Budget 2024 Updates

FM hikes exemption limit for long-term capital gain to Rs 1.25 lakh + hikes tax rate to 12.5% on specified financial assetsCGST - Finance Bill proposes to amend Sec 9 to take ENA out of purview of GST + inserts Sec 11A to regularise non-levy of tax on general practice in tradeCGST - Sub-sections to be inserted in Act to relax time-limit to avail ITC u/s 16(4) + New Sec 74A proposed to provide for common time limit for demand notices in fraud casesCGST - Proviso to be inserted in Sec 30(2) to provide for enabling conditions for revocation of registration + Amendment in Sec 39 to mandate return filing by TDS deductors even if there is no deduction in a particular monthIGST - Amendment proposed to prohibit refund of unutilised ITC on zero-rated supplyCustoms - Finance Bill proposes to amend Sec 28DA for acceptance of different types of proof of origin under FTAsFM hikes standard deduction to Rs 75K for new ITR regime + revises tax rates for all income slabs + Rs 7000 Cr revenue foregoneBudget withdraws 2% equalisation levyFM reduces corporate tax rate for foreign companies to 35%FM proposes vivad se vishwas scheme + hikes monetary limits for filing appealsFM proposes 20% capital gains tax on short-term assets + listed financial assets held for more than one year to be classified as long-termGovt scraps TDS on Mutual Funds + decriminalises delay in depositing TDS + rationalisation of compounding of offences + revamps reassessment periodBudget proposes comprehensive review of I-T Act, 1961 + simplifies provisions for charities and TDSFM reduces customs duty on gold and silver to 6% + Nil BCD on nickel cathodeBudget proposes to reduce BCD on mobile phone and chargers to 15% + exempts 25 minerals from customs dutyFM exempts cancer medicines from Customs duty + amends BCD for various machinesFM proposes Rs 48 lakh expenditure outlay; 4.9% fiscal deficitFM announces Rs 1 lakh crore fund for developing space economyPromotion of Tourism - Vishnupad temple and Bodh Gaya temple corridors to be supportedFM announces over Rs 11 lakh crore capital expenditure in current fiscalGovt to invest in small Nuclear energy plants in partnership with private playersCentre to ask States to lower stamp duty for women purchasers of housesIBC - More Benches of NCLT to be set up to speed up recoveryFM spikes limit of Mudra loan to Rs 20 lakhsBudget offers financial aid to labour-intensive MSMEs in manufacturing sectorGovt announces 3 crore additional houses under PM SchemeGovt to secure Rs 15K loan for AP from multilateral agenciesGovt to frame new policy for all-round development of Bihar, Jharkhand and OdishaGovt to give one-month salary to all new recruits in formal sector through EPFOGovt to promote vegetable clusters closer to urban settlementsGovt to focus on productivity of agriculture with climate-resilient seedsFM allocates Rs 2 lakh outlay for PM's five schemes for job creation and farmersFM Nirmala Sitharaman presents 7th Union Budget in ParliamentBudget 2024: FM arrives at Parliament; Speech to begin at 11AMEconomic Survey 2023-24 - from GST PerspectiveUkrainian FM goes on tour to ChinaI-T- Additions framed u/s 69A are untenable where affidavits submitted by assessee's parents to explain source of cash deposits, were discarded by AO without consideration : ITATSurvey acknowledges productivity loss due to mental health disordersI-T- Short term capital gains returned by the assessee in terms of provisions of section 50 of the Act on assets held for a period of more than 36 months be treated as long term capital gains: ITATExpenditure on social services up from 6.7% to 7.8% of GDP: SurveyI-T-Additions framed u/s 68 are upheld where assessee is unable to prove genuineness of transaction involving purchase and sale of penny stock: ITATTrade deficit contracts to USD 78 bn from USD 126 bn in 2023I-T-Re-assessment is invalidated when there is no failure on part of assessee to make full and true disclosure of facts necessary for assessment: ITATCorporate profitability has peaked to 15-yr-old high between 2020-2023: SurveyI-T- When cash generated out of sales has been credited in the books of accounts, the provisions of Sec.69A could not be invoked: ITATBudget 2024: More relief for senior citizens & individual taxpayers on card; tweaking of capital gains tax likely; steady capital expenditure to stayI-T- If any amount invested is purely a strategic investment & for purpose of commercial expediency, then AO cannot hold such investments to be for non-business purpose: ITATGoogle backpedals on plan to scrap cookies from ChromeCus - For a HNWI individual, an expensive watch of 'Rolex' make would be his personal effect but same may not be the case if the person is of mere means - Pendant studded with diamonds not liable for confiscation: HCGovt amends Recruitment Rules for Debts Recovery TribunalGST - Even if no date, time or place of hearing is indicated in the notice issued, it was the duty of assessee to file his reply to SCN, which was admittedly received - Plea regarding violation of principles of natural justice cannot be countenanced: HCAbhinav Bindra conferred with Olympic OrderGST - Mismatch between value of e-way bills generated on portal and returns filed in Form GSTR-3B - Petitioner did not provide a comprehensive explanation - To remit sum of Rs.3.50 crores within six weeks - Matter remanded: HCHackers mercilessly hack Bangladesh PM’s website along with police portalsGST - Rule 30 of Rules, 2017 - Assessing officer ought to have issued summons and obtained clarification rather than estimating the outward supply value at 110% of purchase value - Order set aside and matter remanded subject to remit of 10% disputed tax demand: HCUS law-makers call for resignation of Secret Service chief in Trump assassination caseGST - Net ITC shown incorrectly - An inadvertent error was committed and such error was rectified, albeit irregularly, however, sum recovered from petitioner's bank account - Order set aside and matter remanded: HCKarnataka IT Industries piling pressure on govt to extend working hoursGST - Since notification is declared unconstitutional, Amount of IGST paid pursuant to Entry No. 10 of Notification No. 10 of 2017 is to be refunded along with statutory interest: HCStudy says earth’s water depleting fastFDI inflows slide to USD 26.5 bn in 2024 from USD 42 bn in 2023: Economic Survey
GST Collection - The Mystery of the Vanishing Figures

