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

At 18%, GST Rate to be Less Taxing for Most Goods

About 70% of all goods and some consumer durables likely to cost less

A number of goods such as cosmetics, shaving creams, shampoo, toothpaste, soap, plastics, paints and some consumer durables could become cheaper under the proposed goods and services tax (GST) regime as most items are likely to be subject to the rate of 18% rather than the higher one of 28%.

India is likely to rely on the effective tax rate currently applicable on a commodity to get a fix on the GST slab, said a government official, allowing most goods to make it to the lower bracket.

For instance, if an item comes within the 12% excise slab but the effective tax is 8% due to abatement, then the latter will be considered for GST fitment.

Going by this formulation, about 70% of all goods could fall in the 18% bracket.

The GST Council has finalised a four-tier tax structure of 5%, 12%, 18% and 28% but has left room for the highest slab to be pegged at 40%. A committee of officials will work out the fitment and the council…

Coffee-Toffee, the GST Debate Continues

Hundreds of crores of rupees in the form of taxes ride on the exact categorisation of products Is Parachute hair oil or edible oil? Is KitKat a chocolate or a biscuit? Is a Vicks tablet medicament or confectionery? For the taxpayer and the tax collector, this is much more than an exercise in semantics -hundreds of crores of rupees ride on the exact categorisation.
As the government moves closer to rolling out the goods and services tax (GST) on July 1, many such distinctions are being debated so that no ambiguity remains. Not just that, the government is revisiting old tax cases that were lost over product categorisation, according to people with knowledge of the matter, presumably with a view to making sure that revenue collections can be maximised. “In the past, several tax officers had challenged some of the product categorisations, including those in the retail segment, but lost out in court or at appellate level,“ said one of the persons. “Now we have a chance to go ahead with speci…

Deposit gush:-CA Institute Bats for Special Audit