TMI BlogGoods and GST Bill passedX X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - Reply By Ganeshan Kalyani - The Reply = Sir, I would like to represt below update on GST rate. All states were of the view that the tax rates put forward by the chief economic adviser are not acceptable. There was no consensus on what should be the rate. It can be 18% or above that. That was the consensus, said Kerala finance minister Thomas Isaac, adding that the states prefer to keep rates on items of mass consumption low. We know that the effective rate on consumer products today is about 30%. It will be considerably brought down. At what level, we will decide later, he said . Thanks. - Reply By Ganeshan Kalyani - The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reply = Sir, the number of registrations that is required to be taken under current indirect tax regime will be minimised in GST regime. But the number of return that will be required to be filed under GST would tremendously increase. The matching of transaction by purchaser with the seller and vise versa will require a dedicated task force in an organisation with number of location it is operating with. Thanks. - Reply By Ganeshan Kalyani - The Reply = Sir, The key amendment carried out in the Bill during the course of its passage in the Rajya Sabha include: Deletion of 1% additional tax which had been earlier proposed on all inter-state supply of goods; Full compensation to the States for first five years towards the losses if any, incurred by the States due to implementation of GST. Establishing a mechanism for adjudicating any dispute between Centre and States or between the States, arising out of the recommendations of GST Council. Thanks. - Reply By Ganeshan Kalyani - The Reply = Sir, The Government may take up the Bill for Goods and Services Tax Law possibly in the winter session of the Parliament. Thanks. - Reply By Ganeshan Kalyani - The Reply = Sir, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the GST Bill is already passed by both the house. Now the bill is required to be ratified by States. I'm this regard three States has already passed it. Assam was the first to ratified followed by Bihar and today Jharkhand has ratified the GST Bill. Thanks. - Reply By Ganeshan Kalyani - The Reply = Sir, The GST rate is discussed to be @22%. The Chief Economic Advisor has suggested for 18%. The rate across country has gst rate ranging from 7% to 21%. If 22% is chosen initially inflation is ought to come. Thanks. - Reply By Ganeshan Kalyani - The Reply = Sir, FYI. The CBEC has set up a panel to formulate a roadmap under GST on area based exemptions. As an alternative to exemptions, the companies may get the option to pay tax and claim refund thereafter. The will create cash flow issues as the the companies will first have to pay tax and then claim refund of it. Industry experts feel that industry needs assurance on benefits and ease of obtaining such benefits. (Source: From GSTupdates) . Thanks. - Reply By Ganeshan Kalyani - The Reply = Sir, 11 States have announced their intend to ratify GST Bill. Already 3 States have ratified. FYI. Thanks. - Reply By Ganeshan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kalyani - The Reply = FYI, The Bill has since been ratified by the Legislative Assemblies of Assam (12.08.2016), Bihar (13.08.2016), Jharkhand (17.08.2016), Himachal Pradesh (22.08.2016), Chhattisgarh (22.08.2016) and Gujarat (23.08.2016) and ratification by Delhi, Madhya Pradesh, Haryana, Goa, Maharashtra, Rajasthan etc are likely to follow suit. - Reply By Ganeshan Kalyani - The Reply = Sir, Nagaland also ratified GST Bill. - Reply By Ganeshan Kalyani - The Reply = Sir, 13 states have approved the GST Bill. These states include : Assam, Bihar, Jharkhand, Himachal Pradesh, Chhattisgarh, Gujarat, Madhya Pradesh, Delhi, Nagaland, Mahrashtra, Haryana, Mizoram and Telangana. Thanks. - Reply By Ganeshan Kalyani - The Reply = States that ratified GST Bill. 1. Assam (12.08.2016) 2. Bihar (16.08.2016) 3. Jharkhand (17.08.2016) 4. Himachal Pradesh (22.08.2016) 5. Chhattisgarh (22.08.2016) 6. Gujarat (23.08.2016) 7. Madhya Pradesh (24.08.2016) 8. Delhi (24.08.2016) 9. Nagaland (26.08.2016) 10. Maharashtra (29.08.2016) 11. Haryana (29.08.2016) 12. Telangana (30.08.2016) 13. Mizoram (30.08.2016) 14. Sikkim (30.08.2016) 15. Goa (31.08.2016) 16. Orissa ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 01.09 2016) Thanks. - Reply By Ganeshan Kalyani - The Reply = Small scale traders having an annual turnover up to ₹ 25 lakh are likely to be exempted from goods and services tax (GST). The Centre and states are likely to agree to this limit. - Reply By Ganeshan Kalyani - The Reply = 50% States have now ratified the Bill. Now the bill may move for Presidential assent. - Reply By KASTURI SETHI - The Reply = Sh.Ganeshan Kalyani Ji, Thanks for updating. You have saved the time of others. Pl. continue. - Reply By Ganeshan Kalyani - The Reply = Thanks for your boosting comment. - Reply By Ganeshan Kalyani - The Reply = Two more States have ratified the Bill - Rajasthan and Puducherry. Thanks. - Reply By Ganeshan Kalyani - The Reply = Sir, step to bring awareness of GST in traders is proposed. A call centre is also proposed to set up. Thanks. - Reply By Ganeshan Kalyani - The Reply = Revenue Neutral Rate is a crucial element for the Government to fix. The rate should be such that it is not so high to affect inflation and should not be too less than what the Central and States are collecting in present regime. The GST Council is g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oing to do this exercise. Let's wait and see. Thanks. - Reply By Ganeshan Kalyani - The Reply = The return, payment and other details of GST is proposed to be maintained in Goods and Service Tax Network (GSTN). GSTN is a company. Thanks - Reply By Ganeshan Kalyani - The Reply = GST Bill I.e. Constitutional Amendment Bill received assent from Hon'ble President Shri Pranab Mukherjee today. Thanks. - Reply By Ganeshan Kalyani - The Reply = Sir, so many taxes are there in our country. One is not aware of all the taxes. So, many issues creep up because of ignorance of law. Hopefully most of the issues will be resolved with the implementation of GST. The more important is training to the tax officers and the dealer as well as both have to work with each other. The training is needed in implementation level. Thanks. - Reply By Ganeshan Kalyani - The Reply = The Bill received assent of the President, Now next GST Council to be set up and headed by Union Finance minister and the council shall comprise of State Finance ministers. Council will decide on the rate. Thanks. - Reply By Ganeshan Kalyani - The Reply = The Central Board of Excise and Customs (CBEC) might b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e renamed the Central Board of Indirect Taxes (CBIT), as part of an organisational restructuring after national goods and services tax (GST) regime is rolled out. (Source: Business Standard). - Reply By Ganeshan Kalyani - The Reply = To complete the cases of service tax and excise duty pending at various levels, a legacy division will be formed for a period of five years. Thanks. - Reply By Ganeshan Kalyani - The Reply = According to the report of the finance ministry for 2015-16, as many as 27,451 cases of service tax and excise duty were pending as on December 2015. However, early this year, the department identified about 7,300 indirect tax cases for withdrawal, being under the revised threshold limits. Some level of continuity will be required for some years at least to handle the pending cases. The legacy commissionerate will look into that, said an official. Source : Business Standard. - Reply By Ganeshan Kalyani - The Reply = The Union Cabinet today approved the setting up of a GST Council, which will decide the rate of tax under the new Goods and Services Tax (GST) regime. The GST Council will consist of Union Finance Minister, Minister of State in charge of Reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nue Department and State Finance Minister. Thanks. - Reply By Ganeshan Kalyani - The Reply = The CGST and IGST will be drafted on the basis of the model GST law. The states will draft their respective State GST (SGST) laws with minor variation incorporating state-based exemptions. - Reply By Ganeshan Kalyani - The Reply = The first take of GST Council would be to decide the GST rate. The Chief Economic Advisor has suggested for 18%. But States insist for 20% and above. Thanks. - Reply By Ganeshan Kalyani - The Reply = Sir, the discussion is going on and it appears that gov't will support 18% GST rate. Thanks. - Reply By YAGAY AND SUN - The Reply = CBEC to be renamed as CBIT under GST regime. http://http://indianexpress.com/article/business/business-others/cbec-to-be-renamed-as-cbit-under-gst-regime-3025612/ - Reply By Ganeshan Kalyani - The Reply = The Government is making all its effort to implement GST w.e.f. 01.04.2017. The review of GST preparedness is being done by Prime Minister. Thanks. The assessee need to gear up for GST. The time has come now. It was discussed that atleast 6months time would be required from the date of GST Act coming into effect and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the date of implementation. Let's hope for the good time to come. Thanks. - Reply By YAGAY AND SUN - The Reply = GST rollout must be ready 'before' April 1, PM emphasizes to top officials. - Reply By YAGAY AND SUN - The Reply = Taxpayers to get a feel of GST next month Beginning next month, the Goods and Services Tax Network (GSTN) will start migrating over 80 lakh taxpayers onto its system. This will facilitate the smooth implementation of the GST regime. The first part of our software will be ready by end October. Existing taxpayers of value added tax, service tax and central excise will be migrated to GSTN, said Navin Kumar, Chairman, GSTN. - Reply By YAGAY AND SUN - The Reply = GST Council is fighting against time The government plans to bring in GST from 1 April 2017 and supporting legislation in the winter session, leaving only around two months for the council to finalize all issues - Reply By YAGAY AND SUN - The Reply = India's Reincarnation As A Unified Marketplace Of 1.2 Billion Participants http://seekingalpha.com/article/4006469-indias-reincarnation-unified-marketplace-1_2-billion-participants Earlier in August, as U.S. investors wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e preoccupied with domestic news on the elections and markets, an interesting development happened halfway around the globe. India's legislature, after a notoriously long process, approved one of the most ambitious tax reforms in history - the Goods and Services Tax (GST) bill. Overall, GST is India's attempt to create the largest marketplace with standardized tax rates ever. It is also a reminder of the Modi government's serious push for reforms to make it easier to do business in India. Most of India's macro factors have improved recently, earnings of corporate India are steadily improving and the central government is gradually pushing positive policy changes. So, let's take a look at what GST is and how it affects various sectors of the Indian economy. What Is GST? Broadly speaking, governments collect revenues/taxes in two categories: Direct taxes or taxes paid by individuals (e.g., income tax, wealth tax, capital gains tax, etc.) or corporations (e.g., corporate tax). Indirect taxes or taxes collected by intermediaries (e.g., retail stores) in lieu of goods or services purchased or sold, like a sales tax or value-added tax (VAT) . Typically, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in developing countries, indirect taxes make up a greater portion of total taxes. In the U.S., taxes on goods and services are 5%1 of total tax collection, while in India they account for over 30%.2 India's GST is a bold attempt to streamline these indirect taxes and increase tax compliance. Taxes in India are split into an array of federal and state taxes. Not only does every state have its own rate, but each could also levy extra taxes depending on the category of sale (e.g., luxury taxes on high-end hotels, entertainment taxes on movies). GST aims to subsume these taxes under two distinct categories of central and state tax, as shown in the chart below. Taxes Subsumed by GST State and Central Taxes - Reply By YAGAY AND SUN - The Reply = Chasing the GST deadline: Early movers can capitalise on options and benefit most Under the GST regime, the credit eligibility of a company will largely depend upon suppliers GST compliances. Therefore, companies would prefer to engage with suppliers having GST compliance as their top-most priority. - Reply By YAGAY AND SUN - The Reply = GST rollout a hell of a challenge, says Infosys CEO Vishal Sikka Sikka admitted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the IT backbone of GST is an extremely complex and ambitious exercise as it involves banks, small businesses and states. - Reply By YAGAY AND SUN - The Reply = Proud to be part of GST, network project very complex, says Infosys CEO Vishal Sikka Vishal Sikka, Infosys CEO, on Thursday said that the GST network project was very complex, but was proud to be part of it. Speaking to reporters after making a presentation to Finance Minister Arun Jaitley, Sikka said that there is some weakness in technology preparedness for GST network. - Reply By YAGAY AND SUN - The Reply = Congress on Wednesday said the God and the Devil lies in the detail of the GST and would not like to prejudice the decision of the Council, even as took a dig at the Centre for its self-congratulatory patting at beginning of GST journey as nine-tenth of its details are yet to come. We have merely passed an empowering and enabling legislation. We have not passed an enforceable tax regime. So unless things are decided, there should not be any interface by me from this podium, by pre-empting the decision of that council by a political party. But certainly there should be no self-congratulatory patting the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... back by the central government when nine-tenths of the details are yet to come. As we all know, both God and the Devil lies in the details. Let the process start, Congress spokesperson Abhishek Singhvi told reporters. He said there has been a lot of self-congratulatory patting in the back by the Centre, which is failing to realise that we are at the beginning of the GST journey, not at the end. Mr Singhvi said almost everything is open and yet to be decided by the GST Council. He said which article is to be exempted and which one to be taxed and what is the minimum rate and what is the maximum rate or are there three rates or one rate or is it uniform or differential, who will be the dispute resolution mechanism, are yet to be decided and hence refrained from commenting on the issue. Before all that is decided by the newly-constituted Council, no party should comment, he said. On September 12 the Union Cabinet approved setting up of the GST Council, which will decide on the rate of tax under the new Goods and Services Tax (GST) regime, likely to kick in from April 1, 2017. The GST Council will consist of Union Finance Minister, Minister of State in charge of Revenue D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epartment and state Finance ministers. - Reply By KASTURI SETHI - The Reply = I am thankful to both experts for updating on GST. It has saved not only my time but also others' who visit this forum. - Reply By Ganeshan Kalyani - The Reply = Finance minister Arun Jaitley admitted the other day that the target date of April 1, 2017, for operationalising the goods and services tax (GST) was very stiff . This is probably the understatement of the year. Even if Prime Minister Narendra Modi were to agree to relax the deadline, it would still remain stiff . - Reply By Ganeshan Kalyani - The Reply = The mechanics of implementation getting the GST Network up and running, training tax officials to handle the new system, and nudging companies to install the necessary software and hardware at their ends will be hard enough. - Reply By Ganeshan Kalyani - The Reply = Currently, it has been assumed that there will be only three basic rates a standard rate, a merit rate and a luxury rate. Then there will be zero-rated essentials. - Reply By Ganeshan Kalyani - The Reply = Industry bodies have been asking for more time. They want it to be delayed by a quarter or two. They woul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d like to see the fine print and then prepare for the GST regime, said Mahesh Jaising, partner, BMR Associates LLP. - Reply By Ganeshan Kalyani - The Reply = The GST Council will make recommendations on matters such as standard GST rate, model GST laws, principles that will govern the place of supply, threshold limits, goods and services that could be exempted from the levy and other matters relating to the indirect tax. - Reply By Ganeshan Kalyani - The Reply = Two bills related to biggest tax reform will be taken up in the Parliament s next session Central GST and the Integrated GST bill. States will approve their own GST bills. - Reply By Ganeshan Kalyani - The Reply = The concern is other than VAT, will the other local taxes too get subsumed in GST or not. Because a major issue, we feel is the Mandi tax Market fees, which is prevalent in many States. It ranges from 1.5-2 per cent to even 4 per cent in states like Punjab and Haryana. So, if this Mandi Tax is not going to get subsumed in GST, this will add to the burden. Mandi tax a state subject is one area, where the States can have their own views and end up taxing it and defeating the very purpose of the GST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The Government has to look at it seriously as it will add to the prices of the commodity. This is something, which the state council or the GST council needs to address. It certainly is a concern for the industry just like high taxation is a concern for the industry. We feel being an essential commodity, the taxation should be minimum on the essential commodities. Source :: http://www.thehindubusinessline.com/economy/agri-business/mandi-tax-will-be-a-serious-concern-post-gst-rollout/article9103404.ece - Reply By Ganeshan Kalyani - The Reply = With the implementation of GST, auto manufacturers will certainly feel the ease in doing business. It s not just us saying it, but the industry. In fact, the biggest concern for most is the percentage of tax that will be levied. Dr.Pawan Goenka Executive Director, Mahindra Mahindra said, The Industry is looking forward to that (GST) but more than what, it s the rate which will be of utmost importance. I mean it could be 18 per cent, 20 per cent, 22 per cent but that s just a number in some sense. - Reply By Ganeshan Kalyani - The Reply = Vinod Dasari, MD, Ashok Leyland goes one step ahead to talk about how it ll help the GDP. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... says, I think it s a fabulous achievement by the government, Its been over 7 years we have been talking about GST and finally its coming so I m very excited about it. It will give a boost to the over all GDP, People expect 1-2% increase in GDP. Source: NDTV.com - Reply By Ganeshan Kalyani - The Reply = http://www.financialexpress.com/fe-columnist/taxpayers-should-assess-which-approach-they-will-use-to-interact-with-the-gstn-system/373987/ - Reply By Ganeshan Kalyani - The Reply = 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 - Reply By Ganeshan Kalyani - The Reply = Since the rolling out of GST seems to be closer to reality with a target date of April 1, 2017, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 - Reply By Ganeshan Kalyani - The Reply = 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... % 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 ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inary consumer August 2016 The Financial Express By Abhishek Jain Tax Partner, EY India - Reply By YAGAY AND SUN - The Reply = http://economictimes.indiatimes.com/news/economy/policy/post-gst-modi-government-to-cushion-impact-of-hike-in-service-tax/articleshow/54358051.cms - Reply By YAGAY AND SUN - The Reply = http://www.business-standard.com/article/economy-policy/centre-sticks-to-its-guns-over-dual-control-of-gst-116091501282_1.html - Reply By YAGAY AND SUN - The Reply = http://www.financialexpress.com/fe-columnist/chasing-the-gst-deadline-early-movers-can-capitalise-on-options-and-benefit-most/376553/ - Reply By YAGAY AND SUN - The Reply = http://economictimes.indiatimes.com/small-biz/startups/flipkart-makes-first-move-as-ecommerce-sector-prepares-for-gst-rollout/articleshow/54356771.cms - Reply By YAGAY AND SUN - The Reply = http://economictimes.indiatimes.com/news/economy/policy/-after-gst-focus-is-on-labour-reforms/articleshow/54302784.cms - Reply By YAGAY AND SUN - The Reply = http://timesofindia.indiatimes.com/city/coimbatore/GST-to-spur-overhaul-of-CA-coursesyllabus/articleshow/54160393.cms - Reply By YAGAY AND SUN - The Reply = h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ttp://blogs.timesofindia.indiatimes.com/toi-edit-page/hasten-slowly-on-gst-indian-politics-is-a-very-fractious-setting-for-the-pooled-sovereignty-that-gst-requires/ - Reply By YAGAY AND SUN - The Reply = GST game changer for manufacturing, ease of doing business: DIPP Secretary Ramesh Abhishek - Reply By YAGAY AND SUN - The Reply = http://indianexpress.com/article/business/business-others/manufacturing-sector-gst-vat-cst-taxation-profitability-realigning-operations-3028054/ - Reply By YAGAY AND SUN - The Reply = http://economictimes.indiatimes.com/wealth/personal-finance-news/gst-to-help-make-economic-commercial-transactions-more-efficient/articleshow/54288446.cms - Reply By YAGAY AND SUN - The Reply = http://www.moneycontrol.com/news/sme/gst-bill-what-isstore-for-manufacturing-smes_7426801.html - Reply By YAGAY AND SUN - The Reply = http://www.tribuneindia.com/news/uttarakhand/uttarakhand-to-gain-from-gst-govt-should-plan-to-promote-service-sector/285870.html - Reply By YAGAY AND SUN - The Reply = http://www.legallyindia.com/blogs/impact-of-gst-on-the-aviation-sector - Reply By YAGAY AND SUN - The Reply = https://www.google.co.in/url?sa=t rct=j q= esrc=s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... source=newssearch cd=10 cad=rja uact=8 ved=0ahUKEwjOxKD6uJTPAhWRNpQKHRGDDzkQqQIIQSgAMAk url=http%3A%2F%2Findianexpress.com%2Farticle%2Fbusiness%2Feconomy%2Fsolar-power-equipment-manufactures-express-concern-over-gst-3007881%2F usg=AFQjCNFkR0X66VutvOrJPDP0qPcWCJkSTA - Reply By Ganeshan Kalyani - The Reply = 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. - Reply By Ganeshan Kalyani - The Reply = The winter session of the Parliament is likely to be advanced to second week of November. Thanks. - Reply By YAGAY AND SUN - The Reply = 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) - Rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly By YAGAY AND SUN - The Reply = Government is working overtime on GST: Cabinet Secretary P.K. Sinha Terming 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 C onstitution (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 accompli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sh 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. - Reply By Ganeshan Kalyani - The Reply = An app to link check pos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts 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. - Reply By Ganeshan Kalyani - The Reply = 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. - Reply By Ganeshan Kalyani - The Reply = 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. - Reply By Ganeshan Kalyani - The Reply = Airlines have asked the Government to set GST rate at not more th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an 15% and also, retain existing tax exemptions to avoid fare hikes. - Reply By YAGAY AND SUN - The Reply = GST Council to hold first meeting tomorrow i.e. 22nd September 2016. - Reply By YAGAY AND SUN - The Reply = With the CPI(M)-led LDF government in Kerala yet to ratify the GST constitutional amendment bill, state Finance Minister T M Thomas Isaac today protested against the procedures adopted for the conduct of the GST council meeting to be held on September 22 and 23. Read more at: http://economictimes.indiatimes.com/articleshow/54444267.cms?utm_source=contentofinterest utm_medium=text utm_campaign=cppst - Reply By YAGAY AND SUN - The Reply = 268-page GST FAQs out; e-tailers, aggregators to register Frequently Asked questions (FAq) on GST - Reply By Ganeshan Kalyani - The Reply = FAQS ON GST is published in CBEC on 21.09.2016 Frequently Asked questions (FAq) on GST - Reply By YAGAY AND SUN - The Reply = Will meet April 1 target for GST rollout: Meghwal - Reply By YAGAY AND SUN - The Reply = Hope to resolve all pending issues on GST: Arun Jaitley - Reply By YAGAY AND SUN - The Reply = GST: Central govt, states agree on timetable for April 1 r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollout - Reply By YAGAY AND SUN - The Reply = GST: States want to tax business with turnover below ₹ 1.5 crore Revenue secretary Hasmukh Adhia has said there could be a scenario of multiple GST rates on the lines of some European countries - Reply By YAGAY AND SUN - The Reply = Amit Mitra heads for GST rate talks but Mamata Banerjee keeps all guessing. - Reply By Ganeshan Kalyani - The Reply = 268 page FAQs on GST released by CBEC; Over 500 questions answered. Click to Download Frequently Asked questions (FAq) on GST - [PDF] GST - FAQ - Chapter wise / Question Wise - Reply By Ganeshan Kalyani - The Reply = GST Council to hold first meeting today; discussion on threshold and GST Rate likely - Reply By Ganeshan Kalyani - The Reply = Swamy and IRS officers Rebel: Centre to increases its stake in GSTN to 51% For more Information visit: http://gstindiaupdates.com/swamy-and-irs-officers-rebel-centre-to-increases-its-stake-in-gstn-to-51 - Reply By Ganeshan Kalyani - The Reply = IT infrastructure for GST 60% complete; ready for April 2017 roll out: Chairman, GSTN - Reply By Ganeshan Kalyani - The Reply = Along with the software developme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt, the GSTN will also ensure migration of the existing payers of value added tax (VAT), which number about 6.5 million, and about 2 million service tax payers and about 300,000-400,000 Central excise tax payers. - Reply By Ganeshan Kalyani - The Reply = GST council meet: Centre, states agree on timetable for 1 April roll-out Key issues like sharing of administrative control between the centre and states and compensation mechanism to be taken up by the GST council on Friday Remya Nair Finance minister Arun Jaitley agreed to the continuation of the empowered committee of state finance ministers-the representative body of states-for discussions on matters other than GST. Photo: Ramesh Pathania/Mint The goods and services tax (GST) will be rolled out on 1 April, members at the first meeting of the GST council decided by consensus on Thursday. They also charted the steps to be taken over the next few months to meet the deadline. Not only does it dispel doubts on the ability to meet the deadline, it also sets in motion India s biggest tax reform ever. Some key issues like sharing of administrative control between the centre and states and the mechanism for deciding on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... compensation mechanism, law and formula for states will be taken up in the meeting on Friday-the final day of the two-day consultation. On Thursday, the GST council agreed on a compounding scheme for small traders with revenues of up to ₹ 50 lakh wherein they can pay a flat tax to be decided at a future date. However, opinion was divided on what the revenue threshold under GST should be-Rs10 lakh or ₹ 25 lakh, with some larger states and the centre favouring the latter. The target also involves passage of the central GST law and the integrated GST law by Parliament and the state GST law by state assemblies in the winter session itself. We have roughly estimated that we have till 22 November to resolve all outstanding issues, finance minister Arun Jaitley said. The issue of cross empowerment to address the issue of dual control and compensation and the draft compensation law will be discussed on Friday. The meeting also finalized the rules of business and conduct of the GST council. In the absence of a state finance minister, state government officials will be able to represent the state but won t be able to vote. Issues like tax rates, the threshold level and se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lection of a vice-chairman have been put off for later. Some states, including Tamil Nadu and Uttar Pradesh, sought more voting powers arguing that their size merits more than one vote per state; this was however rejected. Jaitley also agreed to the continuation of the empowered committee of state finance ministers-the representative body of states-for discussions on matters other than GST. Kerala finance minister Thomas Isaac said that many states, including Uttar Pradesh and Kerala, will be affected if the exemption limit is raised to ₹ 25 lakh. We will go with what the majority decides, he said. On compensation, he added that the states want the amount to be decided based on the best three revenue earning years over the last five or six years, rather than just looking at the last three years revenues. - Reply By Ganeshan Kalyani - The Reply = The GSTN is a not-for-profit, non-government, private limited company promoted by the Central and state governments. This is going to be a very crucial task and will need to be completed by the end of this year if the GST is to be rolled out by 1 April 2017. At the same time, information technology changes and upgrades would b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e required at the Reserve Bank of India, Central Board of Excise and Customs, banks, state accounting authorities and principal chief controller of accounts and other state and Central financial institutions. Along with the software development, the GSTN will also ensure migration of the existing payers of value added tax (VAT), which number about 6.5 million, and about 2 million service tax payers and about 300,000-400,000 Central excise tax payers. This migration process is critical to the 1 April launch, since it s expected to take around four to six months, and a further period of trials, testing and soft launching before it s fully ready for nationwide operation. - Reply By Ganeshan Kalyani - The Reply = Training and preparation of the Central Board of Excise and Customs and state taxation departments is another critical component for making the promise of smoother tax administration a reality-to come to terms with the nitty-gritty of the new law, its implementation and spirit. The government is planning to train more than 60,000 officers by March 2017 and the states would have to undertake similar training exercises. Unprepared tax staff can affect the transition, leading t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o consequent litigation and loss of revenue. Reforming tax departments is not an easy task, and preparing the administration for this is yet another challenge. - Reply By YAGAY AND SUN - The Reply = GST threshold fixed at ₹ 20 lakh, rate to be decided in October. - Reply By YAGAY AND SUN - The Reply = GST Council resolves threshold and dual control issues. - Reply By YAGAY AND SUN - The Reply = The Confederation of All India Traders (CAIT) today hailed the GST Council s move to fix annual turnover limit for exemption at ₹ 20 lakh. - Reply By Ganeshan Kalyani - The Reply = On GST Council meeting, Finance Minister Arun Jaitley while addressing media said following 1. Exemption threshold for GST has been fixed as ₹ 20lacs, while threshold in North East statement has been set at ₹ 10lacs. 2. Players with annual turnover of less than ₹ 1.5 crores will be assessed by State authorities. 