To ascertain that every taxpayer of the country files their compliance on time, the Central Board of Indirect Taxes and Customs ( CBIC ) has come up with the new facility of issuing GSTR 3A for those who haven’t filed their returns yet. Asking them to do the needful as soon as possible.
GSTR 3A is a notice from the tax department for all the late filers. Provided that within 15 days of receiving the notice from the tax department one must file the return else this may cause him heavy penalties.
GSTR 3A is issued when the taxpayers are found guilty of not filing their GSTR 3B, GSTR 4, GSTR 5, GSTR 6, GSTR 7, GSTR 8, etc.
If the default continues even after receiving the notice (GSTR 3A), then the concerned taxpayer will have to face the provisions under Section 62. The taxpayer might face the judgment from the taxman who is permitted by law to impose higher tax depending on the information available with the income tax department. No notice will be issued before starting the assessment.
The penalty which is to be imposed on the defaulter will be Rs. 10,000 or 10% of his total taxable income whichever is higher. To avoid any of the above instances to happen taxpayers are suggested to file their returns on or before time. It is even advised to file the required compliances even before receiving GSTR 3A from the tax department.
The government had released the three new GST return forms with the name Normal (RET-1), Sahaj (RET-2), Sugam (RET-3) for the taxpayers across the country.
New GST Return Form Applicability Time Table for Regular Taxpayers
These new forms were released to ease the burden of return filing and will be implemented on a trial basis from July 2019 to March 2020 as per the recent notification.
After which all the forms i.e. ANX 1, ANX 2 will be implemented on a regular basis to all the taxpayer from April 2020.
In April 2020, all the taxpayers will have to mandatorily file the new return forms including RET 1 and the older GSTR 3B will be phased out from the system.
There are certain conditions on the basis of turnover which are applicable to the new return forms under GST i.e.
In case the aggregate turnover exceeds INR 5 crore in the preceding fiscal year than the taxpayer is bound to file monthly return
While in case the aggregate turnover does not exceed the INR 5 crore then there is an option for him to file returns whether monthly or quarterly. Also, he can select Sahaj, Sugam, and Quarterly (Normal) within the quarterly returns as per the nature of transactions.
Compare GST forms i.e. Sahaj, Sugam, and Quarterly (Normal)
Normal (Quarterly)
Normal (Monthly)
Sahaj
Sugam
Applicable for individual making inward and outward supplies
Applicable for individual making inward and outward supplies
The government introduced the new GST Return SAHAJ form (GST RET 2) for taxpayers with certain conditions. This certain points will be applicable to the taxpayers having a turnover up to 5 crores and is optional for them to file. The GST SAHAJ RET 2 form has been filing on a trial basis since 1st July 2019. and stable basis will go live from April 2020 as per the recommendations by GST council members.
The GST SAHAJ form (RET 2) has to be filed quarterly and by the taxpayers dealing in business to customers transactions. The taxpayers filing the new RET 2 form can also file Nil returns via SMS. The HSN based turnover taxpayers also have the optional feature to adhere.
The taxpayers filing the GST SAHAJ return form doesn’t require to declare the capital input. However, Declared Inward supply on which RCM apply is to be given under the form.
The GST Council has issued the following 3 new, simplified GST Forms:
Normal (RET-1)
Sahaj (RET-2)
Sugam (RET-3)
Filing Procedure of GST Return Form Sahaj RET 2 Quarterly
The GST Sahaj (RET-2) form has been divided into 7 parts.
Profile Updation
Intimation of option for return periodicity and type of quarterly return
In this section, the forms want to ascertain the total turnover of the taxpayer with the help of question while further asks for the intention of the return filing individual to clarify his wish to file the form and if yes, then which of the form under these newly introduced forms namely (Sahaj, Sugam & Quarterly) he intends to file.
Also, there are important notes to be taken care of while filing the form and details input which are clarifying the points.
Questionnaire for Uploading Details in GST Sahaj ANX-1 Form
The further questionnaire asks the taxpayer to fill the details regarding the previous tax period under which the form will ask a certain question and in case the individual selects the 2nd option then he is liable to answer the second part of the questionnaire which is in a detailed manner.
GST Sahaj ANX-1 for Outward and Inward Supplies
Details of Outward Supplies And Inward Supplies Attracting The Reverse Charge
Further, the Annexure 1 will require some basic details of the taxpayers including trade name, ARN and other mandatory information about the form.
