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Goods and GST Bill passed, Goods and Services Tax - GST |
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Goods and GST Bill passed |
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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 Showing Replies 1276 to 1300 of 1401 Records Page: 1 ....484950515253545556........ 57
The new registrations under GST would start from 25 June.
The Government also clarified that the provisional GST Number allotted to the taxpayers would be the final GST Number and this would not change.
Details of relaxed return filing procedure under GST (Applies for July and August 2017)
The official date of introduction date of GST has been notified as 1.7.2017 - Goods and Services Tax
Welcome GST
In the GST era, there is one set of reporting that you are doing, but there are several parties who are reporting what their transactions with you are. GSTN as a common database consolidates and has unified view of what your business is. It also has connections with the customs, banking channels, income tax and so on. And it gives the taxman a full view of what you are reporting to each entity.
What this eventually means is that it was easier to be a non-compliant earlier. I could rely on my chartered accountant and tell him, “Okay, this year I want to pay this much tax, please prepare my books accordingly.” But, now this would become very difficult because others have reported to GSTN and hence tax authorities know all the details.
One of the fundamental shifts that companies need is to ensure that the books of account that they maintain are fully in sync with GSTN and they are reconcilable to an external third party. Every transaction that flows into your bank should be aligned to some other transaction which is reported by someone else.
Dear Sir We are having Closing Balances in our Cenvat credit records for CESS & SHE CESS in INputs/ Capital Goods & Input service credit account and reported in JUNE 17 ER1. Can we use & Utilize these closing balances in carry forward to G S T returns and to use GST payable from JULY 17 from the Electronic credit ledger of GST and Can GSTN allow these credits for utilization of GST payable . Request your guidance please Thanking you v Swaminathan
No sir you cannot carry forward the utilised credit of education cess and secondary higher education cess to GST.
Principal Revenue Secretary Somesh Kumar on Friday assured building contractors engaged in government projects that additional tax burden, if any, as a result of Goods and Services Tax will be borne by the State government. In doing so the government would, however, be taking into consideration benefit accruing to them on account of the Input Tax Credit (ITC). Speaking to the media on the sidelines of a seminar on GST organised by the Builders Association of India (BAI) here, Mr.Kumar said hitherto works contract attracted two levies - value added tax at the rate of 5% and service tax depending on the work. Also, no ITC was available to the builders. Though the levy under GST is set at a higher, 18% rate, it is accompanied by ITC availability. Builders thus get to avail ITC accruing on purchase of raw materials such as cement, steel and bitumen. “In effect, the net [tax] will not be 18%,” he said, addin g the change, however, had given rise to a lot of doubts among the builders. They are also concerned about GST’s impact on their working capital. Noting that the seminar is to discuss the issues, he said government tender conditions stipulate that any mid-course increase in the tax levy would be borne by the government. Under GST too, the government would bear the burden but after deducting the benefit on account of ITC. “Net of tax will be paid… on that count there should be no doubt,” he said, pointing out that projects involving more consumption of cement and steel, the ITC would be higher. In such cases, the burden on builders would not be much, he explained. But in case the work involves use of sand, there will not be any ITC and the burden will be higher. For government, if the tax to be paid by the builders is high it meant an outgo, while a lower incidence would translate into savings. All the apprehensions of the builders can be addressed easily, Mr.Kumar said, adding: “We will discuss project by project” and accordingly make recommendations to the government. National vice president of BAI S.N.Reddy said the only demand of the builders was that all statutory levies pertaining to the projects should be reimbursed by the government. Despite a higher rate, the sector is likely to benefit under GST regime due to availability of ITC, he said, adding over the next few months the builders would be able to ascertain the benefits. Stating that the levy under GST on irrigation projects had gone up from 5% to 18%, Mr.Kumar said a meeting was held recently under the chairmanship of Special Chief Secretary and another, to assess the impact, is to be held on July 17. On the transition to GST and impact on traders, the official replied it was business as usual. Since doubts lingered, the Commercial Taxes Department was conducting outreach programmes in all districts as well as sector specific meetings with respective trade and industry associations.