JULY 10, 2024

By Vijay Kumar

WHAT was the GST collection for June 2024?

The Hindu reported it to be about Rs.1.74 lakh crore, according to numbers shared informally by officials.

Business Today reported, For June, GST collections stand at Rs 1.74 lakh crore. This data was not shared in a formal press release but provided to reporters informally.

Business Standard reported, The gross goods and services tax (GST) collection for June 2024 stood at Rs 1.74 trillion, marking 7.7 per cent year-on-year (Y-o-Y) growth, an official source disclosed to Business Standard.

CNBC reported, According to government officials, GST collections stood at Rs.1.74 lakh crore in June 2024.

The Print reported: One of the officials said the collections for June 2024 stood at Rs 1.74 lakh crore, which is 7.7 percent higher than was collected in June last year. Neither official from the ministry wished to be named as they are not allowed to officially speak to the media in the pre-budget period.

What can be understood from the above reports and many other news stories?

1. The tax collection is reported to be Rs 1.74 lakh crore and the same figure was reported by all those who cared to report the unconfirmed figures from an undisclosed source in the government. Is it some state secret?

2. There is no official communication on the actual GST collection for June 2024.

The PIB used to issue a Press Release on the first of every month giving details of GST collection in the previous month. On 1st June 2024, the PIB release stated:

Gross GST revenue collection in May 2024 stands at Rs.1.73 lakh crore: Records 10% y-o-y growth

Rs.3.83 lakh crore gross GST revenue collection in FY 2024-25 (till May 2024) records 11.3% y-o-y growth

Net Revenue (after refunds) grows 11.6% in FY 2024-25 (till May 2024)

Domestic Gross GST Revenue grows 15.3% in May 2024

Posted On: 01 JUN 2024 7:03 PM by PIB Delhi

The gross Goods and Services Tax (GST) revenue for the month of May 2024 stood at Rs.1.73 lakh crore. This represents a 10% year-on-year growth, driven by a strong increase in domestic transactions (up 15.3%) and slowing of imports (down 4.3%). After accounting for refunds, the net GST revenue for May 2024 stands at Rs.1.44 lakh crore, reflecting a growth of 6.9% compared to the same period last year.

But on July 1st, while everyone, (not really everyone, only the concerned people) was celebrating the seven years of GST, the government shied away from disclosing the tax collection figures and it is not as if the collections were shamefully low - they were actually high - to a point of alleged embarrassment. But then why did the government not reveal them publicly and proudly through its PIB? It's like a mystery novel where the clues are hidden in financial reports!

The Indian Express commented:

Good economic data is rarely considered bad news. But it appears so in the case of indirect tax collections.