3. All cesses will be subsumed under the new regime. 4. GST council will finalise tax rate and slabs at its meeting on october 17 to 19. Source PTI - Reply By YAGAY AND SUN - The Reply = Tax rate under GST would be declare in the Mid October' 2016. - Rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly By Ganeshan Kalyani - The Reply = Tax slabs also to be discussed in GST Council meeting to be held on 17 to 19 October. - Reply By Ganeshan Kalyani - The Reply = GST Presentation published in CBEC website. the link is given below. http://www.cbec.gov.in/resources//htdocs-cbec/deptt_offcr/gst-dgtps-12092016.pdf - Reply By Ganeshan Kalyani - The Reply = 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 - Reply By Ganeshan Kalyani - The Reply = Draft rule rules on registration, payment and invoice is published in CBEC today . - Reply By Ganeshan Kalyani - The Reply = PPT on GST is also published in CBEC webiste. - Reply By YAGAY AND SUN - The Reply = CBEC has released Draft Rules and Format on GST. Also sought the comments on such Draft Rules and Format by 28th September 2016. - Reply By YAGAY AND SUN - The Reply = Congress CMs to press for 18% GST cap. - Reply By YAG ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AY AND SUN - The Reply = 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. - Reply By YAGAY AND SUN - The Reply = 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 regi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me 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 - Reply By YAGAY AND SUN - The Reply = 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 re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quired 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 gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anted 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. - Reply By Ganeshan Kalyani - The Reply = http://www.cbec.go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v.in/htdocs-cbec/gst The draft rules is published for feedback. - Reply By Ganeshan Kalyani - The Reply = 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 - Reply By Ganeshan Kalyani - The Reply = 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 - Reply By Ganeshan Kalyani - The Reply = Additional rules and report published today. http://www.cbec.gov.in/htdocs-cbec/gst/draft-rules-format - Reply By YAGAY AND SUN - The Reply = 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 Draft Return Rules Draft Return Formats GSTR 9B ITC Mismatch Report Draft Refund Rules Draft Refund Formats Draft Registration Rules Draft Registration formats Draft Payment Rules Draft Payment formats Draft Invoice Rules Draft Invoice formats - Reply By Ganeshan Kalyani - The Reply = KPMG and FICCI sign M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oU to launch GST awareness campaign across India. - Reply By Ganeshan Kalyani - The Reply = Turnover based HSN code mechanism introduced under GST. - Reply By YAGAY AND SUN - The Reply = Monthly returns to be mandatory under GST - Reply By YAGAY AND SUN - The Reply = Govt favours e-payment of GST over ₹10,000 - Reply By YAGAY AND SUN - The Reply = Govt issues draft GST procedural rules, Council to finalise them on Friday - Reply By YAGAY AND SUN - The Reply = GST Council to finalise registration, other rules on Sep 30 - Reply By YAGAY AND SUN - The Reply = CBEC will take up 50% posts in GST Secretariat, says Najib Shah - Reply By YAGAY AND SUN - The Reply = Life insurers want exemption from GST; general differential rates. - Reply By YAGAY AND SUN - The Reply = If GST tax is capped at 18-20%, it will benefit chemicals industry: Ajay Durrani - Reply By YAGAY AND SUN - The Reply = Indian Textile Industries gearing up for GST, new tax system - Reply By YAGAY AND SUN - The Reply = GST will change the way India does business - Reply By YAGAY AND SUN - The Reply = GST reform will also give a boost to the chemical industry by lowering the transaction co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st and avoiding cascading effect on taxes - Reply By Ganeshan Kalyani - The Reply = Seafood should be treated as agricultural produce and should be exempted. Said an associate of marine product expert's association. - Reply By Ganeshan Kalyani - The Reply = The authority has been doing detailed analysis of impact of GST in marine industry - Reply By Ganeshan Kalyani - The Reply = Senior IAS officer Arun Goyal has been appointed as Additional Secretary in the goods and service tax council. - Reply By Ganeshan Kalyani - The Reply = Congress Chief ministers and finance minister are expected to press for an 18%GST cap at the meeting of 3 days gst council beginning Oct 17, and stress that a higher rate would burden the commons man. - Reply By Ganeshan Kalyani - The Reply = Congress rationale is that higher rate will burden the common man and will defeat the very purpose of GST to create a common market and reduce the burden of both producer and consumer. - Reply By Ganeshan Kalyani - The Reply = The state authorities would have jurisdictions over assesses having turnover of less than 1.5 crore - Reply By Ganeshan Kalyani - The Reply = Countries with booming ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ports such as Singapore, Malaysia and Australia have introduced mechanism in GST to neutralise the input tax. - Reply By Ganeshan Kalyani - The Reply = The South Indian film chamber of commerce will make a representation to the union finance on how GST would adversely affect the film industry . The film chamber has taken the opinion of thr consultant on te issue. And will present before the union finance soon. - Reply By Ganeshan Kalyani - The Reply = In AP and Telangana the the entertainment tax is 24%. If GST is introduced nonloca films will be benefited as the GST Will be less than the entertainment slab now. - Reply By Ganeshan Kalyani - The Reply = HSN (Harmonised System of Nomenclature) is an internationally accepted product coding system formulated under General Agreement on Tariffs and Trade (GATT). In India, currently, adapted HSN coding is currently used under Excise and Customs for classification of products. It is necessary to determine correct applicable rate (including exemptions, if any). Under GST, government shall continue the concept of classification based on HSN but a slightly modified version will be implemented wherein turnover of the taxpayers wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll play a pivotal role in determine coding. However, there will be separate codes for goods and services. Broad rule is as under: Taxpayers whose turnover is above ₹ 1.5 crores but below ₹ 5 crores shall use 2 digit code; Taxpayers whose turnover is ₹ 5 crores and above shall use 4 digit code;and Taxpayers whose turnover is below ₹ 1.5 crores are not required to mention HSN Code in their invoices. Services will be required to be classified per the Services Accounting Code (SAC) - Reply By Ganeshan Kalyani - The Reply = Assurance giant KPMG and industry body FICCI have signed a Memorandum of Understanding (MoU) for a multi-city awareness campaign about the Goods and Service Tax (GST) law, its benefits, issues, and sector challenges, KPMG stated in a press release. Experts from KPMG will be taking sessions across various cities PAN India and throw light on various aspects of GST like levy, supply, exemptions, valuation, ERP impact etc. First session will be in Mumbai. Other sessions will be held in Trivandrum (October 6), Chennai (October 7), Kochi (October 19), Vizag (October 20) and Hyderabad (October 21), with more sessions notified in du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e time. - Reply By Ganeshan Kalyani - The Reply = Composition dealer under GST shall not be able to take input tax credit, nor shall he be able to collect tax from customer. He has to pay tax not less than tax 1%. The dealer can opt for composition at his option. - Reply By Ganeshan Kalyani - The Reply = The threshold for composition scheme is ₹ 50 Lakhs of aggregate turnover in financial year. 'Aggregate turnover' manes 'value of all supplier (taxable and non-taxable supplies + Exempt supplies +Exports) and it excludes taxes levied under CGST Act, SGST Act and IGST Act, Value of inward supplies + Value of supplies taxable under reverse charge for a person having the same PAN. - Reply By Ganeshan Kalyani - The Reply = Composition scheme is applicable subject to the condition that the taxable person does not affect inter-state supplies. - Reply By Ganeshan Kalyani - The Reply = GSTN stands for Goods and Service Tax Network (GSTN). A Special Purpose Vehicle called the GSTN has been set up to cater to the needs of GST. The GSTN shall providea shared IT infrastructure and services to Central and State Governments, tax payers and other stakeholders for impl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ementation of GST. The functions of the GSTN would, inter-alia include: (i) facilitating registration; (ii) forwarding the returns to Central and State authorities; (iii) computation and settlement of IGST; (iv) matching of tax payment details with banking network; (v) providing various MIS reports to the Central and State Governments based on the tax payers return information; (vi) providing analysis of tax payers's profitle, and (vii) running the matching engine for matching, reversal and reclaim of input tax credit. The GSTN is developing a common GST portal and applications for registration, payment, return and MIS/reports. The GSTN would also be integrating the common GST portal with the existing tax administration IT systems and would be building interfaces for tax payers. Further, the GSTN is developing back-end modules like assessment, audit, refund, appeal etc. for 19 States and UTs (Model II States). The CBEC and Model I States (15 States) are themselves developing their GST back-end systems. Integration of GST front-end system with back-end systems will have to be completed and tested well in advance for making the transition smooth. - Reply By Ganeshan Kalyani - T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Reply = The goods shall be classified under the GST regime by HSN ( Harmonised System of Nomenclature) code. Taxpayers whose turnover is above ₹ 1.5 Crores but below ₹ 5 Crores shall use 2 digit code and the taxpayers whose turnover is ₹ 5 Crores and above shalll use 4 digit code. Taxpayers whose turnover is below ₹ 1.5 Crores are not required to mention HSN Code in their invoice. Services will be classified as per the Services Accounting Code (SAC) - Reply By Ganeshan Kalyani - The Reply = Goods and Service Tax (GST) is a destination based tax on consumption of goods and services. It is proposed to be levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as setoff. In a nutshell, only value addition will be taxed and burden of tax is to be borne by the final consumer. - Reply By Ganeshan Kalyani - The Reply = Alcohol for human consumption, Petroleum Products viz. petroleum crude, motor spirit (petrol), high speed diesel, natural gas and aviation turbine fuel Electricity, - Reply By Ganeshan Kalyani - The Reply = The CGST and SGST would be levied at rates to be jointly decided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Centre and States. The rates would be notified on the recommendations of the GST Council. - Reply By Ganeshan Kalyani - The Reply = Exports will be treated as zero rated supplies. No tax will be payable on exports of goods and services, however credit of input tax credit will be available and same will be available as refund to the exporters. - Reply By Ganeshan Kalyani - The Reply = Any supplier who carries on any business at any place in India and whose aggregate turnover exceeds threshold limit as prescribed in a year is liable to get himself registered. However, certain categories of persons mentioned in Schedule III of MGL are liable to be registered irrespective of this threshold. An agriculturist shall not be considered as a taxable person and shall not be liable to take registration - Reply By Ganeshan Kalyani - The Reply = Any person should take a registration, within thirty days from the date on which he becomes liable to registration, in such manner and subject to such conditions as may be prescribed. - Reply By Ganeshan Kalyani - The Reply = A person having multiple business verticals in a State may obtain a separate registration for each business v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ertical, subject to such conditions as may be prescribed. - Reply By Ganeshan Kalyani - The Reply = A person, though not liable to be registered under Schedule III, may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered taxable person, shall apply to such person. - Reply By Ganeshan Kalyani - The Reply = The proper officer can reject an application for registration after due verification. However it is also provided in sub-section 8 of Section 19, the propoer officer shall not reject the application for registration or the Unique Identity Number without giving a notice to shown cause and without giving the person a reasonable opportunities of being heard. - Reply By Ganeshan Kalyani - The Reply = CBEC, Chief said that every exemption distorts the structure and on that there is a complete agreement and consensus. The lesser the exemptions the better. Having said that everybody is aware of the fact that there are several exemptions which have long gestation period which will continue to be there, so how do we address them? We could address them through multiple routes, we could address them by phasing them out over a peri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... od of time, we can address them by perhaps giving extra funds, those are decisions which the GST council will be taking and you will get to know soon. Source : CNBC TV18 - Reply By Ganeshan Kalyani - The Reply = Goods and Service Tax (GST) implementation in India would play a pivotal role in improving India's global competitiveness, say Arun Jaitley. A report released by the World Economic Forum on Wednesday showed that India's rankings had improved by 16 places to 39 this year among 138 countries from 55 last year. - Reply By Ganeshan Kalyani - The Reply = The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi has approved 'Project SAKSHAM', a New Indirect Tax Network (Systems Integration) of the Central Board of Excise and Customs (CBEC). The total cost involved in ₹ 2256 Crore which will be incurred over a period of seven years. It will help in : implementation of Goods and Services Tax (GST) extension of the Indian Customs Single Window Interface for Facilitating Trade (SWIFT) and other taxpayer friendly initiatives under Digital India and Ease of Doing Business of Central Board of Excise and Customs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The implementation strategy for the project will be to ensure readiness of CBEC's IT systems by April, 1, 2017, when GST is to be introduced. The upgrade of the IT systems will be carried out while keeping the existing Taxpayer services running. Source: GSTupdates. - Reply By Ganeshan Kalyani - The Reply = CBEC had released draft rules (along with formats) on various aspects such as Registration, Refunds, Returns, Payment of tax and Invoices for public comments likely to be finalised by Friday. The move came in which a clear intent of rolling out GST from April, 1, 2017 ''We intend to have these rules approved by the GST Council in its meeting on September 30 so that business systems can be modified by all, '' Revenue Secretary Hasmukh Adhia tweeted. Source: GST updates. - Reply By Ganeshan Kalyani - The Reply = GST is going to change the way of doing business for taxpayers as well as tax officers. Information technology is going to govern things rather than these officers. The taxpayers and the officer's interaction will all be through the Online GSTN Ecosystem now. However , that would not be the only way for interacting with the GST system. GST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecosystem common platform will allow the taxpayer to have a choice of third-party applications, which will provide all use interfaces and convenience via desktops, mobiles, ipads, handhelds, etc. All such applications are expected to be developed by third-party service providers who have been given a generic name, GST Suvidha Provider, or GSP. Source: GST updates. - Reply By Ganeshan Kalyani - The Reply = The Government is working to implement GST by its set due date I.e. 01.04.2017 - Reply By Ganeshan Kalyani - The Reply = First meeting of GST Council was constructive said Shri Arun Jaitly ji - Reply By Ganeshan Kalyani - The Reply = Additionaldraft rule has been publishedhttp://www.cbec.gov.in/htdocs-cbec/gst/draft-rules-format - Reply By Ganeshan Kalyani - The Reply = tax-vat-for-1-year-after-notification-of-gst-act/ - Reply By Ganeshan Kalyani - The Reply = FM: Government is working on a target date of 1st April, 2017 for the roll out of the Goods and Service Tax (GST) in the country. The Union Finance Minister Shri Arun Jaitley said that the Government is working on a target date of 1st April, 2017 for the roll out of the Goods and Services Tax (GST) in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ountry. He said that till 16th September, 2017, that is one year after the provisions of the Constitution (101st Amendment) Act, 2016 being brought into force, the Constitution empowers the Central Government to levy excise duty on manufacturing; and service tax on the supply of services. The Finance Minister said that similarly the Constitution Amendment Act empowers the State Governments to levy sales tax or Value Added Tax (VAT) on the sale of goods till that time i.e. 16th September, 2016. The Finance Minister Shri Jaitley said that so far the Government is following the road map for implementation of GST as per the schedule. The Finance Minister Shri Jaitley was making his Opening Remarks at the Fourth Meeting of the Parliamentary Consultative Committee attached to the Ministry of Finance held here today. The subject of today s Meeting was the Goods and Services Tax (GST) The Finance Minister Shri Jaitley further said that the First Meeting of the GST Council was held in a very cordial and constructive environment earlier this month and today, he will hold the Second Meeting of the GST Council. In the GST regime, the GST Council has been created under Article 279A of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Constitution. The GST Council is a joint forum of the Centre and the States. The Council will take decisions on important issues like tax rates, exemption list and threshold limits etc. Thereafter, the Members of Consultative Committee who participated in today s Meeting sought various clarifications with regard to GST Law and gave suggestions for its better implementation. Some of the major suggestions include need for absolute clarity and transparency with regard to where taxes will be collected, assessed and where the appeal will be filed in case of GST regime. The members said that it will be challenging task to tackle complex situation arising-out of implementation of GST law in a federal system. Some of the members suggested there is a need for launching a large scale Awareness Campaign especially for the small traders as most of them are still unaware about the complex procedures and processes under GST regime including for registration and filing of returns etc. Some of the members suggested that availability of IT network in all parts of the country, especially in small towns and rural areas, must be ensured as GST system will work only online. Some of the members appre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ciated the initiative of the Government in getting the GST law passed by both the Houses of Parliament as well as its commitment to implement it in a time bound manner. The members hoped that this law will bring relief to the common man by exempting certain essential items from GST and moderate rate of taxation on other items which in turn will bring down the prices of common man consumption items as well as cost of living at large. Source : http://www.pib.nic.in/ newsite/erelease.aspx?relid= 151291 - Reply By Ganeshan Kalyani - The Reply = Union Finance Minister said that Area based exemption will be given by of refund only. - Reply By Ganeshan Kalyani - The Reply = The rules released by the CBEC got approved. - Reply By Ganeshan Kalyani - The Reply = All efforts are.put in by the Govt to meet the implementation date. - Reply By YAGAY AND SUN - The Reply = GST Council meet: Centre, state consensus on 5 key areas, but differ on service tax assessment. - Reply By YAGAY AND SUN - The Reply = GST Council falters on service tax control. - Reply By YAGAY AND SUN - The Reply = GST Council meeting: Waivers, draft rules okayed; differences over tax assessees - Reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... By Ganeshan Kalyani - The Reply = Need clarity on the exemptions given in the current tax regime. Whether it would continue for the time period given . Will have to see. - Reply By Ganeshan Kalyani - The Reply = The area based exemption is going to be now by refund option. Where the Govt shall refund 80% and balance would be refunded after assessment it seems. The concern here is that paying the tax first would hit working capital and getting the tax paid from department is not a easy job. What will happen to existing company which got exemption because of setting up of factory in specified backward area. Have to wait and see. - Reply By Ganeshan Kalyani - The Reply = Assessee have to gear up for GST. Understanding the concept, law of GST and training the staff is a big task. Government is also planning to train the government staffs And dealer. GST is knocking the door. Let us be ready to welcome it and embrace it. - Reply By Ganeshan Kalyani - The Reply = In fact big companies have started doing impact analysis based on previous year data. The AS- IS preparation would help them to analyse the impact of tax change in upcoming GST. Every company/ assessee should carry o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut this activity. This will help them to understand the change in tax law and rate and its impact on business. - Reply By Ganeshan Kalyani - The Reply = The rule for registration, invoice, payment, return and refund is approved by GST Council. - Reply By Ganeshan Kalyani - The Reply = Every assessee has to file atleast 37 returns in total. In most of the companies the accounts person handles the indirect tax portfolio in additions to accounts . But if we see seriously into the number of returns that an assessee needs to be filed then it is understood that every company has to have dedicated tax officer who shall carry out complaince under GST. - Reply By Ganeshan Kalyani - The Reply = The information technology also need to be made in line with GST. The reports required for filing of return should come from the system only. Such arrangement would help the dealers to comply with ease and without error. - Reply By Ganeshan Kalyani - The Reply = Now the time has come to gear up for GST. That is we need to attend training , seminars etc. The tax officer in a corporate need to know the GST tax provison. There is nothing difficult for govt. They may issue notification ment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioning the implementation date is with effect from 01.04.2017. The time is very shot. - Reply By Ganeshan Kalyani - The Reply = RBI in support of 18% GST rate, says no material impact on inflation. - Reply By Ganeshan Kalyani - The Reply = HSN need to be mentioned on invoice while raising invoice. To some dealer it is optional and others need to mention it mandatorily. - Reply By Ganeshan Kalyani - The Reply = 6 months to go for GST to come effective , the timeline set by the Govt for implementation. Are the dealers ready to take off their business into the new tax regime. Lot of work for tax officer in a company, For consultant, and department. - Reply By Ganeshan Kalyani - The Reply = So many write ups on GST, So many concerns over the draft rules. So many expectations from GST, So many opportunities for foreign investment, So many tax conplaince reduced, so many tax authorities interaction minimised , so many tax leakage stopped, so many litigation shall be reduced, so many opportunity for tax experts, so many work for tax consultant, so many challenges for tax authority, So many ..... - Reply By Ganeshan Kalyani - The Reply = Economic Adviser Arvind Subraman ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ian also suggest RNR of 15% to 18%. Hence it seems that 18% shall be considered by the council. - Reply By Ganeshan Kalyani - The Reply = As per draft rule, the input credit outstanding as of 31.03.2017 shall be allowed to carry over in GST by automatically carry forwarding from last return under current tax regime. Hence the last return under current regime is crucial. Otherwise input credit would be available. - Reply By Ganeshan Kalyani - The Reply = Filing of revised return of last month under current tax regime should be given. Otherwise if mistake happens in the original return then dealer would loose the closing credit. - Reply By Ganeshan Kalyani - The Reply = Seemless credit is aimed under GST, So credit would be eligible but output final product should be taxable. - Reply By Ganeshan Kalyani - The Reply = Number of returns are 37 to be filed by General assessee. - Reply By Ganeshan Kalyani - The Reply = In GST, government plans to change entire structure of tax administration by setting up of GST Commissionerate within CBEC that will administer the new tax regime. - Reply By Ganeshan Kalyani - The Reply = Current wing of Directorate General of Central Exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise intelligence (DGCEI) will be replaced by Directorate General of GST Intelligence. - Reply By Ganeshan Kalyani - The Reply = For more assessee focused administration the nation will be divided into twenty four zones and one hundred and seven GST commissionerate. Each commossionerate will have approximately fifteen thousand to twenty thousand assessee base. - Reply By Ganeshan Kalyani - The Reply = To combat between centre and state government will set up Directorate General of Dispute Resolution. - Reply By Ganeshan Kalyani - The Reply = Under GST, reverse charge is applicable on goods and service as well. The type of service and goods liable for reverse shall be notified. - Reply By Ganeshan Kalyani - The Reply = Composition dealers cannot avail input credit. - Reply By Ganeshan Kalyani - The Reply = Taxpayers whose turnover is above 1.5 Crores but below 5 Crores shall mention 2 digit code and taxpayers whose turnover is above 5 Crores shall use 4 digits code. Taxpayers whose turnover is below 1.5 Crores shall not mention HSN code in the invoices. - Reply By Ganeshan Kalyani - The Reply = Services will be required to be classified as per Services Accounting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Code. - Reply By Ganeshan Kalyani - The Reply = Maharashtra will have 20 GST Commissionerate, The highest among all states. - Reply By Ganeshan Kalyani - The Reply = As per the latest data (up to September 23) of NACEN, 