FinMin considers steps to prevent composition dealers from charging GST from buyers
PrintListen to this Article
The measure, once implemented, would check the widespread practice of composition dealers of charging GST from purchasers and not depositing it with the exchequer, an official said.
The revenue department is also planning to launch a campaign to educate consumers that the dealers opting for composition scheme are not required to charge the goods and services tax (GST) from purchasers, the official said.
Under the GST composition scheme, traders and manufacturers are required to pay only 1 per cent GST on goods which otherwise attract a higher levy of either 5, 12 or 18 per cent. Such dealers are also not permitted to charge GST from the purchaser.
Of the 1.17 crore businesses registered under GST, about 20 lakh have opted for composition scheme.
"It has come to the notice of the government that a large number of composition dealers are levying GST at higher rates and not depositing it with the government," the official told PTI.
According to the proposal being considered by the Central Board of Indirect Taxes and Customs (CBIC), businesses will have to mandatorily mention in the invoice generated by them that they are composition dealers and, hence, are not required to charge GST.
"Simultaneously, we will educate consumers that they should not pay GST while buying goods from composition scheme dealers," the official said.
To ease compliance burden for small businesses, the GST law provides for composition scheme under which traders and manufacturers with an annual turnover of up to Rs 1 crore can pay 1 per cent GST. This threshold will increase to Rs 1.5 crore from April 1.
Also the GST Council, headed by Arun Jaitley and comprising state ministers, in its meeting on January 10 permitted service provider and those dealing in both goods and services with a turnover of Rs 50 lakh to opt for composition scheme.#casansaar (Source - PTI)
Category : GST | Comments : 0 | Hits : 546
TEST
Dear Taxpayers, 1. GSTN is pleased to inform that an enhanced version of the GST portal would be launched on 3rd May 2024. The effort is to improve user experience and ensure that the information you need is accessible and easy to navigate. 2. Key Enhancements Include (PDF with screenshots attached): i. News and Updates Section: We have introduced a dedicated tab for all news and updates. This section now includes a bet...
The Supreme Court on Friday issued notices to the central government, the Central Board of Indirect Taxes and Customs (CBIC), the Goods and Services (GST) Council and the National Anti-Profiteering Authority (its functions have been taken over by the Competition Commission of India) on a petition challenging a Delhi High Court verdict, upholding the constitutional validity of anti-profiteering provisions filed by a real estate company. The petition, filed by Swati Realty, says the high court ...
The delectable Malabar Parota will taste even better with the Kerala High Court ruling that the popular flatbread will attract GST at 5 per cent and not 18 per cent. With this the court has turned down order by the State’s Authority of Advance Ruling (AAR) and Appellate Authority for Advance Ruling (AAAR). Disposing a petition by Kochi-based Modern Food Enterprises, a single judge bench of Justice Dinesh Kumar Singh said if key inputs (cereals, flour, starch, etc) and preparations are s...
A businessman from Delhi was taken into custody by the Noida police for his alleged involvement in a massive Rs 15,000 crore GST fraud that was exposed last year, TOI reported. Tushar Gupta, aged 39 and residing in Tilak Nagar, was arrested as the 33rd suspect in this case. The police revealed that Gupta had exploited input tax credit (ITC) using 35 fake companies, resulting in a loss of Rs 24 crore to the exchequer over the past two years. He was reportedly part of a syndicate that utiliz...
Comments