After 12% GST and Mandi tax, now 2% farmers will face grievance crisis due to agriculture tax

Jodhpur, which is called Asia’s biggest ghee market, has a crisis in the ghee industry. A week ago, the government is likely to have an impact on the sale of ghee by adding a new tax of two percent as farmer agriculture. Before the lockdown, there was five thousand tin ghee sold daily, which has now decreased. The new tax will be a burden on the general public, while ghee traders fear losing competition from neighboring states.

After GST and Mandi tax, a new tax has been imposed in the name of 2 percent and Kisan Krishi Tax. Mandi tax is being taken only in Rajasthan. Mandi tax is not levied in any of the surrounding states. Now farmers have also added agricultural tax. With GST, both these taxes are to be recovered from the public. Anyway, before GST, VAT on food items including oil and ghee was charged at the same 5 percent, but after GST, there is 5 percent tax on oil, but on Ghee, there is 12 percent GST. After that, the tax was added at 1.60 percent value. Now farmers have imposed 2 percent tax directly as agriculture.

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Weekly GST Communique dated May 11, 2020

GST

Important Notifications, Circular, etc.

 • CBIC issued instruction on provisional clearance of goods under India’s Trade        Agreements 

• CBIC further extends the validity of E-Way Bill till May 31, 2020 

• CBIC further extends the due date for filing GSTR-9 & GSTR-9C for F.Y 2018-19 till September 30, 2020 

• CBIC allowed registered person under Companies Act to file Form GSTR-3B through EVC

 • CBIC amends the special procedure for corporate debtors undergoing CIRP process under IBC 2016 

Important Updates 

• GSTN has enabled new facility to adjust negative ITC while distributing ITC to its units by ISD in Form GSTR-6 

• GSTN has enabled the facility for creation of Electronic Cash Ledger and Liability Register for UIN holders

Income Tax

Important Updates 

• CNBC-TV18: Government's F.Y-20 direct tax collections are over Rs 1.2 lakh Cr 

• CBDT orders tax officials not to issue scrutiny notices to taxpayers 

Important Press Releases

 • CBDT issued clarification in respect of residency under Section 6 of the Income Tax Act, 1961

 • CBDT issued new procedure for registration, approval, etc. of certain entities deferred to Oct 01, 2020

Weekly GST Communique

GST: Audit Guidelines Need To Be Reviewed To Include Video Conferencing

GST officers would have to audit and assess taxpayers via video-conferencing instead of undertaking physical visits amid the coronavirus pandemic, and the current guidelines need to be reviewed for this, according to experts.

As per the current goods and services tax (GST) audit guidelines, taxpayers have been broadly categorised into three groups based on their annual turnover large, medium and small. While large and medium units are compulsorily under premises-based audits; for small units, desk-based audit has been suggested.

Major relief to business community in filing GST statements: Min

Bihar Deputy Chief Minister Sushil Kumar Modi on Thursday said the Centre has given big relief to business community in filling of GST statements, taking into account the slow-down due to lockdown enforced to check spread of Coronavirus.

 The date of filing annual statements of GST for businessmen with turnover of more than Rs five crores was earlier extended till June 30 and it had now been extended till September 30, he stated.