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]

The author has expressed his opinion on proposed GST rates. the rate is ranging from 6% to 26%. the rates may give room to the dealer to mis classify their product in the lower tax bracket to save on tax payment . thus the rates should be such that all items are taxed in 12% and 18% rate and sin tax be 18% plus %. the link is given below for further reading .

 

[Ganeshan Kalyani]

In GST council meeting today, four slab have been set at 5%, 12%, 18% & 28% for different items. These tax rate must be approved by Parliament.

[Ganeshan Kalyani]

Finance Minister said that the Government has kept about 50% of products in the consumer basket, such as food grains, as "zero rated".

[Ganeshan Kalyani]

The GST panel also approved Cess on tobacco, luxury products and sin items.

[Ganeshan Kalyani]

To keep inflation in check, essential items including food, which at present constitute roughly half of the consumer inflation basket, will be taxed at a zero rate. The lowest rate of 5 per cent would apply to common use items.

Source: NDTV

[Ganeshan Kalyani]

The peak rate of 28% will apply to luxury goods. Luxury cars, tobacco products and aerated drinks will attract an additional cess on top of the highest tax rate.

Source : NDTV

[Ganeshan Kalyani]

The tax rate agreed upon today must be now be approved by parliament, which meets from November 16 for the winter session.

[Ganeshan Kalyani]

Fitment or categorization of items for each slab will be done by officials and will then be approved by the GST council, Mr Jaitley said.

Source : NDTV

[venkataraman swaminathan]

Sh.Ganeshan Kalyani Ji,

Good Morning,

Presently We are a manufacturer as a job worker and following Rule 10 A - (ie. adopting 110% of COP (or) Sale price of Prinicipal manufacturer ). How - manufacturer - job worker - dealt in G S T LAW . Your view will help us . ( pls give ref section in draft G S T Law )

Thankis

V Swaminathan

[SUNTHARRAJEN P S]

GST regime is round the corner and it will create a substantial change in the Indian Economy.Now the biggest challenge is whether Manufacturers/Traders be relieved from the submission of Concessional Forms like C,F,E-I,E-II,I etc etc etc.As the CST is re introduced as IGST,whether these concessional forms will be abolished or not is a big question.Members valuable views solicited.

[Ganeshan Kalyani]

Sir concessional form will not be there under GST . full tax need to be paid on interstate transaction . even for stock transfer .

[Ganeshan Kalyani]

CHAPTER - XIA

JOB WORK

43A. Special procedure for removal of goods for certain purposes

(1) The Commissioner may, by special order and subject to conditions as may be specified by him, permit a registered taxable person (hereinafter referred to in this section as the “principal”) to send taxable goods, without payment of tax, to a job worker for job-work and from there subsequently send to another job worker and likewise, and may, after completion of job-work, allow to-

(a) bring back such goods to any of his place of business, without payment of tax, for supply therefrom on payment of tax within India, or with or without payment of tax for export, as the case may be, or

(b) supply such goods from the place of business of a job-worker on payment of tax within India, or with or without payment of tax for export, as the case may be:

Provided that the goods shall not be permitted to be supplied from the place of business of a job worker in terms of clause (b) unless the “principal” declares the place of business of the job-worker as his additional place of business except in a case-

(i) where the job worker is registered under section 19; or

(ii) where the “principal” is engaged in the supply of such goods as may be notified in this behalf.

(2) The responsibility for accountability of the goods including payment of tax thereon shall lie with the “principal”.

[Ganeshan Kalyani]

The Second day of meeting of GST Council remained inconclusive and state FM s to meet on November 20, 2016 to further discuss and sort out the differences.

[Ganeshan Kalyani]

Government of Goa

Department of Commercial Taxes

Panaji-Goa

Procedure for enrollment of existing VAT Dealers on the GST System Portal

1. All registered Dealers under VAT or their Authorized Representatives should visit their respective Ward offices between 09/11/2016 to 11/11/2016 and collect sealed envelope containing their provisional ID and Password for use in completing online pre-registration under GST.

2. After Collecting provisional ID and Password , the Dealer should keep ready a) Valid email address ; b) Valid mobile number ; c) Bank Account Number ; d) Bank IFSC ; e) Scanned business Constitution documents E.g. Partnership deed, Registration Certificate of Company, etc. in PDF or JPEG format, max. size 1 MB; f) Photographs of Proprietor/Partners/Directors/Authorized Signatory in JPEG format, max. size 100 KB ; g) Authority letter for Authorized Signatory in PDF or JPEG format, max. size 1 MB ; h) Scanned copy of Bank Pass Book first page and another page showing few banking transactions in PDF or JPEG format, max. size 1 MB before proceeding for online pre-registration.

3. Dealer has to visit www.goacomtax.gov.in Portal and click on the Link “Provisional Registration for GSTIN and follow instructions by using provisional ID and Password Collected from Ward Office.

4. The online provisional registration on GST System Portal should be completed by all existing Dealers between 14/11/2016 to 29/11/2016.

