GST Update: Threshold Limit, Call Centre and Dual Control

The Goods and Services Tax (GST) Council on Friday arrived at an agreement on 3 important issues – the cut-off for exemption, the draft compensation formula and the matter of dual control. Businesses having an annual turnover of up to Rs. 10 lakhs in the North-East and hill states and Rs. 20 lakhs in all other states will be subject to exemption from GST. A GSTN Call Centre to be created will be expected to manage queries on all these issues, besides other topics such as audit and inspection, refunds, settlement and input tax credit. The article discusses the recent benefits of GST and setting up of a GSTN Call Centre.

Compensation Formula, Threshold and Dual Control

While the correct compensation formula based on the revenue projection will be worked out, Arun Jaitley, Finance Minister mentioned that all cesses will be considered under the compensation from the Centre. States have mentioned that the compensation must be paid on regular – quarterly or bi-monthly intervals. On the matter of dual control, it has been decided that businesses having an annual turnover of up to Rs. 1.5 crore will be determined by the States. For those above the threshold, there will be a factor of dual control and they will be assessed either by the Centre or States based on a method for risk assessment. In the meantime the 11 lakh existing service tax assesses will be assessed by the Centre and State officials after training will start to help assess potential assesses. The next meeting of the GST Council will be on September 30 to discuss the draft guidelines and exemptions.

GST Call Centre

For a smooth transition of over 80 lakh assessees to the new indirect tax regime being put into practice from this July, the Goods and Services Tax Network is creating a call centre to answer. Since GST is a totally new tax system, and will have a novel method and timeline for filing returns, the proposed call centre will answer all technical queries related to taxpayers. The GSTN is by now involved in setting up the IT infrastructure for the novel indirect tax levy, together with a common platform for registration of assessees, filing of returns and payment of taxes. The call centre will be expected to manage queries on all these issues, besides other topics such as audit and scrutiny, refunds, settlement and input tax credit. Questions by means of phone calls as well as those received by email will be addressed. The GSTN has already floated a tender and has encouraged bids from interested entities for a period of 5 years. It aims to create the primary call centre in Delhi NCR along with a secondary or disaster recovery centre in a tier two city namely Pune, Bhopal or Vadodara. GSTN will thereby launch the Primary Call Centre in the first phase and after a period of 3 months’ time it will operate the call centre from minimum two locations as a means to limit operational risk and ensure delivery. The call centre is probable to work seven days a week between 8 am to 12 am daily. In the meantime, with taxpayers expected to sign at least 12 monthly returns and an annual return under GST each, the GSTN is too looking for an e-sign provider. Since all returns must be filed online, the facility of e-signing has to be provided to each taxpayer. The taxpayer will be probable to pay for the service. Moving ahead to put into practice the GST, training of government officials has now reached the last stage. According to data from National Academy of Customs, Excise and Narcotics (NACEN) that is responsible for the training, more than ½ of the targeted 60,000 field officials have been trained. The training of source trainers, master trainers and other trainers has too been completed.

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Frequently Asked Questions

Common questions about GST Call Centre & Dual Control Updates.

The GST Call Centre is being set up by the Goods and Services Tax Network (GSTN) to assist taxpayers in transitioning to the new Goods and Services Tax (GST) regime. It will answer technical queries related to registration, filing returns, payment of taxes, audit and scrutiny, refunds, settlement, and input tax credit under GST.

The GST Call Centre will be accessible to all taxpayers, including the over 80 lakh assessees who are expected to transition to the new GST regime from July. It will cater to queries received through phone calls and emails.

The primary GST Call Centre will be set up in the Delhi NCR region, while a secondary or disaster recovery centre will be established in a tier-two city like Pune, Bhopal, or Vadodara. Initially, the primary centre will be launched, and after three months, the call centre will operate from at least two locations to mitigate operational risks.

According to the article, the GST Call Centre is expected to operate seven days a week, from 8 AM to 12 AM daily, providing extended support to taxpayers.

The GSTN has floated a tender and invited bids from interested entities to operate the GST Call Centre for a period of five years. This approach aims to ensure adequate resources and infrastructure to handle the anticipated volume of queries from taxpayers during the GST transition.

The GST Call Centre plays a crucial role in facilitating a smooth transition for taxpayers to the new GST regime. As GST is a completely new tax system with novel methods and timelines for filing returns, the call centre will provide much-needed support and guidance to assessees during this transition phase.

According to the article, the training of government officials for GST implementation has reached the final stage. The National Academy of Customs, Excise and Narcotics (NACEN), responsible for the training, has already completed the training of source trainers, master trainers, and other trainers. Additionally, more than half of the targeted 60,000 field officials have been trained.

As all GST returns must be filed online, the GSTN is seeking an e-sign provider to facilitate the e-signing of returns by taxpayers. This facility will be essential as taxpayers are expected to sign at least 12 monthly returns and an annual return under the GST regime. The taxpayer will likely be required to pay for this service.

According to the article, businesses with an annual turnover of up to Rs. 10 lakhs in the North-East and hill states, and Rs. 20 lakhs in all other states, will be exempt from GST.

The article states that businesses with an annual turnover of up to Rs. 1.5 crore will be assessed by the respective state governments. For businesses above this threshold, a dual control system will be implemented, where they will be assessed either by the Centre or the state governments based on a risk assessment method.