A week ahead of the goods and services tax (GST) roll-out, a visibly stressed chairman of the GST Network (GSTN), NAVIN KUMAR, says that it (the IT backbone of the GST) will be ready by July 15. Although confident of the software, Kumar tells Dilasha Seth it will stabilise over three-four months from the GST introduction.
Online Information Database Access and Retrieval services (OIDAR) is a category of services provided through the medium of internet and received by the recipient online without having any physical interface with the supplier of such services. E.g. download of an e-book online for a payment would amount to receipt of OIDAR services by the consumer.
The IGST Act defines OIDAR as services whose delivery is mediated by information technology over the internet or an electronic network and the nature of which renders their supply essentially automated involving minimal human intervention. These include electronic services such as: (i) Advertising on the internet (ii) Providing cloud services (iii) Provision of e-books, movie, music, software and other intangibles through telecommunication networks or internet (iv) Providing data or information, retrievable or otherwise, to any person in electronic form through a computer network (v) Online supplies of digital content (movies, television shows, music and the like) (vi) Digital data storage (vii) Online gaming.
5 Key questions concerning OIDAR under GST are: Q1. How would OIDAR services be taxable under GST? What happens in cases where the supplier of service is located outside India and the recipient is located in India? In such cases also, the place of supply would be India and the transaction would be amenable to tax.
Q2: Who will be responsible for paying the tax? Now what happens if the supplier is located outside India and the recipient in India is an individual consumer? In such cases also, the place of supply would be India and the transaction is amenable to levy of GST. But the problem is, how would such tax be collected? It would be impractical to ask the individual in India to register and undertake the necessary compliances under GST for a one off purchase For such cases the IGST Act provides that on supply of online information and database access or retrieval services by any person located in a non-taxable territory and received by a non-taxable online recipient, the supplier of services located in a non-taxable territory shall be the person liable for paying integrated tax on such supply of services. Now if an intermediary located outside India arranges or facilitates supply of such service to a non-taxable online recipient in India, the intermediary would be treated as the supplier of the said service, except when the intermediary satisfies the following conditions: (a) The invoice or customer’s bill or receipt issued by such intermediary taking part in the supply clearly identifies the service in question and its supplier in non-taxable territory (b) The intermediary involved in the supply does notauthorise the charge to the customer or take part in its charge. This means that the intermediary neither collects or processes payment in any manner nor is responsible for the payment between the non-taxable online recipient and the supplier of such services (c) The intermediary involved in the supply does not authorise delivery (d) The general terms and conditions of the supply are not set by the intermediary involved in the supply but by the supplier of services
Q3: How would the entity located outside India comply with the responsibilities entrusted under GST? In case there is a person in the taxable territory (India) representing such overseas supplier in the taxable territory for any purpose, such person (representative in India) shall get registered and pay integrated tax on behalf of the supplier. In case the overseas supplier does not have a physical presence or does not have a representative for any purpose in the taxable territory, he may appoint a person in the taxable territory for the purpose of paying integrated tax and such person shall be liable for payment of such tax.
Q4: Who is a Non-Taxable Online Recipient? The expression “governmental authority” means an authority or a board or any other body:
Q5. What are the examples of OIDAR?
In a typical indirect tax system, there are two ways of paying taxes. one, under forward charge and second, under reverse charge.
Forward charge means that supplier of goods and/ or services charges/ recovers tax from its customer and pays to government whereas reverse charge means that recipient of goods or service has to pay tax goods and/ or services purchased by it. Under reverse charge, recipient gets Input Tax Credit (ITC) of tax paid.
Primarily reverse charge is made applicable where government feels that it would not be able to catch hold of supplier e.g. unorganized market (person without GST registration), import of service and/or goods (supplier is outside India).
Under GST, section 9(4) of the CGST Act, 2017 states that if a person registered under GST purchases goods and/ or services from unregistered person then the tax shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.
From reading of the section, it transpires that if you are registered under GST and you purchases goods and/ or services from person not registered under GST, then you will have to pay GST under reverse charge. However, you will get ITC of GST paid.
After introduction of this provision, there were several representations made by various stakeholders highlighting how difficult it would be for the industry to comply with it as almost every tax payers make procurement from unregistered supplier. Old Query - New Comments are closed. |
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