Mandatory 1% money fee of GST legal responsibility from January 1, relevant to 45000 taxpayers

Image Source : FILE PHOTO Mandatory 1% money fee of GST legal responsibility from January 1, relevant to 45000 taxpayers The obligatory requirement of 1 % money fee of GST legal responsibility with impact from January 1 can be relevant to about 45,000 taxpayers, which is simply 0.37 % of the full companies registered within the Goods and Services Tax system, Revenue Department sources stated on Saturday. To curb tax evasion by means of faux invoicing, the Central Board of Indirect Taxes and Customs (CBIC) had earlier this week amended GST guidelines making it obligatory for companies with month-to-month turnover of over Rs 50 lakh to mandatorily pay at the least 1 per cent of their GST legal responsibility in money. The new rule restricts use of enter tax credit score (ITC) for discharging GST legal responsibility to 99 per cent efficient January 1, 2021. However, this restriction won’t apply in instances the place the managing director or any companion have paid greater than Rs 1 lakh as revenue tax or the registered particular person has obtained a refund quantity of greater than Rs 1 lakh within the previous monetary 12 months on account of unutilised enter tax credit score. Sources stated information evaluation signifies that out of the full GST taxpayer base of 1.2 crore taxpayers, solely round 4 lakh taxpayers have month-to-month provide worth larger than Rs 50 lakh. Of these 4 lakh, solely about 1.5 lakh taxpayers pay lower than 1 per cent of their GST legal responsibility in money. “Now, when the exclusions in the rule are applied, then around 1.05 lakh taxpayers get further excluded from these 1.5 lakh taxpayers. Thus, the rule would apply only to approx 40,000 to 45,000 taxpayers. This would be around 0.37 per cent of the total GST tax base of 1.2 crore taxpayers,” sources stated. Sources stated the principles have been amended to curb the menace of GST faux bill frauds and faux corporations/devious fly-by-night operators who avail and move on enter tax credit score (ITC) wrongfully. The CBIC has booked about 12,000 instances of ITC fraud and arrested 365 individuals in such instances to this point. During the final six weeks alone, greater than 165 fraudsters have been arrested. Latest Business News