GST update: Banks' registration in every state mandatory
Previously, banks had urged the NDA government to consider their proposal to have a centralized registration system under the GST regime, as multiple registrations could lead to procedural hiccups resulting in compliance problems. The government has now ruled out their demand saying that banks would have to maintain separate registration for every state they currently operate in. Here's all you need to know.
No relaxation, says Adhia
Revenue Secretary Hasmukh Adhia said that the banks would have to get GST ready, the government will not entertain any excuses and they have no other option but to comply with the norm and get registered in every state they operate. Adhia said that the government will do its bit to ease the hassles but will not make exceptions.
Adjustments have been made
Center has already shown relaxation by allowing banks to file a single monthly invoice for every state instead of having to file multiple invoices for every transaction, like others. To note the point, financial services fall under 18% GST slab, up from erstwhile 15%, therefore; post-July 1, for every Rs. 100 paid for banking transactions, one would need to pay Rs 3 extra.
UIDAI asks agencies to prioritize taxpayers
Meanwhile, Unique Identification Authority of India (UIDAI) has asked its enrolment agencies to give priority to taxpayers, seeking to update their phone numbers prior to July 1 when GST kicks in. The taxpayer has to be physically present as the update would need biometric authentication from the holder's end and they will be charged a fee of Rs. 25 for the same.
Small businesses are still not ready
Although GST will roll out from July 1, the Confederation of All India Traders (CAIT) has said that the small businesses are still struggling to have a solid grasp on the technology needed for the same. CAIT said that since more than 60% of the small businesses do not make use of digital technology in day-to-day operations, GST compliance has become a challenge for them.