In the second part, there is 3 subsection which is based on “Details of outward supplies and inward supplies attracting reverse charge”. These subsections would require details on Supplies made to consumers and unregistered persons (Net of debit/credit notes ) and Inward supplies attracting a reverse charge.
Sahaj GST ANX-2 Auto Drafted Inward Supplies Form
Details of Auto- Drafted Inward Supplies
Here in the Form GST ANX 2, there will basic details asked which will be Details of auto- drafted inward supplies. It includes 4 parts with basic details, Inward supplies received from a registered person (other than the supplies attracting reverse charge), Summary of the input tax credit.
Further, there will be a single page questionnaire regarding the Option to file ‘Nil’ return with the question of intention to file the NIL return by the taxpayer.
GST Sahaj Quarterly Return RET 2 Form Format
Quarterly Return (Sahaj Form)
The next in line of the GST Sahaj form is the quarterly return part which consists of 9 subsections with having basic details to be filed at the top. After it, there is a 3rd part for Summary of outward supplies, inward supplies attracting reverse charge and tax liability for the taxpayer to file. Coming to the 4th part is Summary of inward supplies for claiming the input tax credit (ITC).
Now discussing the 5th part of the form will ask for the Amount of TDS and TCS credit received in electronic cash ledger. The 6th part requires Interest and late fee liability details. While in the next part there is the discussion of Interest and late fee liability details, Payment of tax, Refund claimed from electronic cash ledger. After filing all the details one has to verify the information by self-attesting
Amendment to Form GST Sahaj RET 2 (Including Form GST ANX-1)
The questionnaire based on FORM GST ANX-1A i.e. Amendment to FORM GST ANX-1
The question set asks the intention of the taxpayers if he wants to amend the B2C supply details and amend inward supplies attracting reverse charge (Table 3H).
GST ANX-1A Amendment Details of Outward and Inward Supplies
The form is for an amendment to details of outward supplies and inward supplies attracting reverse charge and the amendment to details of the outward supplies and inward supplies attracting a reverse charge.
Also, there are sub-parts of the 3rd points in which amendment to supplies made to consumers and unregistered persons and the amendment to inward supplies attracting reverse charge (to be reported by the recipient GSTIN wise, net of debit/credit notes and advances paid, if any).
Form GST RET 2A Quarterly Return (Sahaj Form) Format
Amendment to quarterly return (Sahaj Form)
In the next part, there comes the Amendment to quarterly return (Sahaj Form) required details. In this form, a total of 7 parts with further subsections within them. Starting with the basic details of the trade name and registration details with ARN.
Coming to the 3 subsections, there are details required for amendment in summary of inward and outward supply attracting tax liability and reverse charge. In the 4th section, there is Amendment to the summary of inward supplies for claiming the input tax credit (ITC) related details which has to be inserted by the taxpayer.
In the 5th and 6th section, there are details related to the interest on tax and the payment of taxes along with the late fees. Finally, in the last part, there is self-attested verification to be done from the taxpayer.
GST PMT 08 Payment of Self-assessed Tax Form
Payment of self-assessed tax
Finally, there comes the payment form also considered as the challan which includes 5 subsections. First of all, there are basic details including the trade name and the ARN number has to be filed. In the other subsection, there are details required such as Summary of self-assessed liability and input tax credit (ITC) availed and the tax payment details.
Finally one has to verify the payment details in the self-attested verification form at last.
Here we have debriefed complete details and form structure of the GST Sahaj form recently released by the government of India.
Read Also: Full Compare New GST Return Normal, Sahaj & Sugam Forms
The government has to put in extra efforts to achieve its tax collection targets for FY 2019-20, stated by Lok Sabha. As per the data accumulated for the first seven months of the current fiscal year, the direct tax collected and the Goods and Service Tax are 38% and 49.21% respectively of the decided Budget for FY 2019-20.
Anurag Thakur, Minister of State for Finance, in a written reply to Lok Sabha said that the Budget Estimate for direct taxes for FY 2019-20 is ₹13.35-lakh crore. But in the seven months (i.e. From April 1 to October 31), the net collection of direct taxes was ₹5.18-lakh crore. Till now the direct tax collection is approximately 38% of the BE against 44% in the same time period for FY 2018-19.
Goals can be achieved only if the tax collection growth rate is constant at 30% per month for the rest of the year. The GST council meeting held on 20 September 2019 gave its judgment on cutting the corporate tax. This could prove to be a permanent loss of revenue (around Rs. 1.45 Lakh Crore) from the government’s treasury. This provision is a set back in achieving the goals.
