The Central Board of Indirect Tax and Customs (CBIC) has approved a detailed standard operating procedure (SOP) for officials of the Directorate General of GST Intelligence (DGGI) to improve the ease of doing business and prevent harassment of taxpayers during tax investigations, summons, and searches.
The Goods and Services Tax (GST) authorities have issued notices to around 50 importers of spices, dry fruits, processed food, and poultry for storing products at warehouses different from the actual place of supply. They seek additional tax payments of approximately Rs 1,000 crore. Some importers have also been warned of registration cancellation.
Sitharaman addressed misconceptions on ED-bond ties and advocated for comprehensive reforms involving states and local bodies. Finance minister Nirmala Sitharaman also pointed to govt’s next-gen reforms plan, said not enough data on private investments in sunrise sectors and job creation, asserts inflation under control.
Speaking at the Indian Institute of Technology in Guwahati, Sitharaman said the compounded annual growth rate (CAGR) of GST revenue of the north-eastern states has been 27.5% since its introduction in 2017-18. This was way above the CAGR of 14.8% under the earlier indirect tax regime. Elevated tax mop up has enabled these states to spend more on development programmes, she added.
The upcoming GST Council meetings are expected to delve into these options, with potential complexities and challenges lying ahead as the government navigates the intricate terrain of GST compensation cess reforms.
Courts have made adverse comments in many such cases of parallel investigations. The matter was discussed at a recent meeting of enforcement officials from the central and state GST departments, chaired by union finance minister Nirmala Sitharaman. "There are instances where both the Centre and states have issued notices or have started investigations in the same case. We are working on a detailed directive on that," a senior official told ET.
FM Nirmala Sitharaman on Monday told officials to ensure clarity on classification issues for levy of GST and asked them to look into the issue at the earliest. The statement at the National Conference of Enforcement Chiefs of the state and the Central GST formations comes amid several instances where classification of a product has created problems for taxpayers.
FM Nirmala Sitharaman will inaugurate a conference of GST enforcement chiefs on Monday and the meeting will discuss combating evasion, among other issues. The one day conference will also discuss combating fake invoicing. It will address this primary form of GST evasion and strategise effective methods to combat it collaboratively.
Out of the total collections, Central Goods and Services Tax (CGST) stood at Rs 31,785 crore, State Goods and Services Tax (SGST) was Rs 39,615 crore and Integrated Goods and Services Tax (IGST) was Rs 84,098 crore, including ₹38,593 crore collected on imported goods.
PMI for manufacturing activity accelerated to 56.5 in January from 54.9 in December 2023, reflecting an expansionary momentum while PMI for services went up to 61.8 in January from 59 in December 2023, it added. "The markers for the month like PMI and GST collections point to a resilient macroeconomic environment.
Tax experts stress the urgency of prioritizing GST compliance, emphasizing prompt response to summonses and adherence to regulations amidst increasing scrutiny, while urging for simplified tax procedures.
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