3,074 field officers have been trained as against the target of 60,000. - Reply By Ganeshan Kalyani - The Reply = In its first meeting on September 23, the GST Council, which is headed by finance minister Arun Jaitley , had decided to allow states to have administrative control over Value Added Tax (VAT) assessees with annual turnover of less than ₹ 1.5 crore and for turnover of over ₹ 1.5 crore, a system of cross empowerment between states and Centre was agreed by the Council. - Reply By Ganeshan Kalyani - The Reply = Under GST, inter-State transactions would be made much easier in terms of applicable taxes and documents required for transportation. - Reply By Ganeshan Kalyani - The Reply = With the Centre moving on to the fast track to meet the April 2017 deadline, the Punjab government has initiated the process of appointing consultant to help it successfully implement the new tax regime, which will subsume various state levies like octroi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and sales tax. - Reply By Ganeshan Kalyani - The Reply = the consultant will be imparting training on provisions of the GST Act/Rules and processes to officers of the department. - Reply By Ganeshan Kalyani - The Reply = The GST draft rules on payment, returns and refund have been finalised and the all-powerfulGST Council will decide on the tax rate by October 20. - Reply By Ganeshan Kalyani - The Reply = Union Minister for Commerce and Industry Nirmala Sitharaman today said the One Nation One Tax regime through the Goods and Services Tax (GST) system would come into effect on April 1, 2017, leading to a unified domestic market. - Reply By Ganeshan Kalyani - The Reply = Drawing attention to reviews by some experts on the GST, Ms. Sitharaman said the new tax regime was expected to boost GDP growth by 1-1.50 per cent. At present, the GDP was at 7.5 and the Centre was keen to take it up to at least eight per cent. And, with the GST coming into effect, the GDP could cross nine per cent - Reply By Ganeshan Kalyani - The Reply = Goods and Service Tax (GST) is a destination based consumption tax which is a levy of tax on all goods and services with the objective of expanding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the tax base through wide coverage of economic activities , mitigating the cascading effect , reduction of exemptions , enable better compliances etc. thereby resulting into formation of common national market for goods and services . - Reply By Ganeshan Kalyani - The Reply = Goods and Service Tax (GST) is being considered as the biggest ever tax reform of Independent India whereby multiplicity of taxes are subsumed in one tax called GST, though we will have three versions of GST (CGST, SGST and IGST). - Reply By Ganeshan Kalyani - The Reply = According to Chief Economic Adviser Arvind Subramanian s panel report , An RNR of anything beyond 15-15.5% will likely result in a standard rate of about 19-21%, which would make India an outlier amongst comparable emerging economies - Reply By Ganeshan Kalyani - The Reply = Under GST the power will be given to Audit Commissioners to adjudicate matters unlike current regime. - Reply By Ganeshan Kalyani - The Reply = The power to adjudicate confiscation, penalty imposed on tax defaulted in cases involving sum of more than ₹ 1.5Crores will be adjudicated by Audit Commissioner. The cases involving sum of upto ₹ 1.5 Crore w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ill be adjudicated by assistant commissioner. - Reply By Ganeshan Kalyani - The Reply = The power given to Audit Commissioner to adjudicate is with an intention not to pile up the case. - Reply By Ganeshan Kalyani - The Reply = Under current regime, the audit officer sends his note sheet to concern range officer and adjudication kicks off at range / divisional level. - Reply By Ganeshan Kalyani - The Reply = SIAM - Society of Indian Automobile Manufacturers has suggested slab structure to levy GST on Cars and Bikes. SIAM is an apex body representating vehicle and vehicle engine manufacturers in the country. - Reply By Ganeshan Kalyani - The Reply = The eligible Input Tax Credit shown in last return filed under current regime shall be carry forward as opening balance in first return under GST. - Reply By Ganeshan Kalyani - The Reply = GST IS THE BIGGEST INDIRECT TAX REFORMS SINCE 1947 - Reply By Ganeshan Kalyani - The Reply = States have started scouting for tax consultants to advise them on technical aspects of the goods and services tax (GST), which is planned to be rolled out from April next year. With the Centre moving on to the fast track to meet the April 2017 dead ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... line, the Punjab government has initiated the process of appointing consultant to help it successfully implement the new tax regime, which will subsume various state levies like octroi and sales tax. According to sources, other states may also go in for consultants to assist the administration in the preparatory work for GST. Among other things, the consultants will be required to suggest organisation structure of the department in the GST regime, strategy for transition period and ways to mitigate risks and checklist of tasks that need to be completed before introduction of GST. Source: http://www.ndtv.com/india-news/states-start-looking-for-consultants-for-gst-1470552 - Reply By Ganeshan Kalyani - The Reply = Under the Goods and Services Tax (GST) regime, the number of companies listed in BSE are expected to go up to more than 10,000 in the next ten years from the present 5,500 companies, a stock exchange official said on Friday. GST is an important framework. Today, there are 5,500 companies listed in the BSE. I would not be surprised in the next ten years, if more than 10,000 companies are listed in the BSE, said stock exchange's Managing Director and Chief Executive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer Ashish Kumar Chauhan. Source: http://profit.ndtv.com/news/market/article-under-gst-bse-listed-companies-may-go-up-to-10-000-in-ten-years-1465987 - Reply By Ganeshan Kalyani - The Reply = GSTN was formed under the previous UPA regime to set up the information technology framework for rolling out the indirect tax regime that will replace a string of local levies. The central government holds 24.5 per cent stake in GSTN while state governments together hold another 24.5 per cent. - Reply By Ganeshan Kalyani - The Reply = The Commerce Ministry has suggested to its Finance Counter part that the exemptions given to exporters shall continue under the new tax regime, GST. - Reply By Ganeshan Kalyani - The Reply = The Commerce Ministry further said that the difference between DTA - domestic tariff area and SEZ- special economic zone should continue under GST. - Reply By Ganeshan Kalyani - The Reply = The provison proposed if first paying tax and then claiming refund would cause hardship to exporters and the above thoughts. - Reply By Ganeshan Kalyani - The Reply = GST seems possible to be in place from 01.04.2016. So assesses should start preparing for GST. Should b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e referred to Model GST law, rules on registration, pay ment, return refund FAQs. - Reply By Ganeshan Kalyani - The Reply = First year of implementation of GST would be a challenging period for all the assesses and to the authority as well. - Reply By Ganeshan Kalyani - The Reply = Training is required for the authority and the tax incharge who handles tax in corporates and consultant as well. - Reply By Ganeshan Kalyani - The Reply = Need to anaylses tax implications that would occur in GST by scrutinizing the existing tax paid and comparing the tax that would have to be paid if gst rate is fixed. - Reply By Ganeshan Kalyani - The Reply = Lot of challenges for all assesses to transit from existing tax regime to new tax regime, GST. Right from procurement upto changes in accouting system (SAP, ERP etc.) - Reply By Ganeshan Kalyani - The Reply = Dual GST is proposed because of federal structure. The Centre has certain power to administrate certain work and States has got certain task to administer. Now in GST both centre and state shall have the power to tax transaction on common tax base. - Reply By Ganeshan Kalyani - The Reply = Existing tax payers shall get r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egistration under GST on provisional basis . And upon submission of required documents within given time tax payers shall be given GST registration. The dealers whose turnover is below threshold limit may voluntarily get registration and take input tax credit. The threshold limit is ₹ 10 Lacs and for North Eastern States the limit is ₹ 5 Lacs. There is composition scheme under GST. Those dealers having turnover below ₹ 50 Lacs shall choose this option. Under which a dealer shall pay tax on turnover. The dealer opted for composition scheme cannot collect tax from customers and also cannot avail input tax credit. - Reply By Ganeshan Kalyani - The Reply = GST is on supply of goods and/ or services. The tax accrues to the place of consumption / places of supply. If supply is made from Maharashtra to a customer in Delhi,, then tax accrues to the state Delhi. - Reply By Ganeshan Kalyani - The Reply = Taxable person specified in schedule III is liable to register under GST irrespective of threshold exemption. - Reply By Ganeshan Kalyani - The Reply = Reverse charge is applicable on goods and services under GST unlike in current tax regime where only service is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxed under reverse charge basis. - Reply By Ganeshan Kalyani - The Reply = There is no threshold limit prescribed for reverse charge under GST. Also no threshold limit provision is applicable in case of interstate transaction. - Reply By Ganeshan Kalyani - The Reply = The central excise officer prepared a report highlighting the area of improvement in the Model GST Law in line with the government's requirement. The said report will be submitted in coming weeks. - Reply By Ganeshan Kalyani - The Reply = Dealers has more than one business vertical in state can apply for separate GST registration number. Dealers having business is various states need to get registration for each states separately. The dealer upon crossing of exemption threshold limit should apply for GST number. Some time the department can suomoto issue GST registration to the taxable person who is liable to register but has not done so. The registration is to be applied for by a taxable person within 30 days from the date when the taxable turnover is crossed. The application submitted by the dealer can be rejected by the officer. But before doing so the officer is required to give opportunity to the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aler to show cause as to why the registration application should not be rejected. The registration number so given is permanent unless surrendered, cancelled, suspended or revoked. FYI - Reply By Ganeshan Kalyani - The Reply = Input service distributor, dealers liable to deduct TDS, casual tax payer, nonresident tax payer, dealers liable to pay tax under reverse charge, dealers impacting interstate supply and such other dealers as may be notified by the government shall required to be get registered irrespective of the exemption threshold limit. The reverse charge is applicable not only on services but also on supply of goods. (Ref. Schedule III of the Model GST Law. ) - Reply By Ganeshan Kalyani - The Reply = The U.N. consulate and embassy of foreign countries is required to get Unique Identification Number from GST Network. The input tax credit on purchases by these bodies shall get credit by way of refund. Also Government/ PSU is also required to get UIN. - Reply By Ganeshan Kalyani - The Reply = The taxes to be levied by central government is called as CGST and that to be levied by states is called as SGST. The integrated GST is applicable in case of interstate tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsaction. The taxes related to supply of goods and / or supply is subsumed in GST. However products like petroleum crude, high speed diesel, motor spirit (petrol) , natural gas and aviation turbine fuel shall be out of GST. - Reply By Ganeshan Kalyani - The Reply = Though exemption threshold is given, those dealers who want to apply for registration voluntarily under GST may apply and in such case the dealer shall be able to take input tax credit paid on purchaser. And the dealer will be able to collect tax from customer by raising tax invoice. By registering, the dealer gets a legal status of supper. - Reply By Ganeshan Kalyani - The Reply = The Winter session of the Parliament is be begin from November 16, 2016. - Reply By Ganeshan Kalyani - The Reply = GSTN is going to launch website to facilitate existing registration to get migrated into GST. - Reply By Ganeshan Kalyani - The Reply = There is no threshold limit for input service distributor to get registration under GST. - Reply By Ganeshan Kalyani - The Reply = Stock transfer /consignment Tranfer is going to be taxed in GST. The working capital of the dealer is going to affect. All confessional forms like Form C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , form F , H, I, EI, EII etc is going to be abolished. The objective is pay tax and take credit. No concession. - Reply By Ganeshan Kalyani - The Reply = GST is a biggest tax reformer subsuming indirect tax. All stakeholder need to unlearn the tax provision of VAT/ /CST, Service tax, Excise , Entry Tax etc. And learn new provision I.e. GST. Many issues shall crop up in the initial years of implementation. - Reply By Ganeshan Kalyani - The Reply = Chhattisgarh PUDUCHERRY TO BE FRONT RUNNERS IN ISSUING GST NUMBERS TO BUSINESSMEN - Reply By Ganeshan Kalyani - The Reply = The Chhattisgarh Commercial Tax department will be holding a workshop on October 21 at 4pm for giving information about GST registration at CCCI Bhawan. The workshop will be attended by Commissioner and other senior officials. Helpline will also be opened to assist the businessmen for registration. Source: GST taxation. Com - Reply By Ganeshan Kalyani - The Reply = Citing the example of the proposed pan-India Goods and Services Tax(GST), the IMF on Friday said the country has shown that progress on reforms could attract investment and boost prospects of India s medium-term growth. - Reply By Ganeshan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kalyani - The Reply = Indian economy is likely to achieve 8% GDP by the fiscal end, thanks to the boost given by initiatives such as Make in India, Union minister of state for commerce and industry Nirmala Sitaraman has said. With Jan Dhan scheme, Aadhaar, better mobile connectivity and direct benefits transfer, India is on a fast growth track, she said. - Reply By Ganeshan Kalyani - The Reply = The minister talked of cab aggregator Uber s initiative Uber-Pitch which allows startups to pitch their ideas to venture capitalists (VC) and investors. We are open to tying up with more technology platforms for good ideas to emerge. When it comes to startups we want to talk facilitation more than regulation, said Sitaraman, at a lecture organised by the Chennai International Centre in the city on Saturday. On the industry s demand to levy extra duty on cheap Chinese imports, the minister said that cheaper import of raw materials has made it possible for many small and medium enterprises to flourish, in turn creating jobs. Source: GST taxation .com - Reply By Ganeshan Kalyani - The Reply = Outright ban on imports in rubber, steel, copper, pepper and other commodities is not pos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sible. We might look at putting protectionist policies in place, but within a timeframe. The industry has to be resilient from within. I do understand the concerns of large manufacturers, who fear the flood of cheap imports eating into their profit margins, said the minister. Source: www.gsttaxation.com - Reply By Ganeshan Kalyani - The Reply = Hailing the Goods and Service Tax Bill, she said digitisation of all records will be one of the main drivers of GST. Once GST comes into being, the Indian economy will be boosted by 1.5% - Reply By Ganeshan Kalyani - The Reply = Registration under Goods and Service Tax (GST) regime will confer following advantages to the business: Legally recognized as supplier of goods or services. Proper accounting of taxes paid on the input goods or services which can be utilized for payment of GST due on supply of goods or services or both by the business. Legally authorized to collect tax from his purchasers and pass on the credit of the taxes paid on the goods or services supplied to purchasers or recipients. - Reply By Ganeshan Kalyani - The Reply = Without registration under GST, dealer cannot issue tax invoice, cannot collec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t tax from customer and cannot take input credit of the tax paid on purchases. Composition scheme opted dealer if purchased from unregistered dealer then he has to pay purchase tax. - Reply By Ganeshan Kalyani - The Reply = Registration to be applied within 30 days from the date when the exemption threshold limit is crossed. - Reply By Ganeshan Kalyani - The Reply = Import of goods into India shall be treated as inter state purchase . The CVD/ SAD will get subsumed and instead IGST would be levied. The credit would be allowed in full. Though both the tax got subsumed in GST, the custom duty is still going to be continued. - Reply By Ganeshan Kalyani - The Reply = Foreign investment is expected to grow / increase with the implementation of GST. The indirect taxation would be uniform which will not be hurdle for foreign investors. - Reply By Ganeshan Kalyani - The Reply = The input credit mechanism in GST need to be understood. - Reply By Ganeshan Kalyani - The Reply = Dedicated tax associates are required in big corporates looking into the number of transactions and multiple tax return that need to be filed. Rigouorus follow with the supplier if he has not paid the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax on sale of material to the purchaser. Only when supplier has paid the tax the purchaser is allowed the said credit. - Reply By Ganeshan Kalyani - The Reply = Brazil and Canada has dual GST. Similar to that India is going to have dual GST . - Reply By Ganeshan Kalyani - The Reply = CGST: central taxes got subsumed in CGST. States taxes subsumed in SGST and tax on interstate transaction is taxes taxed as IGST. - Reply By Ganeshan Kalyani - The Reply = GST shall be implemented by all the States at the same time. This will ensure benefit of GST. In VAT states had adopted VAT in different years. - Reply By Ganeshan Kalyani - The Reply = GST shall increase rate in initial years and later the price would come down due to seamless credit available. - Reply By Ganeshan Kalyani - The Reply = Customer voice, an NGO suggested the Government to levy tax @40% on tobacco products. This is one way to minimise tobacco consumption by public as increase in tax rate means increase in cost of tobacco product. - Reply By Ganeshan Kalyani - The Reply = Meeting of GST Council schedule. It is expected that after the meeting is concluded the consensus on GST rate would have been achiev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed and also on issues related to condensation mechanism. - Reply By Ganeshan Kalyani - The Reply = Department of sales tax of Assam asked the dealers to update the information like mobile number, email id, and such basic information. This is required in order to ease transition from current tax regime to GST. - Reply By Ganeshan Kalyani - The Reply = Earlier Pndocherry Commercial tax department has asked the dealers to update the contact details and basic details in database by uploading the information in the pondichery vat website. - Reply By Ganeshan Kalyani - The Reply = Existing registration shall get temporary registration which will be valid for 6 months. The dealer shall submit the updated information based on which the certificate shall be issued under GST. - Reply By Ganeshan Kalyani - The Reply = The State government is contemplating asking the Central government to vest with it the administrative control over all tax-payers whose turnover is less than ₹ 1.5 crore, irrespective of goods or services they deal in. The government also wants the Centre to allot the tax-payers whose turnover is above ₹ 1.5 crore in proportion to the number of VAT dea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lers and service tax assessees dealt at present by the State and Central government tax authorities respectively. The third meeting of the GST Council is slated to be held in New Delhi from November 18 to 20. As a prelude to it, Finance Minister Yanamala Ramakrishnudu held a preparatory meeting here on Friday. On the occasion, the Minister said that the Central government proposed certain options to ensure single interface under the GST. It was the unanimous decision of the Empowered Committee of State Finance Ministers that the administrative control over the tax payers be vested with the State governments. The committee also favoured proportionate allotment of VAT and service tax assessees. - Reply By Ganeshan Kalyani - The Reply = GST is a Destination based Tax. Tax is levied on consumption of Goods and Services. The burden of taxation moves from the manufacturing /producing states to the consuming states. The constitution had to be amended because Centre will tax goods beyond the stage of manufacture states will tax services. Also states to impose interstate tax on Imports. Around 160 countries in the world follow GST. Canada has a dual GST similar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to India. But implementing GST in India will pose a major challenge because of its federal structure. GST will help goods move seamlessly across all states in India. It is a single tax on Supply of goods and services. Under GST the taxable event is Supply whereas under the earlier regime the Taxable event was Production (excise duty) or Sale of goods (VAT or CST) or Provision of Service (Service Tax). - Reply By Ganeshan Kalyani - The Reply = GST is a tax on Value Addition at every stage. It aims at providing seamless credit at every stage. This will reduce the cascading effect of taxes levied under different Acts. - Reply By Ganeshan Kalyani - The Reply = When goods or services are supplied within the state (Intra State) SGST CGST would apply When goods or services are supplied from one state to another (Inter State) IGST would apply When goods or services are imported from different countries IGST (CVD/RCM) would apply In case of Exports to different countries the tax would be Zero Rated - Reply By Ganeshan Kalyani - The Reply = Area-based tax exemptions will undergo a key change in the proposed goods and services tax (GST) regime-industrial unit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in the specified areas will need to pay the duties first and get a refund later. This is to ensure that the credit chain in the GST regime is not disturbed. The government, however, has decided not to accept the Thirteenth Finance Commission's recommendation that these exemptions be replaced by a new system of cash subsidy, official sources said. The government believes that cash subsidy is not sound economics. The policy stance is clear: area-based exemptions are being phased out, but units set up on the promise that the bounty would be available for them for specified periods cannot be duped. The pay-first-get-refund-later policy is already there in Jammu and Kashmir, one of the states where tax holidays are given to industries. Industries set up in the North East, Sikkim, Uttarakhand and Himachal Pradesh enjoy exemption from payment of Cenvat due to the geographical location. While in Jammu and Kashmir, the duty is first paid and then refund claimed, in Uttarakhand and Himachal Pradesh the industries do not pay duty at all. We are mulling over various methods to re-design the area-based exemption scheme. A cash-subsidy in lieu of the tax-sop would be a complicated thing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and needs to be studies economically. We are looking at system of tax payment and refund rather than no payment at all, a senior finance ministry official told FE. The official said while doing away with host of exemptions during the GST regime, the GST chain should not break so that an offset of input taxes is available to both units manufacturing the exempt goods and also to units consuming the exempt goods in subsequent manufacture or trade. Area-based exemptions also said to create economic distortion and affect the economic viability of units located in non-exempt areas. They are prone to misuse and difficult to administer, the TFC task force had said. The Finance Commission had suggested that direct investment linked cash subsidy may be given, rather than area based exemptions, if it was considered necessary to provide support to industry for balanced regional development. It suggested that excise duty exemptions given to industrial units be converted into a subsidy scheme. www.financialexpress.com - Reply By Ganeshan Kalyani - The Reply = Goods fully exempted from the levy of excise duty and VAT by all the states be categorised as exempted goods in the GST regime as w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ell, Federation of Indian Chambers of Commerce and Industry (FICCI) said in a release following a meeting here with the Empowered Committee of State Finance Ministers on the Goods and Services Tax. - Reply By Ganeshan Kalyani - The Reply = FICCI also requested the empowered committee that certain existing exemptions such as the area based exemptions under excise legislation and incentives under states' industrial policies should be converted into an effective, non-discretionary tax refund mechanism. - Reply By Ganeshan Kalyani - The Reply = The GST Council will meet next on October 18-20, when the rates for the tax are on the agenda. The Minister expressed the hope that the rates and the draft GST laws would be finalised by November 22 . - Reply By Ganeshan Kalyani - The Reply = In ths GST Council first day meeting it is proposed that there will be four slab GST rates as under: 6% on precious metal, gems, stones, essential food items. 