GST

According to reports, the council has deferred the proposal on the back of reservations from state governments and industry.

Accordingly, the gross GST collection rose to Rs 1,31,526 crore last month. This was the second straight month when the gross GST collection crossed Rs 1.30 lakh crore. Besides, the GST revenue for November 2021 was 25 per cent higher than the corresponding period of last year and 27 per cent over the like month of 2019-20. As per the Ministry of Finance, out of the total gross collection, CGST's share was Rs 23,978 crore, SGST was Rs 31,127 crore, IGST about Rs 66,815 crore and Cess was Rs 9,606 crore.

As per the industry body, the current rates are not in-sync with demand creation and employment generation in the country. Accordingly, the industry body said that items in category of 12 per cent rate should be reduced to 10 per cent and items in the category of 18 per cent rate should be reduced to 15 per cent.

CAIT National President B.C. Bhartia and Secretary General Praveen Khandelwal said that in the cotton textile industry there was no inverted tax structure, then why fabric and other cotton textile goods were brought under the 12 per cent bracket. Even in the man-made textile industry, at the stage of manufacturing garments, sarees and all types of made ups, there was no inverted tax issue. Without having any understanding of the stages of the textile industry such a harsh decision will be a regressive step.

The gross GST revenue collected in the month of October 2021 stood at Rs 1,30,127 crore, which is a growth of 24 per cent over the GST revenues in the same month last year and 36 per cent over 2019-20. The revenue for October is also the second highest ever since introduction of GST, second only to that in April 2021, which is related to year-end revenues.

Accordingly, an inverter system with battery will attract 18 per cent GST towards the power backup machine while another 28 per cent on the battery coming with it. The Central Board of Indirect Taxes and Customs (CBIC) has clarified that even if the UPS/ inverter and external battery are sold on the same invoice, their prices are separately known, and they constitute two separately identifiable items.

Services by the Central government, state government, Union Territory or local authority are exempt from GST but this rule has a few exception, including services provided to business entities. The AAR Telangana ruled that e-procurement transaction fee collected by an agency on behalf of the government is chargeable to GST.

The GST regime with five major different rates and few more for certain special products had created more confusion for taxpayers than bringing about simplicity. This confusion often results in litigation that affects both the authorities and well as taxpayers. In order to remove some of confusion created by differential tax rates and it applications, the Revenue Department has issued a circular directed at all the operative officials giving clarifications

Government officials said the current revenue position, where both direct and indirect tax kitty of the government had seen a sharp rise, will prevent it from additional borrowing even if it meets full GST compensation shortfall for states during FY22. The centre has pegged its gross borrowing target for FY22 at Rs 12.5 lakh crore in the Union Budget 2021-22, presented by Finance Minister Nirmala Sitharaman

Recently, the Division Bench of the Orissa High Court held that pre-deposit at the time of filing an appeal under section 107(6) of the Central Goods and Services Tax Act, 2017 (CGST Act) cannot be made by debiting the Electronic Credit Ledger (ECRL).