Month: April 2022

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All time high GST Collection of Fy 2021-22

All time high GST collection

Gross GST Collection in March touch an all-time high of over Rs 1.42 lakh crore, the Finance Ministry said on Friday.

The Gross GST revenue collected in March 2022 is Rs 1,42,095 crore, of which CGST is Rs 25,830 crore, SGST is Rs 32,378 crore, IGST is Rs 74,470 crore Including Rs 39,131 crore collected on Import of goods and cess is Rs 9,417 crore (including Rs 981 crore collected on import of goods).

The gross GST collection in March 2022 is all time high, breaching an earlier record of Rs 1,40,986 crore collected in January.

The revenues for march 2022 are 15 percent highest than the GST revenues in the same month last year.

The improvement in revenue has also been die to various rate rationalisation measures undertaken by the council to correct inverted duty structure, the ministry said in a statement.

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GST Council may do away with 5% rate move items to 3% & 8% slabs

GST Council

With Most states on board to raise revenue so that they do not have to depend on center for compensation, the GST Council as its meeting to next month is likely to consider a proposal to do away with the 5 percent slab by moving some goods of mass consumption to 3 percent and the remaining to 8 percent categories, sources said.

Currently, GST is a four-tier structure of 5, 12, 12 and 28 percent. Besides, gold and gold jewellery attract 3 percent tax.

In addition, there is an exempt list of items like unbranded and unpacked food items which do not attract the levy.

Sources said in order to augment revenue the Council may decide to prune the list of exempt items by moving some of the non-food to 3 percent slab.

Sources said that discussions are on to raise the 5 percent slab to either 7 or 8 or 9 percent, a final call will be taken by the GST council which comperises finance ministers of both centre and states.

As per calculations, every 1 percent increase in the percent slab, which mainly includes packaged food items, would roughly yield an additional revenue of Rs 50,000 crore annually.

Although various options are under consideration, the council is likely to settle for an 8 percent GST for most items that currently attract 5 percent levy.

Under GST, essential items are either exempted or taxed at the lowest rate while luxury and demerit items attract the highest tax. Luxury and sin goods also attract cess on top of the highest 28 percent slab. This cess collection is used to compensate states for the revenue loss due to GST roll out.

With the GST compensation regime coming to an end in June, it is imperative that states become self-sufficient and not depend on the Centre for bridging the revenue gap in GST collection.

The council had last year set up a panel of state ministers, headed by Karnataka Chief Minister Basavaraj Bommai, to Suggest ways to augment revenue by rationalising tax rates and correcting anomalies in the tax structure.

The Group of Ministers is likely to finalise its recommendations by early next month, which will be placed before the council in its next meeting, likely by mid-may, for a final dicision.

At the time if GST implementation on July 1, 2017, the centre had agreed to compensate states for five years till June 2022 and protect their revenue at 14 percent per annum over the base year revenue of 2015-16.

The GST Council over the years has often succumbed to the demands of the trade and industry and lowered tax rates. for example, the number of goods attracting the highest 28 percent tax came down from 228 to less than 35.

With center sticking on its stand not to extend GST compensation beyond five years, states are realizing that raising revenues through higher taxes is the only option before the council.

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Self certify gst annual returns instead of mandatory audit by ca

 

There is relief news for businessmen. According to the order of the government, now Goods and Services Tax taxpayers with a turnover of more than Rs 5 crore will be able to self-certify their annual return. For this, there will no longer be a need to get mandatory audit certification from Chartered Accountants. The Central Board of Indirect Taxes and Customs (CBIC) has issued instructions for this.

Government gave big relief to businessmen

Under the Goods and Services Tax (GST), it is mandatory for all entities to file annual return GSTR-9/9A (GSTR-9/9A) except those with an annual turnover of up to Rs 2 crore for 2020-21. Significantly, taxpayers with a turnover of more than Rs 5 crore were required to submit reconciliation details in the form GSTR-9C. After this, this detail is verified by the Chartered Accountant after the audit.

Amendment in GST rules

As per the notification of CBIC, the GST rules have been amended. Under this, taxpayers with a turnover of more than Rs 5 crore will have to furnish self-attested resolution details along with annual returns. Now the certification of CA will not be required for this.

Thousands of taxpayers will get relief

AMRG & Associates Senior Partner Rajat Mohan said that the government has done away with the requirement of GST audit from professionally qualified Chartered Accountants. Now tax payers will have to submit the annual return and reconciliation details by verifying themselves. He said this would bring relief to thousands of taxpayers on the compliance front, but knowingly or unintentionally, wrong details in the annual return could lead to trouble.

GST collection once again crosses 1 lakh crore

With this, let us tell you that in the month of July, 1 lakh 16 thousand 393 crores came to the government treasury from the Goods and Services Tax. It has increased by 33 percent as compared to July 2020. In the GST collection of July 2021, State GST (SGST) is 28541 crores, Central GST (CGST) 22197 crores and IGST 57864 crores. 27,900 crores in IGST has come with the help of imports. 7,790 crore came from cess, of which 815 crore came from cess on imported goods. That is, now the economy seems to be improving.