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

[YAGAY AND SUN]

Draft GST laws ready for Parliament, but ‘money bill’ route is problematic

Rajya Sabha, in which the BJP does not have majority, cannot reject finance bills.

[YAGAY AND SUN]

GST impact on inflation to be less than 20 bps: Nomura

[YAGAY AND SUN]

GST: Centralized assessment for service-oriented industries likely

As per a proposal being discussed in GST council, a common pool of officers from the centre and states could carry out the assessment for certain service sectors

[YAGAY AND SUN]

Protect tobacco farmers' interest in GST laws: FAIFA

[YAGAY AND SUN]

Finally, GST is coming in July: A primer on India's biggest tax reform

[YAGAY AND SUN]

I want entire country to discuss, understand GST, says Narendra Modi

[Ganeshan Kalyani]

As per the draft GST Law, every person who, on the day immediately preceding the appointed day, is registered or holds a license under an earlier law, shall be liable to be registered under this Act with effect from the appointed day.

[Ganeshan Kalyani]

Provisional ID is a 15 digit number which should be read in the following manner:

1. First 2 digits reflect state code

2. Next 10 digits are your PAN

3. Next digit represents entity number of the same PAN holder in a state

4. Next two digits are default numbers for tax authorities internal purposes.

[Ganeshan Kalyani]

Nomura report has said that the implementation of Goods and Services Tax (GST) is likely to be fiscally neutral and its impact on inflation is expected to be less than 20 basis points.

[Ganeshan Kalyani]

According to the Japanese financial services major, the GST council is making steady progress and is expected to be implemented in the July-September quarter this year.

[Ganeshan Kalyani]

As per reports, though the impact of GST is likely to be minimal, growth numbers are expected to get affected in the run up to its implementation.

[Ganeshan Kalyani]

Commenting on the issue, a Nomura Official told the media, “In the near term, we expect the GST to be fiscally neutral, the resulting inflation impact to be minimal at less than 20 basis points and the impact on growth to be marginally negative in the run up to its implementation.”

“Over time, we expect the elimination of cascading taxes and its simplified tax structure to boost productivity, lower costs, aid in the formalisation of the economy and result in large revenue benefits for the government,” he added.

[Ganeshan Kalyani]

With Vulcan's wide geographical reach built around large consumer hubs and centralized technology infrastructure, Vulcan is all set to emerge as the network of choice for companies looking to become GST compliant in a short span. The design of the network is eminently suited to the requirements of the impending GST regime, which is a destination based tax.

[Ganeshan Kalyani]

“Refund” under VAT includes refund of tax on goods and/or services exported out of India or on inputs or input services used in the goods and/or services which are exported out of India, or refund of tax on the supply of goods regarded as deemed exports, or refund of un-utilized input tax credit.

[Ganeshan Kalyani]

5 key things to know regarding refunds under GST:

1. Time limit for refund of tax or interest is two years.

2. To prevent lockin of capital of exporters, a provision has been made to refund, within seven days of filing the application for refund by an exporter, ninety percent of the claimed amount on a provisional basis.

3. Tax refund will be directly credited to the bank account of applicant.

4. Refund to be granted within 60 days from the date of receipt of complete application. Interest is payable if refund is not sanctioned within 60 days.

5. Refund claim along with documentary evidence is to be filed online without any physical interface with tax authorities

Thanks.

[Ganeshan Kalyani]

  Pepsico Chairman and CEO Indra Nooyi is learnt to have pitched for a lower GST rate on healthier beverages. Nooyi, who is on an India visit, met Finance Minister Arun Jaitley on Wednesday.

[Ganeshan Kalyani]

The GST Council will be conducting its 13th meeting on March 31 to discuss rules under GST and possible exemptions. GST Rates would be finalised post 13th meeting.

[Ganeshan Kalyani]

On GST Rates, Najib Shah, chairman of CBEC said, while “it is one of the biggest challenges” a committee of members from both states and center is looking into it. The aim is that closest slab should fit in most of the commodities.

[Ganeshan Kalyani]

Strong representations are being filed to continue existing exemptions available to SEZs through Commerce Minsitry.

Shah further said the exemptions will have to be minimum in GST. Exemptions promised will either phase out slowly or will be supported through Budgetary routes.

[Ganeshan Kalyani]

The most talked about highlight of the Model GST l Law (November draft) is a provision that enables government to constitute an authority to monitor the prices of goods and services under GST regime to ensure that any reduction in a business’ effective cost, or in the tax rate on goods and services as a result of the introduction of GST, is passed on to consumers in the form of appropriately reduced

[Ganeshan Kalyani]

Currently, lot of industries are plagued with different types of credit restrictions. For e.g. service provides do not credit of VAT paid on inputs procured. Such VAT paid only adds onto the cost.

[Ganeshan Kalyani]

Hard quote interpretation of Section 163 of Model GST Law mandates passing on of the benefit accrued because of additional input tax credit or reduced tax rate to consumer.

[Ganeshan Kalyani]

Currently, lot of industries are plagued with different types of credit restrictions. For e.g. service provides do not credit of VAT paid on inputs procured. Such VAT paid only adds onto the cost.

Another reason that can trigger anti-profiteering is reduction is prices due to reduction in tax rate. Therefore, if the tax cost of a product under GST regime gets reduced vis-a-vis tax cost of such product under non-GST regime, such benefit should be passed on by the supplier to the recipient of the supply.

The model GST Law in its current shape does not throw light on procedural aspects as to how this task will be undertaken, when does it start, how will excess profit be measured etc.

Such a concept was introduced in Malaysia too while implementing GST wherein price control was done through amendments to Price Control and Anti-Profiteering Act, 2011 in 2014 read with Pric (e Control and Anti-Profiteering (Mechanism to determine unreasonably high profit)(Net profit margin) Regulations, 2014.

These regulations specify a certain period during which increase in net profit margin will be under consideration through checks like tax imposed, supplier’s cost, demand and supply conditions, cost incurred in course or furtherance of business etc.

It remains to be seen how Indian government shapes up the enabling provision to ensure passing of reduction in cost under GST to consumers.

[Ganeshan Kalyani]

Sharing a link on GST.

http://www.gstindia.com/gst-law-a-look-at-the-tax-returns-you-need-to-file-and-when-to-file-them/

[Ganeshan Kalyani]

In the GST regime, a pay-first-and-get-refund system is preferred over tax exemption because an uninterrupted chain of value addition with tax at each stage is integral to the proposed tax on consumption.