Budget 2022: वाहन खरीदना हो सकता है सस्ता, वित्त मंत्री कर सकती हैं ऑटो पार्ट्स पर GST घटाने का ऐलान

नई दिल्ली. आम बजट (Budget 2022-23) पेश होने में अब एक महीने से भी कम समय बचा है. वित्त मंत्री निर्मला सीतारमण (Nirmala Sitharaman) 1 फरवरी, 2022 को वित्त वर्ष 2022-23 (FY23) के लिए बजट पेश करने वाली हैं. सभी को इंतजार है कि इस बार के बजट में वित्त मंत्री क्या ऐलान करती हैं. वहीं, ऑटो पार्ट्स इंडस्ट्री बजट में सभी ऑटो पार्ट्स पर 18 फीसदी जीएसटी (GST) की दर करने की मांग कर रहे हैं.

RoDTEP दरों को बढ़ाने की मांग
भारतीय ऑटो कंपोनेंट इंडस्ट्री की बड़ी एसोसिएशन में से एक ऑटोमोटिव कंपोनेंट मैन्युफैक्चरर्स एसोसिएशन यानी एसीएमए (ACMA) केंद्रीय बजट के लिए सरकार को अपनी सिफारिशों में सभी ऑटो पार्ट्स पर एक समान 18 फीसदी की एक समान जीएसटी दर लगाए जाने की डिमांड कर रहे हैं. इसने सरकार से रिसर्च और विकास में निवेश बढ़ाने के लिए एक्सपोर्ट प्रोडक्ट पर शुल्क और टैक्स की छूट यानी आरओडटीईपी (RoDTEP) दरों को बढ़ाने को भी कहा है.

चुनौतीपूर्ण दौर से गुजर रहा है ऑटोमोटिव इंडस्ट्री
एसीएमए के प्रेसिडेंट संजय कपूर ने कहा कि ऑटोमोटिव इंडस्ट्री अब तक का सबसे चुनौतीपूर्ण लेकिन फिर भी दिलचस्प समय देख रहा है. महामारी के कारण आईटी सेक्टर में नई तकनीक और मोबिलिटी लाने में मदद मिली है. एसीसी बैटरी के लिए पीएलआई योजना, ऑटो और ऑटो घटकों के लिए पीएलआई और फेम-2 योजना के विस्तार पर सरकार द्वारा हाल की नीतिगत घोषणाएं वास्तव में बहुत समय से पेंडिग हैं जिन पर काम किये जाने की जरूरत है.

ऑटो पार्ट्स में बढ़ता जा रहा है नकली और ग्रे मार्केट
कपूर ने कहा कहा कि सभी ऑटो पार्ट्स पर एक समान जीएसटी दर 18 फीसदी की सिफारिश कर रहे हैं. उद्योग में महत्वपूर्ण आफ्टरमार्केट ऑपरेशन होते है जिसमें ज्यादातर पर जीएसटी की दर 28 फीसदी है जिसके कारण ऑटो पार्ट्स में नकली और ग्रे मार्केट बढ़ता जा रहा है. जीएसटी की दर कम करने से इस ग्रे मार्केट को खत्म करने में मदद मिलेगी.

source:https://hindi.news18.com/news/business/budget-wishlist-acma-seeks-lower-gst-on-auto-components-nodvkj-3952365.html

Attention GST taxpayers! File GSTR-7 return for Dec before 10 Jan. Details here

There is a piece of information for the Goods and Services Tax (GST) taxpayers. The Central Board of Indirect Taxes and Customs (CBIC) has been notified to file the GSTR-7 Return for the month of December 2021 by 10 January 2022.

The CBIC has also mentioned this for the GST taxpayers who are required to deduct Tax at Source (TDS) under GST! Late filing of GSTR-7 Return will attract late fees and interest.

“Attention GST Taxpayers who are required to deduct Tax at Source (TDS) under GST! Due date to file your GSTR-7 Return for the month of December. 2021 is January 10, 2022,” the CBIC has tweeted.

What is GSTR-7

GSTR-7 is a return filed by the individual who deducts TDS under GST. GSTR-7 contains details of the TDS deducted, TDS liability payable and paid, TDS refund claimed, etc.

