Indian economy has grown at Q3 of 2023-24 @ 8.4% as per NSO. This is faster than expected growth. In 2022-23, it was just 4.3% in Q3. For the whole year 2023-24, GDP growth has been predicted @ 7.6%. In Q3 manufacturing growth has been 11.6% and construction sector grew @ 9.6%. This would mean tax revenue growth too. The momentum of growth may continue in Q4 also. Actual performance of the economy has been better then what was predicted by all agencies. According to India Ratings & Research, while growth in the next fiscal, 2025 is expected to be lower @ 6.5% but this may not effect private investment. Recently, RBI has predicted 7% growth in FY 2025. On the other hand, Barclays Research has projected a growth of 8 percent.
CBIC issued a notification to notify ‘Public Tech Platform for Frictionless Credit’ for enhanced credit eco-system. GSTN issued an advisory on delay in GST registration.
CBIC Chairman in an communiqué to officers has expressed that the concept of loka sangraha implies creating an environment conducive to trade, where businesses can thrive, and taxpayers can enjoy the fruits of a fair and just taxation regime. By aligning our actions with the principles of dharma and loka sangraha, we become the champions of ethical and efficient administration and fulfil the higher purpose of serving the greater good and upholding the values embedded in ancient Indian wisdom.
We are now in last month of current fiscal which calls for a review of tax related compliances, input tax credit, declarations and procedural actions. An internal due diligence on all legal compliances including GST is called for.
The collection of GST in February, 2024 is reported to be Rs. 168337 crore which is 12.5% higher than the GST collected in February, 2023. Out of the gross collections, CGST is Rs. 31,785 crore, SGST is Rs. 39,615 crore, IGST is Rs.84,098 crore (including Rs. 38,593 crore collected on import of goods) and cess is Rs.12,839 crore (including Rs.984 crore collected on import of goods).
Enhanced Credit Eco-system
- CBIC has notified “Public Tech Platform for Frictionless Credit” for Enhanced Credit Eco-system Sharing.
- This is a system with which information may be shared by the common portal based on consent under sub-section (2) of Section 158A of the Central Goods and Services Tax Act, 2017.
- “Public Tech Platform for Frictionless Credit” means an enterprise-grade open architecture information technology platform, conceptualised by the Reserve Bank of India as part of its “Statement on Developmental and Regulatory Policies” dated the 10th August, 2023 and developed by its wholly owned subsidiary, Reserve Bank Innovation Hub, for the operations of a large ecosystem of credit, to ensure access of information from various data sources digitally and where the financial service providers and multiple data service providers converge on the platform using standard and protocol driven architecture, open and shared Application Programming Interface (API) framework.
- Conceived / developed by RBI, it aims to foster a large credit ecosystem. It enables digital access to information from various data sources for financial service providers and data service providers through an open, enterprise-grade IT platform with a standard, protocol-driven, open and shared API framework.
(Source: Notification No. 06/2024-Central Tax dated 22.02.2024)
GSTN Advisory on Delay in GST Registration
- GSTN has issued an Advisory on instances of delay in registration reported by some taxpayers despite successful Aadhar Authentication in accordance with Rule 8 and 9 CGST, Rules, 2017.
- Rule 8 and 9 of CGST Rules, 2017 provide for processing within 30 days after the Aadhaar verification.
- Accordingly, where a person has undergone Aadhaar authentication as per sub-rule (4A) of rule 8 but has been identified in terms of Rule 9(aa) by the common portal for detailed verification based on risk profile, the application for registration would be processed within thirty days of application submission.
- Necessary changes would also be made to reflect the same in the online tracking module vis-à-vis processing of registration application.
(Source: GSTN Advisory dated 28.02.2024)
GST Collection in February, 2024
- Rs. 1,68,337 crore is the gross GST revenue collection for February, 2024
- Gross GST collection averages to Rs. 1.67 lakh crore in FY 2023-24
- Posting a growth rate of 11.7% Y-o-Y, Rs.18.40 lakh crore is the gross GST collection during April, 2023-February, 2024 in FY 2023- 24.
- The revenues for the month of February, 2024 are 12.5% higher than the GST revenues in the same month last year. During the month, the revenues from domestic transactions (including import of services) are 13.9% higher than the revenues from these sources during the same month last year.
- The growth of tax collection in higher in states like Arunachal Pradesh, Maharashtra, Karnataka, J & K, Puducherry and Ladakh. State with lower growth are Himachal Pradesh, Uttarakhand, Rajasthan, Meghalaya and Chhattisgarh. There is negative growth in Bihar, Nagaland, Manipur and Mizoram.
(Source: GST PIB Release ID 2010615 dated 01.03.2024)
