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

  • Jan 31, 2020 | Divita S Gupta

Less than 24 hours to Budget 2020 and the demands for rate cuts and tax relief continue to pour in. After the automobile and healthcare sectors, LPG and white goods manufacturers join the bandwagon. More such updates on #GSTThisWeek

Indian Auto LPG Coalition demand rate cut 

Days before Budget 2020, the Indian Auto LPG coalition has demanded a rate cut in GST.  Auto LPG is among the cleanest alternative fuels with a global warming potential of 'zero' and is currently being taxed at a high GST slab of 18%. The coalition has explained that high GST rates on clean fuels and conversion kits are in complete variance to the government's stated green mobility push.

Over 65 lakh GSTR-3B filed till Jan 20 

Over 65.65 lakh GSTR-3B returns were filed till January 20, for the tax month of December, of which 13.30 lakh GSTR-3B returns were filed on the last day viz. January 20th 2020. In the last three days of filing, 8.32 lakh, 6.09 lakh and 13.30 lakh GSTR-3B returns were filed, respectively. 

Make Khadi products GST-free

Among other Budget 2020 recommendations is a demand to make khadi products GST exempt. The Khadi Gyamodyoga has asked that the Union Government not collect any tax from Khadi industry as it is not a for profit industry. In a bid to preserve and popularise the tradition of manufacturing Khadi, the vertical has requested to be exempt from GST.

Tax Authorities To Block GST Credit Of Over 1,000 Taxpayers

The Central Board of Indirect Taxes and Customs has asked every commissionerate to identify top 20 taxpayers who have the highest discrepancy in input tax credit based on the purchase-related GSTR-2A and summary GSTR-3B returns. The input tax credit of such persons will be blocked. While this exercise will be starting with a top 20, it will expand to 1000 taxpayers. The taxpayers identified by the tax authorities will be given an opportunity to explain the discrepancies in returns and if found guilty, tax dues will be recovered from these taxpayers.

Appliances, consumer electronics industry seeks GST tax relief

Manufacturers of appliances and consumer electronics are seeking lower taxes on eco-friendly and energy-efficient products, higher incentives for domestic manufacturing and waiving of customs duty on inputs imported. This recommendation comes from the Consumer Electronics and Appliances Manufacturers Association who recommend that a lower GST rate of 12% for eco-friendly, energy-efficient products like 4 or 5 star air conditioners and frost free or direct cool refrigerators will drive demand and increase the adoption of sustainable appliances by the Indian consumer.

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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.