&w=3840&q=100)
GST Council to take up rate rationalisation issue in next meeting
A GoM headed by Minister of State for Finance Pankaj Chaudhary is looking into the future of compensation cess beyond March 2026
Asit Ranjan Mishra New Delhi
Listen to This Article
The next Goods and Services Tax (GST) Council meeting, for which the date will be announced soon, will take up the issues of rate rationalisation and future of compensation cess among other matters, a government official said requesting anonymity.
'The Groups of Ministers (GoMs) have submitted their reports. There are three or four different aspects relating to making GST simpler. We will take up the issue of compensation cess, rate rationalisation and simplification (at the next Council meeting),' the official said, adding that the meeting will be held after giving states three weeks' time, following an established norm.
The GST
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hindu
an hour ago
- The Hindu
Infosys gets huge relief on GST as DGGI closes ₹32,400-crore pre-show cause notice
In a major relief for Infosys, the Director General of GST Intelligence has closed pre-show cause notice proceedings against the company for financial years 2018-19 to 2021-22 involving a staggering ₹32,403 crore in GST dues. The latest move effectively ends nearly a year-long GST saga for India's second-largest IT services firm. Mid-last year, the goods and services tax (GST) authorities had slapped ₹32,403 crore notice on Infosys for services availed by the company from its overseas branches for five years starting 2017. The GST demand, in fact, exceeds Infosys's annual profits — Infosys's net profit for full FY25 stood at ₹26,713 crore — and its closure now is bound to come as a significant relief for the tech major. Also Read | After ₹32,000 crore demand to Infosys, government said to mull GST notices to other IT majors The Bengaluru-headquartered company, in a BSE filing, said with the receipt of the latest communication from DGGI "this matter stands closed". 'In continuation to our earlier communications on July 31, 2024, August 1, 2024 and August 3,2024 on GST, this is to inform that the company has today received a communication from the Director General of GST Intelligence (DGGI) closing the pre-show cause notice proceedings for the financial years 2018-19 to 2021-22,' the company said in the filing late Friday (June 6, 2025) evening. Infosys, which competes with the likes of TCS, Wipro and others for global IT contracts, said it had received and responded to a pre-show cause notice issued by DGGI for the period July 2017 to March 2022 on the issue of non-payment of IGST under Reverse Charge Mechanism. 'The GST amount as per the pre-show cause notice for this period was Rs 32,403 crore. The company had on August 3, 2024 received a communication from DGGI closing the pre-show cause notice proceedings for the financial year 2017-2018. With the receipt of today's communication from DGGI, this matter stands closed,' Infosys said. Also Read | Nasscom defends Infosys, says ₹32,000-cr. GST notice shows lack of understanding of industry model In July last year, Infosys had informed that Karnataka State GST authorities issued a pre-show cause notice for payment of GST of ₹32,403 crores for the period July 2017 to March 2022 towards the expenses incurred by overseas branch offices of Infosys Ltd, and added that the company has responded to the pre-show cause notice. 'The company has also received a pre-show cause notice from Director General of GST Intelligence on the same matter and the company is in the process of responding to the same,' the filing of July 2024 had said. All along, Infosys maintained that GST is not applicable on these expenses. 'Additionally, as per a recent circular issued by the Central Board of Indirect Taxes and Customs on the recommendations of the GST Council, services provided by the overseas branches to Indian entity are not subject to GST,' Infosys had argued back in July 2024. The tech firm had asserted GST payments are eligible for credit or refund against export of IT services. 'Infosys has paid all its GST dues and is fully in compliance with the central and state regulations on this matter,' the company had contended. The document sent to Infosys by GST authorities at that point had reportedly said, 'In lieu of receipt of supplies from overseas branch offices, the company has paid consideration to the branch offices in the form of overseas branch expense. Hence, M/s Infosys Ltd, Bengaluru is liable to pay IGST under reverse charge mechanism on supplies received from branches located outside India to the tune of Rs 32,403.46 crores for the period 2017-18 (July 2017 onwards) to 2021-22.' The Directorate General of GST Intelligence in Bengaluru had been of the opinion that Infosys did not pay the Integrated-GST (IGST) on the import of services as a recipient of services. For the just-ended March quarter, Infosys reported an 11.7 per cent decline in consolidated net profit to ₹7,033 crore mainly on account of compensation to employees, and acquisitions during the reported period. The company has guided for a revenue growth of 0% to 3% in constant currency terms in the current fiscal year, citing uncertainty in the environment. For the full FY25, profits saw a marginal increase of 1.8% to ₹26,713 crore; revenues climbed 6.06% to reach ₹1,62,990 crore - exceeding its guidance of 4.5% to 5% for the full FY25.
&w=3840&q=100)
Business Standard
3 hours ago
- Business Standard
UP CM directs officials to take action against fake, shell companies
Uttar Pradesh Chief Minister Yogi Adityanath on Saturday directed officials to take action against shell companies to stop the attempts to misuse the facilities meant for genuine traders. While conducting a high-level review of the State Tax Department, the CM directed officials to ensure transparency in tax collection and adopt a policy of technological efficiency and strict enforcement. "Tax evasion is a national crime that negatively impacts development plans and welfare schemes," he said. Stressing that the Goods and Services Tax (GST) is a consumer-based tax system, he noted that areas with higher population density are naturally expected to generate more tax revenue. He instructed officials to develop special strategies for zones where tax collection is below average. Adityanath directed that information on suspicious firms registered under Central GST (CGST) be shared with the Centre for cancellation of their registration. For firms under State GST (SGST), he ordered in-depth departmental investigations, and if irregularities are found, their registration should be canceled and FIRs lodged. The CM emphasised the need for on-site inspection of all newly registered firms, stating "fake companies should not be allowed to obstruct the rights of honest taxpayers. CM Adityanath said that such acts are an attempt to misuse the facilities meant for genuine traders, which is unforgivable. Such inspections are essential to ensure that genuine businesses can operate fairly and without interference," he said. During the meeting, officials informed the CM that Rs 18,161.59 crore in GST and VAT had been collected during April and May against the financial year 2025-26 target of Rs 1,75,725 crore.
Time of India
3 hours ago
- Time of India
Zoho founder Sridhar Vembu Surges Union government to simplify rules, regulations for startups
Coimbatore: Simplification of rules and regulations, including those related to GST, licensing and bank loans, is the need of the hour to propel the growth of startups, said Zoho founder Sridhar Vembu here on Saturday. He was speaking at the first demo day organized by the Coimbatore-based startup incubator Aalamaram to celebrate the 23 startups it successfully nurtured and showcase their offerings. Six startups exhibited their products at the event, which saw participation of several startup founders and investors. Speaking after the event, Sridhar Vembu said all the 23 startups should be nurtured in a big way so that billion-dollar enterprises could emerge from them. "Not every startup may be successful. It is not important what percentage of startups succeed. What matters is how many jobs are created through startups," he said. When asked about the kind of support the govt should provide, he said the Union govt had already simplified several procedures to benefit startups. However, further simplification is needed, particularly in GST compliance, licensing and access to bank loans, he said. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch CFD với công nghệ và tốc độ tốt hơn IC Markets Đăng ký Undo "In my opinion, the govt should not fund startups, as it could lead to favouritism and corruption. The startup ecosystem should remain private. The govt's role should be limited to providing easy approvals and relaxed regulations," Sridhar Vembu said.
