Page 11 - Banking Finance August 2022

GST NEWS

GST

GST revenue up 56% in the average monthly collection of Rs the government deciding to levy inter-
1.10 lakh crore in the first quarter of est on wrongful utilisation of input tax
June, FM signals Rs. 1.4L
the last financial year, showing an in- credit. Besides, businesses and consult-
crore new normal crease of 37%. Coupled with economic ants are worried over the provision to
recovery, anti-evasion activities, espe- extend the time limit for issuance of
India's GST collections rose 56%, at
cially action against fake billers, have notice for recovery of GST for 2017-18,
their fastest pace in over a year, to
been contributing to the enhanced up to September 30, 2023. This ex-
nearly Rs 1.45 lakh crore in June, mark-
GST. The gross cess collection in this cludes the period from March 1, 2020
ing the 12th consecutive month of over
month is the highest since introduction to February 28, 2022 for computation
Rs 1 lakh crore collections.
of GST," the finance ministry said in a of the period of limitation.
The Rs 1,44,616 crore collected in
statement.
June, based on transactions in May, "Considering the Covid scenario, the
government has extended the limita-
was the second highest monthly gen-
Govt notifies changes af-
eration since the new tax regime tion period under GST for issuance of
kicked in five years ago. June was the ter GST Council meet notice to taxpayers who have not paid
or short-paid tax dues.
fourth straight month of collections Days after the GST Council meeting,
topping Rs 1.4 lakh crore. the government notified several Similarly, relaxation in limitation is
changes to the rules, including exempt- granted for filing refunds. While the
"The trend that was being talked
ing companies with turnover up to Rs intention is to curb revenue leakage,
about, we are now reversing that and
2 crore from filing returns for last fi-
showing that the GST revenues remain this change keeps businesses exposed
nancial year, besides interest on de-
above Rs 1.4 lakh crore. So, Rs 1.4 lakh to departmental audits and assess-
layed filing only on cash component.
crore is the rough bottom line, we are ments. This being said, this change also
not going below that. We will remain "It is a relief for companies as interest ensures that genuine taxpayers are not
above that," finance minister Nirmala will only be levied on cash part (leav- denied their refund claims," said
Sitharaman said at the GST Day cel- ing tax credit out), which could have Abhishek Jain, partner for indirect tax
ebrations. otherwise led to litigation," said M S at consulting firm KPMG in India.
Mani, partner at Deloitte India.
With the latest set of rate changes and
tightening of norms, the government Besides, changes such as allowing UPI CBIC notifies procedural
is hoping for further improvement in and IMPS for payment of GST are seen changes to GST rules eas-
the coming months. to be helpful for small businesses and
ing the compliance burden
individuals.
"The average monthly gross GST col-
lection for the first quarter of 2022-23 There are other provisions, which may on small players
has been Rs 1.51 lakh crore against not be as welcome for businesses, with The government has notified certain

BANKING FINANCE | AUGUST | 2022 | 11