Mandatory GST Payment of 1% For 45,000 Taxpayers
- 27-Dec-2020
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The government`s decision on mandatory payment of at least 1 per cent of GST tax liability in cash will impact only around 40,000 to 45,000 taxpayers but help the entire system curb the menace of fake ITC availment, operation of fly-by-night operators, sources in the finance ministry said on Saturday.
Based on the recommendations of the GST Law Committee, the government has notified new indirect tax rules that makes cash payment of 1 per cent of GST tax liability mandatory for businesses whose taxable supply value exceeds Rs 50 lakh. This change will come into effect from January 1, 2021.
Data Of Revenue Department said, the total GST tax base of 1.2 crore taxpayers only around 4 lakh taxpayers have supply value greater than Rs 50 lakh, and only around 1.5 lakh out of these 4 lakh taxpayers pay less than 1 per cent tax in cash. So, the changes would include only a small section of taxpayers.