As per the GST law, the following individuals/entities can deduct TDS :

– A department or establishment of the Central or state government

– A local authority

– Governmental agencies

– Persons or categories of persons as may be notified by the Central or a state government on the Council’s recommendations

As per the Notification No. 33/2017 – Central Tax, 15th September 2017, the following entities can also deduct TDS:

– An authority, a board, or any other body set up by the Parliament, a State Legislature, or by a government with 51% equity (control) owned by the government

– A society established by the Central or any state government or a local authority and the society registered under the Societies Registration Act, 1860.

The above deductors must deduct TDS where the total value of supply under the contract exceeds Rs.2.5 lakh. The rate for TDS is 2% (CGST 1% + SGST 1%) in case of intrastate supply and 2% (IGST) in case of interstate supplies.

However, TDS will not be deducted when the location of the supplier and place of supply is different from the registration place (state) of the recipient.

SOURCE:https://www.livemint.com/news/india/attention-gst-taxpayers-file-gstr-7-return-for-dec-before-10-jan-details-here-11641747174086.html

Taxmen To Give “Reasonable Time” To Explain GST Mismatch

New Delhi: Tax officers will give reasonable time to erring business to explain reasons for mismatch in turnover reported in sales return GSTR-1 and tax payment form 3B before initiating recovery action for short payment or non-payment of taxes.

Apex indirect tax body Central Board of Indirect Taxes and Customs (CBIC) has issued guidelines on recovery proceedings and said that taxmen would give a “reasonable time” to businesses to explain the reasons for such mismatch.

As per the changes in the GST law effective January 1, GST officers were allowed to directly initiate recovery action against those errant businesses which showed higher sales in monthly return GSTR-1 but under-report it while tax payment in GSTR-3B.

The move was aimed at curbing the menace of fake billing whereby sellers would show higher sales in GSTR-1 to enable a purchaser to claim an input tax credit (ITC) but report suppressed sales in GSTR-3B to lower GST liability.

So far, under the goods and services tax law, show-cause notices were first issued and then a recovery process was initiated in such cases of mismatch in GSTR-1 and GSTR-3B.

Following doubts raised by the trade and the field formations regarding modalities for initiation of the recovery proceedings, the CBIC on January 7 issued guidelines, saying that an opportunity needs to be provided to the concerned businesses for short payment or non-payment of the amount of self-assessed tax liability.

It noted that in some cases there may be a genuine reason for the difference between the details of outward supplies declared in GSTR-1 and those declared in GSTR-3B.

Giving example, the CBIC said the GST law permits rectification of typographical errors or omissions in the GSTR-1 or GSTR-3B of a particular month, in the returns or tax payment forms of subsequent months.

There may also be cases, where a supply could not be declared by the registered person in GSTR-I of an earlier tax period, though the tax on the same was paid by correctly reporting the said supply in GSTR-3B. The details of such supply may now be reported by the registered person in the GSTR-I of the current tax period.

“In such cases, there could be a mismatch between GSTR-l and GSTR-3B (liability reported in GSTR-I> tax paid in GSTR-3B) in the current tax period.

“Therefore, in all such cases, an opportunity needs to be provided to the concerned registered person to explain the differences between GSTR-I and GSTR-3B, if any, and for short payment or non-payment of the amount of self-assessed tax liability and interest thereon, before any action under Section 79 of the Act is taken for recovery of the said amount,” the CBIC said.

Wherever any such amount of tax, self-assessed by the registered person in his outward supply statement GSTR-I is found to be short paid or not paid through his GSTR-3B return, the tax officer would send a communication to pay the amount short paid or not paid or to explain the reasons for such short payment or non-payment of self-assessed tax, within a “reasonable time”, as prescribed in the communication.

“If the concerned person is able to justify the differences between GSTR-I and GSTR-3B, or is able to explain the reasons of such short-payment or non-payment of tax, to the satisfaction of the proper officer, or pays the amount such short paid or not paid, then there may not be any requirement to initiate proceedings for recovery under section 79,” the CBIC said.

 

However, if the registered person either fails to reply to the communication, or fails to make the payment of such amount short paid or not paid, within the time prescribed in the communication, or fails to explain the reasons for such difference/short payment of tax to the satisfaction of the proper officer, then the tax officer may proceed for recovery, it added.

The government had brought in this change in the GST Act as part of the Finance Act, passed by Parliament last year. The CBIC last month notified January 1, 2022, as the date on which this provision under GST law would come into effect.

