Latest news with #GSTCompensationCess
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Business Standard
01-08-2025
- Business
- Business Standard
India's net GST revenue rises 1.7% to ₹1.68 trillion in July; refunds surge
India's net revenues from goods and services tax (GST) grew by a marginal 1.7 per cent in July to ₹1.68 trillion, thanks largely to a sharp spike in refunds even as gross collections from the indirect tax were up 7.5 per cent at almost ₹ 1.96 lakh crore. July's net GST kitty growth marks the slowest pace since last February from when disaggregated data on gross and net GST collections is available. In June, net GST revenues were up 3.3 per cent. Net revenues from domestic transactions, in fact, contracted 0.2 per cent in July, even though gross domestic revenues were up 6.7 per cent, as refunds for domestic transactions more than doubled to nearly ₹17,000 crore from under ₹8,000 crore in July 2024. GST refunds to exporters grew at a slower pace of 20 per cent and added up to a little over ₹10,000 crore, so net revenues from imports were up 7.5 per cent at ₹42,548 crore. Gross revenues from imports rose 9.7 per cent prior to refunds, to touch nearly ₹53,000 crore. 'Higher refunds on domestic supplies could be from excess tax payments, inverted duty structures, and other adjustments. The increased refunds should aid cash flows for businesses,' observed Abhishek Jain, indirect tax head and partner at KPMG. Sequentially, July's net GST collections, for transactions undertaken in June, were nearly 6 per cent higher than from ₹1.59 trillion reported in June. In May and April, the net GST receipts were registered at ₹1.73 trillion and ₹2.09 trillion respectively. In the first four months of financial year 2025-26, net GST revenues are up 8.4 per cent at ₹7.11 trillion, with domestic revenues rising 6.1 per cent to ₹5.6 trillion and import revenues surging 18.1 per cent to almost Rs. 1.51 trillion. Gross GST revenues, before effecting refunds, are up 10.7 per cent to ₹8.18 trillion, while refunds have risen 29 per cent to about ₹1.07 trillion. 'The growth in net monthly collection is only 1.7 per cent as against YTD (year-to-date) growth of 8.4 per cent, though partly attributed to significant increase in refunds,' said Pratik Jain, partner with Price Waterhouse & Co LLP. 'After a tepid growth in the previous month as well, the GST Council may like to discuss the possible measures to augment the revenues in the next meeting. With the GST Compensation Cess going away, the states may also be a bit more concerned about the slowdown in GST collections,' Jain remarked. MS Mani, partner at Deloitte India noted that though there has been a focus on domestic manufacturing and import substitution, the GST revenue numbers indicate that the gross GST domestic revenue risen only 9 per cent so far this year, while import revenues have risen 16 per cent. The spike in refunds augurs well for businesses as it signals quicker processing by the tax authorities, he said. Mani also pointed to the weak growth in revenues amongst large producing and consuming states — from 2 per cent for Delhi, 3 per cent for Gujarat, 4 per cent for Rajasthan, 6 per cent for Maharashtra, 7 per cent for Karnataka and Uttar Pradesh, and 8 per cent for Tamil Nadu. The state-wise data shows smaller states and Union Territories like Tripura (41 per cent), Andaman and Nicobar Islands (31 per cent), and Meghalaya (26 per cent) posted over 25 per cent growth in July. , Uttar Pradesh (7 per cent) reported single digit growth. Mizoram, Manipur and Lakshdweep clocked contractions of 21 per cent, 36 per cent and 52 per cent, respectively, as did Jammu and Kashmir (-5 per cent), Chhatisgarh (-4 per cent), and Jharkhand (-3 per cent).
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Business Standard
01-08-2025
- Business
- Business Standard
India's net GST revenue rises 1.7% to ₹1.68 trn in July as refunds surge
India's net revenues from the Goods and Services Tax (GST) grew by a marginal 1.7 per cent in July to Rs. 1.68 trillion, thanks largely to a sharp spike in refunds even as gross collections from the indirect tax were up 7.5 per cent at almost Rs. 1.96 lakh crore. July's net GST kitty growth marks the slowest pace since last February from when disaggregated data on gross and net GST collections is available. In June, net GST revenues were up 3.3 per cent. Net revenues from domestic transactions, in fact, contracted 0.2 per cent in July, even though gross domestic revenues were up 6.7 per cent, as refunds for domestic transactions more than doubled to nearly Rs. 17,000 crore from under Rs. 8,000 crore in July 2024. GST refunds to exporters grew at a slower pace of 20 per cent and added up to a little over Rs. 10,000 crore, so net revenues from imports were up 7.5 per cent at Rs. 42,548 crore. Gross revenues from imports rose 9.7 per cent prior to refunds, to touch nearly Rs. 53,000 crore. 'Higher refunds on domestic supplies could be from excess tax payments, inverted duty structures, and other adjustments. The increased refunds should aid cash flows for businesses,' observed Abhishek Jain, indirect tax head and partner at KPMG. Sequentially, July's net GST collections, for transactions undertaken in June, were nearly 6 per cent higher than from Rs 1.59 trillion reported in June. In May and April, the net GST receipts were registered at Rs 1.73 trillion and Rs 2.09 trillion respectively. In the first four months of financial year 2025-26, net GST revenues are up 8.4 per cent at Rs. 7.11 trillion, with domestic revenues rising 6.1 per cent to Rs. 5.6 trillion and import revenues surging 18.1 per cent to almost Rs. 1.51 trillion. Gross GST revenues, before effecting refunds, are up 10.7 per cent to Rs. 8.18 trillion, while refunds have risen 29 per cent to about Rs. 1.07 trillion. "The growth in net monthly collection is only 1.7 per cent as against YTD (year-to-date) growth of 8.4 per cent, though partly attributed to significant increase in refunds,' said Pratik Jain, partner with Price Waterhouse & Co LLP. 