As far as the tax collection is concerned, Anurag Thakur said the actual net mop up for the Centre (CGST) was around ₹3.26-lakh crore during the April-October period against the BE of ₹6.63-lakh crore which means the monthly CGST share alone should remain constant to ₹67,000 crores for the rest of the current FY. In the case of the States then the average monthly collection has to remain constant to more than ₹1.10-lakh crore a month for the rest of the year. The figures are hard are quite challenging for the government.
Anurag Thakur further stated that the decreasing or increasing revenue collection with regards to its BE can be calculated only at the end of the financial year. Due to some experts, the downfall in revenue collection is estimated to be more than ₹2-lakh crore after considering the loss of ₹1.45-lakh crore owing to the Corporate tax rate cut.
The slowdown in the economy is one of the prominent reasons for the lower tax collections. Consumption is low having an adverse effect on the GST collection. Since the corporate sector has not been touched, this has resulted in low or no increment in salary for employees. This has led to lower consumption and the increased risk of not being able to achieve tax collection targets.
Filing GST is a massive task involving document compilations, computations, GST calculations, verification and so on. People with deficit knowledge are often seen struggling with GST filing and reviewing the documents for accuracy.
GST invoice is one of the major components used while computing tax, one wrong invoice will affect the figures in GST returns leading to more tax outgo. The particular write-up highlights the importance of revising tax invoices under GST and how to revise a GST invoice for its accuracy.
GST Invoice Tax Introduction
A GST Invoice is basically an electronically generated supply bill issued at the time of goods or service trades. Indexed in a proper GST invoice are issue date, HSN code of the product, SAC code, SGST, CGST, IGST amounts and the final taxable value of the goods and services sold. One must fill all the details accurately in order to get the exact amount of tax that has to be paid and also the amount of credit that has to be availed.
Revising a GST Tax Invoice for Accuracy in Figures
There are probabilities of issuing a wrong GST invoice which if not modified will lead to inappropriate tax outgo. To escape such cases revision of the invoice is needed.
While revising an tax invoice taxpayer may consider:
Downward revision in prices of goods and services that are supplied.
Upward revision in prices of goods and services that are supplied.
Changes in GST rate and so on.
Upward revision of the invoice is possible via a Supplementary invoice and Downward revision can be done via a credit note. In some cases, there is a complete revision in the invoice hence a revised invoice is issued.
Currently, there are no rigid provisions for the revised invoice under GST laws. Registered taxpayers operating in the country are assigned a GSTIN number. Following the completion of the necessary formalities, taxpayers will be assigned a formal registration number under GST.
Starting from the date of execution of GST till the registered dealers getting a formal GST ID number, issuing a revised invoice for every billing is a must. The tax invoice must adhere to the terms of GST and is mandatorily be issued within 30 days from the day of issuing the original registration certificate.
It is quite obvious from the above sentence that no revised invoice shall be considered valid after issuing the registration certificate to the registered taxpayers. Gen GST Billing Software caters to all the invoice related requirements of the taxpayer (small or large businesses).
Understanding Supplementary GST Invoices
Original receipt/invoice may lack certain parameters but the supplementary GST invoice is efficient in every field. There are occurrences where the original invoice lacks details of the taxable value of goods and services supplied. Such is the case when Supplementary Invoices are referred for correct knowledge. Supplier must generate the Supplementary invoice to accumulate such additional changes. SI includes debit and credit notes, hence serving both upward and downward revisions.
No format is pre-defined by the GST Law for supplementary invoices still there are certain headings that are required to be mentioned in such invoices. Particulars are as follows:
Valid details of the Supplier’s name and address
Supplier’s GSTIN
Nature of invoice, i.e. “Debit Note,” “Credit Note,” “Revised Invoice” or “Supplementary Invoice.” must be mentioned in bold.
The invoice must be written in an alpha-numeric serial number, particularly as per the accounting year
The date of issuing the invoice.
Name and address of the Recipient
Recipient’s GSTIN
In case if the customer is an unregistered taxpayer then proper address and place of delivery shall be mentioned along with the State Code.
The original invoice serial number must be provided for which the supplementary invoice is to be issued.
The differential amount of tax, the taxable value of the goods or services or rate of tax
Signature of an authorized person for the physical document, or digital signature for the electronic invoice.
To be Noted: With the help of Supplementary Invoice, one can claim an extra ITC on the tax he is paying to the government.
