GST
GST collections touched a record high of over ₹1.15 lakh crore in December, reflecting festive demand and reflating economy.
The gross GST revenue collected in the month of December 2020 is ₹1,15,174 crore and is the highest since the introduction of Goods and Services Tax from July 1, 2017, the Finance Ministry said in a statement.
This is the highest growth in monthly revenues for the last 21 months. This has been due to combined effect of the rapid economic recovery post-pandemic and the nation-wide drive against GST evaders and fake bills along with many systemic changes introduced recently, which have led to improved compliance,” the Finance Ministry said in a statement.
The total number of GSTR-3B Returns filed for the month of November up to December 31, 2020 is ₹87 lakh.
Highlights:
Ruckus over payment of 1 percent GST (GST) in cash
The Finance Ministry says that less than 1 percent taxpayers will be affected by this rule.
Taxpayers with more than Rs 50 lakh turnover have to pay 1% cash payment
Its purpose is to prevent tax evasion through fake bills.
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After the ruckus over the rule of paying one per cent GST (GST) in cash, the Finance Ministry had to issue an explanation in this regard. The ministry says that less than one percent of GST taxpayers will be enforced by this rule. Under this rule, every trader whose monthly turnover is more than Rs 50 lakhs, must compulsorily pay one percent of their GST liability in cash. The aim is to prevent tax evasion through fake bills.
A senior finance ministry official said the rule is clear that where revenue is more risky, it will apply. Only 45,000 taxpayers will be affected by this rule, which is only 0.37 percent of the 1.2 crore tax base. This will not affect honest dealers and traders. The Finance Ministry had in a notification on 22 December informed about adding Rule 86B to the GST rules.
Traders demand
The Confederation of All India Traders (CAT), an association of traders, has sought to stop Rule 86B in the GST. Taking a strong objection to this provision, CAT on Friday sent a letter to Finance Minister Nirmala Sitharaman demanding that the rule be immediately suspended and implemented only after consulting traders. CAT general secretary Praveen Khandelwal also said in a letter to Sitharaman that the time has come.
Once upon a time the government should sit down with the traders and conduct a thorough review of the GST tax system and further simplify the tax system. Kat asks for time to meet Sitharaman on this issue.
Tax department officials say that there is no truth in the argument that this rule will affect small businesses and increase their working capital requirements. He says that there is a misunderstanding in the minds of people about this rule, which has no basis. He says that the 1 per cent cash payment will be calculated on one month's tax liability and not on one month's turnover. For example, if a taxpayer has a monthly turnover of Rs 100, he will have to pay 12% tax. In this, he will have to pay only one percent i.e. 0.12 paise in cash.
