Central GST Current Affairs - 2020
On June 12, 2020, the Finance Minister Nirmala Sitaraman chaired the 40th GST Council Meet.
The minister at the meet announced that no late fee will be charged from the taxpayers (small taxpayers) that had filed GST returns between July 2017 and January 2020. This is being done as there is lot of GST return filing that is pending in the period.
The Council has capped maximum late fee for those that have tax liability for non-filing of GST-3B returns.
Reduction in interest
For the small taxpayers, whose aggregate turn over is Rs 5 crore, the rate of interest for filing GST return for February, March and April, 2020 and beyond July 6, 2020 is to be reduced from 18% to 9% per annum. Also, for the small taxpayers whose turnover is up to Rs 5 crore, waiver of late fees is to be provided if they file the GSTR-3B form for the supplies that were affected in May, June and July by September 2020.
Integrated Goods and Services Tax
The Finance Minister Nirmala Sitaraman announced that a new sharing formula has been implemented. Under the new formula, the centre can release funds to the states without making adjustments. Before introducing formula based IGST sharing, there was huge accumulation of IGST that led to sharing of accumulated IGST in two halves.
This step will also help the Centre to clear the bills of compensation that are pending, in the period of December, January and February.
Tags: Central GST • CGST • GST • GST collection • GST Council
On January 7, 2020, the second National GST Conference and Central and State Commissioners was held to streamline the Goods and Services Tax. The Revenue Secretary of Ministry of Finance Dr Ajay Bhushan Pandey was the Chairman of the conference
- A Committee is to be constituted with central and state officers. The Committee will examine and implement measures that will help curb fraudulent refund claims. The Committee will come up with a Standard of Procedure that will become operational by the end of January 2020.
- The Investigation wing of Income Tax Department is to investigate all major cases of fake imports, fraudulent refunds and fake input credits.
- The foreign exchange remittances are to be linked with IGST refund in order to curb fraudulent IGST refund claims.
- The data between CBDT (Central Board of Direct Taxation), GSTN (Goods and Services Tax Network) and CBIC (Central Board of Indirect Taxes and Customs) is being shared on annual basis. It was decided that the data from now on be shred on quarterly basis.
Highlights of the conference
Several presentations were made at the conference. The Central Tax Zone office of Vadodara and Mumbai made presentations on the best practices being followed by them that helped them in revenue augmentation. The tax officers from Gujarat and Andhra Pradesh also made presentations on their successful implementation of the GST act.