'After a tepid growth in the previous month as well, the GST Council may like to discuss the possible measures to augment the revenues in the next meeting. With the GST Compensation Cess going away, the states may also be a bit more concerned about the slowdown in GST collections,' Jain remarked. MS Mani, partner at Deloitte India noted that though there has been a focus on domestic manufacturing and import substitution, the GST revenue numbers indicate that the gross GST domestic revenue risen only 9 per cent so far this year, while import revenues have risen 16 per cent. The spike in refunds augurs well for businesses as it signals quicker processing by the tax authorities, he said. Mani also pointed to the weak growth in revenues amongst large producing and consuming states — from 2 per cent for Delhi, 3 per cent for Gujarat, 4 per cent for Rajasthan, 6 per cent for Maharashtra, 7 per cent for Karnataka and Uttar Pradesh, and 8 per cent for Tamil Nadu. The state-wise data shows smaller states and Union Territories like Tripura (41 per cent), Andaman and Nicobar Islands (31 per cent), and Meghalaya (26 per cent) posted over 25 per cent growth in July. , Uttar Pradesh (7 per cent) reported single digit growth. Mizoram, Manipur and Lakshdweep clocked contractions of 21 per cent, 36 per cent and 52 per cent, respectively, as did Jammu and Kashmir (-5 per cent), Chhatisgarh (-4 per cent), and Jharkhand (-3 per cent).
New Indian Express
22-07-2025
- Automotive
- New Indian Express
Hyundai slapped with Rs 517.34 crore tax demand and penalty from GST authority
Hyundai Motor India Ltd (HMIL) has received a demand of Rs 517.34 crore from tax authorities, along with a penalty, for alleged short payment of GST compensation cess on certain SUV models. 'The company has received an Order from Commissioner (Appeals), CGST Dept, Tamil Nadu, confirming GST Compensation Cess demand of Rs. 258.67 Crs along with Penalty of Rs. 258.67 Crs on the allegation of short payment of GST Compensation Cess on Certain SUV Models for the period September 2017 - March 2020,' said Hyundai Motor in a statement. The carmaker said that there is no impact on financial, operational or other activities of the company due to this. Hyundai is reviewing the order and will exercise its right to file an appeal.
Time of India
22-07-2025
- Automotive
- Time of India
Hyundai India receives ₹517 crore GST demand; to appeal order
Hyundai Motor India Ltd (HMIL) has received a tax demand and penalty order totalling ₹517.34 crore from the Commissioner (Appeals), Central GST Department , Tamil Nadu, the company said in a stock exchange filing on Tuesday. The order pertains to alleged short payment of GST compensation cess on certain SUV models sold between September 2017 and March 2020. 'The company has received an order from Commissioner (Appeals), CGST Department, Tamil Nadu, confirming GST Compensation Cess demand of ₹258.67 crore along with a penalty of ₹258.67 crore on the allegation of short payment of GST Compensation Cess on certain SUV models,' the filing stated. The order was received by Hyundai via email on July 21, 2025 in the evening. The company said the order does not have any financial, operational or other impact at this stage. HMIL is currently reviewing the matter and plans to file an appeal. The company reaffirmed its commitment to legal compliance and expressed confidence in its legal position.
Business Upturn
22-07-2025
- Automotive
- Business Upturn
Hyundai Motor India receives GST order of Rs 517.34 crore for alleged short payment on SUVs
By Aditya Bhagchandani Published on July 22, 2025, 17:37 IST Hyundai Motor India Limited informed the exchanges that it has received an order from the Commissioner (Appeals), CGST Department, Tamil Nadu, confirming a GST Compensation Cess demand of ₹258.67 crore, along with an equal amount of penalty, bringing the total to approximately ₹517.34 crore. According to the company's regulatory filing under Regulation 30 of SEBI LODR, the order pertains to an alleged short payment of GST Compensation Cess on certain SUV models sold between September 2017 and March 2020. The order was received via email on 21 July 2025 at 6:40 PM, from the Office of the Commissioner of GST & Central Excise (Appeals – II), Tamil Nadu. Key details of the order: Particulars Details Authority Office of the Commissioner of GST & Central Excise (Appeals – II), Tamil Nadu Nature of Order Confirmation of GST Compensation Cess demand Amount of Demand ₹258.67 crore Penalty ₹258.67 crore Total ₹517.34 crore Period in question September 2017 – March 2020 Allegation Short payment of GST Compensation Cess on certain SUV models The company stated that there is no impact on its financial, operational, or other activities at present due to this order and confirmed that it is reviewing the order and will exercise its right to file an appeal. This move comes amid heightened scrutiny of the automotive sector over classification and cess rates applicable to vehicles sold during the initial GST regime years. Hyundai reiterated its commitment to comply with applicable laws and stated it remains confident about its position on the matter. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
