The latest notification on GST Rules on the recommendations of GST Council’s Law Committee to curb the menace of fake ITC availment and operation of fly-by-night operators, sources in the Department of Revenue (DoR) said on Saturday.

The government's decision on mandatory payment of at least 1 percent of GST tax liability in cash will impact only around 40,000 to 45,000 taxpayers.

Based on the recommendations of the GST Law Committee, the government has notified new indirect tax rules that makes cash payment of 1 percent of GST tax liability mandatory for businesses whose taxable supply value exceeds Rs 50 lakh. This change will come into effect from January 1, 2021.

Sources in department of revenue said data indicated out of the total GST tax base of 1.2 crore taxpayers only around 4 lakh taxpayers have supply value greater than Rs 50 lakh, and only around 1.5 lakh out of these 4 lakh taxpayers pay less than 1 percent tax in cash. So, the changes would include only a small section of taxpayers.

In addition, the DoR sources said with exclusions around 1.05 lakh taxpayers get further excluded from these 4 lakh. Thus, the rule would apply only to about 40,000 to 45,000 taxpayers. This would be around 0.37 percent of the total GST tax base of 1.2 crore taxpayers.

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