SUBSCRIBE NEWSLETTER
  • Change Language
  • English
  • Hindi
  • Marathi
  • Gujarati
  • Punjabi
  • Tamil
  • Telugu
  • Bengali
  • MF News Odisha MFD association approach GST commissioner seeking relaxation on penalty

    Odisha MFD association approach GST commissioner seeking relaxation on penalty

    Many MFDs did not obtain GST registration number after crossing the threshold limit of GST due to a lack of knowledge.
    Nishant Patnaik Aug 6, 2024

    Listen to this article

    Odisha MFD association has requested the GST commissioner of Odisha in Bhubaneswar not to levy heavy penalties on Odisha’s MFDs who did not obtain GST registration after crossing the threshold limit of Rs.20 lakh due to a lack of awareness under the section 73 of the GST act.

    The Section 73 is determination of tax not paid or short paid or erroneously refunded or input credit wrongly availed or utilized for any reason other than fraud or any wilful mis-statement or suppression of facts.

    The request was made after many MFDs received summons from the GST commissioner on the payment of unpaid GST along with hefty penalties.

    The association said that many MFDs did not obtain GST registration number post 2017 as they believed that they were receiving net commissions.

    Some MFDs have had to pay heavy penalties to the extent of Rs.50 lakh as a price of their ignorance.

    The GST commissioner assured the association that the commission will look into the matter and give relaxation under the section 73 on case-to-case basis.

    MFDs receive gross commission which is inclusive of GST. However, the government has exempted MFDs earning less than Rs.20 lakh (Rs10 lakh in hilly states like north east) across all financial products (such as insurance, p2p lending) from paying GST.

    Also, if an MFD exceeds this threshold, they need to immediately obtain a GST registration number and pay GST on incremental income in the first year and from Re.1 in the subsequent years.

    Have a query or a doubt?
    Need a clarification or more information on an issue?
    Cafemutual welcomes all mutual fund and insurance related questions. So write in to us at newsdesk@cafemutual.com

    Click to clap
    Disclaimer: Cafemutual is an industry platform of mutual fund professionals. Our visitors are requested to maintain the decorum of the platform when expressing their thoughts and commenting on articles. Viewers are advised to refrain from making defamatory allegations against individuals. Those making abusive language or defamatory allegations will be blocked from accessing the web site.
    9 Comments
    RAVI AGRAWAL · 4 months ago `
    Government are 50% partner of our income once we crossed threshold limit of 20 lack income...it's really painful
    Abhijit Kr Saha · 4 months ago `
    This is nothing But Its TAX Terrorism by our govt on us by paying double tax on single income..
    Abhijit Kr Saha · 4 months ago `
    we all ARN should unite together to make a appeal to AMFI to remove GST paying from our end.
    kkkongor · 4 months ago `
    Paying 18% tax on 1% profit is unfair comparing to other services which earn 20-30% profit
    Sunil Lalge · 4 months ago `
    The GST implementation in MF industry by AMFI is purely wrong, As all other goods or services GST is added to above thier cost. Similarly AMC s should pay GST on MFD commission to MFD. Then MFD should pay the GST to govt. And AMC can take back GST amount as input credit, so that MFD and AMC will not affect. As all other goods or services end users pay the taxes. Similarly on expense ratio AMC are collecting GST from investors, that GST should be paid to govt by AMC s.

    But all MFD associations not able convince this to AMFI or SEBI
    All india all association go to finance ministry or GST council and convince them make at par with other goods or services GST system.
    Anas A · 2 months ago
    sahi but convince kaun karega.
    Reply
    KEVAL JETHI · 4 months ago `
    Pay GST and than income tax on same income. GST should not be paid by MFD at all.
    suraj sharma · 4 months ago
    Yes
    Reply
    Anas A · 2 months ago `
    we are unite,possible hai.
    Login or Sign up to post comments.
    More than 2,07,000 of your industry peers are staying on top of their game by receiving daily tips, ideas and articles on growth strategies. Join them and stay updated by subscribing to Cafemutual newsletters.

    Fill in the below details or write to newsdesk@cafemutual.com and subscribe to Cafemutual Newsletter now.
    Cafemutual is an independent media platform and focuses on providing knowledge and information for the benefit of finance professionals. We do not promote any particular brand or asset category.