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]

Returns under GST

GSTR 1- Sales Register

GSTR 2- Purchase Register

GSTR 3- Monthly return form

GSTR 4- Quarterly return for compounding dealers

GSTR 5- Periodic return by Non-Resident Taxpayer

GSTR 6- Return for Input Service Distributor (ISD)

GSTR 7- Return for Tax Deducted at Source

GSTR 8- Annual Return

[Ganeshan Kalyani]

Draft rule rules on registration, payment and invoice is published in CBEC today .

[Ganeshan Kalyani]

PPT on GST is also published in CBEC webiste.

[YAGAY AND SUN]

CBEC has released Draft Rules and Format on GST. Also sought the comments on such Draft Rules and Format by 28th September 2016.

[YAGAY AND SUN]

Congress CMs to press for 18% GST cap.

[YAGAY AND SUN]

Arun Goyal appointed Additional Secretary of GST Council

Goyal, a 1985 batch IAS officer of Union Territory cadre, is at present working as Additional Secretary, Project Monitoring Group, Cabinet Secretariat.

[YAGAY AND SUN]

GST: Paving the path for greater ease of doing business

The Goods and Services Tax (GST) is one of the most discussed topics amongst business owners, industrialists, organisational leadership teams, chartered accountants, lawyers and students of management and economics. Touted as the biggest tax reform of independent India, the new indirect tax regime is on its way to become a reality starting 1st April 2017. The final rollout of the GST bill will have a significant impact on every business and consumer, in the new, unified national common market that India is poised to become. In this regard, Trade Association of Information Technology (TAIT) organised a workshop for its members to appraise them on the impact of GST on the India’s indirect tax structure for IT, Telecommunications and Electronics products, solutions and services.

Mr Rajeev G. Varaiya, Partner, Damania & Varaiya briefed TAIT members on the various nuances related to GST. He spoke at length about the present taxation structure in India, global adoption of GST, India’s Model GST Law, GST compliance and reporting norms, taxes to be subsumed into GST and exclusions from GST. Talking about the benefits of GST and its positive impact on the IT industry he said, “The landmark GST bill passed in the Monsoon Session of Parliament is expected to simplify indirect taxation, roll out single and uniform GST rates across the country, with a transparent tax structure. It will create a seamless tax credit mechanism across the business value chain. The GST legislation will improve competitiveness of Indian industry as the cascading effect on input costs and cost of compliance are expected to fall significantly. IT service providers will be able to set-off input GST on the purchase of goods required to set up IT infrastructure, against their output liabilities, even as the cascading effect of multiple taxes decreases.”

GST being a destination based tax is widely expected to smooth conduct of business in the country with faster movement of goods, easy and unified compliance by reducing classification hassles, and avoid distortions due to multiplicity of levies and exemptions. It will increase market buoyancy and help to expand the organised sector.

Mr. Varaiya also explained various situations where a tax refund would arise – excess payment due to inadvertent error or clerical mistake; in the case of exports, including deemed exports (refund shall not be applicable in cases where the goods exported are subjected to export duty); finalisation of provisional assessment; refund of pre-deposit in case of appeal or investigation; refund of tax paid in the case of transactions with UN bodies, CSD Canteens, para-military force canteens etc., and refund of Input Tax Credit in case of inverted tax structure. However, he did caution that the overall cost of taxation may rise if CGST, SGST and/or IGST rates are fixed at relatively higher levels. Sharing his viewpoint on the GST legislation, Mr Rushabh Shah, President, TAIT said, “Currently, total tax on software is 15% Service Tax and 5.5% VAT, adding up to 21.24% on base price. Software is taxed twice by means of Service Tax and VAT, but with the implementation of GST, this will be reduced to a single tax. As an industry body, we really hope that in the new GST regime the rate will be revenue neutral and not exceed 18%.

GST will play a key role in bringing transparency into India’s indirect tax regime. It will bring uniformity and ease taxation woes of industry as a whole and the IT-ITeS sector. With modifications expected to credit policy on both purchase and sales of raw materials, semi-finished goods, software and services, business owners and finance managers may need to revise their estimates of working capital. There would also be a need to implement robust IT systems and impart staff training at all levels.

Posted by: DQINDIA Online

[YAGAY AND SUN]

Tax department unveils draft rules for registration under GST

In less than a week after the first meeting of the GST Council, the tax department today came out with three draft rules and their formats relating to registration, invoice and payments which would be finalised by week-end. The Central Board of Excise and Customs (CBEC) has invited comments on draft rules by Wednesday. The draft rules provide for online registration by residents within three days of submission of application. For non-residents who will come under the purview of GST, they will be required to electronically submit the application for registration at least 5 days prior to the commencement of business and shall also deposit full tax liability in advance.

