As of January 1, small taxpayers will not be required to file monthly returns, announced an official from the Ministry of Finance. Tax payments can be made monthly through a challan, added the official.
As of January 1, taxpayers whose annual turnover is less than Rs 5 million will not be required to file monthly returns, ie GSTR 3B and GSTR1. They will only file quarterly returns, the official said.
Earlier today, the GST panel had raised the borrowing limit from Rs 1.1 lakh crore instead of Rs 97,000 crore in the first limit on loans to states. The council has approved the extension of the GST offset tax beyond 2022.
Impasse Themes
In September, the Center had given states two options: borrow Rs 97,000 crore from a special window provided by the Reserve Bank of India or Rs 2.35 lakh crore from the market. Opposition-run states have yet to accept either option and are vehemently pushing for a third option, while maintaining that the responsibility is to make up the shortfall in revenue collection.
Dispute settlement mechanism
Qualify the two options as a “Threat”, so they (opposing states) may not be compensated if they do not choose either option. The states are fighting for a dispute resolution mechanism within the council and for a vice president to be added to the council.
Center estimates
Government estimates have set the GST compensation requirement at around Rs 3 lakh crore this year, while tax collection is expected to be around Rs 65,000 crore, an estimated compensation deficit of Rs 2.35 lakh crore (assuming 10 percent revenue growth over last year).
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