SOURCE:https://www.ndtv.com/business/taxmen-to-give-reasonable-time-to-biz-to-explain-reasons-for-mismatch-in-gstr-1-3b-before-recovery-action-2697686

Bring back provision for audit of GST annual returns: ICAI to govt

NEW DELHI : Accounting rule maker Institute of Chartered Accountants of India (ICAI) has asked the government to bring back the audit and certification provisions relating to Goods and Services Tax (GST) annual returns, saying that doing away with audit will disrupt compliance.GST authorities last August dropped the provision for mandatory audit of annual returns for businesses with sales of 2 crore and above, and introduced self-certification of a reconciliation statement for those with 5 crore sales and more, replacing the certification needed by a chartered or cost accountant.This self-certified statement is for reconciling the value of supplies declared in the return furnished for the financial year, with the audited annual financial statement. Self-certification puts the responsibility on taxpayers to furnish true and accurate details in their annual return. The idea was to encourage voluntary compliance and to improve the ease of doing business. The change is applicable for FY21 and beyond.

In a proposal to the finance ministry, ICAI suggested that amendments made to Central GST Act through the Finance Act last year should be withdrawn and the requirement of getting annual accounts audited and reconciliation statement certified by a chartered accountant be reinstated in law because GST audit by a chartered accountant ensures taxpayer compliance and helps in plugging revenue leakages.

“Doing away with audit will lead to large scale disruption of compliance resulting in demand notices and the taxpayers will be burdened with tax, interest and penalties that could have been avoided had there been a system of audit to identify the lapses in time. Litigation would also increase due to errors that would be left unresolved until a departmental audit is conducted,” ICAI cautioned in its proposal.

The accounting rule maker also said that revenue is recognized differently in accounting and GST law. While financial statements are prepared on ‘accrual system’, GST follows a vastly different ‘time of supply’ based system of tax payment. Even the financial statements are prepared differently on the basis of applicable standards depending upon the nature of the entity. “Thus, it is essential that the reconciliation statement be certified by a chartered accountant who is proficient in both accounting aspects as well as GST law,” ICAI told the ministry. Mint has seen a copy of the suggestions. An email sent to the finance ministry seeking comments for the story remained unanswered at the time of publishing.

SOURCE:https://www.livemint.com/news/india/bring-back-provision-for-audit-of-gst-annual-returns-icai-to-govt-11641455916774.html

GST official goes missing in Mumbai after stepping out for lunch

A joint commissioner of Goods and Services Tax (GST) went missing from his office in Mumbai’s Mazgaon area on Wednesday, police sources said.

As the 55-year-old official, who left the office during lunch break, did not return till late in the evening, his secretary lodged a missing person complaint.

The official was not carrying his mobile phone when he stepped out, police said. Further probe is on.

source:https://www.indiatoday.in/cities/mumbai/story/gst-officials-goes-missing-in-mumbai-after-stepping-out-for-lunch-1896712-2022-01-06

Agra footwear industry goes on an indefinite strike to protest against hike in GST on shoes

Following the hike in GST on shoes, the entire footwear industry in Agra went on an indefinite strike on Wednesday, taking out a protest march on the Mahatma Gandhi road.

They sent a memorandum to the Agra District Magistrate highlighting the demands of the footwear industry.

Agra’s footwear industry is considered to be the largest footwear industry in Asia. Over 60 per cent of people in Agra are connected to this business.

However, following the increase of GST on shoes priced below Rs 1,000 from 5 per cent to 12 per cent, the local businesses are in an uproar.

Shoe Factors Federation President Gagan Das Ramani told India Today that they strongly oppose this unjustified raise in GST on shoes selling below the price of Rs 1,000 and demand that this hike be reverted to 5%. The Agra Shoe Factors Federation has sent a memorandum to Prime Minister Modi, seeking his intervention.

According to the information available with India Today, the Federation has requested the Prime Minister to save the footwear industry of Agra, which has been selected under the “One District One Product” (ODOP) scheme.Amir Qureshi, a footwear businessman, said, “Footwear is the main business of Agra that provides livelihood to lakhs of local residents. These people had been suffering a great deal through the past two years due to covid and now with the GST being raised to 12%, they will suffer serious business loss and the Chinese shoes will become cheaper instead of Indian shoes. Also, the higher tax rates will mean a lot of business will be conducted without proper billing.”

Meanwhile, Agra Shoe Manufacturers Association President Upendra Singh Lovely said, “The biggest detrimental effect of raising the GST on footwear will be that the traders who were issuing tax invoices, will again go back to unrecorded cash memos, which will result in revenue loss to the government.”

