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Weekly Roundup – India GST News & Updates you need to know

  • Dec 13, 2019 | Divita S Gupta

Breather for IT Services and BPOs as Government withdraws GST circular; e-way bill feature to be blocked for taxpayers who did not file their returns in September and October and the GST council starts reviewing GST rates. Read more updates on #GSTThisWeek.

Strict measures against 20.75 lakh GSTINs who did not file returns 
In a surprise move to minimise tax fraud, the Government has announced the blocking of e-way bill facilities for non-filers starting December 2019. Over 20.75 lakh GSTINs failed to file their returns in September and October 2019. Taxpayers who did not file their GSTR-3B returns will have their facility to generate e-way bills blocked for an unspecified period. 

GST council begins review of rates 
The Government will begin discussions for revamping tax rates under the goods and services tax (GST) soon. This might include bringing a few exempted items under the GST radar while reviewing the rates and the cess on all goods and services. Post this review, the GST rate on care, tobacco and cola drinks might be raised. 

Government withdraws GST Circular on BPOs and IT Service Providers 
A few months ago, the Government had issued a circular that said anyone engaged in the facilitation of supply of goods/services will not be considered to be engaged in export and will now be considered as intermediary, unless it is on his own account. This circular meant that BPO, KPO and IT services were treated as intermediaries under GST laws and as such any refund claims by BPO, KPO and IT services were denied. As the Government has withdrawn this circular, BPO, KPO and IT services can finally have some tax relief. 

GST Council may use cess route to boost revenue 
Since it is not easy to increase the tax rates on goods that are mass consumed, the GST Council might increase the existing cess on luxury goods. The Council may also correct the inverted duty structure (where the tax on input is higher than on the final product) on a number of items and will address the issue of taxpayers claiming input tax credit amounts that are higher than the actual tax content in their inputs. 

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Avalara helps businesses of all sizes get GST return filing, e-way bill generation and e-invoicing right with cloud-based GST compliance solutions in India. Goods and Services Tax (GST) rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Divita S Gupta
Avalara Author Divita S Gupta
Divita has served as a writer and editor for top financial services organizations in India. Currently, she owns a small business in Mumbai. She acquired a Master's Degree in Business Administration from Symbiosis International University in 2014. She is a baker, blogger and avid reader.