A few days back, the Goods and Services Tax (GST) authorities had arrested a person for evading tax by using an amount of over Rs 160 crore. In the meeting to be held next month, the council may consider amendment in tax payment form GSTR-3B.
Several incidents of tax evasion have come to the fore in the last few days. To curb this, the GST Council can take a big decision on this in its meeting to be held next month.
GST Council may consider amendment in Summary Return and Monthly Tax Payment Form GSTR-3B to check bogus input tax credit claims and expedite actual settlement. There were complaints of fraud in the cases. This information has been given by a senior official.
Clarity will come from form amendment
According to officials, this revised form will provide clarity to taxpayers regarding gross input tax credit (ITC), the amount claimed in a month and the net amount left in the taxpayer’s ledger. The apex decision making body in GST matters The Goods and Services Tax (GST) Council is likely to meet next month.
The revised form will help in checking bogus ITC claims and ensure that honest taxpayers are able to get ITC benefits on time. The law committee of the GST Council is looking at streamlining GSTR-3B to bring more clarity on ITC disclosures, the official said. The revised GSTR-3B is expected to be tabled in the next meeting of the Council.
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GSTR-3B, which is a summary statement and monthly GST payment form, is to be filed in different ways between 20th, 22nd and 24th of every month for different categories of taxpayers.
GST on Casino, Race Course and Online Gaming
AMRG & Associates Senior Partner Rajat Mohan said the changes in the monthly tax payment form will help identify taxpayers who are claiming ineligible tax credits.
Mohan said the new form will bring changes in reporting of gross tax credit by financial institutions including banks and NBFCs, oil and gas sector companies, brewers, public transport services, health and educational services.
He said that accurate reporting of gross tax credit would also remove the delay in distribution of tax revenue between the Center and the states. The council will also consider the possibility of increasing the GST on casinos, race courses and online gaming in its next meeting.
The State Group of Ministers has unanimously decided to increase the tax rate on these services to 28 percent. Currently, 18 per cent GST is levied on the services of casino, horse racing and online gaming.