He further added that the shoes being imported from China are exempted from the GST hike, which will make the Indian shoes lag in competition with the Chinese shoes.

Jitendra Trilokani, who is also connected to the footwear industry, said that the industry was confident that the tax would not rise on footwear, but while the GST council decided to postpone the raise on garments, it left the footwear industry to fend for itself. This hike in GST will badly affect the footwear industry. The GST hike will result in a drop in sales and credit will increase.

source:https://www.indiatoday.in/cities/agra/story/agra-footwear-industry-indefinite-strike-to-protest-gst-hike-1896395-2022-01-05

Meet held of Central and state GST officers to augment revenue

THIRUVANANTHAPURAM: A joint meeting of Central and state GST officers in Kerala on sharing the best practices to augment GST revenue, was held here on Wednesday.  Suggestions for augmenting GST revenue in the remaining three months of the current fiscal also figured in the conclave, which was organised as part of the Central Board of Indirect Taxes and Customs (CBIC) initiative. Under this, meetings with officials of state tax administrations across the country to further boost Goods and Services Tax (GST) revenue collection are held.

The meeting also discussed the possibility of exploring more coordinated actions for revenue augmentation and to explore areas of possible synergies for revenue mobilisation over the next few weeks. Greater coordination between Central and state agencies for tax compliance enforcement has become possible after the GST rollout as the tax system is now unified. This comes at a time when certain provisions of GST law against tax defaulters have been made stricter. GST authorities are also extensively using data analytics to identify wrongdoers.

Special Secretary and Member (GST), CBIC, D P Nagendra Kumar, Chief Commissioner, CGST, Thiruvananthapuram Zone,  S R Prasad, and Commissioner, SGST, Kerala,  Rathan U Kelkar, spoke. Presentations on best practices by CGST Kerala and SGST Kerala were shared.

source:https://www.newindianexpress.com/cities/thiruvananthapuram/2022/jan/06/meet-held-of-central-and-state-gst-officers-to-augment-revenue-2403509.html


CBIC starts initiative to boost GST mop-up

NEW DELHI : Central Board of Indirect Taxes and Customs (CBIC) has started a new initiative of holding meetings with officials of state tax administrations across the country to further boost Goods and Services Tax (GST) revenue collections, showed an official communication.  One such meeting has already been held in Karnataka with the idea of exploring a coordinated action plan for revenue augmentation and to explore areas of possible synergies, according to a weekly update by chairman of CBIC Vivek Johri posted on the tax authority’s website. This is a new initiative whereby zonal members would cover all formations in their jurisdictions by holding such meetings to devise strategies for revenue augmentation for GST, over the next few weeks, said the communication.

Greater coordination between central and state agencies for compliance enforcement has become possible after the GST rollout as the tax system is unified. This comes at a time the authorities have from 1 January, tightened rules relating to reporting obligations of tax payers and those relating to powers of officials to do provisional attachment of assets in certain cases to protect government revenue. GST authorities are also extensively using data analytics to detect mis-matches and to identify wrong doers.

“I would like to nudge field formations to keep a close watch on revenue collections, particularly, IGST import revenue. Our targets may be tough but I am sure that we are equal to the task. Zonal chiefs may continue to monitor revenue collections on a daily basis and make all possible efforts to optimise collections,” Vivek Johri said in the communication.

CBIC has also asked officials to clear pending work in key areas of work including in investigations and vigilance matters by 31 March.

source:https://www.livemint.com/news/india/central-state-officials-to-work-closely-to-step-up-gst-collections-11641303509827.html

Budget 2022 Expectations: ‘Expects reduction in GST, streamlining KYC norms, and expand financial inclusion

As Finance Minister Nirmala Sitharaman is scheduled to present the Union Budget for the financial year 2022-23 on 1st February, the Micro, Small & Medium Enterprises (MSME) sector is upbeat that the forthcoming Budget is expected to provide much-needed impetus to the economy.