12% on FMCG and non-essential food items 18% Standard GST rate (most of the goods and service would be covered in this rate) 26% some specific items including luxury cars. 40% peak rate (this was proposed by Economic advisor which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not ruled out). Source : GST update - Reply By Ganeshan Kalyani - The Reply = The GST Council today met as part of a three-day meeting where it agreed upon a number of contentious issues, such as the compensation formula, and it is set to deliberate the remaining ones over the next two days. - Reply By Ganeshan Kalyani - The Reply = State finance ministers told CNBC-TV18 that the central government had proposed a four-tier goods and services tax (GST) structure of about 6 percent, 12 percent, 18 percent and 26 percent. Additionally, sale of precious metals such as gold should be taxed at a special rate of 4 percent, it was suggested, while most essential items that form a part of the CPI basket have anyway been decided to be kept out of GST. Source : money control - Reply By Ganeshan Kalyani - The Reply = A panel led by Chief Economic Advisor Arvind Subramanian had earlier proposed a four-tier tax structure of 2-6 percent for precious metals, 12 percent for essential commodities, 16.9-18.9 percent standard rate and 40 percent for demerit goods. Source: money control - Reply By Ganeshan Kalyani - The Reply = Experts say that 26% shall tend to attract more and more g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods in its net. I.e. more and more goods shall be proposed to list done for this rate. So such variation varying from 6% to 26% is worry. - Reply By Ganeshan Kalyani - The Reply = States will be fully compensated till five years for potential revenue loss. - Reply By Ganeshan Kalyani - The Reply = A revenue-neutral rate is a single rate at which there will be no revenue loss to the centre and states in the GST regime. - Reply By Ganeshan Kalyani - The Reply = Sources said that food items are proposed to be exempt from the tax and 50 percent of the items of common usage will be exempt to keep the inflation under check. - Reply By Ganeshan Kalyani - The Reply = A few hours after the three-day meeting of the newly-formed GST Council commenced, there are indications that there may be another round of discussion required as differences between Centre and the states persist, according to people privy to the meet, reports CNBC-TV18 s Sapna Das. - Reply By Ganeshan Kalyani - The Reply = A panel headed by Arvind Subramanian, chief economic adviser to the finance ministry, had proposed a sin tax rate of 40 percent for GST on limited items such as aerated drinks, luxury cars and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tobacco products. - Reply By Ganeshan Kalyani - The Reply = GST council next meeting to be held on November, 4 - 5 9 - 10 - Reply By Ganeshan Kalyani - The Reply = Experts says that rate of 26% is a concern. It may happen that most of the goods be categorised to tax at that rate. - Reply By Ganeshan Kalyani - The Reply = Consensus on GST rate could not be achieved in the GST Council meeting concluded on 19.10.2016. - Reply By Ganeshan Kalyani - The Reply = Consensus achieved on compensation formula in the GST Council meeting. - Reply By Ganeshan Kalyani - The Reply = Compensation formula proposed by GST Council wherein 14% tax revenue growth is estimated for states for a period of first five years, the period for which the states will be compensated for five years from the base year 2015-2016. States that earn tax revenue less the assumed tax amount will be compensated. - Reply By Ganeshan Kalyani - The Reply = The proposed 4-tier GST structure may hit the common man as it is likely to result in higher taxes on various items including kitchen staples such as edible oils, spices and chicken. The prices of certain consumer durables like televisions, air conditione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs, fridges and washing machines may however become cheaper with decrease in taxes. The government plans to roll out the new indirect tax regime, Goods and Services Tax (GST), from April 1, 2017. In its meeting with states this week, the Centre has proposed a four slab GST rate structure. The lowest rate proposed is 6 per cent, with two standard rates of 12 and 18 per cent. The peak rate, which will mostly apply to FMCG and consumer durables, will be 26 per cent. Besides, a cess is also likely to be levied on demerit or sin goods and polluting items. According to the Centre s estimates on impact of the 4-slab rate structure on CPI inflation, items like chicken and coconut oil which currently suffer a tax incidence of 4 per cent will be taxed at 6 per cent under the GST regime. Similarly, the tax burden on refined oil, mustard oil and groundnut oil will go up from 5 per cent to 6 per cent. Other kitchen staples too will be taxed at 6 per cent as against 3 per cent in case of turmeric and jeera, 5 per cent in case of dhania, black pepper and oil seeds. TVs, air conditioners, washing machines, inverters, refrigerators, electric fans and cooking appliances may beco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me cheaper with the incidence of taxes on them declining from 29 per cent to 26 per cent post implementation of the GST. Perfumes, shaving cream, powder, hair oil, shampoo, soap, and other toiletry items will become cheaper as they too presently are taxed at 29 per cent. Gas stove, gas burner, mosquito repellent and insecticide may, however, become expensive as they are currently taxed at 25 per cent, lower than the proposed peak rate of 26 per cent under GST. Under the proposed 4-slab structure, the items which are currently taxed between 3-9 per cent will fall in the 6 per cent bracket; those in 9-15 per cent range will come under 12 per cent rate. Those products which are currently taxed between 15-21 per cent would attract 18 per cent levy, while those above 21 per cent would be taxed at the peak rate of 26 per cent. The GST Council, which has Union Finance Minister and his state counterparts, will decide on tax rates next month. Saying that the four tier rate structure was designed in a way that neither the exchequer lose revenue nor does the common man s tax liability increase significantly, Finance Minister Arun Jaitley had said: the effort will be to fit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the goods in the closest tax bracket under GST . - Reply By Ganeshan Kalyani - The Reply = The government is making all effort to implement GST by 01.04.2017 - Reply By Ganeshan Kalyani - The Reply = All issues of GST will be discussed in the next GST meeting. - Reply By Ganeshan Kalyani - The Reply = Much awaited GST is going to a realty . - Reply By Ganeshan Kalyani - The Reply = Simplified tax mechanism is expected with easy compliance and transparency. Guidance and support to discharge correct tax compliance is expected in new tax regime. - Reply By SUNTHARRAJEN P S - The Reply = Dear All,GST Council met at NewDelhi for 3 days under the chairmanship of Hon.Finance Minister and discussed mainly the rates of GST and compensation to State on the possible GST loss (1)All the states unanimously accepted the formula for the compensation to states.(2) GST COUNCIL suggested 4 rates as below1.6% for essential items2.12% for standard items3.18% for standard items4.26% for luxury itemsHowever the council did'nt reached an agreement for the finalisation of rates.The council will meet again . - Reply By Ganeshan Kalyani - The Reply = Gst liability can be paid by debit card, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit card, Neft, rtgs etc. No need to open an account - Reply By Ganeshan Kalyani - The Reply = Introduction of GST (Goods and Services Tax), which is round the corner is one of the pioneering and game changing transformative initiatives taking shape in our country. GST introduction is a huge challenge and opportunity for the Chartered Accountants and you need to get ready for enabling this change in a smooth and seamless manner, Venkaiah added. - Reply By Ganeshan Kalyani - The Reply = Software major Infosys had bagged the five-year contract to be the Managed Service Provider (MSP) for GSTN. - Reply By Ganeshan Kalyani - The Reply = GSTN, a not-for-profit entity incorporated in March 2013, has been set up primarily to provide IT infrastructure and services to the Central and State governments, taxpayers and other stakeholders for implementation of GST. - Reply By Ganeshan Kalyani - The Reply = Amalgamation of the Railways and General budgets has brought the 92-year-old practice to an end. The government proposes to advance the budget presentation date from the last week of February. Source : gsttaxation.com - Reply By Ganeshan Kalyani - The Reply = Corporates ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... need to gear up to upcoming GST. - Reply By Ganeshan Kalyani - The Reply = In the wake of apprehensions that the GST regime may raise inflation and affect the common man, the government may create a separate surveillance agency that will oversee pricing mechanism as goods travel from the manufacturer to consumer. Officials at various forums have been trying to convince people that the GST regime will bring down prices of most of the commodities. But it has been noticed in many countries that traders and firms have raised prices in the garb of GST. There could be a separate price surveillance authority subsequently. We are looking into it, an official said. Services is one area which could be costlier if the standard GST rates are jacked up more than 22%, analysts believe. At present, the services tax rate is close to 15%. In case the standard GST rate is set at 22% or above, services tax rate will also move up subsequently. But in manufactured consumer goods, in the current tax regime, a consumer pays approximately 25-26% more than the cost of production due to excise duty and value added tax. If the GST rate is anywhere between 18% and 22%, basic goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... will become marginally cheaper. According to Chief Economic Adviser Arvind Subramanian s panel report , An RNR of anything beyond 15-15.5% will likely result in a standard rate of about 19-21%, which would make India an outlier amongst comparable emerging economies Our recommendations would still place India at the upper end of the standard rates found across comparable countries. It is worth emphasising that the GST is intrinsically a regressive tax and the higher the rate, the greater will be the regressivity. The government is planning to rollout the single most powerful tax reform since independence from April 1, 2017. For that, it will need to pass two GST legislations - CGST and IGST - in the Winter session of Parliament. The GST Council will need to arrive at a consensual standard GST rate. - Reply By Ganeshan Kalyani - The Reply = Proposed cess is a concern raised by the association. all indirect tax and cess is going to subsume in to GST then why should there be a cess again. With the GST rates under discussion and the expected increase of dealers getting registered under GST is high due to lower threshold limits proposed. then why a cess. The revenue unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r current regime is not distributed in the manner proposed in GST , so there was strong logic of imposing cess for funding specific purpose task. but now the revenue is proposed to be distributed among states and centre, so why this cess again. The taxes are ultimately going to be collected from the customer , who, in my view are unaware about the discussions and development of GST in actual sense. hence it is the job of trade association, in my view, to represent the authority , requesting the authority to draft tax law keeping all concerns of the customers on table. - Reply By Ganeshan Kalyani - The Reply = The invoice matching system is seen as good idea by the country across India. this is really a good idea in the interest of revenue. - Reply By Ganeshan Kalyani - The Reply = Few months away from GST. need all dealers to learn and understand GST mechanism for smooth implementation . - Reply By Ganeshan Kalyani - The Reply = 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at all items are taxed in 12% and 18% rate and sin tax be 18% plus %. the link is given below for further reading . - Reply By Ganeshan Kalyani - The Reply = 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. - Reply By Ganeshan Kalyani - The Reply = Finance Minister said that the Government has kept about 50% of products in the consumer basket, such as food grains, as zero rated . - Reply By Ganeshan Kalyani - The Reply = The GST panel also approved Cess on tobacco, luxury products and sin items. - Reply By Ganeshan Kalyani - The Reply = 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 - Reply By Ganeshan Kalyani - The Reply = 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 - Reply By Ganeshan Kalyani - The Reply = The tax rate agreed upon today must be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... now be approved by parliament, which meets from November 16 for the winter session. - Reply By Ganeshan Kalyani - The Reply = 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 - Reply By venkataraman swaminathan - The Reply = 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 - Reply By SUNTHARRAJEN P S - The Reply = 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. - Reply By Ganeshan Kalyani - The Reply = Sir concessional form will not be there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under GST . full tax need to be paid on interstate transaction . even for stock transfer . - Reply By Ganeshan Kalyani - The Reply = 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-wor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ker 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 . - Reply By Ganeshan Kalyani - The Reply = 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. - Reply By Ganeshan Kalyani - The Reply = 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) B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ank 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -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. - Reply By Ganeshan Kalyani - The Reply = 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom 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 - Reply By Ganeshan Kalyani - Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Reply = 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. - Reply By Ganeshan Kalyani - The Reply = 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 . - Reply By Ganeshan Kalyani - The Reply = 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/ - Reply By Ganeshan Kalyani - The Reply = Sharing an article on tax rate . CII states that GST rate to be one or two tax slab rate. - Reply By Ganeshan Kalyani - The Reply = Sharing an article on impact of GST rate on company . - Reply By Ganeshan Kalyani - The Reply = Sharing an article - All India Gems and Jewellery Trade Federation made representation for GST @1.25 % . - Reply By Ganeshan Kalyani - The Reply = Sharing an article : Consumers Electronics Manufacturers Association made representation for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 18% GST rate. - Reply By Ganeshan Kalyani - The Reply = 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). - Reply By Ganeshan Kalyani - The Reply = 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. - Reply By Ganeshan Kalyani - The Reply = 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 . - Reply By Ganeshan Kalyani - The Reply = Sharing an article Rahul Gupta, chairman of the Export Promotion Council for EOUs and SEZs (EPCES), said the definition of exports in the model GST law need to synchronize with the SEZ Act to avoid any confusion or dispute. - Reply By Ganes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... han Kalyani - The Reply = We are making all efforts to introduce GST from April 1, 2017. GST has to be implemented latest by September 16, 2017, and if it is not implemented by then, states will not be able to collect their share of taxes, and hence, there is not enough scope to further delay the decision, Jaitley said at an economic editors conference here. - Reply By Ganeshan Kalyani - The Reply = The Centre has circulated the draft goods and services tax (GST) Bills with the states...... - Reply By Ganeshan Kalyani - The Reply = GSTN had received over 300 applications from private firms who were seeking to become GST Suvidha Providers(GSPs). In order to give tax payers more choice to file their returns once the tax reform is rolled out from April 1, 2017, GSTN invited private companies to build innovative third-party interfaces. - Reply By Ganeshan Kalyani - The Reply = Pindichery and Goa commercial tax department published circular requesting the dealer to collect their login credentials from the department and do the registration process in GSTN . - Reply By Ganeshan Kalyani - The Reply = Maharashtra Value Added Tax Department and Gujarat Commercial Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... department has published guidelines to register in GSTN . - Reply By Ganeshan Kalyani - The Reply = The Gujarat government announced the commencement of GST enrolment drive, under which existing tax payers registered under various state and central tax regimes, such as VAT, need to apply online to get the Goods and Service Tax Network (GSTN) number. - Reply By Ganeshan Kalyani - The Reply = The Winter session has begun. but the parliament is unlikely to discuss on GST and the matter about currency demonitixation is largely spoken . - Reply By Ganeshan Kalyani - The Reply = Government organizes a Seminar to familiarize the Senior Officers of different Departments of Government of India with important features of the GST. The Cabinet Secretary Shri Pradeep Kumar Sinha will be chairing an interactive seminar on Goods and Services Tax (GST) tomorrow. The seminar is being organized for senior officers of the different Departments of the Government of India to familiarize them on the important features of GST.The Seminar is being organised by the GST Council in national capital. - Reply By Ganeshan Kalyani - The Reply = The Central Government has circulated the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... draft of the three GST related Bills -the Central Goods and Services Tax Bill, the Integrated Goods and Services Tax Bill, the Goods and Services Tax (Compensation for Loss of Revenue) Bill to the State Governments. States have been given seven days to send their suggestions/ comments. These three Bills are slated to be discussed by the GST Council on 24th and 25th November, 2016. - Reply By Ganeshan Kalyani - The Reply = CBEC has released the translation in regional languages of the FAQs on GST earlier published in English. - Reply By Ganeshan Kalyani - The Reply = Several States have initiated the facilitation for migration of existing assessees registered under the VAT Act of the respective States. - Reply By Ganeshan Kalyani - The Reply = Since GST would be replacing the service tax, services would become costlier given that the current service tax rate is 15 and the expected GST rate on most services would be taxed at a standard rate of 18 percent. - Reply By Ganeshan Kalyani - The Reply = The central government would compensate GST related revenue loss to the states for the first five years. - Reply By Ganeshan Kalyani - The Reply = GST is a destination-based ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x levied on supply of goods and services simultaneously by both the central and state governments. - Reply By Ganeshan Kalyani - The Reply = The transportation sector currently enjoys abatement of taxes of up to 70 percent (30 percent of 15 percent service tax payable i.e. an effective tax rate of 4.5 percent). Under the GST Act, there is no clarity on continuation of abatement. - Reply By Ganeshan Kalyani - The Reply = Since every movement of goods from one warehouse to another situated in different states would be taxable under GST , the Corporate may think to have a mother warehouse in a most suitable States . - Reply By Ganeshan Kalyani - The Reply = Compliance cost for logistics companies is likely to increase since transporters whose vehicles pass through multiple states would need registration in each of these states to take input credit for expenses incurred in that state. - Reply By Ganeshan Kalyani - The Reply = Supply of goods without consideration are deemed as supply and would be subject to tax under GST regime. Thus free samples and promotional material in case of FMCG companies would attract tax and lead to higher tax outgo. - Reply By Ganeshan Kalya ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ni - The Reply = As the entire administration of finance ministry and also trade circles are now per-occupied with facing blows of demonetization, trade circles feels it would be difficult for the government to go ahead with its GST agenda. - Reply By Ganeshan Kalyani - The Reply = Information Technology is going to play a key role in GST . Sales purchase details need to be uploaded in GSTN . The IT of an organisation should be very strong to provide such details. - Reply By Ganeshan Kalyani - The Reply = Every dealer is going to cover under GST . The threshold proposed is so low. This means the compliance is utmost important from seamless flow of credit which Ultimately depends upon the IT of a company . - Reply By Ganeshan Kalyani - The Reply = GST is most significant tax reforms . - Reply By Ganeshan Kalyani - The Reply = All dealers need to be ready to implement GST when the date of implementation of GST is notified . - Reply By Ganeshan Kalyani - The Reply = GST bills to be tabled as money bills. proposed. - Reply By Ganeshan Kalyani - The Reply = Union Finance Minister has said that the tax incidence on goods will be worked out in a manner such that the GST l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evy will be somewhere close to the current tax rate i.e. Excise plus VAT. - Reply By Ganeshan Kalyani - The Reply = Government plans to table GST Bills as money bills; won't need nod from Rajya Sabha. - Reply By Ganeshan Kalyani - The Reply = GSTN is a not for profit organisation created for special purpose. - Reply By Ganeshan Kalyani - The Reply = GST will result better tax conplaince under GST due to better network . - Reply By Ganeshan Kalyani - The Reply = Complaince cost under GST is going to increase. - Reply By Ganeshan Kalyani - The Reply = The list of goods covered under the proposed tax structure is expected by the dealers to analyse the impact of increase/ decrease in the business expense income etc due to GST to introduction of GST , is a matter of concern . - Reply By Ganeshan Kalyani - The Reply = Tax payer having multiple business in one state may register one business entity first. For the remaining business within the State the tax payer need to get in touch with the respective Jurisdictional Authority. - Reply By Ganeshan Kalyani - The Reply = There will be no paper based enrolment. All migration will take place online. - Reply By Ganeshan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kalyani - The Reply = Existing ISD registrations are required to file fresh application in the GST Common Portal for the State in which the tax payer desire to seek registration. Also, tax payer needs to inform its Central Jurisdictional Authority. - Reply By Ganeshan Kalyani - The Reply = Government has launched the existing registration migration project under GST. Existing tax payer registered under VAT/ ST/ Excise have to migrate their registration as per allotted dates. - Reply By Ganeshan Kalyani - The Reply = The Lok Sabha had already listed the Central GST Bill; the Integrated GST; and GST (Compensation for Loss of Revenue) for introduction, consideration and passing in current session of Parliament. - Reply By Ganeshan Kalyani - The Reply = Government releases Revised Model GST Draft Law. - Reply By Ganeshan Kalyani - The Reply = http://www.cbec.gov.in/htdocs-cbec/gst/revised-gst-laws - Reply By Ganeshan Kalyani - The Reply = Pls find below the link to access the draft model GST law revised . http://www.cbec.gov.in/htdocs-cbec/gst/revised-gst-laws Thanks. - Reply By Ganeshan Kalyani - The Reply = States will receive provisional compensation from Centre for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loss of revenue from implementation of GST every quarter but the final annual number would be decided after an audit carried out by CAG. - Reply By Ganeshan Kalyani - The Reply = Supplies made to SEZ units to be treated as zero rated supplies under GST. - Reply By Ganeshan Kalyani - The Reply = The government is keen to ensure that the three legislations are approved in the ongoing winter session of parliament to meet the deadline of rolling out GST by April 1. - Reply By Ganeshan Kalyani - The Reply = Taxpayers has to visit GSTN site and get provisional registration within the given time limit. Further those who are not registered within the time limit can get registered till 31st January 2017. - Reply By Ganeshan Kalyani - The Reply = The provisional GSTIN issued is 15 digits PAN based number. The first two digits represent the State Code. The next 10 digits represent the PAN of the tax payer. The thirteenth digit represents the entity number of the same PAN holder in a state. The Fourteenth digit represents the alphabet Z by default and the last digit represents check sum digit. - Reply By Ganeshan Kalyani - The Reply = The draft law would be taken u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p for consideration by the GST Council headed by Finance Minister and comprising all States representative at rhe next meeting in December . - Reply By Ganeshan Kalyani - The Reply = Centre to pay ₹ 500 Crores a year to GSTN as service charge. GSTN is a not for profit organisation created as a special purpose vehicle to implement technology to run GST . - Reply By Ganeshan Kalyani - The Reply = Government is making all efforts to implement GST by 01.04.2017. However, Union Finance Minister said that GST has to be implemented latest by September 16, 2017. - Reply By Ganeshan Kalyani - The Reply = Union Finance Minister was speaking at the Make in Odisha conclave. He says GST will be a game changer. It is an efficient tax system . It will certainty help the consuming States. - Reply By Ganeshan Kalyani - The Reply = GST provisional registrations are started only for those who are already registered with Sales Tax Department. The registrations has not been started for those taxpayers who provide only services. - Reply By Ganeshan Kalyani - The Reply = The government is not in favour of restricting the administration of businesses up to ₹ 1.5 crore to state ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x authorities. Both states and centre will administer taxpayers above ₹ 1.5 crore, according to a proposal by states. - Reply By Ganeshan Kalyani - The Reply = Union Finance Minister today said it would meet again on December 11 and 12 to hammer out differences on which assessees will come under states' jurisdiction, and which ones will come under the Centre's. - Reply By Ganeshan Kalyani - The Reply = There are two other laws - Compensation and IGST - which will be discussed in the next meeting on December 11, 12. - Reply By Ganeshan Kalyani - The Reply = Confederation of All India Traders (CAIT) suggested that there should be one single return and single authority to control the taxation system and only then the tax net will be widen and revenue will be increased. However it seems that States would like to retain some administration control with them. - Reply By Ganeshan Kalyani - The Reply = Punjab Pradesh Byopar Mandal (PPBM) says that the processig unit vanished from this border city. It reasoned that causes of its disappearance was imposition of multiple taxes, costly raw material etc. The sector is expecting tax benefit from GST . - Reply By Ganeshan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kalyani - The Reply = Union Finance Minister said that there cannot be implementation without resolving all issues. My approach will be to resolve it by discussion or consensus. So far I have avoided division and I would like to avoid division to the extent it is possible, he explained. Source : timesofindia. - Reply By Ganeshan Kalyani - The Reply = Union Finance Minister says, GST Council is deliberating on ways to reduce the taxation process, including assessment by tax officials. Today, each person gets assessed thrice, in each of the three taxations (including VAT and central excise). Now, you will only be assessed once and what one authority assesses, others will have to accept that assessment, he said. - Reply By Ganeshan Kalyani - The Reply = Whether GST will be implemented w.e.f. 01.04.2016 or by September 2016, the companies / assesses need to be prepared to welcome the change . All information technology related readiness and business strategy need to have been done . Most of the companies are doing the impact analysis of GST on their business . It is good that Government has also initiated the provisional registration process well advance leaving to sp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ace for last minute rush. Assesses have strated discussing their business by relating that if GST comes into effect what will be their impact . - Reply By Ganeshan Kalyani - The Reply = GST is a game changer. It subsumes various indirect taxes both levied by States as well as Central Government . The dealers were to deal with various department like Sales tax, Excise, Octroi etc. which was tedious job. Liasioning with Government department , no doubt, consumes time but also gives stress and tension . The assessment procedure is lengthy . Also appointing an Consultant to take care all these cases with different authority is costly . Now With the implementation of GST , the liasioning part will diminish . The consultant is many under present tax regime i.e. separate consultant for each kind of taxes. Now atleast in GST one Consultant called GST consultant is expected . - Reply By Ganeshan Kalyani - The Reply = GST is going to boost employment . Since the number of returns required to be filed under GST is so many a dedicated staff in an organisation is a must . Atleast in a company where transaction are numerous . The input tax credit matching task would become a continuou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s task and there is going to be a huge data uploaded into GSTN and mismatch is ought to happen . Overall there is really a need for deducted staff for gst in a big company . - Reply By Ganeshan Kalyani - The Reply = Return for outward supply is required to be filed by 10th and inward supply by 15th and return to be filed with combined detail by 20th. Also there would be ISD return to be filed and Wct return as well. Thus, a dedicated staff to look after these compliances is required. - Reply By Ganeshan Kalyani - The Reply = With GST every tax consultant and experts are now on sale line . This is a good start for all the tax aspirants . Taxation is a good area to expertise on . - Reply By Ganeshan Kalyani - The Reply = Some are expressing that they thought that there would be a single tax rate , say 18%. The same could have brought all types of assesses on the same line . But after learning that there are 4 tier tax rates the purpose of GST seems defeated . Now it can be said that old system of having various rate and item schedule kept same under GST . What is new in this ? . This thought of few are correct but they need to rest assure that alteast by subming various ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x seamless credit is allowed which in long run would reduce the tax rates. Something is better than nothing . Some change is better than no change. - Reply By Ganeshan Kalyani - The Reply = One of the requirement that need to be taken care is accounting syatem. Most of the big companies are having SAP for accounting purpose. The same need to be configured according to the GST requirement . The invoice wise details need to be uploaded in the GST Network. Such details should be able to get from SAP . Though there is no interface between SAP and GSTN , SAP will provide the data that would be compatible to upload in the network at ease. Thus this area is also in the to to list for companies who are working to be prepared for upcoming GST . - Reply By Ganeshan Kalyani - The Reply = Companies with minimum transaction may not go for higher version accounting software. with lesser data the compliance is managible . - Reply By Ganeshan Kalyani - The Reply = As regard learning GST, conferences are also organised. - Reply By Ganeshan Kalyani - The Reply = The roll-out of the Goods and Services