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]

Reverse charge is applicable on goods and services under GST unlike in current tax regime where only service is taxed under reverse charge basis.

[Ganeshan Kalyani]

There is no threshold limit prescribed for reverse charge under GST. Also no threshold limit provision is applicable in case of interstate transaction.

[Ganeshan Kalyani]

The central excise officer prepared a report highlighting the area of improvement in the Model GST Law in line with the government's requirement. The said report will be submitted in coming weeks.

[Ganeshan Kalyani]

Dealers has more than one business vertical in state can apply for separate GST registration number. Dealers having business is various states need to get registration for each states separately. The dealer upon crossing of exemption threshold limit should apply for GST number. Some time the department can suomoto issue GST registration to the taxable person who is liable to register but has not done so. The registration is to be applied for by a taxable person within 30 days from the date when the taxable turnover is crossed. The application submitted by the dealer can be rejected by the officer. But before doing so the officer is required to give opportunity to the dealer to show cause as to why the registration application should not be rejected. The registration number so given is permanent unless surrendered, cancelled, suspended or revoked. FYI

[Ganeshan Kalyani]

Input service distributor, dealers liable to deduct TDS, casual tax payer, nonresident tax payer, dealers liable to pay tax under reverse charge, dealers impacting interstate supply and such other dealers as may be notified by the government shall required to be get registered irrespective of the exemption threshold limit. The reverse charge is applicable not only on services but also on supply of goods. (Ref. Schedule III of the Model GST Law. )

[Ganeshan Kalyani]

The U.N. consulate and embassy of foreign countries is required to get Unique Identification Number from GST Network. The input tax credit on purchases by these bodies shall get credit by way of refund. Also Government/ PSU is also required to get UIN.

[Ganeshan Kalyani]

The taxes to be levied by central government is called as CGST and that to be levied by states is called as SGST. The integrated GST is applicable in case of interstate transaction. The taxes related to supply of goods and / or supply is subsumed in GST. However products like petroleum crude, high speed diesel, motor spirit (petrol) , natural gas and aviation turbine fuel shall be out of GST.

[Ganeshan Kalyani]

Though exemption threshold is given, those dealers who want to apply for registration voluntarily under GST may apply and in such case the dealer shall be able to take input tax credit paid on purchaser. And the dealer will be able to collect tax from customer by raising tax invoice. By registering, the dealer gets a legal status of supper.

[Ganeshan Kalyani]

The Winter session of the Parliament is be begin from November 16, 2016.

[Ganeshan Kalyani]

GSTN is going to launch website to facilitate existing registration to get migrated into GST.

[Ganeshan Kalyani]

There is no threshold limit for input service distributor to get registration under GST.

[Ganeshan Kalyani]

Stock transfer /consignment Tranfer is going to be taxed in GST. The working capital of the dealer is going to affect. All confessional forms like Form C, form F , H, I, EI, EII etc is going to be abolished. The objective is pay tax and take credit. No concession.

[Ganeshan Kalyani]

GST is a biggest tax reformer subsuming indirect tax. All stakeholder need to unlearn the tax provision of VAT/ /CST, Service tax, Excise , Entry Tax etc. And learn new provision I.e. GST. Many issues shall crop up in the initial years of implementation.

[Ganeshan Kalyani]

Chhattisgarh & PUDUCHERRY TO BE FRONT RUNNERS IN ISSUING GST NUMBERS TO BUSINESSMEN

[Ganeshan Kalyani]

The Chhattisgarh Commercial Tax department will be holding a workshop on October 21 at 4pm for giving information about GST registration at CCCI Bhawan. The workshop will be attended by Commissioner and other senior officials. Helpline will also be opened to assist the businessmen for registration.

Source: GST taxation. Com

[Ganeshan Kalyani]

Citing the example of the proposed pan-India Goods and Services Tax(GST), the IMF on Friday said the country has shown that progress on reforms could attract investment and boost prospects of India’s medium-term growth.

[Ganeshan Kalyani]

Indian economy is likely to achieve 8% GDP by the fiscal end, thanks to the boost given by initiatives such as Make in India, Union minister of state for commerce and industry Nirmala Sitaraman has said. “With Jan Dhan scheme, Aadhaar, better mobile connectivity and direct benefits transfer, India is on a fast growth track,”she said.

[Ganeshan Kalyani]

The minister talked of cab aggregator Uber’s initiative ‘Uber-Pitch’ which allows startups to pitch their ideas to venture capitalists (VC) and investors. “We are open to tying up with more technology platforms for good ideas to emerge. When it comes to startups we want to talk facilitation more than regulation,” said Sitaraman, at a lecture organised by the Chennai International Centre in the city on Saturday. On the industry’s demand to levy extra duty on cheap Chinese imports, the minister said that cheaper import of raw materials has made it possible for many small and medium enterprises to flourish, in turn creating jobs.

Source: GST taxation .com

[Ganeshan Kalyani]

“Outright ban on imports in rubber, steel, copper, pepper and other commodities is not possible. We might look at putting protectionist policies in place, but within a timeframe. The industry has to be resilient from within. I do understand the concerns of large manufacturers, who fear the flood of cheap imports eating into their profit margins,” said the minister.

Source: www.gsttaxation.com

[Ganeshan Kalyani]

Hailing the Goods and Service Tax Bill, she said digitisation of all records will be one of the main drivers of GST. “Once GST comes into being, the Indian economy will be boosted by 1.5%”

 

[Ganeshan Kalyani]

Registration under Goods and Service Tax (GST) regime will confer following advantages to the business:
• Legally recognized as supplier of goods or services.
• Proper accounting of taxes paid on the input goods or services which can be utilized for payment of GST due on supply of goods or services or both by the business.
• Legally authorized to collect tax from his purchasers and pass on the credit of the taxes paid on the goods or services supplied to purchasers or recipients.

[Ganeshan Kalyani]

Without registration under GST, dealer cannot issue tax invoice, cannot collect tax from customer and cannot take input credit of the tax paid on purchases. Composition scheme opted dealer if purchased from unregistered dealer then he has to pay purchase tax.

[Ganeshan Kalyani]

Registration to be applied within 30 days from the date when the exemption threshold limit is crossed.

[Ganeshan Kalyani]

Import of goods into India shall be treated as inter state purchase . The CVD/ SAD will get subsumed and instead IGST would be levied. The credit would be allowed in full. Though both the tax got subsumed in GST, the custom duty is still going to be continued.

[Ganeshan Kalyani]

Foreign investment is expected to grow / increase with the implementation of GST. The indirect taxation would be uniform which will not be hurdle for foreign investors.