Understanding Credit Note
In accordance with the current GST law, section 2(35) read with section 24(1), credit note can be issued only if there is an original tax invoice issued for goods and services sold and in case if the tax mentioned in the invoice is more than the tax that is supposed to be paid on the respective supply.
Credit Note is applicable in case if:
The registered taxpayer issues an original tax invoice for the supply of Goods and Services.
The invoice displays the amount of tax greater than the actual payable amount
Credit notes fulfill the accounting requirements of a GST invoice correctly adjusting the values and declaring valid tax amounts.
Contrasting Revised and Supplementary Invoice
Revised and Supplementary invoices differ on the following basis.
Differentiating Debit Note, Credit Note, and Revised Invoice
FAQs on GST Tax Invoice Revision
Q.1 Return once filed providing all the invoices can be altered? If yes then how can the return or invoice be revised?
There is no such provision of altering already filed returns under GST Law. Amendments can be made in the invoice by issuing the supplementary invoice or credit or debit notes.
Q.2 What is the prescribed time limit for issuing the supplementary invoice by the taxpayer?
Supplementary Invoice should be raised within 30 days starting from the day of receiving the original invoice.
Q.3 Is there any time limit for updating the supplementary invoice in the returns for further computing the taxable value of goods and services?
Supplementary invoices are required to be updated on the GSTN portal on monthly basis. In case of an interstate supply or where the taxable value of the goods and services is less than a hundred and fifty thousand rupees, a consolidated invoice is issued
Q.4 When and where do we need to raise a supplementary invoice?
Circumstances where raising a Supplementary Invoice is mandatory:
The customer/recipient rejects the goods prevailing low quality.
Change in the rates of tax.
If there are amendments in the taxable value of the goods or services.
If there is a short receipt of materials from the recipient
If the supplier charges a refund to the supplier
Q.5 I am a recipient of the goods, and I reject the same upon receipt. Will I able to raise a debit note? Is a taxpayer eligible for issuing a debit note in case if he rejects the goods upon receiving them?
It is possible as it is normal accounts but will have no effect under GST. Each credit or debit note issued by a taxpayer have a significant commercial impact. Still, a proper setup is awaited under GST for debit note issued by the recipient.
An array of services such as laser photography, Jewellery photography, clothes photography, wedding video recording, pre-wedding video shooting, aerial photography, fluorescent photography. etc come under the category of Videography and Photography service and fall under Goods and Services Tax (GST) purview. This is a complete guide to know about the GST Rate on Photography and Videography Services. Let’s dive right in.
Eligibility of Photography & Videography Services for GST Registration
SAC Code For Photography & Videography Services
GST Return for Photography & Videography Services
Time of supply for Videography & Photography Services
GST ITC For Photography & Videography Services
Related
GST Rate on Photography & Videography Services
GST @ 18% is applicable on the Photography & Videography Services. Services are as follows:
Portrait photography services
Advertising & related photography services
Event photography & event videography services
Speciality photography services
Restoration & retouching services of photography
Photographic & video graphics processing services
Other Photography & Videography and their processing services n.e.c.
If the rate for a service is not explicitly specified by the GST Council then the default rate of 18% GST applies to these services.
Recommended Post: GST Impact on Wedding Services in India
Eligibility of Photography & Videography Services for GST Registration
Section 22 to 25 of the GST Act specifies the threshold limit of goods & services to be surpassed and other requirements that make an individual eligible for the registration under GST.
As per these sections, a supplier of Photography & Videography services is eligible to be registered under the GST if he duly meets the following conditions:
Turnover > 20 Lakhs
When the aggregate turnover of taxable supply of goods or services in a fiscal year is more than Rs. 20 Lakhs.
Turnover > 10 Lakhs
When the aggregate turnover of taxable supply of goods or services in a fiscal year is more than Rs. 10 Lakhs, provided the supplier resides at North Eastern area – Arunachal Pradesh, Assam, Himachal Pradesh, Manipur, Meghalaya, Nagaland, Sikkim, Jammu & Kashmir, Tripura & Mizoram and Uttarakhand.
Note: Voluntary GST registration can be obtained by a service provider (if needed)
SAC Code For Photography & Videography Services
SAC Code under GST for Photography & Videography and their processing Services is a 6 digital numerical code. First two digits i.e. 99 of the code are alike for all the Photography & Videography services, whereas the next two and last two digits of the SAC code signify as major service and nature of the service, respectively.