Tax (GST) regime is set to miss the April 1, 2017 deadline. It looks increasingly improb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able that the three GST enabling Bills -- the Central GST, Integrated GST and State GST -- could be passed in the remainder of the ongoing winter session of Parliament, which concludes on December 16. - Reply By Ganeshan Kalyani - The Reply = On the chances of reduction in GST rates in future, CBEC chief explained that Centre and States at present collect ₹ 8 lakh crore from Indirect taxes, minus customs duty, and the same level of revenue has to be collected in the GST regime. Once we see how much money is collected from these taxes, we can certainly look at the rates. - Reply By Ganeshan Kalyani - The Reply = Recently GST Council decided on having a four tier rate structure under GST in India. It sparked a debate on possibility of having a one tax rate structure. CBEC Chief Najib Shah says that How can you possibly have one rate for edible oil and car or for atta and computers. We cannot have one rate. We have to have multiple rates. - Reply By Ganeshan Kalyani - The Reply = Zero-rated supply refers to items that are taxable, but the rate of tax is Nil on their supplies and input tax relating to them can be availed. Exports would be zero-rated. - Reply By Ganeshan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kalyani - The Reply = Each organisation is estimated to process 50,000 to seven lakh invoices a month. With HANA as the database, our solutions will specifically be able to cater to each and every size and segment of the businesses that we support today, says Arun Subramanian, vice president, globalisation services, SAP India - Reply By Ganeshan Kalyani - The Reply = The PM said in the Parliament said, The kacha bill and pakka bill system in our country has helped mobilize back money. GST will help put an end to this. - Reply By Ganeshan Kalyani - The Reply = CII Director-General Chandrajit Banerjee has said : The GST should begin with an absolute limit of four rates as suggested by the Government, and over time, government should commit to converging these four rates to one or two rates. - Reply By Ganeshan Kalyani - The Reply = Tax experts said the April,1 GST rollout deadline will be missed. It's unfortunate that there was not much headway in the Council meeting. The only silver lining was that substantial progress seems to have been made on discussions with respect to laws and broad consensus was reached for provisions up to Chapter 20 (out of total 27 ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apters), said Pratik Jain, partner and leader indirect tax, at consultancy firm PwC. - Reply By Ganeshan Kalyani - The Reply = The government was keen to introduce the GST bills in the winter session of Parliament but now it appears that the legislations may be placed in the budget session which starts in January. - Reply By Ganeshan Kalyani - The Reply = FM says, The luxury of time is not available to us because 1st April is the first possible day for GST implementation and if that does not happen then the last date constitutionally defined is 16th of September 2017. So the discretion as to when to implement GST is only five months and 16 days and that's why we don't have the luxury of time. - Reply By Ganeshan Kalyani - The Reply = The Centre and states have not reached consensus over the issue of administrative control after implementation of GST. The States like Tamil Nadu, Kerala and Bihar have also sought administrative control over both goods and services below the ₹ 1.5 crore threshold. - Reply By Ganeshan Kalyani - The Reply = It is imperative that the GST is implemented at the earliest, else post mid-sept 2017 there would be an issue that in abse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of legislative backing , taxes could not be levied. - Reply By Ganeshan Kalyani - The Reply = The GST Council has announced that demerit goods like tobacco will be subject to the highest GST rate of 28 plus an additional cess. Tobacco taxation as a fiscal policy is a 'win-win' situation. It not only increases revenue generation but also reduces the consumption of tobacco especially for the young and poor. - Reply By Ganeshan Kalyani - The Reply = India's GST reform is a historic opportunity to implement a system of taxation that strongly supports sustainable development across its many dimensions, including health, equity, poverty and good governance . - Reply By Ganeshan Kalyani - The Reply = The Government should ensure that all tobacco products including bidis and smokeless tobacco are taxed at the highest rate of GST and subject to additional cess to protect the most vulnerable section of the society, the poor. - Reply By Ganeshan Kalyani - The Reply = Ministry of Finance has released a report card highlighting progress on GST implementation. The report card indicates that Government of India lost no time in implementing the GST so far. It has take ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n number of important decisions to pave way for roll out of GST with effect from 1st April 2017. - Reply By Ganeshan Kalyani - The Reply = With the introduction of GST most of the central and state taxes / duties will be subsumed under GST . Thus it is expected that the incentives available to domestic manufacturers under the current tax regime would decrease and there is a need to continue the incentive under the GST regime to meet the increasing demand through domestic production says EY Partner Bipin Sapra. - Reply By Ganeshan Kalyani - The Reply = The GST online portal seeks to empower the dealers with complete online experience with no manual interface. Starting from registration , uploading of bills, filing of returns and online tax payment . the entire process will be online. - Reply By Ganeshan Kalyani - The Reply = Jaitley suggested there is a need that each assessee is assessed only once since central taxes like excise and service tax and state levies like VAT are being subsumed into one. You have the pre-existing (tax) machinery of the Centre and states. (It has to be decided) how the burden of this assessment is going to be shared between the Centre and states ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and how we cross-empower both the Centre and states, he said further. Saying GST will usher in a common taxation and should lead to a federal bureaucracy, Jaitley felt that both the Centre and states should figure out sharing of the tax assessment. Ideally, he said, it should be proper for the issues to be resolved at the beginning of financial year on April 1 for the new regime to kick in. But then, in any case, nobody has the luxury of time, he cautioned. - Reply By Ganeshan Kalyani - The Reply = The Goods and Services Tax (GST), FM said, can be implemented anytime between April 1 and September 16, 2017, in accordance with the constitutional amendment legislation that allows a national sales tax by subsuming central and state levies. - Reply By Ganeshan Kalyani - The Reply = According to the finance minister, there are about ten important decisions that have already been taken through consensus. The legislations which have to be passed by Parliament and state legislatures are currently in the process of being drafted. - Reply By Ganeshan Kalyani - The Reply = Describing it as an opportune time to invest in India, Prime Minister Narendra Modi on Wednesday invited Asian ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... businesses to invest in the country and said the GST regime is expected to be implemented next year. India is not only a good destination. It s always a good decision to be in India. We welcome those who are not in India so far, Modi said through videoconferencing at the Economic Times Asian Business Leaders Conclave here. - Reply By Ganeshan Kalyani - The Reply = Instead of paying taxes at multiple levels of government including State and Central, there will be one tax allowing companies to save from the existing cumulative 25-30% tax burden and reduce it to 17-18% through a single unified tax and the advantage of logistics and processing costs thereof, said K Krishnamoorthy, Chairman, India Electronics Semiconductor Association. - Reply By Ganeshan Kalyani - The Reply = All entities exempted from payment of indirect tax under any existing tax incentive scheme would pay tax in the GST regime and the decision to continue with any incentive scheme shall be with the concerned State or Central Government. In case any State Government or Central Government decides to continue any existing exemption/incentive scheme, it will be administered by way of a reimbursement mechanism ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . - Reply By Ganeshan Kalyani - The Reply = Bands of rates of goods under GST shall be 5%, 12%, 18% and 28% and in addition there would be a category of exempt goods. Further, a cess would be levied on certain goods such as luxury cars, aerated drinks, pan masala and tobacco products, over and above the rate of 28% for payment of compensation to the States. - Reply By Ganeshan Kalyani - The Reply = States would be compensated for 5 years for loss of revenue due to implementation of GST, the base year for the revenue of the State would be 2015-16 and a fixed growth rate of 14% will be applied to it. - Reply By Ganeshan Kalyani - The Reply = The threshold limit for exemption from levy of GST would be ₹ 20 lakhs for normal States and ₹ 10 lakhs for the Special Category States enumerated in Article 279A of the Constitution . - Reply By Ganeshan Kalyani - The Reply = The GST Council has been entrusted with the power to make recommendations to the Union and the States on various GST related issues, including those relating to goods and services that may be subject to, or exempted from the goods and services tax; the threshold limit of turnover below which goods an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d services may be exempted from GST and the rates including floor rates with bands of GST. - Reply By Ganeshan Kalyani - The Reply = The GST related draft laws and Provisions for cross empowerment to ensure single interface under GST are under consideration of the GST Council. 99 Sections of the Model GST Law have already been discussed by the Council and remaining Sections will be discussed in the next meeting of the Council scheduled for 22-23 December, 2016. - Reply By Ganeshan Kalyani - The Reply = Winter session of Parliament started in November 16, 2016 and ended on December 16, 2016. The GST Council is scheduled to meet again on 22-23 December, 2016. - Reply By Ganeshan Kalyani - The Reply = GST is a transactional tax and not an income tax. Transactional tax can start in any part of the financial year and therefore, the range of timing when it has to come into force because of constitutional necessity is April 1, 2017 to September 16, 2017. Hopefully, the earlier we do, the better it is for the new taxation system, Jaitley said at the annual general meeting (AGM) of FICCI. - Reply By Ganeshan Kalyani - The Reply = Indian Medical Association has requested the g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overnment to exempt healthcare services provided by private hospitals. We feel that that the GST exemption of healthcare services offered to government institutions in the proposed tax structure should be extended to the private sector as well said Dr K K Aggarwal, the national president-elect of Indian Medical Association. - Reply By Ganeshan Kalyani - The Reply = In GST Council meeting, Arun Jaitley had reiterated that April 1 deadline is still achievable. He said Our target is the first of April, we stand by our target. The luxury of time is not available to us for the simple reason that if April 1 is the first possible day when it can be implemented then the last day is also constitutionally defined is 16th of September 2017, - Reply By Ganeshan Kalyani - The Reply = In the draft legislation there are about 195 sections. So it is the core bill of the legislation. We discussed 99 sections and a few clauses need to be redrafted. We would change that during the course of time. Hopefully, in the next meeting we would be able to clear the legislation part, Jaitley said. Next GST Council meeting will take place on December 22-23. - Reply By Ganeshan Kalyani - The Reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... = Central Board of Excise and Customs (CBEC) yesterday said that it has started the exercise of putting the goods in the four tax slabs. We have started the exercise of putting goods into various tax slabs. It will be shared with the (GST) Council, CBEC Chairman Najib Shah said. - Reply By Ganeshan Kalyani - The Reply = CBEC Chief Najib Shah spoke in favour of multiple rates saying How can you possibly have one rate for edible oil and car or for atta and computers. We cannot have one rate. We can reach one rate 20 years down the line. EU, several countries have one rate of 18/20 per cent, will that be acceptable to us? It would not be acceptable for us. We have to have multiple rates, - Reply By Ganeshan Kalyani - The Reply = Proposed model GST Law calls for three monthly statements and annual return at minimum per state. It also speaks of input credit matching. In all likelihood, compliance is set to go up. Therefore, systems should be in sync to throw reports that would enable timely compliance. - Reply By Ganeshan Kalyani - The Reply = As per the proposed GST Law, zero rated supply means any of the following taxable supply of goods and/or services, namely (a) e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xport of goods and/or services; or (b) supply of goods and/or services to a SEZ developer or an SEZ unit. Further proviso to this section read credit of input tax may be availed for making zero-rated supplies, notwithstanding that such supply may be an exempt supply - Reply By Ganeshan Kalyani - The Reply = As per Model GST Law, the tax liability on a composite or a mixed supply shall be determined in the following manner - (a) a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply; (b) a mixed supply comprising two or more supplies shall be treated as supply of that particular supply which attracts the highest rate of tax. - Reply By Ganeshan Kalyani - The Reply = Section 48 of the Revised Model GST Law provides for refund of un-utilized input tax credit to exporter of goods/ services. Under original Model GST Law, 80% upfront refund within sixty days sanctioning clause was inserted i.e. on provisional basis subject to documents verification. This limit has been revised to 90% in the new draft. It means that if an exporter files refund of say INR 100, tax authorities would p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovisionally pay INR 90 within 60 days of application. However, the verification of all the requisite documents would happen and then remaining amount will be refunded. - Reply By Ganeshan Kalyani - The Reply = With introduction of Goods and Services Tax in India, compliance for tax payers is set to go up. Service sector will get most effected since under current law, almost every service provider is operated under centralised registration scheme wherein 2 returns in a year is all they file. Under GST, the dealers need to file their return for every states where they have business operations after getting GST registration . - Reply By Ganeshan Kalyani - The Reply = Real Estate sector is likely to be taxed at 18%. Experts believe that GST rate of 18 per cent would be higher than the current effective rate of VAT and service tax for sale of under construction property in most states. Industry is pitching for abatement under GST i.e. effective tax rate would come down from 18% to 12%-13%. Further, The Model GST Law restricts credit on goods and services acquired for construction of immovable property (other than plant and machinery). This clause is interpretative which may lead ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to litigation and result in denial of credits in certain situations. - Reply By Ganeshan Kalyani - The Reply = PwC India Executive Director Sumit Lunker said the April 1 rollout deadline seems challenging, as the CGST and IGST laws can be passed only in the Budget Session in early February. Thereafter, states will have to pass the SGST law in their assemblies. After the law is passed, industry would need at least 3-4 months time to be GST ready, especially on the IT infrastructure front. Most IT companies would come out with their patches and updates after the final law is crystallised. July 1 appears to be a more feasible date for implementation, he said. - Reply By Ganeshan Kalyani - The Reply = Nangia Co Director (Indirect Taxation) Rajat Mohan said July 1 looks like the best case scenario for GST implementation as by then the industry will also be able to migrate into the new taxation regime. Source: The Economic Times. - Reply By Ganeshan Kalyani - The Reply = As far as the model GST law is concerned, PwC India Executive Director Sumit Lunker said, there is no big challenge in passing it as the GST Council has already cleared discussion on 20 chapters and on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly 7 chapters remain. While the issue of dual control remains unresolved till date, state governments across the country are keen to implement GST at the earliest. I am hopeful that the GST Council in its December 22-23 meeting will arrive at a consensus on the pending issues, he said. - Reply By Ganeshan Kalyani - The Reply = Deloitte Haskins Sells LLP Partner Prashant Deshpande said practically April 1 deadline looks unachievable because of the short window of time that will be available to the industry after the GST related legislations are passed. It will be a big tug of war to implement it from April and my advice to industry is that they should keep themselves prepared to ensure business continuity, he said. - Reply By Ganeshan Kalyani - The Reply = As per the roadmap to GST roll out, government planned to finalise GST laws before the conclusion of winter session and present the bills. However, in previous GST Council meetings, consensus on dual control could not be established. However, to bring this back on track, GST Council meeting was called on December 22-23. Here s what can be expected from 2 day meeting starting tomorrow: 1. Finalisation of GST B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ills 2. Achieve consensus on dual control/ administration. - Reply By Ganeshan Kalyani - The Reply = Central Board of Excise and Customs released Frequently asked Questions (FAQs) in English. Later, for benefit of trade and to achieve wide reach FAQs are understood by people speaking different languages across country, FAQs were released in Hindi and 7 regional languages Assamese, Bangla, Gujarati, Punjabi, Kannada, Malayalam and Telugu. - Reply By Ganeshan Kalyani - The Reply = Neither the laws nor the schedule of the GST rates have been finalised as yet. This poses several challenges for businesses, the most critical being IT systems readiness, where changes can only start once the laws are finalised. Further, the industry needs to look at the vendor ecosystem as well and ensure that they are technology enabled for doing the GST compliances, which is critical for claiming the GST credits. With a bit of delay in the GST implementation, industry will be better geared up for transitioning their systems and processes. says Pratik Jain, partner and leader indirect tax, PwC - Reply By Ganeshan Kalyani - The Reply = The Goods Services Tax (GST) Council yesterday appro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved structure of Central Goods Services Tax (CGST) and State Goods Services Tax (SGST) laws. The Council began its two-day meet yesterday and is expected to take up discussions on IGST and Compensation Law in its meeting today, government officials said. The officials added that 3-4 clauses relating to dual control and definition of state are yet to be decided. - Reply By Ganeshan Kalyani - The Reply = The second day of the meeting of the GST Council saw both sides agree to the compensation formula wherein the centre agreed to absorb any spillover of revenue losses accruing on account of the adoption of the new tax regime The stage is now set for a dialogue on the final agenda item: cross empowerment. The council will meet on 3-4 January to resolve this issue. - Reply By Ganeshan Kalyani - The Reply = The Centre will impose a cess on luxury items like high-end cars and demerit goods including tobacco, pan masala and aerated drinks, over and above the highest 28%. Under the structure, the clean energy cess and cess on luxury items and demerit goods would be utilised to create a ₹ 50,000 crore fund every year which will be utilised to compensate the states for fir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st five years of GST roll out. Source: livemint - Reply By Ganeshan Kalyani - The Reply = The base year for calculating the revenue of a state for Compensation has been decided as 2015-16. - Reply By Ganeshan Kalyani - The Reply = The GST Compensation Bill will provide a legal backing to the Centre s promise to compensate the states if their revenue growth rate falls below 14% in the first five years of the GST roll out. - Reply By Ganeshan Kalyani - The Reply = The council will again meet during January 3-4, to hammer out an agreement on the issue of dual control or cross-empowerment . The original deadline to roll-out GST from April 1, 2017 appears increasingly unlikely. Our effort is to make it early as possible, Jaitley said. Source: money control - Reply By Ganeshan Kalyani - The Reply = Under GST, the states and the Centre will collect identical rates of taxes on goods and services. For instance, if 18 percent is the GST rate on a good, the states and the Centre will get 9 percent each called the CGST and SGST rates. - Reply By Ganeshan Kalyani - The Reply = States have demanded that assessees should be divided horizontally with ₹ 1.5 crore be the cu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t-off base. Under this model, states would assess businesses with an annual turnover ₹ 1.5 crore, while both the Centre and states would do so for businesses having higher turnover. - Reply By Ganeshan Kalyani - The Reply = The Centre is pushing for a vertical division of the assessee-base without a turnover threshold. Under this model, both states and the union government will have oversight powers on a certain fixed proportion based on the number of assessees, rather than the turnover. - Reply By Ganeshan Kalyani - The Reply = Jaitley said that a committee is concurrently working on the classification exercise--a comprehensive list specifying the tax rate that each good and service will attract. - Reply By Ganeshan Kalyani - The Reply = States will be compensated 100 percent loss for 5 years, the Finance Minister added. - Reply By Ganeshan Kalyani - The Reply = V Manickam, Secretary General, Life Insurance Council, the umbrella body for all life insurers, said that the industry had sought a zero rate for insurance, which the government rejected. - Reply By Ganeshan Kalyani - The Reply = Roopam Asthana, CEO, Liberty Videocon General Insurance said that the 10 pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcent discount that is being offered for digital premium payments for PSU general insurers should also be extended to other insurers. Source : money control - Reply By Ganeshan Kalyani - The Reply = MS Mani, Indirect tax expert at Deloitte said that clearing CGST is a positive step in the GST process. Demonetisation and GST both are directed towards pushing unorganized sectors into organised, Mani added. - Reply By Ganeshan Kalyani - The Reply = We have cleared the Model GST Law, and all the procedural parts it was discussed line by line some contentious issues were kept on the side, primarily the issue of cross empowerment, and some issues of IGST, Jammu and Kashmir Finance Minister Haseeb Drabu said. - Reply By Ganeshan Kalyani - The Reply = The collections from the proposed cess on luxury or demerit supplies over and above the higher tax slab are estimated to be around ₹ 50,000 crore, out of which around ₹ 26,000 crore will be collected through clean environment cess, Adhia said, adding that the cess collections will be exclusively used by the Centre to compensate states. - Reply By Ganeshan Kalyani - The Reply = The centre, on the other hand, is keen on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equal division of all assesses between the two authorities to ensure single interface with any one authority in line with constitutional amendment. It has mooted the idea of crossempowerment wherein both authorities can work in tandem on key functions of audit and registration of new assesses - Reply By Ganeshan Kalyani - The Reply = Associated Chambers of Commerce and Industry of India has suggested removal of a provision in the revised Model GST Law dealing with anti-profiteering since it is open to misuse and subjective interpretation, Assocham said in a statement here on Friday. In the revised Model GST Law, the central government has been given powers to constitute an authority to examine whether input tax credits availed of by any registered taxable person, or the benefit of a reduction in the tax rate, has resulted in a commensurate reduction in the price of the goods or services supplied. Also, the authority would have powers to impose penalties where the prices of goods or services supplied are not reduced. While the intent of such a proposal cannot be questioned, the industry believes that it will be very difficult to implement and the costs of compliance and admi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nistration will significantly outweigh the risks that some businesses will seek to profiteer from the change in indirect tax systems, the statement added. - Reply By Ganeshan Kalyani - The Reply = National Academy of Customs, Excise and Narcotics (NACEN) was given the humongous task of training government officers on Goods and Service Tax (GST). As per the latest data of NACEN , 44,259 field officers have been trained. - Reply By Ganeshan Kalyani - The Reply = Telecom operators have made fresh representations to the finance ministry seeking a uniform rate across states with a cap of 15 per cent in the proposed goods and services tax (GST) regime. - Reply By Ganeshan Kalyani - The Reply = Telecom is an infrastructure service designated as an essential service under the Essential Services Maintenance Act, 1968, and is availed by masses, said Rajan Mathews, director- general of the Cellular Operators Association of India (COAI). - Reply By Ganeshan Kalyani - The Reply = FM impressed upon the gathering the importance of coordination between the Central and the State administration in smooth transition from the old to new Indirect tax regime so that the taxpayer of the cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntry does not suffer. - Reply By Ganeshan Kalyani - The Reply = FM Arun Jaitley after inaugurating Professional Training Course of 68th Batch of IRS (C CE) Officers spoke on change in mindset of tax payers. He also expressed faith in the probationers to be able to carry out the onerous task of smooth rolling out and administering the new indirect tax administration system i.e. Goods and Services Tax (GST). - Reply By Ganeshan Kalyani - The Reply = While the entire enrolment process is online driven, users are facing various challenges in conversion. Sales tax bar association (Delhi) has written to Delhi VAT Commissioner highlighting problems faced by dealers. - Reply By Ganeshan Kalyani - The Reply = Union Minister for Parliamentary Affairs H N Ananth Kumar today expressed hope about the roll out of the Goods and Services Tax (GST) regime from coming April, saying the government is pushing ahead with the agenda. - Reply By Ganeshan Kalyani - The Reply = The next GST Council meeting is scheduled for January 3 and 4 to decide on the contentious issue of dual control over assesses and the legislation on IGST. - Reply By Ganeshan Kalyani - The Reply = Stating that Tally has c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onstantly been making efforts to equip small businesses and traders with the right information to train and prepare themselves for the tax reform, the company said it recently qualified as a GST Suvidha Provider (GSP) by the GSTN Network. - Reply By Ganeshan Kalyani - The Reply = In GST Council meeting beginning today GST Council is expected to form consensus on Dual Control administration and discuss IGST Law. Thereafter, present the laws before parliament in budget session. - Reply By Ganeshan Kalyani - The Reply = Not even a single assessee registered in J K has converted to GST. The reason being state government has not participated in this grand transition to GST plan. Currently, J K is outside the purview of Service Tax. J K is the only state in the country with powers to tax services and it want to be part of GST without compromising its constitutional position on taxing services. - Reply By Ganeshan Kalyani - The Reply = Commerce and Industry Ministry today pressed the GST Council to keep exports out of the GST framework and levy lower taxes on labour-intensive sectors like leather, cement and plantation. - Reply By Ganeshan Kalyani - The Reply = Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erce and Industry Minister Nirmala Sitharaman said refund of taxes takes about six to eight months and hence it is necessary to give an ab-intio exemption . - Reply By Ganeshan Kalyani - The Reply = Concept of centralised registration