Skip to main content

States to bear cost of filing tax returns, payments under GST

By
States will foot the bill of Rs50-60 as they try to shield traders from high costs, ensure a smooth transition to new tax regime
Every tax payment and return filing under the goods and services tax (GST) regime will cost around Rs.50-60, but traders will not have to bear this cost.
Instead, the states will bear this cost as they try to protect the trader base from higher costs and ensure a smooth transition to the GST regime.
Under GST, the entire dealer registration, tax payment, tax return filing and refund will be online and administered by the GST Network (GSTN).
GSTN was set up in 2013 as a not-for-profit firm and was envisaged as the technology backbone for GST. As part of its revenue model and to sustain its operations, GSTN will recover these costs by levying a fee for transactions undertaken on the network.
Under GST, every trader will be required to file a monthly return as well as an annual return. Separately, they will need to file a return each for purchases and supplies. Small traders, however, may only require to file returns on a quarterly basis.
“For tax payment and the corresponding return filed, the cost comes to around Rs.50-60. Ideally, traders could have paid this directly to GSTN. But states have said they will pay this amount for the traders registered in their states,” said a person familiar with the development.
The cost per transaction has been arrived at taking into account the costs that the network expects to incur in the coming months. GSTN had awarded a Rs.1,380 crore contract to technology firm Infosys Ltd last year for developing the GST network and maintaining it for five years. Of this, around Rs.400 crore will have to be paid to Infosys towards hardware import costs in the next few months. GSTN will take a working capital loan from banks to meet its costs in the near term.
“Right now, the government is not charging anything from traders for tax payments and return filing as this is the sovereign function of the government. But, under GST, the tax payment and return filing are being administered by a private company GSTN,” said S.D. Majumder, former chairman of the Central Board of Excise and Customs.
GST will replace the multiple indirect taxes levied by the centre and the states, including excise duty, service tax, value added tax, luxury tax and entertainment tax.
GST aims to remove barriers across states and ensure seamless movement of goods across India.
According to GSTN estimates, around eight million traders will register under GST. All traders will need a GST ID—a 15-digit PAN-based number—to operate under GST, which is expected to take effect on 1 April 2017.
GSTN will undertake a nationwide drive next month for updating information about the eight million traders in a common usable format following which traders will be issued with GST ID numbers in January.
Mint New Delhi,07th September 2016

Comments

Post a Comment

Popular posts from this blog

Credit card spending growth declines on RBI gaze, stress build-up

By
  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the...
Post a Comment
Read more

SFBs should be vigilant, proactive to mitigate risks: RBI deputy guv

By
  The Reserve Bank of India’s Deputy Governor Swaminathan J on Friday instructed the directors of small finance banks (SFBs) to be vigilant and proactive in identifying emerging risks in the sector.Speaking at a conference for directors on the boards of SFBs, Swaminathan highlighted the role of governance in guiding SFBs towards sustainable growth with stability. He also emphasised the importance of sustainable business models.Additionally, he highlighted the need for strengthening cybersecurity to protect the entities against digital threats and urged for a stronger focus on financial inclusion, customer service, and grievance redressal to ensure a broader reach of banking services.Executive Directors S C Murmu, Rohit Jain, and R L K Rao, along with other senior officials representing the Supervision, Regulation, and Enforcement Departments of the RBI, also participated in the conference.   -  Business Standard  30 th  September, 2024
Post a Comment
Read more

Brigade Hotel Ventures files draft papers with Sebi for Rs 900 crore IPO

By
  Brigade Hotel Ventures Ltd, owner and developer of hotels in South India, has filed draft papers with capital markets regulator Sebi to raise Rs 900 crore through an initial public offering (IPO).The proposed IPO is entirely a fresh issue of equity shares with no Offer-for-Sale (OFS) component, according to the draft red herring prospectus (DRHP).Proceeds from the issue to the tune of Rs 481 crore will go towards payment of debt, Rs 412 crore will be allocated to the company and Rs 69 crore to its material subsidiary, SRP Prosperita Hotel Ventures Ltd.Additionally, Rs 107.52 crore will be used to purchase an undivided share of land from the Promoter, BEL, and the remaining funds will support acquisitions, other strategic initiatives, and general corporate purposes.The company may raise up to Rs 180 crore through a Pre-IPO Placement.   If the placement is undertaken, the issue size will be reduced.Brigade Hotel Ventures Ltd is a wholly-owned subsidiary of Brigade Enterprises ...
Post a Comment
Read more