News 1 – FM Nirmala Sitharaman proposes GST Council to consider raising the threshold from ₹40 lakh to ₹60 lakh
Finance Minister Nirmala Sitharaman addressed Parliamentarians’ request to potentially raise the Goods and Services Tax (GST) registration threshold, indicating a willingness to consider it within the purview of the GST Council. During the discussion on the Central Goods and Services Tax (Second Amendment) Bill, 2023 in Rajya Sabha, Sitharaman acknowledged the call for a national appellate authority for advance rulings, expressing recognition of members’ concerns.
Responding to suggestions about bringing petrol and diesel under the GST ambit, Sitharaman urged state governments to grasp the underlying rationale. On the proposal to increase the GST registration threshold from ₹40 lakh to ₹60 lakh, she considered it a valid suggestion, deferring the decision to the GST Council. The minister emphasized the importance of integrating most small businesses into the GST system.
The proposed amendments aim to align the GST appellate tribunal with the 2021 tribunals reform and a Madras High Court decision. Sitharaman highlighted the consistent growth in monthly GST return filing, reaching 90% compliance compared to 71% three years ago.
The Central GST (Second Amendment) Bill, 2023, which was returned by Rajya Sabha, seeks to broaden the pool of candidates for the appointment of judicial members to the tribunal. The amendments introduce a minimum age of 50 years for eligibility, with specified tenures of up to 70 years for the President and 67 years for Members.
The Provisional Collection of Taxes Bill, 2023, also returned by Rajya Sabha, replaces a 1931 law, facilitating the immediate implementation of proposed customs and excise duty changes from the next day. This mechanism eliminates the waiting period for Bill passage, providing more flexibility to the government in implementing tax changes promptly.
New – 2 Misuse of Villager’s KYC Results in a GST Notice of ₹23 Lakhs
In a surprising turn of events, a 42-year-old resident from Kopri village in Thane finds himself entwined in a complex deception as he receives a Goods and Services Tax (GST) notice for a staggering default amount of Rs 23 lakhs. The situation takes a sinister turn as the Chembur police unravel a fraudulent scheme where unidentified individuals, posing as bank officials, exploited the victim’s personal information for financial malfeasance.
The victim, unwittingly became the target of a sophisticated scam orchestrated by a group masquerading as job recruiters. Under the false promise of a lucrative employment opportunity, Victim unknowingly provided his photograph and Know Your Customer (KYC) details. Little did he know that this act would set off a series of events resulting in financial ruin.
Acting on victim’s complaint, the Chembur police have registered a First Information Report (FIR) against six unidentified persons, one of whom is an employee from a Chembur branch of a bank. The alleged collaboration between the bank official and the perpetrators facilitated the creation of a fictitious company in victim’s name, providing the criminals with a platform for illicit financial transactions.
The perpetrators-initiated contact with Victim in January 2022, enticing him with promises of a prospective job. Seizing the opportunity, they obtained his photograph and KYC details, exploiting this information to open a fraudulent bank account. Subsequently, the criminals engaged in financial transactions within the sham company, causing substantial monetary losses for Victim.
The Chembur police are actively pursuing the case, aiming to bring the perpetrators to justice. The FIR includes charges of cheating against the unidentified individuals involved in the elaborate scheme. Investigators are now delving into the details of the financial transactions and the extent of the scam’s impact on the victim.
Ritesh Victim, who initially believed he was stepping into a promising job opportunity, now faces not only the shock of a fraudulent scheme but also the burden of a hefty GST default notice. The incident sheds light on the vulnerability of individuals in the face of sophisticated scams and the importance of vigilance in personal transactions and information sharing.
As the investigation unfolds, authorities are committed to uncovering the full extent of the scam and holding those responsible accountable. This case serves as a cautionary tale, emphasizing the need for increased awareness and caution among individuals to protect themselves from falling victim to such deceptive schemes.
New 3 – Extension of Time Limit for Issuing Show Cause Notices and Passing Orders in Non-Fraud Cases for FY 2018-19 and 2019-20
In December 2023, the Central Board of Indirect Taxes and Customs (CBIC) issued Notification No. 56/2023–Central Tax, extending the time limit specified under Section 73(10) of the Central Goods and Services Tax Act, 2017 (“the CGST Act”). This extension specifically applies to the issuance of orders under Section 73(9) of the CGST Act, addressing the recovery of tax not paid, short paid, or input tax credit wrongly availed or utilized for the financial years 2018-19 and 2019-20.
Exercising powers conferred by relevant sections of the CGST Act, the CBIC has made partial modifications to previous notifications (No. 35/2020, No. 14/2021, No. 13/2022, and No. 09/2023), extending the time limit for passing orders under Section 73. The extension, granted based on the recommendations of the Council, applies as follows:
(i) For the financial year 2018-19, the time limit for issuing orders is extended up to the 30th day of April 2024.
(ii) For the financial year 2019-20, the time limit for issuing orders is extended up to the 31st day of August 2024.
This extension allows authorities additional time to undertake necessary actions for the recovery of taxes or input tax credit pertaining to the specified tax periods.