did not find space under the Model GST Law. This meant that every service provider who has single/ centralised registration will have to de-centralise and register in multiple states. Implying, multi fold increase in compliance. Mutiple assessments, audits, litigation etc. - Reply By Ganeshan Kalyani - The Reply = Most of the service providers have centralised registration. They may be providing services from multiple state in India but have taken single registration. This make life much easier as far as compliance, tax payments, credit management, audits, litigation is concerned. But under GST concept of single/ centralised registration was taken off as things are placed state specific. This has caused nightmare for certain industries which are spread across India by virtue of their business e.g. Telecom operators like Airtel, Vodafone and Banks like ICICI, HDFC. - Reply By Ganeshan Kalyani - The Reply = The gst enrolment process kicked off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 8th November 2016. As per the figures released in GSTN in only 7 states/UT more than 50% assessees have enroled under GST. Following States are ahead in GST enrolment with maximum number assesses. These are: 1. Gujarat 78.52% 2. Madhya Pradesh 77.68% 3. Chhattisgarh 74.66% 4. Rajasthan 67.7% 5. West Bengal 56.94% 6. Jharkhand 56.47% 7. Chandigarh 53.93% 8. Bihar 48.8% 9. Goa 46.69% 10. Delhi 45.78% - Reply By Ganeshan Kalyani - The Reply = The government will present the Union Budget 2017-18 on February 1 for the financial year starting on April 1, a senior government official said. - Reply By Ganeshan Kalyani - The Reply = The Budget 2017-18 would be presented on February 1. The Part B of the Budget speech, which contains tax proposal, could carry half-yearly estimates of service, central excise duty and collections from other indirect taxes (excluding customs) that the Centre expects to earn between April to September, instead of full-year projections. - Reply By Ganeshan Kalyani - The Reply = Nasscom President R Chandrashekhar highlighted the issue of de-centralized registration under GST. He said that under IT sector contracts are central but se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvices are provided from multiple locations and are delivered within and outside India. This raises serious challenges with invoicing and input tax credit. - Reply By Ganeshan Kalyani - The Reply = Nasscom President R Chandrashekhar says that Complex place of supply, input credit and valuation requirements, in addition to multiple registration, is leading to an unviable situation, Our request is to allow for an option of single registration for the IT sector, without prejudice to the principles of dual control or apportionment of revenues between Centre and states. - Reply By Ganeshan Kalyani - The Reply = National Academy of Customs Excise Narcotics (NACEN) has released video tutorials to explain registration and refunds under GST in very simple way. You can watch the video from below links: 1. Refunds under GST 2. Registration under GST The videos explain how refunds and registration process would work under GST. Hope you find them useful! - Reply By Ganeshan Kalyani - The Reply = There is some thinking of an increase in the service tax rate in case the GST is not implemented from April. A higher rate will help improve revenue and also bring it closer to the prop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osed standard rate under GST, said a close source. - Reply By Ganeshan Kalyani - The Reply = It is expected that Arun Jaitely would reveal revised GST rollout date during Budget. - Reply By Ganeshan Kalyani - The Reply = GST Council s next meeting on 16th January will play a very pivotal role in framing FM s budget speech. India will have to implement GST on or before September 15, 2017 - Reply By Ganeshan Kalyani - The Reply = Current threshold under service tax law for exemption is likely to raised from ₹ 10 lacs to ₹ 25 lacs. Increasing the cap will suit startups and other small scale ventures to stay out of service tax net. It also eases compliance and administrative hassles some bit for them. A government official said. - Reply By Ganeshan Kalyani - The Reply = Goods and Services Tax will usher in a very simple and less burdensome taxation regime as it will be a single rate indirect tax which can be paid by debit/credit cards, cheque and NEFT, Revenue Secretary Hasmukh Adhia said today. - Reply By Ganeshan Kalyani - The Reply = The GST Council has already reached a consensus on a 4-tier tax structure i.e. 5,12,18 and 28 per cent. Besides, a cess on demer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it, luxury and some more goods would also be levied. - Reply By Ganeshan Kalyani - The Reply = GST will indeed become a very simple and less burdensome tax for most of the people of the country. Be it manufacturers or traders. Simple tax, single compliance procedure, it will become very very simple for the people to pay taxes, Adhia said. - Reply By Ganeshan Kalyani - The Reply = GST taxes can be paid by way of NEFT, RTGS, cheque, and debit/credit cards etc. - Reply By Ganeshan Kalyani - The Reply = GST is a very very simple thing to follow, it is going to be very easy for all of you. There will not be any border restriction when you move goods from one state to another. And many of the small small taxes will go away. It will be one unified tax, Adhia said at the Vibrant Gujarat global Summit here. - Reply By Ganeshan Kalyani - The Reply = Vijay Prakash Kumar, CEO of GST Network, says, We have already rolled out one of the modules, which is registration, and using that more than 28 lakh people have already enrolled as tax payers and remaining hopefully will be doing it this month by January 31. - Reply By Ganeshan Kalyani - The Reply = The government owns 49 per cent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in it, with the central and state governments owning 24.5 per cent each, while 51 per cent is controlled by private companies, including HDFC, ICICI Bank among others. Some of these private entities are controlled by foreign institutional investors (FIIs). - Reply By Ganeshan Kalyani - The Reply = Nagesh Rao, nodal officer and Joint Commissioner of Commercial Taxes, VAT Division, Mysuru, said the window for registration for migration in Karnataka is January 1 to 15. This would ease the process of registration as there is a dedicated line and bandwidth, which would ensure that the process was completed within 15 minutes to 30 minutes. - Reply By Ganeshan Kalyani - The Reply = CBEC has also asked its field offices to launch awareness campaign and outreach programmes to facilitate migration of all excise and service taxpayers to the GST network by January-end. - Reply By Ganeshan Kalyani - The Reply = The provisional registration, which will be generated on the basis of PAN, will be called Goods and Services Tax Identification Number (GSTIN). - Reply By Ganeshan Kalyani - The Reply = The Rajasthan state government will incorporate the provisions of Goods and Service Tax (GS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T) in the budget even if its implementation is delayed by the Centre beyond April. The budget will have separate heads under GST and well-laid guidelines of tax distribution. Sources claim the budget will be presented like every year in the same format but with additional features. - Reply By Ganeshan Kalyani - The Reply = Companies will now start locating manufacturing plants on the basis of economic sense instead of choosing areas where the taxes are lowest. Companies would need to rework their strategies because there would be little to gain in terms of tax holidays. CII President Naushad Forbes said. - Reply By Ganeshan Kalyani - The Reply = Companies, domestic or multinationals, have been choosing small hill towns and remote parts of the country to take advantage of no-tax or low-tax regimes. The advantage will cease because as the GST model law reads today, the tax holiday would not be extended after September 16 when GST comes into force. - Reply By Ganeshan Kalyani - The Reply = GST regime is slated to subsume state levies like VAT or CST. Under GST, the taxes would be collected by a state where the goods are sold and not where the goods are manufactured. - Reply B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y Ganeshan Kalyani - The Reply = The Budget session will conclude by the first week of February. It may not be possible for the government to introduce the GST Bill in the Budget session of the Legislature as the high-powered committee is yet to draft the legislation, said the J K state government s Economic Survey report. - Reply By Ganeshan Kalyani - The Reply = GST Council has reached a consensus on the issue of 'dual control ', which was seen as the last major roadblock for GST implementation. Turnover of less than ₹ 1.5 crores - 90% of business would be administered by States, and the balance 10% by Central Government. Turnover of more than ₹ 1.5 crores- Such businesses would be divided in the ratio of 50:50 between Central Government and the States. - Reply By Ganeshan Kalyani - The Reply = GST is now expected to be rolled out by 1st July 2017, as opposed to the earlier date of 1st April 2017. - Reply By Ganeshan Kalyani - The Reply = Addressing media post conclusion of ninth GST Council meeting, FM Arun Jaitley has said that the new deadline for GST rollout is July 1. - Reply By Ganeshan Kalyani - The Reply = GST Council would meet again ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on Feb 18 to approve drafts of supplementary GST legislation. - Reply By Ganeshan Kalyani - The Reply = As per the revsied enrolment schedule, the due date for service taxpayers who are registered under Service Tax Act but not registered under State VAT has not been specified. TBD i.e. To Be Decided has been put as of now. - Reply By Ganeshan Kalyani - The Reply = Since the likely standard rte of GST would be 18 percent as decided by GST Council, there is all likelihood that Service Tax rate may be increased to 16 or 18 percent in the Union Budget. This would result in higher revenues to centre as compared to GST regime where rate is likely to be lower for some selected services. - Reply By Ganeshan Kalyani - The Reply = The trade and industry should familiarise themselves with the goods and services tax (GST) to be rolled out later this year and make all efforts in coordination with the tax departments to make it a success, says Commissioner of Customs, Central Excise and Service Tax B Hareram. - Reply By Ganeshan Kalyani - The Reply = The GST council will meet again on 18.02.2017. The technical group of officers will finalize the draft legislations for the Central, Sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te and IGST and compensation in the mean time. Once the drafts are cleared they would go the respective legislative bodies for approval. - Reply By Ganeshan Kalyani - The Reply = The Ministry of Power has recommended that renewable energy be given a zero-rate tax status under the Goods and Services Tax, predicting several adverse effects to the economy if there is any increase in power tariffs due to the new tax regime. - Reply By Ganeshan Kalyani - The Reply = It is estimated that the Government shall levy tax between 12 per cent and 18 per cent on services, depending on its classification based on essential and non-essential services as a move towards the final GST rate. - Reply By Ganeshan Kalyani - The Reply = The GST will replace multiple indirect taxes like the central excise, sales tax, VAT and service tax by a single consolidated tax. The consolidation will bring to an end the exemptions associated with various taxes for exporters. As of now, it appears that exporters will first have to pay the GST on all raw materials, inputs and other services they source domestically for their exports and later claim refunds. This would imply greater expenditures for exporters si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce refunds will materialise only after several months. - Reply By Ganeshan Kalyani - The Reply = Currently, consumers are paying a service charge tax of around 14.5-15% for all broadcast services like Television that includes Cable and DTH also films and digital content. Besides this, an entertainment tax of around 8-12% is further levied increasing the average tax to as much as 25%. However, once GST comes into play, consumers would have to pay a single tax that can be anything between 18-20%. Hence, the overall tax burden on consumers is set to reduce. - Reply By Ganeshan Kalyani - The Reply = Under GST, service tax or state tax will be available as a credit which will reduce overall costs and eliminate any dual levies of service tax and VAT on transactions. However, media companies will have to pay additional local body tax over and above the one proposed in GST. - Reply By Ganeshan Kalyani - The Reply = GST is a welcome step. It will unify the indirect tax administration in India and help the country in two ways. First it will simplify and make it easy for the consumers to understand. Second it will significantly improve the ease of doing business in India. - Reply By ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ganeshan Kalyani - The Reply = Mr. Rakesh Bhargava, director, Taxmann, said that July 1 is more realistic deadline for the rollout of GST. It's a welcome step. The government seems to have felt the pain of the industry and decided to give it ample time to make the required changes before getting GST implemented, he said. - Reply By Ganeshan Kalyani - The Reply = While the goods and services tax (GST) tax structure has been announced, the real estate industry is waiting with bated breath to see which tax rate is applied to the real estate and construction industry. Clarification would also be needed on the abatement scheme, and whether credit for input tax would be allowed if the composition scheme has been availed by developers. - Reply By Ganeshan Kalyani - The Reply = It is expected that the Government may further raise the rate of service tax to 16% 17% to bridge the gap between current service tax rate and proposed GST rates. - Reply By Ganeshan Kalyani - The Reply = In a letter to Arun Jaitley, the All India Association of Group B Central Excise Gazetted Executive Officers, said the decision to transfer 90% of service tax assessees to states is not supported ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by any lawful and logical base and therefore, the decisions taken by GST Council is not correct. - Reply By Ganeshan Kalyani - The Reply = The Association further said that the service tax assessees falling within the annual turnover limit of ₹ 10 lakh to ₹ 1.5 crore are at present being assessed by the Centre smoothly. By transferring of 90% of these assessees to states for levy and collection of SGST and CGST, the officers of the Centre would become work-less, the association said in the letter. - Reply By Ganeshan Kalyani - The Reply = GST will subsume a host of indirect taxes levied by the Centre and states, including excise duty, VAT, service tax, entry, luxury and entertainment levies. GST is expected to transform India into a single market, boost revenues through better compliance and simpler procedure - Reply By Ganeshan Kalyani - The Reply = Since inception of the GST council last year, eight meetings have already taken place during which most of the issues between the States and Centre got resolved and the Government has now been able to reach a broader consensus on the model GST legislations and the same have been sent to the Ministry of Law for revi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew. - Reply By Ganeshan Kalyani - The Reply = The GST Council has already decided on a four-slab GST rate structure. Separately, a bureaucrats panel is working on the classification exercise, a comprehensive list clubbing thousands of goods and services into different rate categories. - Reply By Ganeshan Kalyani - The Reply = The last date for GST enrolment is 31.01.2017. - Reply By Ganeshan Kalyani - The Reply = Central taxes such as, Central Excise duty, Additional Excise duty, Service tax, Additional Custom duty and Special Additional duty, Central Sales tax as well as state-level taxes such as, VAT or sales tax, Entertainment tax, Entry tax, Purchase tax, Luxury tax and Octroi will subsume in GST. - Reply By Ganeshan Kalyani - The Reply = Petroleum and petroleum products will be subject to GST on a date to be notified by the GST Council. Alcohol for human consumption will be out of GST; states will continue to levy taxes on alcohol. Tobacco products will be subjected to separate Excise Duty by the Centre over and above GST. - Reply By Ganeshan Kalyani - The Reply = A four-tier structure for Goods and Services Tax (GST) comprising a lower rate of 5 per cent, two sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndard rates of 12 per cent and 18 per cent, and a higher rate of 28 per cent with an additional cess for luxury and demerit goods were proposed in the third meeting of the GST Council . - Reply By Ganeshan Kalyani - The Reply = Luxury items like high-end cars and demerit goods like tobacco, cigarettes, pan masala and aerated drinks, comprising about 25 per cent of the taxable base, would attract an additional cess over and above the higher rate of 28 per cent, Revenue Secretary Hasmukh Adhia told reporters. - Reply By Ganeshan Kalyani - The Reply = With most services likely to attract a tax of 18 percent under GST, finance minister Arun Jaitley will likely raise the existing service tax rate in the budget for 2017-18 to align it closer the GST rate. - Reply By YAGAY AND SUN - The Reply = Vijay Kelkar backs single GST rate, says it's easier to roll out - Reply By YAGAY AND SUN - The Reply = Many issues need to be resolved to make ideal GST: Amit Mitra - Reply By YAGAY AND SUN - The Reply = Arun Jaitley may hike service tax to 16-18 per cent in Budget - Reply By YAGAY AND SUN - The Reply = Vijay Kelkar says single GST rate easy to administer. - Reply By YAG ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AY AND SUN - The Reply = FM assures taxmen says GST will increase new professional opportunities. - Reply By YAGAY AND SUN - The Reply = GST: CBEC officials oppose ceding taxpayer base to states Over 50,000 officers are planning to protest on 30 January against the decision which they estimate will leave as many as 40% of CBEC employees without work - Reply By YAGAY AND SUN - The Reply = JAM, GST and DeMon make for gain with short-term pain: Arvind Narayanan, DBS Bank - Reply By YAGAY AND SUN - The Reply = Keep healthcare out of GST purview: Assocham - Reply By YAGAY AND SUN - The Reply = GST tableau in Republic Day parade. - Reply By YAGAY AND SUN - The Reply = GST to ease loan access for millions of firms: Nandan Nilekani - Reply By YAGAY AND SUN - The Reply = Entrust implementation of GST to IRS officials The implementation of Goods and Services Tax (GST) should be entrusted to IRS officials to make them play a greater role in enhancing tax collections, said MP P. Ravindra Babu, who is also a former IRS officer. Participating as a chief guest at the International Customs Day celebrations 2017 held at the Custom House, here on Friday, Dr. Ravind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ra Babu recalled how he had raised the GST issue in Parliament. Referring to the IRS officers and other Customs and Central Excise officials, present at the meeting, as colleagues , he called upon them to take up the issue collectively to the Centre by involving the trade. On the issue of delays in the promotion of Customs officers, the MP said the CAT judgment on the applicability of reservations was referred to the Supreme Court and the latter suggested an amendment of the Constitution in this regard. The Amendment Bill was passed by the Rajya Sabha but unfortunately before it could be passed by the Lok Sabha, it was dissolved and after 2014 elections no one took up the cause. Dr. Ravindra Babu, a medical student of Andhra Medical College, called upon his IRS colleagues to organise all India meets and regional meets and come to Delhi with a memorandum for submission to the Prime Minister. He also favoured improvement of the infrastructure of the Customs Department and assured of his help in bringing it to the notice of the Centre. Commissioner of Customs B. Hareram underlined the importance of Data analysis in Custom clearances and other port-related services and ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tivities. He spoke about the expansion of port and other allied activities, congestion at ports, establishment of Container Freight Stations and various aspects of customs, tariff and non-tariff barriers. Chief Operating Officer of VCTPL Sushil Mulchandani spoke on data sharing and appreciated the proactive role played by the Custom officials in trade facilitation. Officer-on-Special Duty (AP Bhavan, New Delhi) M. Rama Rao spoke. Assistant Commissioner of Customs S.K. Dutta was present. - Reply By YAGAY AND SUN - The Reply = GST: striking a balance Various products such as food grains, essential medicines, fruits, vegetables and others may fall under the bracket of nil tax. - Reply By YAGAY AND SUN - The Reply = From GST To Demonetisation And More, Here Are Five Risks That Can Hamper India s Economic Growth. Protectionist Trade Polices. Global Growth Faltering . Brexit and its Implications. Effect of Demonetisation Disruption on GST - Reply By YAGAY AND SUN - The Reply = Customs and excise officials upset with GST administration deal with states - Reply By YAGAY AND SUN - The Reply = GST: Centre, States reach conse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsus over dual control, rollout likely from July 1 - Reply By KASTURI SETHI - The Reply = Still the situation is fluid. The possibility of further postponement to 1.9.2017 cannot be ruled out. - Reply By Ganeshan Kalyani - The Reply = Chairman of the Empowered Committee of Ministers on GST, Amit Mitra, today said many issues needed to be resolved to make an ideal Goods and Services Tax . - Reply By Ganeshan Kalyani - The Reply = Sri Kastiei Sir, i agree with your views Sir - Reply By YAGAY AND SUN - The Reply = GST protest: 70,000 tax officers to wear black bands to work tomorrow. - Reply By YAGAY AND SUN - The Reply = IRS officers protest against GST council's decisions - Reply By YAGAY AND SUN - The Reply = Tech players brace for GST impact, want manufacturing norms to ease. - Reply By YAGAY AND SUN - The Reply = Solar players expect tax incentives in budget, uncertainty over GST remains. - Reply By YAGAY AND SUN - The Reply = Budget 2017: Lower tax rates, definitive GST plan and other expectations post demonetisation Considering this rough run-up, there are high expectations of the government announcing various feel-good factors in the Budge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 2017. - Reply By YAGAY AND SUN - The Reply = New Delhi-based Marg Compusoft to set up 14 GST help desks in Hyderabad. - Reply By YAGAY AND SUN - The Reply = REAL ESTATE SECTOR NEEDS STRATEGIC PUSH; MORE CLARITY ON FINAL GST RATE. - Reply By Ganeshan Kalyani - The Reply = FM says that all steps necessary for preparedness to move to GST are as per target including IT system, and that the CBEC is working extensively to reach out to trade and industry from 1st April providing positive trigger towards readiness to GST. - Reply By Ganeshan Kalyani - The Reply = GST council is going to meet on 18th February. - Reply By Ganeshan Kalyani - The Reply = The rate of GST product wise is expected to analyse the impact on there working capital and on business. - Reply By Ganeshan Kalyani - The Reply = Compliances are going to be a big concern for big industries having huge transaction and having many branches. It is also going to be a big concern for service industries. Untill now they have single centralized registration for service tax. Under GST they would require to enrol in every state where they have operation. - Reply By Ganeshan Kalyani - The Reply = FM said that no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... major changes in current indirect tax regime of central excise, customs and service tax is made as anyway these taxes is going to subsume in GST. - Reply By YAGAY AND SUN - The Reply = Draft GST laws due in second half of Budget session: FM Jaitley - Reply By YAGAY AND SUN - The Reply = Allied GST laws coming up. - Reply By YAGAY AND SUN - The Reply = India should start with a uniform low rate GST. - Reply By YAGAY AND SUN - The Reply = Union Budget: Encouraging to see govt committed to GST in 2017 It was great to see that Arun Jaitley preferred to avoid making changes in the current excise and service tax regime since GST is around the corner - Reply By YAGAY AND SUN - The Reply = With GST roll-out, we are cautious of indirect tax forecast for FY18. - Revenue Secretary - Reply By YAGAY AND SUN - The Reply = Services are likely to be taxed at a single rate, except some like transport: Revenue Secretary - Reply By YAGAY AND SUN - The Reply = Five Indians charged on GST fraud claims in Singapore . - Reply By YAGAY AND SUN - The Reply = Scope of black money generation will be difficult once GST is implemented: Arun Jaitley - Reply By YAGAY AND SUN - ..... 