was rolled out on April 1, 2018, for moving goods worth over Rs 50,000 from one state to another. The same for intra or within the state movement was rolled out in a phased manner from April 15, 2018.  Souce: https://economictimes.indiatimes.com/news/economy/policy/gst-officers-seek-clarification-from-companies-for-mismatch-in-sales-returns-e-way-bill-data/articleshow/68761682.cms

The GST composition scheme was so far available to traders and manufacturers of goods with an annual turnover of up to Rs 1 crore The tax department has given service providers with turnover of up to Rs 50 lakh time till April 30 to opt for the composition scheme and pay six per cent goods and services tax (GST). The option to pay GST at reduced rate of 6 per cent would be effective from the beginning of the financial year or from the date of obtaining new registration during the financial year. Service providers opting for the composition scheme can charge a lower tax rate of six per cent from customers, as against the higher rates of 12 and 18 per cent for most services under GST. In a circular, the Central Board of Indirect Taxes and Customs (CBIC) said suppliers who want to opt for composition scheme would have to file Form GST CMP-02 by selecting ‘Any other supplier eligible for composition levy’ latest by April 30, 2019. Businesses which apply for new registration ma...

Faced with the big challenge of tackling fake invoicing in GST regime, tax officials are looking at different strategies to curb this menace and shore up revenue collections. Central Board of Indirect Taxes and Customs (CBIC) Member (Investigation) had recently said that between April and February 2018-19, GST evasion to the tune of ₹20,000 crore was detected, of which ₹10,000 crore was recovered. ,Officials estimate that evasion through fake and under-invoicing could be pegged at anywhere between one per cent and five per cent of collection. Tax officials at both the Centre and States have regularly been busting such rackets “This is just the tip of the iceberg,” said an official, who did not wish to be named. CGST and SGST officials are also looking at use of data analytics from the GST Network for variation in returns, variation in e-way bills and are also looking at trends in various sectors to understand where such evasion is taking place . Setting up of f...

Exporters have asked the government to organise the fourth tranche of its special refund fortnight to clear all the dues under the Goods & Services Tax (GST) regime as the pending claims were affecting their cash flow and competitiveness in the global market. “Refund of IGST (Integrated GST) worth ₹ 8,000 crore and input tax credit (ITC) worth ₹ 15,000 crore are yet to be paid to exporters and it is causing a liquidity problem. In our meeting with Commerce Minister Suresh Prabhu and senior officials from the Ministry, we have urged that urgent steps should be taken to clear the dues such as organising another clearance fortnight,” FIEO President Ganesh Kumar Gupta said at an interaction with the media on Wednesday. With the government looking at ways to reduce the widening trade deficit, exporters are of the view that improving their liquidity position could go a long way in improving exports. “The government is looking at an export growth of 16 per cent th...

Finance Minister Arun Jaitley has proposed additional cess on select commodities under GST to raise funds to help Kerala tide over the damages caused due to floods, a state minister said Friday. The proposal of levy of cess is expected to come up for discussion at the GST Council meeting on September 28.  "Kerala welcomes the suggestion of hon'ble FM for a national level cess on selected commodities for a specified period to help such states. GST Council to discuss," Kerala Finance Minister Thomas Isaac said in a tweet.  Isaac was of the view that GST should be made flexible to take care of "unforeseen urgent demand for resources as in the case natural calamities".  The issue regarding additional cess for funding rehabilitation activities in flood-hit Kerala was discussed Thursday during a meeting of Isaac with Jaitley.  Isaac has also pressed for additional funds from the Centre to rebuild the state, which is estimated to have suffered a loss ...

Goods and services provided by charitable trusts for a consideration would classify as supply, making it liable for GST, the authority of advanced ruling (AAR) for GST in Maharashtra has ruled. Goods and services provided by charitable trusts for a consideration would classify as supply, making it liable for GST, the authority of advanced ruling (AAR) for GST in Maharashtra has ruled. The ruling further states that trusts would need to register under GST if its annual turnover was above the threshold of Rs 20 lakh. The trust in its application argued that since its main activity was that of a charitable trust engaged in spreading religious knowledge by organising camps (satsang, shibirs), its ancillary activity of selling religious material in the forms of books, CDs, DVDs, pamphlets and statues shouldn’t be considered as business. AAR rejected the trust’s contention saying that some of its activities — providing accommodation for participants in camps and sale of merchandise...

The government is planning to compare data filed by companies with different departments to detect discrepancies and check whether there’s been any leakage in tax collected, raising the prospect of even greater scrutiny, said people with knowledge of the matter. Goods and services tax (GST) returns, income tax filings and transfer pricing submissions will be analysed and synchronised in a manner that hasn’t been possible before, they said.  Source: https://economictimes.indiatimes.com/news/economy/policy/government-to-vet-gst-income-tax-and-transfer-pricing-filings-to-find-leakage/articleshow/65584614.cms