India Union Budget GST changes
- Feb 2, 2020 | Richard Asquith
The Indian Finance Minister has submitted to parliament on 1 February the latest 2020 budget amidst slowing growth of 5% compared to the trend of 6.8%. The statement included a number of Goods and Services Tax changes, including:
- New process for voluntarily GST registered businesses to deregister
- Simplified GST return from 1 April 2020, including credit repayment process
- Minor retrospective GST rate changes to certain categories of goods
- Broadening the scope of the e-commerce 1% withholding GST that e-commerce marketplaces must charge on platform transactions they process. However, if the marketplace does not have a registered permanent account with the Indian authorities, then the tax is 5%. This should be processed at the time of the collection of payment by the marketplace. It is calculated on transactions above INR500,000. The measure comes into effect on 1 April 2020.
- Confirmation of phased introduction of e-invoices, initially on a voluntary basis in Feb 2020. Then going to mandatory in April.
- To support the above, the introduction of dynamic QR codes on invoices