GST on petroleum products not on agenda: Sushil Modi
BENGALURU: Bihar finance minister and chairperson of GST Group of Ministers (GoM) for technology, Sushil Kumar Modi on Saturday said that levying taxes on petroleum products was not on the agenda of the GST council and even if that happens people should not wrongly perceive that GST can control taxes on petrol and diesel.
Speaking to reporters after a GoM meeting here, Modi, while reiterating that petroleum products are already under GST and that only the date to start levying taxes must be fixed, said: "The GST council is meeting on September 28. But I don't think this is on the agenda as the Centre and several states feel that the immediate need is to stabilise revenue and increase compliance. Taxing petrol and diesel under GST will only be considered thereafter."
He also warned people not to believe that GST would control the taxes on petrol and diesel and reduce their burden with a fixed tax component. "...Even if you bring them under GST, you cannot control what the states or the Centre levies as taxes. There is a provision for both of them to levy taxes over and above GST, which is provided based on global practices. With this, both states as well as the Centre can levy additional taxes even after GST is levied," he said.
Arguing that it is not an opportune moment to begin taxing motor fuels and other petroleum products under GST now, he said that presently states and the Centre together levy about 50 per cent tax on petrol and diesel. "They will first want revenue
stabilisation."
He also gave an overview of the progress made so far in terms of the number of taxpayers, e-Way bill generation, tax collection et al.
GST in numbers
* 15.71 crore: Total number of returns filed under GST so far
* 5.35 crore: Total number of payment transactions made under GST so far
* 62.9 lakh: The number old migrated taxpayers under GST
* 50.6 lakh: The number of new approved registered taxpayers under GST
* Rs 93,960 crore: GST collections for the month of July
* 23.61 crore: Total number of e-Way Bills issued so far
* 48%: Percentage of e-Way Bills generated for inter-state transport of goods
* 52%: Percentage of e-Way Bills generated for intrastate transport of goods
* 99.08%: Percentage of goods transported by road
* 8.65 lakh: The number of verifications of e-Ways bills carried out in the country
* 3,588: The number of inspections reports on goods transport filed in the country
Annual returns & new form
Modi said that Infosys has been directed to ready the forms required for the filing of annual returns-which will be done for the first time since the inception of GST-by November 15. "December 31 will be the last date to file annual returns and all those dealers with a turnover of more than Rs 2 crore will also be required to file an audit report by the same date," he said, adding that the new, simplified return forms have been finalised by the GSTN. Stating that the new forms should be ready for people to use in the next few months, Modi said that all dealers with a turnover of less than Rs 5 crore or up to Rs 5 crore can file quarterly returns. "More than 92 per cent of all dealers fall in this category. Moreover, two systems 'Sahaj'- for all those dealers dealing only with customers and 'Sugam'- for those dealing with customers and also other businesses are ready for use. They will be launched soon," he said. While the returns can be filed quarterly, dealers will have to continue paying taxes every month. He also said that all those who have not filed GSTR-1 for the month of July can now do it without a late fee. "The time has been extended up to October 31 and we've recommended to the GST council that there be provisions for this," he said.
Tax on e-commerce
Modi said that the levy of taxes on e-commerce will begin from October 1 and that most states are ready with the software and requisite training for their staff. "It won't increase revenue immediately, but it will surely have a positive impact in the long term," he said.
He further added that 18 firms have been shortlisted for the development of a 'common accounting software' by the GSTN and that small traders will soon be able to get this for their use.
Audit to probe revenue shortfall in states
Sushil Modi said that the GSTN will conduct an audit to find out why some of the states-four main ones: Bihar, Himachal Pradesh, Jammu and Kashmir and Uttarakhand-have been facing huge revenue shortfall, in the range of 20 to 42 per cent. "
(Mr) Hasmukh Adhia has been visiting these states, he was in Bihar just yesterday. And, prima facie, it appears like the taxes from the service sector is not reflecting. So the DG-audit will be conducting an audit into the banks, railways, airlines and telecom sectors to see if the 'place of supply' rules are accurate in their softwares," he said, adding that they do not suspect any large scale evasion.