Sharing his expectations on the Union Budget 2022 for the MSME sector, Rajeev Yadav, MD & CEO, Fincare Small Finance Bank said: “MSMEs are a key contributor to the country’s GDP, employment, and social goals focusing mainly on the government’s Atmanirbhar Bharat. Thus, the success of MSMEs with an enabling framework, where banks can engage holistically, is imperative and is the key to self-reliance. This approach will provide a much-required boost and put our country on a multi-year growth trajectory.”  Concern on taxation needs to be addressed within the given fiscal space. “We expect the Budget 2022 to provide the eagerly-awaited tax relief through changes in personal income tax for middle-income households to perk up the consumption. The government needs to push the disinvestment agenda to ensure that it has enough liquidity in its coffers to push consumption demand and restore confidence in the banking system to start lending,” he added.

Yadav further added that Budget 2022 is expected to revolve around incentivizing the use of technology to make India future-ready. The Government should push for an e-identity, e-authentication, and e-payment framework in the form of Aadhaar, e-signature, and AEPS. This will go a long way in boosting financial inclusion and access to credit in the country. A renewed push for digital and support for the ecosystem players such as banks are desirable.

“In FY21, tax revenues have been buoyant, partly due to the nominal GDP growth of 23.9 per cent in the first half of the current fiscal, but also because of better compliance and the increasing formalization of the economy. The economy has rebounded well after the second Covid-19 wave and the government has been talking of a V-shaped recovery. Many of the high-frequency indicators show rapid growth. We are optimistic about the upcoming budget being growth-driven,” the MD & CEO of Fincare Small Finance Bank said.

“We hope the Budget 2022 to offer reforms on reduction in GST, streamlining KYC norms to expand financial inclusion, special SOPs for agriculture and allied industries, land reforms, micro-housing development, and rural town development,” he further added. Additionally, measures in respect to increasing income of rural households. PM-KISAN, for example, is yet to be executed fully. To trigger consumption there is a need to push for work-intensive industries, such as construction, housing, the building of roads, and irrigation frameworks, Yadav concluded.

source:https://www.zeebiz.com/small-business/news-budget-2022-expectations-expects-reduction-in-gst-streamlining-kyc-norms-and-expand-financial-inclusion-175204

Odisha registers 43 per cent growth in GST collection

BHUBANESWAR: Odisha has posted a 43 per cent growth in GST collection in December 2021 over the corresponding period last year.

The tax collection in December last year was Rs 4,080.14 crore against Rs 2,860.20 crore during December 2020.

The growth in collection during December 2021 is the highest among major states for the fourth consecutive month and second highest ever gross collection of GST by the State since launch of GST, said the Commissionerate of CT and GST.

The progressive GST collection till December 2021 was Rs 32,113 crore against Rs 20,089 crore till December 2020 with a growth of 60 per cent.

The corresponding collection till December 2019 was Rs 21,750 crore. Collection of OGST during the month of December last year was Rs 1,118.65 crore against Rs 765.26 crore during the same period in 2020 recording a robust growth of 46.18 per cent.

The collection of Rs 973.79 crore in CGST, Rs 1,267.63 in IGST and Rs 720.07 crore in cess during December 2021 registered a growth of 65.21 per cent, 31.26 per cent and 33.4 per cent respectively over the corresponding period in 2020.

Gross GST collection during the third quarter of 2021-22 (Oct-Dec) is Rs 11,809.26 crore recorded a growth of 51.08 per cent against the same period in 2020-21. GST growth is mostly driven by mining and manufacturing sectors.

Sectoral analysis of top 100 dealers’ GST payments in cash reveals that Rs 8,595 crore of gross revenue was collected from the mining sector during the current financial year against Rs 4,714 crore from the same dealers during corresponding period of last fiscal with a growth of 83 per cent.

The manufacturing sector also recorded a growth of 142 per cent with a collection of Rs 8,157.93 crore during the current fiscal against Rs  3,374.61 crore in last financial year.

Similarly, service, trading and works contract sectors also recorded a growth of 72 per cent, 89 per cent and 46 per cent respectively in the current fiscal  over the corresponding period of last year.

The total VAT collection from petrol and liquor is Rs 759.72 crore during December 2021 against Rs 691.47 crore during December 2020 with growth rate of 9.87 per cent. Collection from petroleum products is Rs 589.04 crore while Rs 170.67 crore from liquor.

Commissioner of CT & GST, SK Lohani has instructed field officers to ensure at least 90 per cent return filing, return scrutiny of all suspected/big taxpayers as well as prompt demand and recovery in case of any irregularities.

SOURCE:https://www.newindianexpress.com/states/odisha/2022/jan/03/odisha-registers-43-per-cent-growth-in-gst-collection-2402496.html