SAC Code For Photography & Videography Services is as follows:
SAC Code 998381 – Portrait photography services
SAC Code 998382 – Advertising and associated photography services
SAC Code 998383 – Event photography and videography services
SAC Code 998384 – Specialty photography services
SAC Code 998385 – Restoration and retouching photography services
SAC Code 998386 – Photographic & video graphics processing services
SAC Code 998387 – Other Photography & Videography and their processing services
GST Return for Photography & Videography Services
Following GST Return has to be filed by Photography & Videography Services Providers:
Monthly Return GSTR 3 B to be filed by the 20th of the subsequent month.
Monthly/ Quarterly (based on turnover)GSTR-1 to be filed all GST registered supplier.
Annual GST returnsto be filed by all GST registered supplier on or before the due date of 31st December.
Time of supply for Videography & Photography Services
GST on Photography & Videography Services becomes payable at the time of supply of such services. Time of supply for Videography & Photography Services is:
As soon as the invoice is issued
Or
When an invoice is not issued within 30 days from the date of supply of service
Or
Date when the services are received in recipient’s books of account
whichever is earlier.
GST ITC For Photography & Videography Services
An income tax credit of GST on Photography & Videography Services can be claimed by a registered taxpayer on inward supplies if he holds valid invoice and the supplier has duly deposited the taxes to the government.
Also Read: GST Rate on Event Management Services
Eligibility to claim ITC
A recipient of goods and services become eligible to claim ITC only if he duly meets all the following conditions:
He has valid tax invoice or Debit Note or Bill of Entry.
He has received Goods or Services.
His supplier has paid the taxes to the government.
GSTR is filed.
Note: ITC claimed by a recipient gets reversed if he fails to pay the amount for the goods or services supplied to him along with tax payable on that amount within a time-frame of 180 days.
Urging on the need to call for a GST council meeting, Bengal Finance Amit Mitra said that there should be a meeting to discuss the unsteady GST collections, various GST rates and the ways to cut down tax evasion.
Amit Mitra in a written statement to Union Finance Minister Nirmala Sitharaman stressed the point that the business intelligence unit has to be planted in every state to bring in limelight various frauds taking place under the GST regime.
Depicting the current scenario, Mitra said that there still remain some unmatched invoices allowing corrupt dealers to still claim Input Tax Credit (ITC) by generating fake GST invoices. This calls for a need to conduct a council meeting that is centric to only tax frauds and other systematic issues. “However, the date of the next GST council meeting is yet to be finalized by the concerned authorities”, Mitra says.
Collections under GST have sloped down as compared to last year’s collection in months of September and October, this has led to the need for involvement of a business intelligence team.
Statistics say that GST collection for October 2019 is Rs 95,380 crore which is 5.2% lower than the collections of Rs 1,00,710 crore in October 2018. GST revenue collections tumbled to a 19-month low of Rs 91,916 crore in September this year.
Bengal FM further stated that he tried to drag the tax leak issue in the last GST Council Meeting held on 20 September 2019, but it was never discussed during the meeting.
The Insurance Corporation Employees Union has put forth a demand to remove GST on premiums. In 2014, GST at the rate of 18% was imposed on premiums for insurance policies by the Central Government. At the same time, interest for loans on policies and policies renewal were also not escaped by GST implementation.
According to the N.P. Ramesh Kannan, general secretary of the union, Implementation of GST on insurance policies is a demotivation for people to invest in policies. Today, Life insurance corporation of India is the largest insurance company with an asset value of above $370 billion which provides huge capital to the Government of India (GOI) because it allows long-term savings. So, a government should remove GST from premiums for insurance policies because that would be a booster for investors to invest in insurance policies which will further upsurge the capital for GOI.
“There is also GST on the service charge for changing nominations. This is affecting policyholders across the nation. Life insurance corporation of India is one of the biggest capital providers for the government as it attracts long-term investments. The government should, in turn, encourage people to invest in insurance. Instead, the imposing of GST is discouraging,” said N.P. Ramesh Kannan, general secretary of the union.
Many requests have been made to the GOI, to remove the Goods and Services Tax from an insurance policy, by the union and the letters collected from well-known personalities of India in this regard, have also been sent to GST council membersGet to know the details about GST council and how it works for GST implementation in India? We also describe its constitution, functions, quorum and decision-making. Read More .
“We have urged the government through various campaigns and have also reached out to 22 lakh policyholders regarding this. Recently, we collected letters from 3,295 famous personalities from the Madurai division of LIC, comprising six districts, including MLAs and MPs across political parties. We will submit those letters to the State GST Council Member,” said union president G. Meenakshi Sundar.
