Restructured GST rate slabs, GST rate hikes, GST cut on CNG vehicles, real-time access to GST returns, e-way bills and more

Restructured GST rate slabs, GST rate hikes, GST cut on CNG vehicles, real-time access to GST returns, e-way bills and more

A possible phased revision in GST slabs after Budget 2021; will CNG vehicles get a rate cut and a request by State Governments for real time access to the GST Network - these updates and more on #GSTThisWeek

GST rate slabs likely to be restructured post-Budget
The Centre is planning to restructure GST slabs and will discuss the same with State Governments after the presentation of Union Budget 2021 on February 1st, next month. The Centre and State Governments are likely to explore ways to manage a possible revenue shortage and GST compensation to the states from the next fiscal year.

GST rate hikes may come in phases to reduce price pains
The Government might introduce rate hikes in GST in a phased manner in order to shield consumers from sudden price shocks. They might also consider minimising exemptions in a bid to lift tax revenue collections. A panel of officials on revenue augmentation, comprising officials from the states and the Centre, is currently reviewing the current rate structure and are discussing if rate hikes in GST can be carried out in a phased manner.

Oil ministry wants cut in GST on CNG vehicles to 5%
The Oil and Gas Ministry, in a bid to encourage demand in vehicles run on compressed natural gas or CNG, have requested that CNG vehicles be charged a GST of 5% as opposed to their current 28%. Currently, only electric vehicles are allowed a rate cut but with the Government’s objective of raising the share of natural gas consumption by 15% in the next ten years from its current 6%, it is necessary that citizens purchase CNG vehicles.

GST December 2019 revenue outperforms December 2018 revenue
GST revenue collection remained above Rs 1 lakh crore mark with December mop-up rising to Rs 1.03 lakh, higher than the revenue collection of Rs. 97,276 crore in December 2018. Of the gross Rs 1,03,184 crore last month, CGST is Rs 19,962 crore, SGST is Rs 26,792 crore, IGST is Rs 48,099 crore and Cess is Rs 8,331 crore. 

Historic Government move to improve State GST transparency
The Government made public State-wise gross domestic GST collections - a first of its kind move since the launch of the Goods and Services Tax in 2017. This move will go a long way in improving the transparency quotient of the GST system. It should also be seen as the Centre’s way of setting the record straight that States are in fact earning revenues.

States seek real-time access to GST returns, e-way bills
State Governments have requested real-time access to annual GST returns and e-way bills in order to check tax evasion, which in turn could address the ongoing fund crunch and help compensate states for their revenue shortfall. Currently, this data is stored under the GST Network and the Network compiles reports and sends them to all the states and Union territories with a time lag.

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