The government aims to implement the new indirect tax regime Goods and Services Tax (GST) from April 1, 2017, and to that effect the GST Council will hold its second meeting on September 30. The meeting would finalise rules for GST. The draft rules also provide that if a tax official fails to take action on registration application within a stipulated time frame, the application for grant of registration shall be deemed to have been approved.

As per the draft norms, the applicant seeking registration will have to submit PAN, mobile number, email address on the common portal or through a facilitation centre. The tax authorities will use PAN, one time password and Aadhaar number to verify the details of the applicant. In case all documents are in order, the tax official will approve registration in three working days from the date of submission of application.

In case there are defects, the applicant has to be intimated within three working days and after receiving clarification, he will be granted registration within 7 days from the date for receiving of reply.

There will also be a provision for grant of separate registration for business verticals of the same organisation.

The rules also provide for suo moto registration of person who are liable but have failed to apply for registration. The rules also provide for physical verification of business premises after grant of registration.

Nangia & Co Director Rajat Mohan said, “Government is working enthusiastically and is moving with lightening speed in hitting bull’s eye for April, 2017“.

In all, the CBEC has come out with 17 rules and 26 forms for Registration, five rules and one form for Invoice and four rules and seven forms for Payment.

Invoice rules prima facie prescribed that number of details should be mentioned in an invoice e.g. Description of Goods, HSN Code of each good supplied, Quantity of Goods, Rate (Per Item), Discount Offered, Freight, Amount of tax (Under reverse charge), Electronic reference number etc.

These rules also prescribe that transporter need not carry any invoice if supplier provides invoice reference number to transporter.

[Ganeshan Kalyani]

http://www.cbec.gov.in/htdocs-cbec/gst

The draft rules is published for feedback.

[Ganeshan Kalyani]

FAQs on GST compiled by CBEC

The CBEC has published compilation of FAQs on GST covering 24 topics with over 500 questions. This is the first version based on the Model GST Law which has been released in the public domain

Click to download FAQs on GST compiled by CBEC

[Ganeshan Kalyani]

Confederation of Commercial Tax Associations (AICCTA) met on 24-09-2016 at New Delhi and passed the following resolutions

Resolution No.1:

The All India Confederation of Commercial Tax Officers Associations condemn the retention of Assessment jurisdiction of 20.87 lakh Service Tax Assesses and demands that Service Tax Assessees with a Turnover limit of ₹ 1.5 crore per annum to be rendered of the jurisdiction of the States. The GST Council's decision to keep all the Service Tax Assessees within the jurisdiction of the Central Government goes against the principle and spirit of GST. This is a glaring instance of the Central Government's attempt to impose hegemony on the States in stark and blatant violation of the principles of federalism. The AICCTA demands the Union Finance Minister and the GST Council to reconsider the decision of retaining jurisdiction over 20.87 lakh Service Tax payers, and instead, roll it back by giving jurisdiction to the States on Service Tax Assessees. The desirable Turnover limit for States jurisdiction should be all Assessees with a Turnover limit of less than ₹ 1.5 crore.

Source TIOL

[Ganeshan Kalyani]

Additional rules and report published today.

http://www.cbec.gov.in/htdocs-cbec/gst/draft-rules-format

[YAGAY AND SUN]

This is to inform you that the list of GST Draft Rules and Formats have been updated on the CBEC’s website. Please click on the appended link to check, at length.

http://www.cbec.gov.in/htdocs-cbec/gst/draft-rules-format

1. Draft Return Rules
2. Draft Return Formats
   1. GSTR 9B
   2. ITC Mismatch Report
3. Draft Refund Rules
4. Draft Refund Formats
5. Draft Registration Rules
6. Draft Registration formats
7. Draft Payment Rules
8. Draft Payment formats
9. Draft Invoice Rules
10. Draft Invoice formats

[Ganeshan Kalyani]

KPMG and FICCI sign MoU to launch GST awareness campaign across India.

[Ganeshan Kalyani]

Turnover based HSN code mechanism introduced under GST.

[YAGAY AND SUN]

Monthly returns to be mandatory under GST

[YAGAY AND SUN]

Govt favours e-payment of GST over ₹10,000

[YAGAY AND SUN]

Govt issues draft GST procedural rules, Council to finalise them on Friday

[YAGAY AND SUN]

GST Council to finalise registration, other rules on Sep 30

[YAGAY AND SUN]

CBEC will take up 50% posts in GST Secretariat, says Najib Shah

[YAGAY AND SUN]

Life insurers want exemption from GST; general differential rates.

[YAGAY AND SUN]

If GST tax is capped at 18-20%, it will benefit chemicals industry: Ajay Durrani

[YAGAY AND SUN]

Indian Textile Industries gearing up for GST, new tax system

[YAGAY AND SUN]

GST will change the way India does business

[YAGAY AND SUN]

GST reform will also give a boost to the chemical industry by lowering the transaction cost and avoiding cascading effect on taxes