Economy

Aadhaar Likely to Become Mandatory for GST Refund Claims

The 37th GST Council meeting took place on 20th September in Goa and Finance Minister (FM), Nirmala Sitharaman, chaired the GST Council. In this meeting, FM announced the decision taken around linking Aadhaar with taxpayers registering under GST. A decision has also been made to see the probability of making Aadhaar compulsory for GST refund claims.

FM also mentioned that a committee would be set up to make sure that the forms around annual return and reconciliation are simplified. Furthermore, appropriate amendments will be made in the CGST Act, UGST Act, and the interrelated SGST Acts considering the creation of Union Territories of Jammu, Kashmir and Ladakh.

The GST Council has also taken a decision to impose feasible restrictions on taxpayers who default on passing ITC benefits; this will be inclusive of new taxpayers too. FM believes that with this decision, the menace of fraudulent refunds and fake invoices could be controlled.

Also Read: FM on MSME: GST refunds to pace up; TReDs to associate with GSTN

The GSTR-9 filing for MSMEs with an annual turnover of up to Rs 2 crore will be optional for the last two fiscal years. Also, GSTR-9A filing has been waived for composition taxpayers for FY 2017-18 and 2018-19.

The GST council has also made a decision to withdraw a particular circular that was issued in June. This circular specified that the extra discount a company gives to a dealer in specific cases will be accountable for GST.

Another critical decision was made in the 37th GST Council meeting with regards to the new GST return system. With an aim to give taxpayers more time to adapt to the new return system, the implementation of the new GST returns has now been deferred to April 2020.

For any clarifications/feedback on the topic, please contact the writer at bhavana.pn@cleartax.in

Share

Recent Posts

Mutual Funds: SIP Inflows Breach Rs 19,000-Crore Mark for the First Time in February ’24

The systematic investment plan (SIP) contribution in February 2024 has crossed a new milestone. The monthly contribution tipped at Rs…

9 months ago

Income-Tax Return: A Brief Note on Annual Information Statement (AIS)

The Income-Tax (I-T) Department has directed taxpayers to access the Annual Information Statement (AIS) via the e-filing official portal and…

9 months ago

Mutual Funds: All About SIP and Market Fluctuations

Considering the vagaries of the stock market, investors often ponder over reevaluating their strategies. Whether to continue to remain invested…

9 months ago

Income-Tax Saving Through Strategic Life Insurance Planning

Financial planning is beyond just investing wisely to save on taxes; it's also related to protecting oneself and one's loved…

9 months ago

Income-Tax Return: Here’s a Note on Tax-Saving Avenues

A salaried individual earning up to Rs 5-15 lakh as net salary on an annual basis must first take stock…

9 months ago

A Quick Take on Equity-Linked Savings Scheme

Equity-linked savings schemes (ELSS), also referred to as tax-saving schemes, are equity funds that invest a significant portion of their…

9 months ago