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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 51 to 75 of 1401 Records
http://www.financialexpress.com/fe-columnist/taxpayers-should-assess-which-approach-they-will-use-to-interact-with-the-gstn-system/373987/
The rate of GST applicable on pharmaceutical formulations is yet to be finalised, but it is expected that the said goods could be covered the under lower tax bracket of around 12% GST, thereby ensuring that the cost of medicines to the patients could be construed as status quo given that the generic rate applicable under the current law is typically around the same range. The pharma industry will look forward to continuation of exemption for certain life-saving drugs and Active Pharmaceutical Ingredients used in manufacture of life saving drugs. Source: ey.com
Since the rolling out of GST seems to be closer to reality with a target date of April 1, 2017, companies have already commenced working towards the transition to GST, and for the ones that have not yet started, would need to have a plan to address the challenges of crash-landing into the GST regime. Given the far-reaching impact of GST across the business organisation and its value-chain across businesses, as part of the process towards effective GST transition, companies may need to adopt a comprehensive business transformation approach. This would involve a business impact analysis, reviewing business delivery and supply-chain models, engaging with the government on issues of representation, preparing IT systems to be GST-compliant, reviewing and aligning the policies, processes and controls across the business organisation to GST requirements, and plan an effective change management programme. This would ensure zero business disruption and 100% GST compliance. Source ey.com
Tax cost on ‘goods’ The indirect tax cost on most goods is currently on the higher side. This is for the reason that most goods (for e.g. beauty products, most consumer electronics, non-luxury automobiles) attract an excise duty of 12.5% and a VAT of 12.5% to 15% depending on the State. Further, there are numerous cascading of taxes on account of levy of CST, input tax credit retention under the VAT laws, levy of entry tax/ Octroi/ local body tax, etc till the time the product reaches the end customer. A combined effect of the same leads to an effective indirect tax rate 25% to 30% in the hands of the end customer. If the standard rate of GST is 18%, then for most goods there would be a significant reduction in the overall indirect tax cost. This reduction in indirect tax cost can lead to reduction in production cost and increase in base line profits, giving headroom for reducing prices and benefiting end-users. However, for some other goods (for e.g. textiles, edible oil, low value footwear) the rate of excise duty is nil whereas VAT in most States is 5%. Thus, the overall tax cost for these kind of goods (after factoring the non-creditable taxes) is about 8 to 9%. If these goods are kept at the standard GST rate of 18% then there would be significant increase in cost for the end customers. Even if these goods are kept at the lower GST rate of 12% there would be an increase in cost for the end customers. GST’s impact on the ordinary consumerAugust 2016The Financial Express By Abhishek Jain
GST game changer for manufacturing, ease of doing business: DIPP Secretary Ramesh Abhishek
Thanks Yagay and Sun for sharing the link. But the onlookers can access these links by visiting the respective website. So why we need to paste link This is my view.
The winter session of the Parliament is likely to be advanced to second week of November. Thanks.
Dear Kalyani, We never make comments what others' are doing/replying/sharing on TMI. It has been observed that in recent past you have shared negative comment on us. It is a humble request please do not repeat in future as we are all professional and should respect each other. View/inputs/comments can be different but it is a very good platform to share knowledge to do something for others who need tips/inputs on tax matters. Thanks & Best Regards, YAGAY & SUN (Management, Business and Tax Consultants)
Government is working overtime on GST: Cabinet Secretary P.K. SinhaTerming GST reform as a “game changer”, Cabinet Secretary P.K. Sinha today said the government is working “overtime” to implement the indirect tax regime from April 1 next year. The Constitution (122nd Amendment) Bill, 2016, for introduction of the GST in the country was accorded assent by the President on September 8 and the same has been notified as the Constitution (101st Amendment) Act, 2016. “GST is the biggest game changer. But it is also a challenge. We are working overtime to make it happen from April 1, 2017,” Mr. Sinha said at the Chief Secretaries’ Conclave organised by industry chamber PHDCCI here. Government wants to implement the tax reform from April 1 next year so as to ensure a smooth rollover to the changed tax structure from the beginning of the new fiscal and to avoid mid-year alterations. Mr. Sinha assured the gathering that the GST and other path breaking reforms that the government has committed to its people will be implemented as promised. “A silent revolution is happening and despite teething problems, India would move on to accomplish the objectives and targets set in by the government in all sectors of economic activities with increased participations of all stakeholders to further improve the spirit of governance,” he said. The infrastructure sector - roads, civil aviation, energy, conventional and non-convention, power, petroleum and railways - have improved their performance as per targets, he said adding the civil aviation sector has begun to grow at the rate of 20 per cent, posing a serious challenge to railways in terms of traffic. Speaking at another session in the conclave, CEO of the Niti Aayog Amitabh Kant said: “We are trying to build a spirit of competition on ease of doing business among states.” States are now competing among themselves to attract investors and this is a positive sign, he added. He said the government is focused on innovation and trying to make India an easy simple place to do business. The government has taken various steps to facilitate further improvement, including bringing in the bankruptcy law, e-biz platform for a single channel of approvals and a national company law tribunal, he added.
An app to link check posts under State Governments as well as the Centres is in the works, the Government has said. The Government has identified 80 inter-state check points pan-India to be augmented for smooth flow of goods, ''an official said''. The official also said that an estimated ₹ 50 Crores is likely to be spent on each such check post. Thanks.
Tea Traders have appealed to the Centre to exempt tea from levy of the proposed Goods and Service Tax (GST) and remove it from the list of taxable items under the GST Act. If total exemption was not possible , at least tea should be exempted from GST at first point sale made in the public tea auction centres, licensed by Tea Board of India, Tea Trader Association of Coimbatore Chairman U V Saraf Said.
A few section of Industries has started its own preparedness for GST. However, several industries / business assesses shall have to struggle to settle down post GST. At least 'as is' preparation has been started by industries. Thanks. Old Query - New Comments are closed. |
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