Fall in direct tax mop-up slows in November on better economic movements

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Contraction in direct narrowed significantly in November on the back of considerable improvement in personal income tax and corporation tax mop up, pointing at further improvement in economic activity and jobs availability in the third quarter of the fiscal year.


Direct tax collections, net of refunds, declined by 25 per cent by end of November, an improvement from the 31.4 per cent decline in September. Improved collections will come as a respite for the Centre as it faces spending pressure to spur economic activity.



Personal income tax saw contraction shrink to 13 per cent by November from 22 per cent seen up to September, on the back of lower issuance of refunds and improvement in economic conditions. Decline in corporation eased slightly to 36 per cent by November, from 40 per cent by September. The impact of base effect on account of corporation tax reduction in September last year will be largely visible in December when the third installment of advance tax collections come in by the middle of the month.


Net direct stood at Rs 4.09 trillion as on November 30, down

Centre says it’s open to suggestions on farm Acts, but won’t repeal them

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The is open to considering some suggestions from farmers on ways to improve the three agricultural Acts but will not repeal them as they have been passed by Parliament, sources said.


The bigger question of incorporating any provision that could give a legal standing to the minimum support price (MSP) is also not being considered at this stage as that will dilute the freeing up the market, the sources added.



“Any legislation is not an end in itself and there is always scope for improvement and if farmers’ groups feel that their advice can better the legislations, it could be surely considered, which can then be incorporated into the Acts either by way of amendments or through tweaking of the rules,” a senior official said.


The comments came a day before more than 30 farmers’ groups are scheduled to meet Union Agriculture Minister Narendra Singh Tomar and Food Minister Piyush Goyal for another round of talks to break the deadlock.


Thousands of farmers from Punjab, Haryana and several other states have been protesting for seven days at Delhi’s borders calling for the repeal of the

GST mop-up crosses Rs 1 trn for second straight month on festive sales

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Reinforcing the economic recovery trend, goods and services tax collection surpassed the Rs 1-trillion mark for the second consecutive month in November, according to the official data. Although slightly lower than the previous month, the robust mop-up could be attributed to the festival season demand, experts said, cautioning that this might not be sustainable in the coming months.


stood at Rs 1.049 trillion in November, as against Rs 1.051 trillion in October, the data released by the on Tuesday showed. This is also the third straight month when rose year-on-year (YoY), indicating the reinstatement of normalcy in economic activity after months of disruption caused by the Covid-19 lockdown.


The November collection was 1.42 per cent higher than that in the same month a year ago, down from 10.25 per cent YoY growth in October and 3.87 per cent in September. These collections mostly account for transactions done in October, and hence represent the impact of the festival season. The lower e-way bill generation in November, at 55.3 million compared to 64.1 million in October, suggests that the December GST mop-up may be lower.


“The trends regarding the sustainability of demand

Goldilocks year awaits emerging markets defying Covid-19 pandemic rout

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Emerging-market seem to have everything going for them right now, with the November rally offering a hint of what 2021 may have in store.


A plethora of tailwinds from accommodative to an impending change of U.S. president and Covid-19 vaccine progress has put the assets of developing nations on course for some impressive milestones. Bonds have wiped out their year-to-date losses, while MSCI Inc.’s currency index is poised for the best month since January 2019 as well as a second successive annual gain. The MSCI stocks gauge is on track for its best month since March 2016.



Underpinning the recovery is a resurgence in foreign-investor interest. Fourth-quarter portfolio inflows to are poised to hit the highest in eight years, data from the Institute of International Finance show. Yet, for all the euphoria, foreign positioning in bonds and equities for developing nations excluding China remains light, and Deutsche Bank AG’s Sameer Goel, says the rally is far from over.


“It’s Goldilocks for emerging markets’ under-invested assets as we go into 2021,” said Goel, the bank’s head of macro research in Singapore. They “have

CBIC tightens noose on those issuing fake GST invoices without Aadhaar

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The Central Board of Indirect Taxes and Customs (CBIC) has instructed field officers to verify authenticity of business of entities that have been granted registration under the goods and services tax (GST) framework without between August 21 and November 16. Sources said this standard operating procedure is part of the government’s efforts to check fake invoices.


Those that have been given registration without authentication will be taken as deemed registration. The list of such deemed registrations will be circulated zone-wise to the field officers for confirmation. The confirmation needs to be completed within three weeks.



The tax officer concerned, in addition to physical verification, may further carry out a preliminary financial verification of the registrants by seeking certain documents, informed sources.


Meanwhile, according to the Directorate General of GST Intelligence (DGGI) sources, the DGGI and central GST commissionerates have so far arrested 92 persons for availing of or passing ineligible input tax credit fraudulently through fake invoices, and have booked 994 cases against more than 3,161 fake GSTIN entities.

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25,000 defaulting taxpayers to be persuaded to file GST returns by Nov 30

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The Network (GSTN) along with tax officials have decided to persuade 25,000 taxpayers, who have defaulted to file their GSTR-3B returns by the November 20 due date for the month of October, to file the same.


Tax officials have been directed to follow up personally with these defaulting so that their GSTR-3B returns due for October get filed by Nov 30.



These 25,000 taxpayers, who have not yet filed their returns, were identified on the basis of last month’s statistics, said sources in the Department of Revenue on the condition of anonymity, after a high-level review meeting of the officials.


According to sources, in the review meeting, it was highlighted that about 25,000 top of the last month have not yet filed their returns this month. Also, that so far this month, about 80 lakh GSTR-3B returns have been filed. It was also decided at the meeting that all such who have not yet filed their returns shall be sent SMS and email communications and the GST registration cancellation process can be started for about 5.43 lakh taxpayers who have not filed

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