5. For completing provisional registration, the Dealer needs to save every page after filling all the details by clicking on “Save and Continue” button at the bottom of each Page.

6. Please refer to Frequently Asked Questions (FAQ) available on Department website www.goacomtax.gov.in before proceeding for online pre-registration and in case of any difficulties faced in completing online provisional registration, please contact Helpdesk at respective Ward Offices.

7. Please complete your Online Provisional Registration on or before 29/11/2016 and ensure your smooth migration to GST regime and secure all benefits under transitional provisions under the new GST regime.

Dipak M. Bandekar

Commissioner of Commercial Taxes

Government of Goa.

Place: Panaji Goa

Date: 02/11/2016.

[Ganeshan Kalyani]

Sharing an article :

After much to-ing and fro-ing, the centre and states have agreed on the rates of the goods and service tax (GST). A five-slab structure of 0%, 5%, 12%, 18% and 28% has been finalized, with some demerit goods taxed above 28% and cess on them has been retained.

The issue of administrative control over assesses is still to be thrashed out. The rates at which individual items are to be taxed is yet to be decided, which could explain the lack of enthusiasm in the market, which is anyway nervous at the prospect of a Trump win in the US presidential elections.

Given the long run-up to the GST agreement, part of the macro benefits such as the formation of a unified market for the country and supply-chain benefits should have been priced into the markets by now. But analysts say the impact of GST-related developments on individual stocks will be felt only after product-wise tax rates are fixed. Also, the multiplicity of rates may lead to a whole lot of litigation by firms, so the uncertainty may persist.

Coming to the macro-level impact, economists highlight that the multi-tier rate structure mirrors the current indirect tax regime; it seeks to ensure that prices do not vary significantly from where they are and almost 50% of the Consumer Price Index (CPI) basket is exempted from tax, hence a marginal surge of 15-20 basis points is foreseen in CPI inflation. A basis point is 0.01%. But service tax is expected to inch higher-HDFC Bank Ltd said in a note that it sees service tax going up from 15% to 18%.

While the aim of multiple tax slabs is to minimize the impact on inflation and government revenues, growth could take a hit in the near term. “The perception that goods will become cheaper after the GST could prompt consumers to postpone purchases of high-value consumer goods. Therefore, if the GST is implemented from April 2017, there could be a slightly negative impact on consumer demand in the run up to its implementation (i.e., in Q1 2017),” said a Nomura report. That is apart from the adverse impact it may have on the unorganized sector.

Also, for benefits of GST to start reflecting in India’s gross domestic product (GDP) it could take more than two years, the caveat being successful integration. “The bump-up in GDP on GST implementation would not be more than 0.5%,” said Madan Sabnavis, chief economist at CARE Ratings.

The multiple rates will make things complicated from a compliance perspective and could dilute some benefits of the GST system. Given the prevailing ambiguity on many aspects, a Religare Institutional Research report calls GST a leap of faith, adding that even though the structure scores high on progressivity and inflation neutrality, it is against the very essence of a simplified tax regime. There are also challenges such as getting the IT infrastructure in place followed by training of tax officers for a smooth integration.

In short, while GST is now likely to be a reality soon, much depends on its implementation.

Source : livemint

[Ganeshan Kalyani]

The Second day of meeting of GST Council remained inconclusive and state FM s to meet on November 20, 2016 to further discuss and sort out the differences.

[Ganeshan Kalyani]

Sharing an article on GST rate.

The concern discussed is that single rate is adopted countries like Singapore and Australia . the same was expected in our country as well. but the different tax slab proposed in GST is again a challenging .

 

[Ganeshan Kalyani]

Sharing an article on How India is on a verge of turning its good tax bad.

http://www.gstindia.com/gst-how-india-is-on-the-verge-of-turning-its-good-tax-bad/

[Ganeshan Kalyani]

Sharing an article on tax rate . CII states that GST rate to be one or two tax slab rate.

 

[Ganeshan Kalyani]

Sharing an article on impact of GST rate on company .

[Ganeshan Kalyani]

Sharing an article -

All India Gems and Jewellery Trade Federation made representation for GST @1.25 % .

 

[Ganeshan Kalyani]

Sharing an article :

Consumers Electronics Manufacturers Association made representation for 18% GST rate.

 

[Ganeshan Kalyani]

The Government has listed GST related bills to be tabled in upcoming winter session. These are: The Central Goods and Service Tax Bill, Integrated Goods and Services tax bills and GST (Compensation for loss of revenue).

[Ganeshan Kalyani]

The GST Council at its meeting on November 4 failed to reach a consensus on which category of assessees would be governed by the Centre and which by states.

Majority of states want a dual control structure. Below ₹ 1.5 crore turnover, states should tax, above ₹ 1.5 crore, it can be vertical division,” Issac said.

 

[Ganeshan Kalyani]

Dr Jitendra Singh said that the State of Jammu & Kashmir and the business community will have to come out of the mindset of being ‘subsidy seekers’ and instead aiming at becoming ‘subsidy givers’.