Most Of The Businessmen Will Be Out Of Cash GST Payment

Most of the businessmen will be out of cash GST payment, the Finance Ministry said- the effect of impact on small and medium industries is wrong.

The questions are being raised by the Finance Ministry regarding the new rule of a cash payment of one percent of the GST dues.

In particular, the Finance Department’s Revenue Department considers this claim of the people completely baseless that this new rule will have a bad effect on the small and medium industries of the country.

Sources in the revenue department said that there are 12 million GST paying enterprises in the country.

Of these, barely 40-45 thousand industries or registered institutions i.e. only 0.37 percent of enterprises will apply the rule of paying one percent cash GST.

Most of the businessmen will be out of cash GST payment. In this way, there is no change in the rules for most of the small or medium industries.

On the recommendation of a committee of the GST Council.

The Revenue Department implemented the rule a few days ago that entrepreneurs with a monthly turnover of more than Rs 50 lakh will have to pay one percent of their total GST payment in cash.

The department said that this has been done to prevent the disturbances in GST payments.

Now the revenue department sources have said that the traders have made a mistake in understanding the rule.

One percent is to pay the total tax due, while the news is presented as if one percent of the total monthly turnover has to be paid in cash.

We have taken this step to remove the problem of fake invoices.

If a businessman has a turnover of one crore rupees in a month and if his total GST liability is 12 lakh rupees at the rate of 12 percent, then he has to pay one percent i.e. just 12 thousand rupees in cash.

Sources in the department said that due to this rule, very few industries will come anyway. There are 1.2 crore GST paying institutions in the country.

Out of these, there are four lakh taxpayers whose supply size is more than 50 lakh rupees. Of these, there is only 1.5 lakh who pay GST in cash.

The new rules will not apply to all of them, Most of the businessmen will be out of cash GST payment because these industries have got many types of discounts in large numbers.

We estimate that the rule of giving one percent cash will apply to those paying 40–45 thousand GST, which is just 0.37 percent for GST payers.

Our effort is to prevent all kinds of irregularities in GST payments as soon as possible.