GST exemption threshold doubled to Rs40 lakh, Kerala allowed to impose calamity cess
In a major relief for MSMEs, the GST Council on Thursday doubled the exemption threshold for small businesses from Rs 20 lakh to Rs 40 lakh and also allowed Kerala to impose a natural disaster cess of upto 1 per cent for a period of upto two years.
 
Till now, businesses with turnover up to Rs 20 lakh were exempt from paying Goods and Services Tax (GST).
 
Announcing the decisions after the GST Council meeting here, Finance Minister Arun Jaitley also ruled out any further cuts in tax rates and said "reductions will be made only when revenues move up".
 
He said while under original GST structure, it was envisaged for those with turnover upto 20 lakh to get exemption, the threshold for some northeastern and hill states was kept at Rs 10 lakh.
 
"We have decided to continue with the twin structure with two slabs. While the Rs 20 lakh threshold has been doubled to Rs 40 lakh, for smaller states, the exemption has been kept at Rs 20 lakh," Jaitley said.
 
Even before the decision, some states, including Jammu and Kashmir and Assam, had amended their laws to increase the Rs 10 lakh threshold to Rs 20 lakh.
 
Jaitley said the states with the new limit of Rs 20 lakh will have the option to "opt up" and states with Rs 40 lakh limit will have the option to "opt down" over concerns of erosion of assessee base.
 
He said while the decision would make over 20 lakh businesses eligible for exemption, all of them may not avail it in order to continue to enjoy benefits of GST like input tax credit.
 
The Council also considered a report of the Group of Ministers on imposing a cess in case of calamities and natural disasters. The GoM was set up after a demand for a cess was raised by Kerala after it was hit with severe floods in August last year.
 
"Kerala is now entitled to impose maximum cess of 1 per cent on intra-state sales for a maximum period of two years," Jaitley announced adding that the GST Council can can allow some states to levy cess in case of natural disasters.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

 

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COMMENTS

Adheer Pai

5 months ago

Allowing states to impose additional cess defeats the purpose of GST. Eventually each state will start imposing cess based on vote bank politics.

MT

5 months ago

Even for housing societies , threshold increased to 40lakhs ?

Tax advocates approach Government to rectify mistakes in GST returns
Citing procedural difficulties due to absence of clarity, the All India Tax Advocates Forum (AITAF) on Thursday urged the Finance Minister to allow assessees to rectify mistakes incurred in their monthly GST returns in the Annual Return form GSTR 9 for the financial year 2017- 18.
 
"Ever since the GST was introduced in July 2017, the government had to sort out ground level procedural difficulties relating to filing of multiple monthly GST returns. In the absence of clarity, assessees could hardly get any opportunity to rectify mistakes incurred in their monthly GST returns while filing the Annual GST returns for 2017 18," AITAF President M K Gandhi said in a statement. 
 
"Since the government has decided to extend the due date for filing Annual Return GSTR-9 and form GSTR-9C (Audit Report) for 2017-18 till March 31, 2019, the assessees should be allowed to correct mistakes made by them while filing monthly return GSTR-3B and GSTR-1," he said. 
 
Gandhi said that in the absence of clarity about matters relating to refund of Input Tax Credit (ITC) and mismatch between sales and purchase, the assessees had a "harrowing experience in filing the monthly GST returns". 
 
Most of the assessees have not yet got opportunity to rectify their mistakes in their monthly GST returns, Gandhi said.
 
"Because of ambiguity on the part of the government to put in place a workable system of tax reconciliation under which the mismatch between tax payments and final sales return are rectified, the assessees are facing manifold problems in claiming ITC," said AITAF chief appealing to the government to allow assessees to make necessary amendments and corrections to settle their claims.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
 

 

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Delhi HC Asks Patanjali Ayurveda To Cooperate with Income-tax Department: Report
The Delhi High Court has asked Baba Ramdev's Patanjali Ayurveda Ltd to cooperate with the income-tax (I-T) department for its special audit, says a report.
 
According to the report from LiveLaw.in, a bench comprising Justice S Ravindra Bhat and Justice Prateek Jalan opined that 'far from showing non-application of mind', the assessment officer (AO) had carefully looked into all aspects before passing the impugned order.
 
Patanjali Ayurveda had challenged the initiation of special audit for assessment year (AY) 2010-2011, contending that the AO was trying to take scrutiny through special auditor as an easy route to escape his primary duty to examine the books and the returns and complete the assessments in time.
 
The tax department, however, said that in view of the complexity in the accounts of Patanjali Ayurveda, the AO was justified in directing special audit. The I-T department referred to the three segments or sources of revenue of Patanjali Ayurveda, and had held that it is required to identify the method and the relevant accounting standard applicable for recognition of income from these revenues. It had further pointed out that it had to ascertain the correctness of the income recognised.
 
Agreeing with the stand taken by the I-T department, the High Court bench observed that the AO has a duty to apply his/her mind and not fall back upon provisions of special audit in routine cases. "However, when the AO does not fell (sic) that information is not forthcoming in a timely manner (as appears to have occurred in this case) her choices are limited – to let go of the stage of inquiry, and complete the assessment, or, disallow what is considered appropriate. The AO quite correctly felt that the latter course would not be appropriate; he therefore, ordered special audit, which was quite reasonable, especially in regard to the imprest account (cash funds dedicated to a specific purpose) for which details of expenses incurred had not been furnished. That amount was sizeable,” the HC noted.
 
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COMMENTS

A BANERJEE

6 months ago

One is reminded of the non-cooperation of and non-compliance with the statutory notices by a huge group which had to be ultimately tamed by the Supreme Court.

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