Monthly revenue haul under the Goods and Services Tax (GST) is touching record highs and such a razzle-dazzle has no equal in history. But like beauty that cannot escape malice and envy, GST's prosperity seems to be gathering a hostile glance from taxpayers, businesses and critics alike.

Perhaps to avert the negative gaze, authorities seem to have decided to give the indirect tax regime an anti-evil eye charm by withholding monthly data dispatches. This may or may not be endowed with special protective powers, but the absence of the monthly collections will likely contain breeding resentment that the government is overtaxing consumers.

The Hindu cautiously commented:

Growth in India's gross Goods and Services Tax (GST) collections slowed to a three-year low in June, with revenues rising about 7.74% to about Rs.1.74 lakh crore from Rs.1,61,497 crore collected in the year-earlier period, according to numbers shared informally by officials.

The Finance Ministry, which generally releases monthly GST revenue collections on the first of every subsequent month, including details about trends on State-wise collections and revenues collected from domestic transactions and imports, had not officially issued any statement on June's indirect tax receipts till the time of going to press on Monday.

Economists, speaking on condition of anonymity, expressed surprise at the absence of an official statement on the GST revenues for last month, and reckoned this would hamper analysis on activity trends in the economy.

Money Control stated:

The finance ministry may discontinue the practice of releasing a statement outlining GST collections data on the first day of every month, a source in the know of the matter said, adding that later on the earlier format of the statement, which was detailed, is likely to be replaced with a more succinct version.

GST collection data for July 2024 is Rs 1.74 lakh crore, as per sources on July 1. However, an official statement outlining the mop-up has not been released yet.

Addressing the Centre for Social and Economic Progress, last week, the former Chief Economic Advisor, Arvind Subramanian is reported to have stated:

1. In February, the government started releasing net GST collection numbers and has now stopped publishing it again. Because we are not getting refunds data, we are under the impression that revenues are doing very well.

2. The focus was on collections, because refunds were not published and we were looking at the wrong number - had the refunds data been published, we would have been much more careful about rate cuts.

3. Revenues from the seven-year-old Goods and Services Tax (GST) had not lived up to expectations, having attained pre-GST levels only now, and the objective of a 'Good and Simple Tax' remains elusive.

4. You should just have one cess rate, one standard rate and one low rate.

5. The tweaks and changes effected in the GST regime every time the GST Council meets - this practice was taking the system in a backward direction in terms of simplicity and rationalisation.

6. Electricity, petroleum and alcohol in the GST net - that would be a bad idea... especially in the current context of the acrimonious relations between the Centre and the States, I don't think it's politically advisable to expect or ask the States to give up more sovereignty. They have compromised but other conditions have changed too much for the compromise to be relevant again.

But is the government obliged to give us the figures of collection every month, the correct figures? What if they choose to reveal them partly and at convenient intervals? Anyway, Arvind Subramanian says, we were looking at the wrong number.

According to a Finance Ministry tweet, GST brought happiness for every home:

As long as your entertainment was limited to a 32 inches tv, you could laugh your way to the bank with a less GST burden; you would have paid less GST for keeping your food and water cool, your clothes clean, your homes cool, your bathwater hot, your food cooked, your clothes sewed and chat your heart on that mobile phone while sipping tea from a cheaper flask and keeping your phone charged with a UPS.

This year, the celebration of the seventh anniversary of GST was a low-key affair. The CBIC Chairman in his newsletter stated:

Every year Commendation Certificates are conferred to the CBIC officers on the GST Day. Today, Certificates were distributed in a virtual ceremony to 28 deserving officers in recognition of their significant contribution in diverse areas such as trade facilitation, automation, enforcement, audit, infrastructure development, policymaking, etc.

On the 'GST Day', the Chairman observed,

Seven years ago, on this very day, GST was rolled out ushering in a simplified indirect tax regime across India. During this momentous journey, we have witnessed impressive milestones and initiated several trade-friendly measures -an outcome of effective coordination between the Centre and State Governments, extensive consultations with industry stakeholders, and a shared vision of a more efficient tax regime. As we celebrate the seventh anniversary today, let us acknowledge and appreciate the efforts of every stakeholder who has contributed to making GST a success story - from the taxpayers who have embraced GST with open arms to the policymakers who have steered its course, from the tax professionals who have helped in the smooth implementation to the tax administrators who have diligently set the laws and regulations in motion.

Celebrate GST

Until next week


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