Goods and GST Bill passed, Goods and Services Tax - GST

[Ganeshan Kalyani]

Dear All,

GST Bill is passed in Rajya Sabha on 03. 08.2016.

A panel under chief economic adviser Arvind Subramanian has recommended a revenue-neutral rate of 15-15.5%, with a standard rate of 17-18% be levied on most goods and all services.

But, there has been no agreement yet on rates of various goods and services, which remains a tricky issue. According to the Bill, passed in the Lok Sabha in May 2015, the rates were to be decided by a GST council headed by the central finance minister with state finance ministers as members.

Let us wait.

Thanks.

Posts / Replies

[Ganeshan Kalyani]

Stating that Tally has constantly been making efforts to equip small businesses and traders with the right information to train and prepare themselves for the tax reform, the company said it recently qualified as a GST Suvidha Provider (GSP) by the GSTN Network.

[Ganeshan Kalyani]

In GST Council meeting beginning today – GST Council is expected to form consensus on Dual Control administration and discuss IGST Law. Thereafter, present the laws before parliament in budget session.

[Ganeshan Kalyani]

Not even a single assessee registered in J&K has converted to GST. The reason being state government has not participated in this grand transition to GST plan.

Currently, J&K is outside the purview of Service Tax. J&K is the only state in the country with powers to tax services and it want to be part of GST without compromising its constitutional position on taxing services.

[Ganeshan Kalyani]

Commerce and Industry Ministry today pressed the GST Council to keep exports out of the GST framework and levy lower taxes on labour-intensive sectors like leather, cement and plantation.

[Ganeshan Kalyani]

Commerce and Industry Minister Nirmala Sitharaman said refund of taxes takes about six to eight months and hence it is necessary to "give an ab-intio exemption".

[Ganeshan Kalyani]

Concept of centralised registration did not find space under the Model GST Law. This meant that every service provider who has single/ centralised registration will have to de-centralise and register in multiple states. Implying, multi fold increase in compliance. Mutiple assessments, audits, litigation etc.

[Ganeshan Kalyani]

Most of the service providers have centralised registration. They may be providing services from multiple state in India but have taken single registration. This make life much easier as far as compliance, tax payments, credit management, audits, litigation is concerned. But under GST concept of single/ centralised registration was taken off as things are placed state specific. This has caused nightmare for certain industries which are spread across India by virtue of their business e.g. Telecom operators like Airtel, Vodafone and Banks like ICICI, HDFC.

[Ganeshan Kalyani]

The gst enrolment process kicked off on 8th November 2016. As per the figures released in GSTN in only 7 states/UT more than 50% assessees have enroled under GST.

Following States are ahead in GST enrolment with maximum number assesses. These are:

1. Gujarat – 78.52%
2. Madhya Pradesh – 77.68%
3. Chhattisgarh – 74.66%
4. Rajasthan – 67.7%
5. West Bengal – 56.94%
6. Jharkhand – 56.47%
7. Chandigarh – 53.93%
8. Bihar – 48.8%
9. Goa – 46.69%
10. Delhi – 45.78%

[Ganeshan Kalyani]

The government will present the Union Budget 2017-18 on February 1 for the financial year starting on April 1, a senior government official said.

[Ganeshan Kalyani]

The Budget 2017-18 would be presented on February 1. The Part B of the Budget speech, which contains tax proposal, could carry half-yearly estimates of service, central excise duty and collections from other indirect taxes (excluding customs) that the Centre expects to earn between April to September, instead of full-year projections.

[Ganeshan Kalyani]

Nasscom President R Chandrashekhar highlighted the issue of de-centralized registration under GST. He said that under IT sector contracts are central but services are provided from multiple locations and are delivered within and outside India. This raises serious challenges with invoicing and input tax credit.

[Ganeshan Kalyani]

Nasscom President R Chandrashekhar says that Complex place of supply, input credit and valuation requirements, in addition to multiple registration, is leading to an unviable situation, “Our request is to allow for an option of single registration for the IT sector, without prejudice to the principles of dual control or apportionment of revenues between Centre and states.

[Ganeshan Kalyani]

National Academy of Customs Excise & Narcotics (NACEN) has released video tutorials to explain registration and refunds under GST in very simple way. You can watch the video from below links:

1. Refunds under GST

2. Registration under GST

The videos explain how refunds and registration process would work under GST. Hope you find them useful!

[Ganeshan Kalyani]

"There is some thinking of an increase in the service tax rate in case the GST is not implemented from April. A higher rate will help improve revenue and also bring it closer to the proposed standard rate under GST,” said a close source.

[Ganeshan Kalyani]

It is expected that Arun Jaitely would reveal revised GST rollout date during Budget.

[Ganeshan Kalyani]

GST Council’s next meeting on 16th January will play a very pivotal role in framing FM’s budget speech. India will have to implement GST on or before September 15, 2017

[Ganeshan Kalyani]

Current threshold under service tax law for exemption is likely to raised from ₹ 10 lacs to ₹ 25 lacs. Increasing the cap will suit startups and other small scale ventures to stay out of service tax net. It also eases compliance and administrative hassles some bit for them. A government official said.

[Ganeshan Kalyani]

Goods and Services Tax will usher in a very simple and less burdensome taxation regime as it will be a single rate indirect tax which can be paid by debit/credit cards, cheque and NEFT, Revenue Secretary Hasmukh Adhia said today.

[Ganeshan Kalyani]

The GST Council has already reached a consensus on a 4-tier tax structure i.e. 5,12,18 and 28 per cent. Besides, a cess on demerit, luxury and some more goods would also be levied.

[Ganeshan Kalyani]

“GST will indeed become a very simple and less burdensome tax for most of the people of the country. Be it manufacturers or traders. Simple tax, single compliance procedure, it will become very very simple for the people to pay taxes,” Adhia said.

[Ganeshan Kalyani]

GST taxes can be paid by way of NEFT, RTGS, cheque, and debit/credit cards etc.

[Ganeshan Kalyani]

“GST is a very very simple thing to follow, it is going to be very easy for all of you. There will not be any border restriction when you move goods from one state to another. And many of the small small taxes will go away. It will be one unified tax,” Adhia said at the Vibrant Gujarat global Summit here.

[Ganeshan Kalyani]

Vijay Prakash Kumar, CEO of GST Network, says, "We have already rolled out one of the modules, which is registration, and using that more than 28 lakh people have already enrolled as tax payers and remaining hopefully will be doing it this month by January 31.

[Ganeshan Kalyani]

The government owns 49 per cent in it, with the central and state governments owning 24.5 per cent each, while 51 per cent is controlled by private companies, including HDFC, ICICI Bank among others. Some of these private entities are controlled by foreign institutional investors (FIIs).

[Ganeshan Kalyani]

Nagesh Rao, nodal officer and Joint Commissioner of Commercial Taxes, VAT Division, Mysuru, said the window for registration for migration in Karnataka is January 1 to 15. This would ease the process of registration as there is a dedicated line and bandwidth, which would ensure that the process was completed within 15 minutes to 30 minutes.