The Union Cabinet on Wednesday approved aproposal to set up a national bench of the goods and services tax (GST) appellate tribunal (GSTAT) in Delhi. The apex appellate tribunal would deal with disputes between GST taxpayers and tax authorities predominantly arising out of the “place of supply” issue. Place of supply issue becomes critical, especially in case of services byacompany having presence in two or more states, or in the case of imports and exports. The decision was taken six months after the GST Council, in its July 2018 meeting, had approved setting up one national and three regional benches of the appellate tribunal (GSTAT). This would be the first dispute resolution tribunal under the GST regime, on similar lines with the erstwhile central excise and service tax appellate tribunal (CESTAT). Currently, disputes between tax authorities and taxpayers are handled by the Commissioner Appeals in respective states.
Turnover limit for registration in inter-state supply of services raised to 20 lakhs for 5 special category states
Govt. has increased the threshold limit for taking GST registration in the states of State of Jammu and Kashmir, States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand on Inter-State supply of services from Rs. 10 Lakhs to Rs. 20 Lakhs. The said amendment will be applicable from February 1, 2019.
Soon, No E-way Bills if GST Returns Not Filed for 6 Mths
Non-filers of GST returns for six consecutive months will soon be barred from generating e-way bills for movement of goods. The Goods and Services Tax Network (GSTN) is developing an IT system that will bar businesses which have not filed returns for two straight return filing cycle, which is six months, from generating eway bills, an official said.“As soon as the new IT system which will ensure barring of e-way Bill generation if returns are not filed for six months is put in place, the new rules will be notified,” an official said.
Fewer Exemptions Hold the Key to Widening Tax-to-GDP Ratio
India may be eyeing further reforms to lift the tax-to-GDP ratio after putting in place the goods and services tax (GST), one of the country’s biggest policy changes ever. The tax-GDP ratio is expected to cross 12% in FY19, a new high in over a decade, but lower than emerging market peers. This means expanding a tax base that’s been eroded by large exemptions and carve-outs. A simpler, non-adversarial tax regime can help in this regard. From all accounts, there is likely to be increasing pressure on government expenditure from 2019 onwards as competitive politics will compel enhanced spending on various social and agrarian sector areas.This would mean renewed efforts of broadening the tax base and enhancing revenues.
Tax officials may probe high usage of input tax credit
Concerned over decline in GST revenues, tax officials are likely to examine the high usage of input tax credit to set off tax liability by businesses, sources said. The issue of high input tax credit was flagged at the meeting of the Group of Ministers.
Put Fiscal Infusion, Fibre Network Rollout on Speed Dial: Telecom Sector
The next government should restore the sheen of India’s beleaguered telecom industry by expediting steps to revive financial health and bolster fibre networks, bracing for 5G. Phone companies and analysts said the immediate telecom agenda must be to cut hefty levies telcos face, exempt spectrum and licence fee payouts from goods and services tax (GST), price spectrum more affordably, make network gear (now attracting 20% import duty) duty-free and rapidly implement the new telecom policy — NDCP 2018. The next government, they said, should also create a $10-billion fund to support fibre broadband network rollouts and explore ways to handhold young tech startups with cash to develop data-intensive content, along with music, movies and sports apps in local languages to ensure rapid adoption of 5G.