GST Council Current Affairs

GST Council announces cashback for digital transactions

The GST (Good and Services Tax) council in its 29th meeting held in national capital New Delhi has approved cash incentives to promote Digital transactions. The GST Council meeting was chaired by Interim Finance Minister Piyush Goyal. It has announced 20% cashback for digital transactions paid on business-to-consumer transactions using RuPay and BHIM platforms, subject to cap of Rs 100 per transaction.

Pilot Programme to promote digital transactions

GST Council also decided to start pilot programme to promote digital transactions. The pilot programme will be implemented in any state on voluntarily basis. Maharashtra, Gujarat and Bihar will be the first few states to incentivise digital payments. Incentivising of digital payments would help in maintaining a better database by government, thus formalization of the economy.

MSME Sector

GST Council also focused on concerns and suggestions of Micro, Small and Medium Enterprises (MSMEs). It also formed Group of Ministers (GoM) headed by Minister of State (MoS) for Finance Shiv Pratap Shukla to address various issues faced by MSMEs. It will examine all proposals regarding tax relief for MSME and make recommendations to GST Council. The group will submit its report in the next six weeks.

GST Council

GST Council has been established as per Article 279A of the Constitution. It is joint forum of the Centre and the States to make recommendations on important issues related to GST. Union Finance Minister is Chairperson of the council. Besides, Union Minister of State (MoS) in-charge of Revenue of finance and Minister In-charge of taxation or finance or any other Minister nominated by each State Government are its Members.

Month: Categories: India Current Affairs 2018

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GST Council approves converting GSTN into government owned entity

The 27th meeting of GST Council chaired by Finance Minister Arun Jaitley has approved proposal of convert GST Network (GSTN) into government entity from current private entity status by taking over stakes held by private entities. The council has agreed to buy out stake of private entities in GSTN. Following the move, central government will own 50% in GSTN and the remaining will be collectively held by state governments.

Background

Majority of Goods and Services Tax (GST) processes including registration, filing of returns, payment of taxes, processing of refunds is IT driven and mainly through GSTN. For this, GSTN handles large-scale invoice level data of lakhs of business entities including data relating to exports and imports. Considering nature of state function performed by GSTN, it was felt that the network should be converted into fully government-owned company.

Goods and Services Tax Network (GSTN)

GSTN was set up as not for profit, non-Government, private limited company in 2013. It was established primarily to provide IT infrastructure and services to Central and State Governments, tax payers and other stakeholders for implementation of Goods and Services Tax (GST). Currently its 24.5% is owned by central government and similar percentage is held by state governments collectively. The remaining 51% I owned by five private financial institutions- ICICI Bank, NSE, HDFC Ltd, HDFC Bank and LIC Housing Finance Ltd. Its revenue model after Goods and Services Tax (GST) was rollout out consisted of User Charge to be paid by stakeholders who will use the system and making it self-sustaining organization.

Month: Categories: India Current Affairs 2018

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