Government releases ₹40,000-crore GST dues to States

Government releases ₹40,000-crore GST dues to States

Amount to help meet shortfall in compensation cess

Through back-to-back borrowings from the market, the Centre issued 40,000 crore to States and Union Territories on Thursday to help overcome the gap in GST compensation cess revenues.

The Finance Ministry stated this was part of a 1.59 lakh crore gap in the Compensation Fund for States that will be covered by market borrowings, but that the overall GST compensation to be paid in 2021-22 could be more than the States’ actual dues for the year.

In July, a total of 75,000 crore was transferred to states, leaving 44,000 crore to be borrowed and dispersed during the remainder of 2021-22.

The remaining funds will be released as soon as possible, according to the Ministry.

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Over and above

“This is in addition to usual GST compensation being distributed every two months out of actual cess collection,” the Ministry said, adding that more than Rs 1 lakh crore was expected to be released to States based on GST cess collections throughout the financial year.

Write-off possibility

“The entire amount of 2.59 lakh crore is projected to exceed the amount of GST compensation accruing in FY 2021-22,” it added, implying that some of the outstanding dues dating back to 2020-21 would be written off to that extent.

The Ministry stated, “It is believed that this publication will assist States/UTs in planning their public expenditure, among other things, for enhancing health infrastructure and undertaking infrastructure projects.”

Are you a freelancer? Key points to know about GST payment

Are you a freelancer? Key points to know about GST payment

As a freelancer, you now perform services, and the Indian government has established that there are conditions in which you must pay GST.

Depending on where their clients are located, freelancers are responsible for IGST, CGST, or SGST. It’s crucial to keep in mind that there are no GST exemptions. Even if you only work with international customers, you may be subject to GST.

Any person supplying taxable services must be registered in the state from which he or she is providing such taxable services under current GST laws; if the person’s aggregate turnover in a financial year is more than Rs 20 lakh ( Rs 10 lakh in some states such as those in the North East), the same would apply to freelancers once they exceeded the specified threshold.
Based on the nature of the services offered, the GST rate applicable to any other service provider (which is normally 18%) would also apply to such freelancers.

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The GST costs for a freelancer will be 18% of the total bill amount because it is the replacement service tax. Every bill or invoice you send out must contain 18% GST clearly visible.

What Is The GST Return Filing Process?

GST returns are due quarterly or monthly, depending on the amount of revenue and whether you have chosen the composition scheme. Quarterly returns can be filed by composition vendors or dealers with yearly sales of less than Rs.1.5 crore. You must file GST returns once you have obtained a GST Identification number.

Is it necessary for a freelancer to register for GST?

GST registration for a freelancer is dependent on the following variables, regardless of the nature of your services:

  • Annual income of less than $20,000 – No registration necessary.
  • Annual income of more than 20 lacs, regardless of customer location in India – Prior registration is necessary.
Who Is Responsible for GST Fees?

Your customers will pay you, and you will pay the government the same. Clients can then claim it as a tax credit when they file their taxes, making it a win-win situation for everyone. Even if your clients ask for a discount, do not pay the GST yourself because you will be responsible for it and your clients will receive a tax credit.

Profits and benefits of plying, hiring, or leasing goods

Input tax credit claims

To claim an input tax credit (ITC), freelancers must have an invoice, have received the products and/or services, and guarantee that the tax levied by the supplier has been paid to the government. They must also file their own return. Because obtaining ITC on the basis of fraudulent invoices is a common method of tax evasion, a restriction has been imposed under Section 16(2)(aa), but it is not yet in effect.

This provision strengthens Rule 36(4), which authorises ITC only if the details of the said invoices issued by the suppliers appear in the recipient’s Form GSTR 2A.

Fix issues with the Income Tax e-filing portal by September 15, 2021: FM to Infosys

Fix issues with the Income Tax e-filing portal by September 15, 2021: FM to Infosys

The Finance Ministry met with Infosys to discuss issues with the Income Tax Department’s e-filing portal.

Smt. Nirmala Sitharaman, Union Minister for Finance and Corporate Affairs, met with Mr Salil Parekh, MD & CEO, Infosys, here today afternoon to express the Government’s and taxpayers’ deep disappointment and concerns about the ongoing glitches in the Income Tax Department’s e-filing portal, even two and a half months after its launch, which was also delayed. Smt. Sitharaman demanded an answer from Infosys for the taxpayers’ ongoing problems.

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The Ministry of Finance emphasised the necessity for Infosys to invest more resources and effort in order to assure the much-delayed delivery of agreed-upon services. Mr. Parekh was also made aware of the challenges faced by taxpayers, as well as the issues that have arisen as a result of the portal’s slow operation.

The Finance Minister demanded that the team overcome the challenges that taxpayers are having with the portal’s present features by September 15, 2021, so that taxpayers and professionals may work together effortlessly on the platform.

India’s exposure to US securities has increased by more than 10pc in the last 3 months 

Mr. Parekh stated that he and his staff are doing all possible to ensure the portal’s flawless operation. Mr. Parekh further stated that around 750 team members are working on this project, which is being directly overseen by Mr. Pravin Rao, Infosys’ COO. Mr. Parekh also stated that Infosys is working quickly to ensure that taxpayers have a smooth experience on the platform.

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