GST liability: Only 0.37 per cent of firms in one per cent cash payment group

NEW DELHI:  The mandatory requirement of 1 per cent cash payment of a company’s GST liability coming into effect from January 1 would be applicable to about 45,000 taxpayers, according to a report.

This roughly translates to about 0.37 per cent of the total businesses registered in the GST system.

According to a PTI report, sources said that out of the total GST taxpayer base of 1.2 crore taxpayers, only around 4 lakh taxpayers have a monthly supply value greater than Rs 50 lakh.

Of these, only about 1.5 lakh pay less than 1 per cent of their GST liability in cash.

“Now, when the exclusions in the rule are applied, then around 1.05 lakh taxpayers get further excluded from these 1.5 lakh taxpayers. Thus, the rule would apply only to approx 40,000 to 45,000 taxpayers. This would be around 0.37 per cent of the total GST tax base of 1.2 crore taxpayers,” sources said.

They added that rules have been amended to curb the menace of GST fake invoice frauds and fake firms.