He also said that the issue of shortfall is being addressed by the Centre and the states and that it has come down from 17% earlier to about 13 per cent now. "In some states like Maharashtra, Gujarat and Tamil Nadu it is below 3 per cent," he said, adding that states like Bihar, which are under the special category also have a lot of money stuck in the IGST.
Exporters' refund
Answering a specific question, AB Pandey, chairman, GSTN, said that processing and settlement of refunds for the exporters, which has been a pain point, has been going on smoothly and that so far, Rs 43,000 crore has been settled.
So far as the e-wallet facility for exporters is concerned, Modi said that the GSTN has decided that it needs more deliberation in terms of its implementation.
Courtesy: timesofindia
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Cabinet reshuffle is CM's prerogative in consultation with Cong high command: G Parameshwara
Bengaluru(PTI): Amid speculation that a cabinet reshuffle was on the cards, Karnataka Home Minister G Parameshwara on Wednesday said it is the prerogative of the Chief Minister and he would take a decision in consultation with the state Congress President and the high command.
Deputy CM and state Congress chief D K Shivakumar's statement on Tuesday indicating the possibility of a cabinet reshuffle in the days ahead, noting that few Ministers have been given a "message" about their term, has further fueled the speculations about the rejig.
"I don't know about it. Cabinet reshuffle is the Chief Minister's prerogative. He will consult the Pradesh Congress Committee President and go about it, this has been the practice. I don't know what decisions they make. It has to be done in consultation with the high command," Parameshwara told reporters.
To a question on Shivakumar's statement, he said, "He (Shivakumar) is the party state President, I don't know what messages he has sent (to some Ministers)."
Speculations are rife about a cabinet reshuffle and evaluation of the performance of the Ministers ever since the Lok Sabha poll results. There has also been demand from a section of MLAs, who are Ministerial aspirants, to be inducted into the cabinet. Some have openly expressed their wish to become Ministers.
To a question on a seer's comments that the voting rights of Muslims should be revoked, the Home Minister said, making remarks contrary to the Constitution is not right, and no one should speak or go against it.
"Probably he (seer) has not properly seen the principles of the Constitution and the rights and opportunities provided in it for every community and religion. It is clear in the Constitution," he said.
Asked about Congress MLA H R Gaviyappa publicly asking the CM to drop at least two of the five ‘guarantee’ schemes to provide money for development works, the state Home Minister said, "Any legislator asking for funds to his constituency is not wrong, so Gaviyappa is not wrong in asking for funds for his constituency."
"But unfortunately he has expressed his personal opinion regarding the guarantee schemes. That has been taken by the party and the government. We had promised the people of the state that we will full the promises, so we are implementing them. We cannot go back on that," he added.
Deputy CM Shivakumar had on Tuesday said he would issue a showcause notice to Gaviyappa and warned party leaders against making such statements regarding guarantee schemes.
Responding to a question on an Assamese girl found murdered at a serviced apartment in east Bengaluru, Parameshwra said such incidents in a way bring bad name to the city.
"It (alleged murder) is on very personal grounds. Both of them (suspect and victim) knew each other and were in love. They had stayed in a hotel room and he has stabbed her there. Both of them are outsiders. She is from Assam and he is from Kerala. Police keep watch on such things, but when such incidents occur, it in a way brings a bad name to the city," he said.
Asked about the suicide of a woman, who is a suspect in the alleged scam in Karnataka Bhovi Development Corporation, the Minister said investigation is on, can't say anything further until the probe is over.
On the protest by prisoners against the jail authorities at Kalaburagi central prison, alleging lack of facilities there, Parameshwara said he will speak to DG (Director General) Prisons about it.
"Already we have reviewed all the jails. If there are any necessities there it will be fulfilled. I will give instructions to the DG," he said.
