Skip to main content

So far, 76 lakh businesses, service providers register with GSTN


GST Network, the technology platform for indirect taxes, has registered 76 lakh businesses and service providers with the total base expected to top the 80-lakh mark, which includes those paying central excise, service tax, state VAT, central sales tax and other levies.
With 10 days left for registration of existing businesses, the government expects that it will be able to significantly expand the base, helping generate 20-25% rise in indirect tax collections, said sources.
So far, 70 lakh existing taxpayers have enrolled, while six lakh new players have registered. A large number of businesses did not have to register as the threshold for GST was pegged at Rs 20 lakh, twice the level for VAT.
There are, however, some companies which are in multiple businesses that can register each vertical se parately . For instance, a company which is in tobacco and hotels can seek two GST registration numbers.In addition, service providers -from Indian railways to banks, telecom and insurance companies -have to register separately for doing business in every state.Earlier, for service tax a nation-wide registration was sufficient. Some consultants are complaining that some of their clients have encountered difficulties during registration.
“The response is very positive so far and our expecta tion of GST helping expand the tax base seems to be right,“ said an officer.
A wider base augurs well for the government to generate more resources, especially during the last two years of its five-year term, besides making the economy less formal and less cash driven.
GSTN expects a rush for registration over the next few days as several businesses may want to register only now given that deadline for filing is nearing.
Officers said that a large number of the businesses that have registered are likely to be small players although the data has not been analyzed.
At the time when GSTN had registered over 60 lakh businesses, nearly 55 lakh were VAT payers, while 5.5 lakh were excise and service tax payers. Of these over 55 lakh were proprietorship firms. Around two lakh excise payers and 5.6 lakh service tax payers were also registered for paying VAT, which means that there was double counting. At least seven lakh existing taxpayers will now be part of the 70 lakh who have enrolled with GSTN only once.
The Times of India, New Delhi, 22th July 2017

Comments

Popular posts from this blog

Shrinking footprints of foreign banks in India

Shrinking footprints of foreign banks in India Foreign banks are increasingly shrinking their presence in India and are also becoming more conservative than private and public sector counterparts. While many of them have sold some of their businesses in India as part of their global strategy, some are trying to keep their core expertise intact. Others are branching out to newer areas to continue business momentum.For example, HSBC and Barclays Bank in India have got out of the retail business, whereas corporate-focused Standard Chartered Bank is now trying to increase its focus on retail “Building a retail franchise is a huge exercise and takes a long time. You cannot afford to lose it,” said Shashank Joshi, Bank of Tokyo-Mitsubishi UFJ’s India head.According to the Reserve Bank of India (RBI) data, foreign banks’ combined loan book shrunk nearly 10 per cent from Rs 3.78 trillion in fiscal 2015-16 to Rs 3.42 trillion last financial year. The banking industry, which includes foreign banks…

New money laundering norms stump jewellery sector

New money laundering norms stump jewellery sector Dealers with turnover of Rs 2 crore and above covered; industry says threshold too low The central government has notified the money laundering rules for the gems and jewellery sector with immediate effect. Now, any entity deals in precious metals, precious stones, or other high-value goods and has a turnover of Rs 2 crore or more in a financial year will be covered under the Prevention of Money Laundering Act, 2002 (PMLA, 2002). The limit of Rs 2 crore would be calculated on the basis of the previous year’s turnover, said the notification. The directorate general of goods and service tax intelligence has been appointed under the Act. Sources said the government’s move to apply the PMLA to the jewellery sector was a fallout of income-tax raids on jewellers soon after demonetisation last November, when it was found that they sold gold and jewellery at a huge premium and accepted old currency notes as payment. The notification, issued on Augus…

Confusion over branded food GST

Confusion over branded food GST The GST Council's statement over the weekend on applying tax on branded food items has left most of the trade confused.

Even though the Council has not changed the rates on food -0 per cent on unbranded stuff and 5 per cent on brands -many small traders who didn't levy GST earlier said they could come under the 5 per cent slab after the clarification.

While they predicted some increase in consumer prices, large players said they can absorb GST in many ways and keep prices steady.

"Trade is confused and hence on behalf of our chamber, we have asked our members to go ahead and charge 5 per cent GST," said Sushil Sureka, general secretary of the Ahilya Chamber of Commerce and Industry in Indore.

The statement clarifying the application of GST came after some businesses were found deregistering their brands and selling under corporate brand name without paying tax, after the Council exempted unbranded food from the new all-encompassing indirec…