Weekly Roundup – India GST News & Updates you need to know
- Feb 7, 2020 | Divita S Gupta
A possibility of hitting record collections in January 2020, a successful GST report by the Finance Ministry and GST fraud being recognized as a non-cognizable offence - check out updates from #GSTThisWeek
GST collections for January may hit record Rs 1.15 lakh crore
GST collections have crossed the Rs 1 trillion mark for the third month in a row in January with improved compliance and plugging of evasion. This month the shortfall in gross direct tax collections may only be Rs 11,000 crore. The government’s earlier target was an average of Rs 1 lakh crore per month, but the bar was raised after GST revenue slumped below Rs 1 lakh crore for three consecutive months — August, September and October 2019.
One in four assessees submit GST audit conciliation report so far
According to reports, only one in every four assessees have submitted their audit conciliation statement for fiscal year 2017-18 (FY 18). The due date for submitting it was January 31. There are three mandatory annual return forms, namely, GSTR 9, GSTR 9A and GSTR 9C. Every GST assessee (those who submitted all the monthly return forms of GSTR 3B and GSTR 1) has to file an annual return in GSTR 9.
Among these assessees, every registered taxable person whose turnover during a financial year exceeds ₹2 crore, will also be required to get his accounts audited by a chartered accountant or a cost accountant and then submit a reconciliation statement in GSTR 9C along with GSTR 9.
Fraudulently availing GST input credit void of invoice non-bailable, cognizable offence
Further tightening the noose around taxpayers committing tax fraud and filing fraudulent ITC claims, the Government announced that guilty people will be arrested under a non-bailable, cognizable offence. Several cases of fraudulent input tax credit claims have been caught by the GST authorities where fake invoices were obtained by suppliers registered under GST to fraudulently claim ITC and reduce their GST liability. These invoices are found to be issued by racketeers who do not actually carry on any business or profession. The Government is issuing orders for imprisonment with bail for such persons.
Nirmala Sitharaman hails GST as a success, says 60 lakh more tax payers added
In her second Budget presentation since her appointment as the Finance Minister of India, Nirmala Sitharaman announced that GST has been a success with more than 60 lakh taxpayers added to the Government tax roster. She also stated that GST has resulted in efficiency gains in the transport and logistics sector, inspector raj has vanished, and that the tax reform has benefitted Micro, Small & Medium Enterprises.
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