An income tax rebate of ₹1,00,000 has been demanded by the union to provide refunds to the insurance policyholder as a measure to stimulate the investment in insurance.
Small town based tax officials have sent written GST notices to many companies catering the financials services seeking details about the tax paid, revenue generated and organisational framework. This has germinated fear within these companies that if their compliance burden would rise.
Indirect tax officials have started scrutinising the companies based across India. A Mumbai based financial services company has received a written notice that reads, “Provide brief note of organisational structure, details of turnover whether taxable, exempt, nil rated or non-GST turnover.. details of place of supply,”
Almost in every case, companies are already adhering to GST compliance and giving details to the same state’s capital based tax officials.
Under the GST regime, every company must have a Goods & Services Tax (GST) registration in every state. However, queries (if any) in this regard are raised by tax officials of the city.
In the context, mofussil tax officers turn their back on under a specific section of the GST Act which interprets that any company from any part of the nation can be interrogated by any indirect tax officer regarding any transaction.
Taking an example of Andhra Pradesh. Andhra Pradesh based companies are registered in Hyderabad but they are receiving written queries from state’s small-town based indirect tax officials.
However, top-level employees and partners of such financial services company do not go to bat for this interpretation by GST officials as they are of the view that GST has already increased compliance burden on service providing companies and if the indirect tax officials from any part of the world would begin questioning them, it would lead to pressure upsurge on the companies.
In this regard, MS Mani, partner, Deloitte India, said, “The compliance requirements in GST for service providers are significantly higher than the erstwhile service tax regime and the need to respond to inquiries from various parts of the country leads to additional pressures on businesses. A single authority should be empowered to enquire/investigate all GST issues of a service provider instead of multiple authorities, which will lead to efficiencies on both sides,”
Abhishek A Rastogi, partner, Khaitan & Co. suggested, “The jurisdiction has been a subject matter of debate and in an ideal situation the jurisdictional officer should seek information related to compliance, procedure and other legalities”.
The states of India which are under the surveillance of non-BJP rulers like Punjab, Kerala, Rajasthan, West Bengal and Delhi spoke about their concerns related to GST compensations. They voiced against the Centre claiming that states are in the situation of the financial crisis to which centre needs to look upon.
GST compensation is still awaited by such states for the months of August and September which was supposed to be given by the central government in the month of October, declared by the statement by these five states. The states’ treasure is sloping downwards leading them into the pit of financial crisis due to which the concerned authorities are using central bank’s ways and facilities or overdrafts to meet their financial requirements.
On the other hand, Bengal FM Amit Mitra in his statement stressed upon appealing to the Union FM Nirmala Sitharaman to personally pay attention to the issue keeping in mind the provisions passed by Parliament of India.
This won’t be less than a calamity for the states if the centre does not give them their justified compensation. He said, “It is a dangerous situation”. Further to this, he said, it is for the first time in history that the centre has failed to transfer the committed funds to the concerned states. The due amount for West Bengal is Rs. 1,500 Crores.
Thomas Issac Kerela FM says that their state relied upon the centre for compensation of Rs. 1,600 Crore and that the state is under overdraft for almost a week now. This is for the first time in history that the state is facing such a huge crisis and that immediate action is expected by the centre.
Punjab FM in his statement revealed that the state is lying in wait of Rs. 2,100 crore in compensation from central government and if the dues are not paid on time then the state is in danger of overdraft.
Read Also: Annual Return Clarifications Issued via Circular No. 124/43/2019 Under GST
The same was the tone of Delhi CM Manish Sisodia who declared that the delay in releasing GST compensation by the Central Government has led to Delhi outstanding Rs. 2,355 Crores.
The Joint Statement by all the states said that 60% of tax revenues for states come from GST and most of the states are already in debt up to 50% of the total GST. Such deficits are prominent in hindering the pace of development for any state literally bringing the activities of states to a halt.
The Joint statement even revised the scenario when the states agreed to join GST only if there is a provision of compensation inserted in the Constitution of India. Adding on to this the statement said that the current delay in granting GST compensation has shaken the confidence of the states that had so far supported GST.
Overlooking the disparities of GST, states were always by the side of the GST Council supporting them with all their major and minor decisions, the statement said.
As proposed by many states issue of delayed Goods and Services Tax compensation should be the main agenda of the next GST council meeting and also how the proper revenue collection mechanism can be incorporated providing timely compensations to all the states in the future.