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The Reply = Govt may table GST draft Bills in House next month Next council meet on Feb 18 | Rates may be decided in May or June - Reply By YAGAY AND SUN - The Reply = GST migration Seva Kendra opened - Reply By YAGAY AND SUN - The Reply = GST To Smoothen Taxation, Bring In Transparency: Experts At an interactive awareness programme for start-ups, the experts said the government is expected to resolve the queries of entrepreneurs regarding GST. - Reply By YAGAY AND SUN - The Reply = GST roll out next fiscal: Is the govt looking at changing the financial year? - Reply By YAGAY AND SUN - The Reply = GST decisions under states' pressure, reverse them: IRS - Reply By YAGAY AND SUN - The Reply = Vehicle scrap policy to go to GST Council post Cabinet nod: Gadkari V-VMP policy to push 28 million decade-old vehicles off the roads - Reply By YAGAY AND SUN - The Reply = Smartphone buyers beware: GST may lead to 25% hike in prices CyberMedia Research estimates that with imposition of goods and services tax (GST), the price of smartphone handsets would increase by around 25 percent. - Reply By YAGAY AND SUN - The Reply = Many issues need to be resolved to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... make ideal GST: Amit Mitra - Reply By YAGAY AND SUN - The Reply = GST to simplify tax structure, boost revenue mop up - Reply By YAGAY AND SUN - The Reply = All cesses, barring petroleum, to be merged in GST: Hasmukh Adhia It was decided that even though all other cesses would be subsumed in the GST, the Centre would continue to levy clean environment cess on coal, peat and lignite. - Reply By YAGAY AND SUN - The Reply = IT and technology companies want relaxation of manufacturing norms as GST approaches. - Reply By YAGAY AND SUN - The Reply = GST: CBEC officials oppose ceding taxpayer base to states Over 50,000 officers are planning to protest on 30 January against the decision which they estimate will leave as many as 40% of CBEC employees without work. - Reply By YAGAY AND SUN - The Reply = July 1 more realistic deadline for GST: Arun Jaitley Finance Minister Arun Jailtey-led Goods and Services Tax (GST) council, on Monday, again failed to achieve consensus on contentious dual control or cross empowerment issue that deals with assessee jurisdiction, deferring target for its roll-out to July 1. I am trying my best (on deadline of April 1). There w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as a broad view that July 1 appears to be a more realistic date for the implementation, Jaitley said at a press briefing after today's GST Council meet ended. We discussed cross empowerment issue whole day but..., Jaitley said. He, however, said there were agreements on some other issues, including an agreement that integrated GST (law) will be mutually empowerment model . Also, territorial waters, taxation powers will be delegated to the states , he said. - Reply By YAGAY AND SUN - The Reply = GST Bill: Narendra Modi govt s push to pass legislation, how it will help businesses and common man GST would be beneficial for all the stakeholders and would provide a much needed boost to the reform agenda of the government. - Reply By YAGAY AND SUN - The Reply = Potential benefits of GST: Smooth credit mechanism by decreasing the cascading effect of multiple indirect taxes. Broadening of the tax base with reductions in exemptions/concessions. Creation of a unified common market. Simplified/uniform tax compliance and administration across India. - Reply By YAGAY AND SUN - The Reply = As GST may be introduced at a short notice ow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing to political compulsions, the time available for businesses to analyse the impact of GST and make changes across business functions will remain a significant challenge. An effective and seamless transition to the new GST regime mandates that organisations adopt a 'business transformation' approach, rather than merely consider it a 'tax change' project. It would involve multiple stakeholders in an organization including the tax, finance, IT, supply chain, procurement and sales and marketing departments. Past experiences suggest that though several organisations with complex operations/wide-geographical spread could take 8 to 12 months for a successful transition to the new regime, it is expected that they are likely to get a shorter window to prepare for the transition. Hence, businesses need to accord high priority on the transition in order to realise the full-scale benefits of GST. - Reply By YAGAY AND SUN - The Reply = Time is of the essence - act now As GST may be introduced at a short notice owing to political compulsions, the time available for businesses is less. - Reply By YAGAY AND SUN - The Reply = Anti-profiteering provision in GST law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is retrograde. Section 4 of the Competition Act, 2002, provides for action against abuse of dominant position - Reply By YAGAY AND SUN - The Reply = Revenue Department prepares draft recommendations for GST rates: Report The Revenue Department has prepared draft recommendations for GST rates on services. According to the draft, GST on telecom, banking, financial services, aviation is proposed to be pegged at 18%, according to a report. - Reply By YAGAY AND SUN - The Reply = Meeting Apple s demands for tax concessions to be difficult under GST, says revenue secretary Apple has asked for 15-year CVD on imported components to begin manufacturing in India. - Reply By YAGAY AND SUN - The Reply = Concessions to Apple under GST regime not feasible: Hasmukh Adhia - Reply By YAGAY AND SUN - The Reply = Cesses set to go with GST see increase in Budget Budget pegs the cess and surcharge collections for FY18 at ₹ 2.96 lakh cr - Reply By YAGAY AND SUN - The Reply = Startup Oasis organised awareness session on Impact of GST on Startups Startup Oasis, a Jaipur based incubation center which is developing an ecosystem in Rajasthan, and KDK Softwares h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave organised a brain storming and awareness session on Impact of GST on Startups . About 20 Startups attended this and interacted on their queries on GST with expert panels including CAs. - Reply By YAGAY AND SUN - The Reply = Apple's India plans may face a fresh roadblock: GST Revenue Secretary Hasmukh Adhia says it would be difficult to give Apple a 15-year exemption on countervailing duty on imported components, as GST does not allow for individual exemptions. - Reply By YAGAY AND SUN - The Reply = Centre assures realty sector of revenue neutral GST rate. - Reply By YAGAY AND SUN - The Reply = Credai, the apex body of private real estate developers, today said that it is expecting a revenue-neutral GST rate without any adverse impact on realty prices, a relief for the sector. - Reply By YAGAY AND SUN - The Reply = Credai expects GST rate to be neutral for housing sector. - Reply By YAGAY AND SUN - The Reply = GST to create ₹ 36,000 crore software market in MSME segment. - Reply By Ganeshan Kalyani - The Reply = The implementation of the Goods and Services Tax (GST) can add 1.5-2.0 percent to the country s GDP feels Adi Godrej, Chairman of Godrej G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roup. Sectors lagging right now due to various reasons, including demonetisation, will pick up strongly, and the last 3 quarters of this financial year will be very good for the economy, he told CNBC-TV18 in an interview on the sidelines of the Edelweiss India Conference. - Reply By YAGAY AND SUN - The Reply = CAIT to train 5,000 traders as 'Master Trainers' for GST The Confederation of All India Traders (CAIT) today said it will prepare 5,000 trade leaders across the Country as 'Master Trainers', who will be responsible to empower and educate the trading community about Goods and Services Tax (GST). - Reply By YAGAY AND SUN - The Reply = GST positive for fiscal consolidation but hostility in Parliament could delay passage of bill: Research - Reply By Ganeshan Kalyani - The Reply = Author says, The CESTAT for the purposes of service tax, central excise and customs will be continuing. Customs will not subsume in GST. As such, CESTAT will continue and will clear all the pending cases of service tax and excise duty in near future. Likewise Tribunals were established by the respective State Governments to deal with the appeal cases of respective State ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... VAT. They may also continue and will clear all the pending cases of VAT in near future and after that they may cease to function. - Reply By YAGAY AND SUN - The Reply = Realty will pick up post GST implementation, says Adi Godrej Adi Godrej, Chairman, Godrej Group on Wednesday said that realty will pick up post implementation of Goods and services tax (GST). GST can add 1.5-2% to GDP, he said. - Reply By YAGAY AND SUN - The Reply = Blue Star J K plant awaits clarity on GST compensation Air conditioning and commercial refrigeration major, Blue Star Ltd today said it was awaiting greater clarity on Goods and Services Tax (GST) compensation for their proposed greenfield plant at Jammu before moving ahead any further constructing the factory. - Reply By Ganeshan Kalyani - The Reply = We are very close to finalisation of law. The Model law will be finalised by the end of this month. Currently, Model CGST and SGST law are being vetted by the law ministry, and these will be taken before the GST Council meeting on February 18, said Ram Tirath, Member, Central Board of Indirect Taxes. - Reply By Ganeshan Kalyani - The Reply = Model Goods and Services Tax (GST) law, whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h is presently being examined by the department of law, is likely to be finalised by the end of this month, said a senior official from the Finance Ministry. The model law will set the path for rolling out of the GST from July 1, 2017. - Reply By Ganeshan Kalyani - The Reply = In the second leg of Budget session, which is starting from March 9, the Model GST laws that include IGST are likely to be tabled before the Parliament. - Reply By Ganeshan Kalyani - The Reply = Though the GST Council has already taken the decision on a four-tier structure for taxing for the indirect tax regime, the rate for various goods and services will be decided in May or June. The Council has decided the rates for four-slab structure at 5%, 12%, 18% and 28%. - Reply By YAGAY AND SUN - The Reply = Amazon, Flipkart, Snapdeal Join Hands Against Draft Model Goods And Services Tax (GST) Law. - Reply By YAGAY AND SUN - The Reply = Cong says govt delaying GST implementation Congress today accused the government of being insensitive towards implementing GST and said the blame for delaying the key tax reform measure for three years should be on the Modi dispensation. - Reply By YAGAY AND SUN - The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reply = Land, real estate should be brought under GST: Delhi deputy CM - Reply By YAGAY AND SUN - The Reply = Govt hopeful of passing GST bills in 2nd leg of Budget session Replying to a question on GST bill, Parliamentary Affairs Minister Ananth Kumar said, That is on the plate. GST council is meeting on 18th and it will be decided after that, but we are hopeful that supporting GST bills will be passed in the next phase of the session. - Reply By YAGAY AND SUN - The Reply = Preparing for GST: For SMEs this can be a good starting point - Reply By YAGAY AND SUN - The Reply = Govt may rework indirect tax maths mid-way after GST entry - Reply By YAGAY AND SUN - The Reply = Differentiated tax in GST good for beverages sector: Coca-Cola The Atlanta-headquartered beverages giant said differentiated tax structure will be an opportunity for it to expand its products range in the country. - Reply By YAGAY AND SUN - The Reply = 4-tier GST rate may lead to classification disputes: Study - Reply By YAGAY AND SUN - The Reply = Film and television industry lobbies for lower GST rate Anything more than a 5% rate would be damaging to the industry, said Siddhart ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h Roy Kapur, president of Film and Television Producers Guild of India. - Reply By YAGAY AND SUN - The Reply = Government May Rework Indirect Tax Maths Mid-Way After GST Entry In total, the government estimates to collect nearly ₹ 9.27 lakh crore from indirect taxes next fiscal, up 9 per cent over 2016-17. - Reply By YAGAY AND SUN - The Reply = Chidambaram asks Jaitley to cut indirect taxes immediately - Reply By YAGAY AND SUN - The Reply = GST likely to halt economy, says Avendus' Andrew Holland Valuations are challenging. We are seeing early signs of pick-up from demonetisation but its not a V-shape pick-up and will not be a V-shaped recovery - Reply By YAGAY AND SUN - The Reply = Cos rush to merge arms for better efficiency under GST. - Reply By YAGAY AND SUN - The Reply = Adi Godrej expects double-digit GDP growth once GST kicks in Going ahead, remonetisation will spur the company s earnings in the fourth quarter ending March 2017, Godrej Group Chairman Adi Godrej said, adding that GST rollout will fuel the company s and India's growth in FY18. - Reply By YAGAY AND SUN - The Reply = GST Council to discuss anti-profiteering clause at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... February 18 meet. - Reply By YAGAY AND SUN - The Reply = StanChart pegs GDP at 7.2% in FY18, says GST may slow down growth Analysts at Standard Chartered expect GDP growth in India to be slow at 7.2 percent for financial year 2018 as against 7.5 percent estimated by a majority of other economists. - Reply By YAGAY AND SUN - The Reply = Apply higher tax on tobacco products under GST:Experts - Reply By YAGAY AND SUN - The Reply = GST could raise solar tariffs by 10%: Report - Reply By YAGAY AND SUN - The Reply = Solar tariffs in India may rise by nearly 10 per cent if current tax exemptions are curtailed under the proposed Goods and Services Tax (GST) regime, a local think-tank dealing with energy and environment issues has said. India's emerging solar sector could see tariffs rise by nearly 10 per cent if current tax exemptions were curtailed in the roll out of the GST, the Delhi-based Council on Energy, Environment and Water (CEEW) said in a statement on Tuesday, citing its study. - Reply By YAGAY AND SUN - The Reply = GST: JK to draft own law to protect State s special status Will ensure Constitutional position and special taxation powers are not affected ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Reply By YAGAY AND SUN - The Reply = Kannada film producers seek protection from GST. - Reply By YAGAY AND SUN - The Reply = Film industry bats for lower rate of GST; says over 5 per cent tax will hamper the growth - Reply By YAGAY AND SUN - The Reply = Here s how CIOs can manage the complexities arising out of GST. In an interview with ETCIO.COM, DD Mishra, Research Director, Gartner explains the various ways in which GST will impact the IT systems and how CIOs can manage the complexities arising from it. - Reply By YAGAY AND SUN - The Reply = Retailers seek early implementation of GST Industry body Retailers Association of India has asked for early implementation of the GST, which will be a game changer for the Indian retail sector which is pegged to grow to USD 1.3 trillion by 2020, its CEO Kumar Rajagopalan said. - Reply By JAIPRAKASH RUIA - The Reply = In Revised Model GST Law, In definitions, at some places the Central Excise Act, 1944 (1 of 1944) Central Excise Rules, 2002 referred. Why the outgoing Act and Rules are referred to keep them alive. Why the definitions are not mentioned independently in the MGST Law itself. - Reply By YAGAY ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AND SUN - The Reply = GST Council meeting: States allowed to tweak taxpayer division after consulting Centre Concession over above 90:10 division of taxpayers below ₹ 1.5-cr threshold. - Reply By YAGAY AND SUN - The Reply = The road to GST: a thin margin of error. Not just a tax change, it is being looked at as a business transition-and that means CEOs must get it right. - Reply By YAGAY AND SUN - The Reply = GST Council to finalise draft model GST law tomorrow The GST Council, which is meeting tomorrow, is likely to finalise the draft model GST law including final drafting of the anti-profiteering clause to ensure benefit of lower taxes gets shared with consumers. - Reply By YAGAY AND SUN - The Reply = The legally vetted draft of GST Compensation Law approved by GST Council.. The Council is also likely to approve C-GST, I-GST and S-GST laws at its next meeting on 4 th -5 th March 2017. - Reply By YAGAY AND SUN - The Reply = GST council approves law to compensate states for revenue loss. - Reply By Ganeshan Kalyani - The Reply = The GST Council has formally approved the compensation law and the same would now be tabled before the cabinet for their approva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l. With regard to revised draft of the laws the same would be vetted and presented in the next meeting of GST Council to be held on 04 and 05 March 2017. - Reply By YAGAY AND SUN - The Reply = India should learn from other nation's GST experience: CII-Deloitte Report Countries like Malaysia and Canada have struggled with preparation time, rate issues, tax laws - Reply By YAGAY AND SUN - The Reply = Why delayed GST is as disruptive for economy as demonetisation If the central government is credited for bringing this legislation, then it has to be criticised for failure to meet deadlines. - Reply By YAGAY AND SUN - The Reply = Good news: Contentious GST issues get resolved The council has cleared 57 matters raised so far, along with the states' compensation law. - Reply By YAGAY AND SUN - The Reply = What's so great about GST? The judgment is reserved until we find out how the amended Goods and Services Tax Bill works. It is true that it is difficult to stand up to perverse majoritarian governments. But knocking out Parliament's working is too big a price to pay for unruly dissent. We cannot deny Parliament as theatre, but its cessation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by bad behaviour is bad theatre. It does not matter which party is in power. After this amendment, Parliament needs be put on its constitutional track, never to lapse again. The state legislators should also cease and desist accordingly. Federalism Financial federalism works on the assumption that somehow or the other, the states will be financially viable. We have created new smaller states to join other smaller states. Even the larger states suffer from a lack of funds - depending on shares and grants from the Union. The apprehension of state governments is understandable. The second important concern is over the burden of taxation on the consumer - especially the poor. The third, probably the primary reason for this change, is to enable the business and trading community to have a smooth run in their transactions, tax accounting and against harassment. To that extent, this change is really part of the reforms from 1992 to make business easier and make India one market. It is inextricably connected with opening up India for investment - especially with respect to goods and services. In the Select Committee on the Bill, there were important dissents op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... posing a proposal on the one per cent additional tax to go to the states (as self-defeating) and on votes in the GST council. That was at a preliminary stage. Eventually, what the Bill did was to rewrite the revenue empowerments of the Centre and the states in respect to indirect taxation on goods and services - requiring constitutional amendments to legislative federalism. The new provision permits these taxes to both the Union and the states, removing the application of the doctrine of repugnancy (state laws not to infringe Union laws unless approved by the President) to make state GST laws subject to the power of the Union's exclusive GST power over interstate goods and services. Complexity The Union and states will operate in different areas. As a consequence of this empowerment, many cobweb taxes (sales tax, VAT, customs, octroi, entry tax, purchase tax, luxury tax, service taxes, etc) are swept away and divided into the two neat categories of inter-state (Union) and intra-state (states) GSTs, the former to be apportioned. There is some complexity to be worked out through the machinery provisions; and, some unavoidable cascading effect. Also read - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GST Bill an example of half-baked and vague reform There are some exceptions and adjustments in taking out alcohol from GST (leaving an important power concerning prohibitions intact) but allowing tobacco within GST; and deferring taxes on petroleum provisions till later - to put an important part of the economy on hold. We can see this as partial concessions to ideology (prohibition) and practicality (petroleum). But the practicalities of deferment needed rigorous working out. But part of what is claimed for GST is as deceptive as the story of the dahi seller who dreams he will sell more and more earthen pots of dahi until the one he carries falls. I can understand the claim of a smoother machinery of indirect taxes. But in July 2016, PM Modi claimed that this would necessarily enable poverty alleviation. Understanding I have doubts that the PM really understands more than a propagatory overview. Hence, his silence of this all too important measures which he is due to address soon. The PM's primary claim is that this measure will alleviate poverty because of the widening of the tax base. This is illusory as any student of tax distribution knows. Incr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... easing the tax will impact the consumer. Decreasing it will affect state revenues. We cannot also run away from economic adviser Arvind Subramanian's statement GST is fiendishly, mind-bogglingly complex to administer . The jury is still out on fixation of the percentage especially as the Union suggests that the rate is likely to be 18 per cent or more. The states lobby for more and the consumers for less. Coincidentally, a nine-judge bench is hearing whether tax is an impediment to freedom of trade, inclining to the view that it does not. Also read - GST Bill will rob us of all the fun The amendment will need ratification by 50 per cent of the states. Following an unfortunate Supreme Court decision as soon as the 50 per cent figure is reached, the president can treat the amendment ratified. Let's wait until all the states discuss the amendment. After this implementing, legislation has to be passed. If the devil is in the detail, the devil has still to play his hand. Two cheers for GST. The first cheer because it broke the deadlock to enable Parliament's functioning. The second cheer because GST is an important change to simplify the tax str ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ucture. On the third cheer, judgment is reserved until we find out how it works. - Reply By YAGAY AND SUN - The Reply = 4-tier GST rate may lead to classification disputes' - Reply By YAGAY AND SUN - The Reply = Delhi Government extends deadline for registering on GST portal. - Reply By YAGAY AND SUN - The Reply = With GST all set to be rolled out, there are some concerns that remain for India Inc says Pratik Jain of PWC. - Reply By YAGAY AND SUN - The Reply = Manish Sisodia on GST: It will be another economic disaster after note ban if it doesn t address traders concerns Manish Sisodia on Tuesday hit out at the Centre saying that if GST talks don't address traders' concerns then it will be yet another economic disaster after note ban. - Reply By YAGAY AND SUN - The Reply = Asian Paints CEO sees limited impact of GST-led disruption According to Asian Paints CEO KBS Anand, Goods won't create a disruption which will last for more than a quarter. He added that GST will enable the organised sector to perform better depending upon tax rates on paints. - Reply By YAGAY AND SUN - The Reply = No sign of restructuring Telangana commercial taxes dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... artment before GST. - Reply By YAGAY AND SUN - The Reply = ST to reduce documentation for logistics firms: CBRE - Reply By YAGAY AND SUN - The Reply = Road to GST: Public will benefit from anti-profiteering clause, say experts MS Mani, Senior Director, Deloitte, said the clause will also help curb inflationary pressures on the economy when GST is implemented. - Reply By YAGAY AND SUN - The Reply = GST adoption could raise India's GDP to over 8%: IMF - Reply By YAGAY AND SUN - The Reply = Manufacturers seek zero GST on low price biscuits. Biscuit manufacturers have sought 'nil' tax on low price biscuits under the proposed Goods and Services Tax (GST). - Reply By YAGAY AND SUN - The Reply = Service tax department doles out advice on migration to GST. - Reply By YAGAY AND SUN - The Reply = Parliament session: GST must be put in fast-forward mode After a lull of almost a month, the GST Council met last week for the tenth time since its first meeting in September 2016. - Reply By YAGAY AND SUN - The Reply = GST: Health groups seek higher taxes for tobacco - Reply By YAGAY AND SUN - The Reply = Control over territorial waters, inter-state tran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sfers key to GST Bills The council has sought the views of a law committee on the matter. - Reply By Ganeshan Kalyani - The Reply = Under existing VAT/CST Law, inter-state stock transfers does not has any tax liability. Also in case of intra-state stock transfer there is no VAT liability. Under Goods and Services Tax (GST) regime, the taxability is on the supply of goods and or Service even if without consideration. Thus, stock transfer would become taxable under GST. - Reply By YAGAY AND SUN - The Reply = Finance Ministry launches app to provide updates to taxpayers on GST. The GST mobile app launched by the ministry can be downloaded for free on Android platforms. The iOS version will be made available shortly, an official statement said. - Reply By YAGAY AND SUN - The Reply = तीन सदस्यीय होगा जीएसटी अपीलीय ट्रिब्यूनल. - Reply By YAGAY AND SUN - The Reply = Setback to GST? States want e-permit to be flashed at borders. - Reply By YAGA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Y AND SUN - The Reply = the Drawback Division under Central Board of Excise Customs (Ministry of Finance, Department of Revenue) vide its letter dated 23-02-2017 has sought Suggestions on All Industry Rates (AIRs) of duty drawback under the GST framework and such considered suggestions should be provided by 15.3.2017. These may also be sent by email to dirdbk-rev@nic.in - Reply By YAGAY AND SUN - The Reply = Government launches GST app to facilitate smooth transition to new tax regime The CBEC GST app will help taxpayers migrate to GST, provide toll free numbers and videos and reading material on GST and put up draft laws and rules. - Reply By YAGAY AND SUN - The Reply = The GST: so far so good, but not good enough The proposal departs from the expert view that an ideal GST should have a few exempted commodities and a single rate for all commodities - Reply By YAGAY AND SUN - The Reply = GST: Here s why legal terms must reflect fundamentals agreed by GST Council In India, the goods services tax (GST) cannot be activated without the efforts and recommendations of the GST Council. - Reply By Ganeshan Kalyani - The Reply = The GST Council, led by FM Aru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Jaitley, in its last meeting on January 16 arrived on the consensus that 90 per cent of tax assessees below ₹ 1.5 crore annual turnover will be assessed by states and the remaining 10 per cent by the Centre. For taxpayers with over ₹ 1.5 crore turnover, the split was 50:50 between the Centre and states. - Reply By Ganeshan Kalyani - The Reply = GST Council led by FM Arun Jaitley met for the 10th time in Udaipur today to finalise compensation and GST Laws. This is the first GST Council meeting held outside Delhi. - Reply By Ganeshan Kalyani - The Reply = GSTN has created prototype for various return forms, payment challan etc. A preview of the same is being shared through this pdf document with following purpose: To give an idea about look and feel of Return Payment Modules and the flows there-in. To seek your feedback / comments on the Prototype to improve it further and see if any aspect has been left out. Download copy of prototype from here GST Return and Payment Prototype - Reply By Ganeshan Kalyani - The Reply = Under GST, imports and exports of goods and services would be treated as Inter-State supply of goods or services and thereby, IGST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would be payable along with Basis Customs Duty ( BCD ) on import of goods and IGST on import of services. It is likely that under GST, rate of Duty Drawback could be limited to the amount of BCD paid on imported inputs used for exported goods/services. - Reply By Ganeshan Kalyani - The Reply = The much-touted Good and Services Tax (GST) will be rolled out on July 1, 2017 and is likely to bring in a uniform experience to the existing Herculean system. But, Gaurav Dua, Head-Research of Sharekhan feels that India's biggest tax reform may disrupt earnings growth of companies for a few quarters. - Reply By Ganeshan Kalyani - The Reply = Mr Gaurav Dua further said, Generally, on average, companies keep an inventory of 4-5 months that they would prefer to bring down once GST is implemented. This could cause some temporary disruption in financial performance of Indian companies. - Reply By Ganeshan Kalyani - The Reply = The Association of Indian Revenue Services (IRS) officers of Customs and Central Excise has penned down a letter to PM Narendra Modi showering concern over the recent decisions taken by the Goods and Services Tax (GST) Council pertaining to 90:10 division of con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trol over tax assessees below annual turnover threshold of ₹ 1.5 crore. - Reply By Ganeshan Kalyani - The Reply = The Association further mentioned in the letter as The decision seems to be one-sided in favour of states weakening sovereign function of the Centre regarding levy and collection of taxes. Our apprehension is that GST in this form may not bring the desired goals of better tax compliance, more revenues, ease of business and reduction in inflation and an instant spurt in economic growth, - Reply By Ganeshan Kalyani - The Reply = The Association said that multiple returns for service providers and banking sector will increase compliance cost. Service providers in the banking, insurance, logistics, IT ITES and aviation sectors are operating under a single centralised registration of service tax at present. That means, at present, they have to file 3 Service Tax returns in one year. In GST era, they will have to file 61 returns per state, per year, after taking registration in each state in which they have presence. So, a major Bank like SBI, which has branches in all 35 states and Union Territories, will end up filing over 2,000 returns annually. This does no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t seem to be in the spirit of ease of doing business, as it will lead to severe rise in compliance costs, it said. - Reply By Ganeshan Kalyani - The Reply = Eleventh meeting of GST Council - GST Council clears CGST and IGST law In a constructive meeting of the GST Council, various important aspects have been finalised. These have been summarised below: (i) Approval of CGST and IGST laws The CGST and IGST laws have been formally approved by the GST Council today. The laws would now be vetted from a legal perspective again to incorporate minor changes (from a legal wording perspective) post which the same would be tabled before the Cabinet for their approval. Once the laws are cleared by the Cabinet, the same would be presented before the Parliament in the second half of the budget session. - Reply By Ganeshan Kalyani - The Reply = Even though change in the peak rate will not alter the four-slab rate structure of 5%, 12%, 18% and 28% agreed upon last year, but is only a provision being built into the model law to take care of contingencies in future. This means the central GST and state GST can be up to 20% each, leaving the scope for a maximum levy at 40% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . This aggregate rate of 40% can be expected to be applicable on sin goods, Abhishek Rastogi, Partner, Khaitan Co. - Reply By Ganeshan Kalyani - The Reply = Following rates have been finalised under the composition scheme for turnover below ₹ 50 lakhs: Restaurants in service sector - 5% (2.5% CGST and 2.5% SGST) Traders - 1% (0.5% CGST and 0.5% SGST) Manufacturers - 2% (1% CGST and 1% SGST) - Reply By Ganeshan Kalyani - The Reply = There would be a State wise single registration for the taxpayer. Most of the compliances would be automated, and there would be minimal physical interface between the taxpayer and Government officials - Reply By Ganeshan Kalyani - The Reply = All goods and services used in the course or furtherance of business eligible for input tax credit eligible on all goods and services except for a few restrictions specified in the law - Reply By Ganeshan Kalyani - The Reply = Concept of Input service distributor (ISD) to continue to allow the flow of credit of input services. In the draft model GST law it was mentioned for both goods and services. - Reply By Ganeshan Kalyani - The Reply = Pending minor legal drafting, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Government seems set to pass the laws in the second half of Budget session of Parliament which begins from 9 March 2017. The implementation of GST from 1 July 2017 seems like a reality now. - Reply By Ganeshan Kalyani - The Reply = The next meeting of GST Council is scheduled on 16th March 2017. - Reply By Ganeshan Kalyani - The Reply = The cap of peak rate of tax under the GST Law has been increased from 28% (14% CGST +14% SGST) to 40% (20% CGST + 20% SGST ). - Reply By Ganeshan Kalyani - The Reply = Once SGST and UTGST Laws are approved by the GST Council, GST officials will start classifying different goods and services into the four-tier rate structure of 5%, 12%, 18%, 28%. - Reply By Ganeshan Kalyani - The Reply = A proposed flat 12 per cent GST on biscuits will be a grave injustice to the poor as biscuits retailed below ₹ 100 per kg are treated as merit goods. If these products are included then about 240 biscuit factories will shut down, Mayank Shah, vice president, Biscuit Manufacturers Welfare Association, told . - Reply By Ganeshan Kalyani - The Reply = Biscuit Manufacturers Welfare Association has petitioned the Goods and Services Tax Council to keep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... biscuits below `100 a kg in the zero-tax bracket, separate from the high-priced ones. At present, low-priced biscuits are exempted from central excise but attract value added tax in states. The association wants this distinction to continue under the GST, which is to be implemented from July 1. - Reply By Ganeshan Kalyani - The Reply = Experts point out that GST being levied on branch transactions could be cumbersome because of the enormous number of financial transactions being carried out and because it will be impossible for banks and finance institutions to value services provided by one branch to another and then pay GST on that. Banks have written to the government to amend the GST law involving such 'self-supply' of services. - Reply By YAGAY AND SUN - The Reply = GST might be disruptive like demonetisation: UR Bhat In an interview with CNBC-TV18, UR Bhat said that going ahead the US Fed meet and roll-out of the goods and services tax (GST) will act as a catalyst for the market. - Reply By YAGAY AND SUN - The Reply = Parliament Meets, PM Narendra Modi Underscores Star Status Of GST Reform To meet the July 1 deadline for introducing the GST, par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liament must pass three bills, which spell out the operational details of the new tax, before its current session concludes on April 11. The long-awaited GST will replace a slew of central and state levies, transforming Asia's third-largest economy into a single market for the first time. Proposed tax rates range from five to 28 per cent, with 12 per cent and 18 per cent being the standard rates. It has not been decided yet which tax rates will apply to which categories of goods. The three bills that need to be cleared will be introduced as Money Bills - which means that once they are cleared by the Lower House or Lok Sabha, the Rajya Sabha or Upper House can only recommend changes, not insist on them. The government has a huge majority in the Lok Sabha, so the bills will not encounter any difficulty there. But the challenge will lie in the Rajya Sabha, where the government is in a minority, and where, in the past, the opposition, especially the Congress, has created frequent disruptions to stall legislation. Technically, Money Bills can be cleared even without a discussion on the Upper House, but the opposition will allege ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that violates basic democratic principles for a reform as crucial as the GST. The GST is expected to make business simpler and reduce business transaction costs. The Congress has said in the past that it will not accept the rate of tax being presented in a Money Bill, which would not need the Rajya Sabha's approval. In August last year, parliament cleared GST, delivering a huge victory for Prime Minister Narendra Modi. Half of India's 29 state legislatures need to pass the same act - this has been done. The three new laws to implement the tax will similarly have to be cleared by state legislatures after they are approved by parliament. - Reply By YAGAY AND SUN - The Reply = Intuit looks to tap small businesses for GST compliance Rolling-out experience in Malaysia, Australia will give it an edge, says CMO - Reply By YAGAY AND SUN - The Reply = GST: Why Modi-Jaitley team will face challenges in Parliament and outside The model GST draft bill allows maximum tax rate at 40 per cent even as the effective tax rates range between five and 28 per cent. The Congress has been demanding for a levy cap at 18 per cent. - Reply By YAGAY AND S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... UN - The Reply = Teething troubles 1.0: GST induces conflicts among state governments. - Reply By Ganeshan Kalyani - The Reply = Under GST, HSN (Harmonised System of Nomenclature) code shall be used for classifying the goods under the GST regime. Services will be classified as per the Services Accounting Code (SAC). - Reply By Ganeshan Kalyani - The Reply = GST council had finalised broad buckets wherein 4 tier rate structure would be followed 5%, 12%, 18% and 28%. Apart from these, some goods/ services will be exempt from tax and some demerit goods could carry cess over and above their tax slab rate. The GST Council had also proposed to raise the peak tax rate to 20 per cent, from the current 14 per cent, in the model goods and services tax Bill to preclude the requirement of approaching Parliament for any change in rates in future. - Reply By Ganeshan Kalyani - The Reply = The government is keen to pass the much-awaited legislations related to the GST during the month-long session which will continue till April 12. - Reply By Ganeshan Kalyani - The Reply = The Export Promotion Council for EOUs and SEZs (EPCES) today urged the government to exempt special economic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... zones from Goods and Services Tax (GST) levies. The issue was discussed at a workshop on GST impact on SEZs and export oriented united (EOUs). - Reply By Ganeshan Kalyani - The Reply = During the workshop, it was unanimously decided that Export Promotion Council for EOUs and SEZs (EPCES) must request the central and state governments to provide exemption to SEZs from payment of CGST/SGST/IGST as there is no mechanism in SEZ Act for refund and it is also not a subsidy, the EPCES said in a statement. - Reply By Ganeshan Kalyani - The Reply = The GST Laws (CGST and IGST) cleared by Council and UT-GST Law will now be taken up in Parliament in the second half of budget session beginning March 9. Government sources said the GST legislation will likely be taken up as money bills during the second half of the Budget session starting March 9. This means they can t be rejected by the Rajya Sabha, where Prime Minister Narendra Modi s government doesn t have a majority. - Reply By Ganeshan Kalyani - The Reply = The GST Council has proposed to raise the peak tax rate to 20 per cent, from the current 14 per cent, in the model goods and services tax Bill to preclude the requirement of ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proaching Parliament for any change in rates in future. The change in the peak rate will not alter the 4-slab rate structure of 5, 12, 18 and 28 per cent agreed upon last year, but is only a provision being built into the model law to take care of contingencies in future, two officials in the know told PTI. - Reply By Ganeshan Kalyani - The Reply = There shall be levied a tax called the central/state goods and services tax (CGST/SGST) on all intra-state supplies of goods and/or services at such rates as may be notified by the central/state government but not exceeding 14 per cent on the recommendation of the Council and collected in such manner as may be prescribed, the draft law states. - Reply By Ganeshan Kalyani - The Reply = The central and state officials will soon start the exercise to determine which goods and services should fall in which tax bracket and the same will be taken to the Council for approval soon. Together with this, they will also decide the goods and services that would attract a cess on top of the peak rate to create a corpus that can be used for compensating states for any loss of revenue from implementation of GST in the first five years. The gov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ernment is looking at GST rollout from July 1. - Reply By Ganeshan Kalyani - The Reply = Revenue Secretary Hasmukh Adhia said there were demands that restaurants should be included in the composition scheme, particularly those with less turnover. So the Council decided that there would be a composition scheme for restaurants up to a turnover of ₹ 50 lakh and the rate for them is 5 per cent. So the remaining restaurants, they will come in the regular service tax rate, Adhia said. - Reply By Ganeshan Kalyani - The Reply = The most talked about highlight of the Model GST 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 prices. - Reply By Ganeshan Kalyani - The Reply = 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 u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder 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. - Reply By Ganeshan Kalyani - The Reply = Government kick started the process of migrating existing VAT/ Service Tax/ Excise Duty registrations to GST called GST Enrolment in November 2016 wherein tax payers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had to enroll themselves with GST Portal. Post completion of enrolment, a provisional ID is issued. - Reply By Ganeshan Kalyani - The Reply = The final Registration Certificate will be issued within 6 months of verification of documents by authorized Center/ State officials of the concerned Jurisdiction (s) after the appointed date. - Reply By Ganeshan Kalyani - The Reply = The Provisional Registration Certificate will be available for viewing and download at the Dashboard of the GST Common Portal on the appointed date. The certificate will be available only if the Registration Application was submitted successfully. - Reply By Ganeshan Kalyani - The Reply = Intuit, a software provider to small businesses, aims to tap a large number of Indian enterprises with its goods and services tax (GST)-ready software product. With the unified taxation system likely to be implemented in July 1 this year, Intuit, the provider of the accounting software QuickBooks, believes it will have an edge over peers with its experience of GST roll-outs in Malaysia and Australia. QuickBooks is a cloud-based accounting software for small businesses. The product runs on a subscription - Reply By Gan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eshan Kalyani - The Reply = Lucas Watson, chief marketing and sales officer, Intuit, said that while the company was better positioned to serve its existing customers once GST was implemented, it could tap a large chunk of the 51 million-odd small businesses in the country. We need to make sure QuickBooks is ready for GST and we think it is a transformational point. We have 51 million small businesses in India and 12 million are digitally ready today. When you have the GST (compliance) requirement, it will create lot more opportunity for us, Lucas told Business Standard in an interview. - Reply By Ganeshan Kalyani - The Reply = Ajay Pramod, of Bengaluru-based Etag Software Solutions Pvt Ltd, said that he switched to QuickBooks three years ago from an on-premise accounting software to get access to documents everywhere and save cost too. We often faced hiccups and failed to meet deadline for invoices before moving to a cloud-based service, Pramod said. - Reply By Ganeshan Kalyani - The Reply = The Institute of Cost Accountants of India (ICMAI) will train 15 lakh traders from across the country in the next one year in GST basics, its President Manas Kumar Thakur said today ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . According to Mr. Manas Kumar, ICAI is among several other professional organization who have been assigned this responsibility by the Government. He also said that the number of direct tax assesses in the country will go up once the Goods and Services Tax is installed in the country. - Reply By Ganeshan Kalyani - The Reply = ICAI President Manas Kumar Thakur says, there were about 22 lakh indirect tax assesses currently across India. And once GST is implemented, this number will go anywhere upto 70 lakhs. So, the Government wans us to train traders and new assesses in familiarising them with filling in forms etc. Mr. Manas Kumar also said that the Institute of Cost Accountants of India has set a target of training 15 lakh traders from across India in the coming one year in GST basics. - Reply By Ganeshan Kalyani - The Reply = ICAI has already started the training and four hundred traders have been trained so far. We are creating a pool of trainers who would subsequently train others on the fundamental aspects of the Goods and Services Tax (GST), he said - Reply By Ganeshan Kalyani - The Reply = Many big retail chains give contracts to farmers for growing certain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agricultural products which are then directly sold in the malls. Industry trackers say that such contractual farming would now attract GST. Also some of the multinational Quick Service Restaurants including some renowned burger chains give contracts for potato farming. That too would now attract GST, say industry experts. - Reply By Ganeshan Kalyani - The Reply = Traditional farmers, would not be required to get themselves registered to pay GST. However, those buying products from the farmers may be required pay GST. - Reply By Ganeshan Kalyani - The Reply = Some of the sectors however are still concerned how the GST would impact them. Like many banks and financial institutions may be in for a lot of trouble as they could just see the complexity in paying taxes increase under the incoming goods and services tax (GST). Due to the place of supply regulations in GST framework transactions between two branches of a bank is set to trigger a tax, which could prove to be cumbersome. Indian banks have also approached the government to amend the rules regarding this. - Reply By Ganeshan Kalyani - The Reply = Under GST, the states and the Centre will collect identical rates of taxes o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n goods and services. For instance, if 18 percent is the GST rate on a product, both the states and the Centre will get 9 percent each called the CGST and SGST rates. - Reply By Ganeshan Kalyani - The Reply = There are some reports in media that GST rates of specific products and services have been finalized. In wake of these false reports, CBEC has clarified that rates have not been finalized as yet. - Reply By YAGAY AND SUN - The Reply = Finally, GST is coming in July: A primer on India's biggest tax reform - Reply By YAGAY AND SUN - The Reply = GST on gold and jewellery is still not known as of now. Currently, the sector pays 10 percent import duty, 1 percent tax and 1 percent VAT. - Reply By YAGAY AND SUN - The Reply = Desirable to rollout GST from Sept 1: J K Finance Minister Haseeb Drabu wants states to get at least six months' time to iron out operational challenges. - Reply By YAGAY AND SUN - The Reply = GST: No clarity yet on tax on services a worry Despite the rollout date of July 1 for the Goods and Services Tax (GST) drawing closer, there is still no clarity on the tax rate for services under the new indirect tax regime, an auditor firm poin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted out on Friday. - Reply By YAGAY AND SUN - The Reply = GST Council caps cess on demerit goods at 15 per cent Jaitley said the GST Council will meet again on March 31 to approve rules after which fitting goods and services in the four-slab tax structure of 5, 12, 18 and 28 per cent will be taken up. - Reply By YAGAY AND SUN - The Reply = Improvements in GST feasible as we move along, says Partho Shome - Reply By Ganeshan Kalyani - The Reply = GST Council's next meeting is fixed on March 31. - Reply By YAGAY AND SUN - The Reply = At the India Today Conclave 2017, PM Narendra Modi said, GST is an example of delegated democracy. Continuous discussions were held with the states for every clause of the law. GST decision was taken by consensus. All the states have taken the ownership. - Reply By YAGAY AND SUN - The Reply = Cabinet may consider GST supplementary legislations on Monday A set of four supporting legislations-the Compensation Law, the Central-GST , Integrated-GST and Union Territory-GST -are likely to go together to the cabinet for approval. - Reply By YAGAY AND SUN - The Reply = Amazon India brings out A-Z GST Guide programme The A-Z GST Gu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide programme in its pilot phase has already helped train over 5,000 sellers on the Amazon platform to get ready for GST, which is set to be rolled out from 1 July. - Reply By YAGAY AND SUN - The Reply = Department of Revenue to assess impact of inflation after GST The Department of Revenue which exercises control in respect of matters relating to all the direct and indirect Union taxes is going to study the impact of the most awaited Goods and Services Tax on the inflation graph. - Reply By YAGAY AND SUN - The Reply = Maharashtra govt gears up for GST, seeks VAT dues - Reply By YAGAY AND SUN - The Reply = Ecommerce cos to pay up to 1% TCS under GST The model law provides that every electronic commerce operator, not being an agent, shall collect up to one per cent TCS, as may be notified on the recommendations of the Council, of the net value of taxable supplies made through it by other suppliers where the consideration with respect to such supplies is to be collected by the operator - Reply By YAGAY AND SUN - The Reply = The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the following four GST related bills: 1. The Central Goods and Serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices Tax Bill 2017 (The CGST Bill) 2. The Integrated Goods and Services Tax Bill 2017 (The IGST Bill) 3. The Union Territory Goods and Services Tax Bill 2017 (The UTGST Bill) 4. The Goods and Services Tax (Compensation to the States) Bill 2017 (The Compensation Bill) The above four Bills have been earlier approved by the GST Council after thorough, clause by clause, discussion over 12 meetings of the Council held in the last six months. The CGST Bill makes provisions for levy and collection of tax on intra-state supply of goods or services for both by the Central Government. On the other hand, IGST Bill makes provisions for levy and collection of tax on inter-state supply of goods or services or both by the Central Government. The UTGST Bill makes provisions for levy on collection of tax on intra-UT supply of goods and services in the Union Territories without legislature. Union Territory GST is akin to States Goods and Services Tax (SGST) which shall be levied and collected by the States/Union Territories on intra-state supply of goods or services or both. The Compensation Bill provides for compensation to the states for loss of revenue arising on acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt of implementation of the goods and services tax for a period of five years as per section 18 of the Constitution (One Hundred and First Amendment) Act, 2016 . Background: The Government is committed to early introduction of GST, one of the biggest reforms, in the country as early as possible. GST Council has decided 1st July as the date of commencement of GST. The Finance Minister in his Budget Speech has mentioned that country-wide outreach efforts will be made to explain the provisions of GST to Trade and Industry. - Reply By YAGAY AND SUN - The Reply = 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. - Reply By YAGAY AND SUN - The Reply = GST impact on inflation to be less than 20 bps: Nomura - Reply By YAGAY AND SUN - The Reply = 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 - Reply By YAGAY AND SUN - The Reply = Protect tobacco farmers' interest in GST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laws: FAIFA - Reply By YAGAY AND SUN - The Reply = Finally, GST is coming in July: A primer on India's biggest tax reform - Reply By YAGAY AND SUN - The Reply = I want entire country to discuss, understand GST, says Narendra Modi - Reply By Ganeshan Kalyani - The Reply = 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. - Reply By Ganeshan Kalyani - The Reply = 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. - Reply By Ganeshan Kalyani - The Reply = 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. - Reply By Ganeshan Kalyani - The Reply = According to the Japanese financial services major, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the GST council is making steady progress and is expected to be implemented in the July-September quarter this year. - Reply By Ganeshan Kalyani - The Reply = 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. - Reply By Ganeshan Kalyani - The Reply = 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. - Reply By Ganeshan Kalyani - The Reply = 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e requirements of the impending GST regime, which is a destination based tax. - Reply By Ganeshan Kalyani - The Reply = 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. - Reply By Ganeshan Kalyani - The Reply = 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. - Reply By Ganeshan Kalyani - The Reply = P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epsico 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. - Reply By Ganeshan Kalyani - The Reply = 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. - Reply By Ganeshan Kalyani - The Reply = 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. - Reply By Ganeshan Kalyani - The Reply = 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. - Reply By Ganeshan Kalyani - The Reply = 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 price ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 - Reply By Ganeshan Kalyani - The Reply = 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. - Reply By Ganeshan Kalyani - The Reply = 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. - Reply By Ganeshan Kalyani - The Reply = 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - Reply By Ganeshan Kalyani - The Reply = 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/ - Reply By Ganeshan Kalyani - The Reply = In the GST regime, a pay-first-and-get- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - Reply By Ganeshan Kalyani - The Reply = The UAE minister was speaking in Dubai on 24 February after a joint press conference with Christine Lagarde, Managing Director of the International Monetary Fund (IMF) that VAT is expected to be introduced at a rate of 5% on 1 January 2018, with some limited exceptions including basic food items, healthcare and education. - Reply By Ganeshan Kalyani - The Reply = The GST will bring in three developments 1) The system will be more efficient and compliance will be met. Avoidance is going to be difficult because you will be detected at some stage or the other. 2) There will be no cascading effect on tax on tax 3) There are few goods on which the tax might be higher or lower - Reply By Ganeshan Kalyani - The Reply = GST doesn t only stand for Goods and Services Tax, it also stands for Good Sense Triumphs, Chidambaram once said. - Reply By Ganeshan Kalyani - The Reply = Industry body FICCI said it is looking forward to introduction of the much-awaited Goods Services Tax (G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ST), saying it would be a very significant step in the field of indirect tax reforms in India. - Reply By Ganeshan Kalyani - The Reply = Introduction of GST would make Indian products competitive in the domestic and international markets. - Reply By Ganeshan Kalyani - The Reply = Biggest benefit of GST is that it will disincentivise tax evasion. If you don t pay tax on what you sell, you don t get credit for taxes on your inputs. Also, you will buy only from those who have already paid taxes on what they are supplying. Result: a lot of currently underground transactions will come overground. - Reply By Ganeshan Kalyani - The Reply = Under current tax regime, we have more tax on fewer items; with GST, there will be less tax on more items. Ideally, no good or service should be tax-exempt, as this will break the input tax chain. - Reply By Ganeshan Kalyani - The Reply = The proposed GST would subsume various central (Excise Duty, Additional Excise Duty, service tax, Countervailing or Additional Customs Duty, Special Additional Duty of Customs, etc.), as well as state-level indirect taxes (VAT/sales tax, purchase tax, entertainment tax, luxury tax, octroi, entry tax, etc). - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reply By Ganeshan Kalyani - The Reply = The Goods and Services Tax (GST) Council has recently approved the final draft Central GST (C-GST) and Integrated GST (I-GST) laws in a bid to meet the July deadline. The council had earlier cleared the GST Compensation Bill, which requires the Centre to compensate states for any revenue loss for five years after migrating to the new tax system. All these initiatives are taking us closer to the one-nation, one-tax regime, soon to be implemented in India. - Reply By Ganeshan Kalyani - The Reply = While GST holds immense benefits for businesses small and large, it also requires them to adopt technology and become part of a digital economy. Under the new indirect tax regime, every taxable person needs to furnish their tax details online. - Reply By Ganeshan Kalyani - The Reply = Under the current regime, businesses have the option to file manual challans. However, the new law requires them to comply via the online mode only. Every supply to a registered person needs to be reported through the GSTR-1 form. In addition, GSTR-2 and GSTR-3 , which are inward supply details and monthly GST return form, respectively, are required to be file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d every month on the GST portal. Also, companies will be required to submit additional returns specific to their specific businesses under the GST regime. - Reply By Ganeshan Kalyani - The Reply = Under the GST Law, a normal taxpayer will be required to furnish three monthly returns and one annual return. There are also provisions for separate returns for taxpayers registered under the composition scheme and those registered as Input Service Distributors. - Reply By Ganeshan Kalyani - The Reply = Returns under GST are to be filed digitally through a common portal at https://www.gst.gov.in. The portal is maintained by GSTN, a non-government, private limited company promoted by the Central and state governments with the specific mandate to build the IT infrastructure and the services required for implementing GST. - Reply By Ganeshan Kalyani - The Reply = Industry is waiting with bated breath for the draft GST rates to be announced. This is because of a variety of reasons. Most of the businesses in India firm up their budgets for the next financial year well before the beginning of the new financial year. - Reply By Ganeshan Kalyani - The Reply = The Model GST Law would comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el taxpayers to pass on the benefits arising out of lowering of GST rate or increase in input tax credits to customers. - Reply By Ganeshan Kalyani - The Reply = Training of staff, changing IT systems, increased compliance costs, etc, are the key incremental expenses incurred/to be incurred by businesses in embracing GST. - Reply By Ganeshan Kalyani - The Reply = India would be implementing an imperfect GST, wherein crucial sectors like oil gas, electricity, have been left out of the GST net and they have to continue with the current indirect tax structure that we currently have. - Reply By Ganeshan Kalyani - The Reply = The compliance prescribed under the GST regime requires every taxable person making a supply to upload transaction wise details to the GST network and input tax credits are available to purchaser only where the tax as reported by the supplier is actually deposited. - Reply By Ganeshan Kalyani - The Reply = All businesses - manufacturers, distributors, retailers - will have to register on the GST network once the regulation comes to force. All the transactions of a company and thereby the revenues and profits would be captured by the GST system. - Reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... By Ganeshan Kalyani - The Reply = Experts point out that there are basically two types of fraud committed by businessmen - first is unilateral, where under invoicing or over invoicing is done only by one of the two people transacting. And then there is bilateral. Some experts said while unilateral frauds would drop drastically, bilateral ones may be difficult to detect even under GST framework. - Reply By Ganeshan Kalyani - The Reply = Goods and Services Tax (GST) is finally expected to be rolled out from July 1, 2017. - Reply By Ganeshan Kalyani - The Reply = With GST, India will become a seamless unified market without any difference between inter-state or intra-state sales. - Reply By Ganeshan Kalyani - The Reply = Independent analyst estimates suggest that GST implementation can reduce overall logistics cost by around 30-40 per cent, thereby leading to an overall saving of about 0.3-0.4 per cent of GDP. - Reply By Ganeshan Kalyani - The Reply = GST is a once in a lifetime opportunity for the government to remove anomalies in tobacco taxation in India and bring a fair relief to the tobacco farmers without compromising on its tobacco control goals, said Murali Babu, G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eneral Secretary, FAIFA in a statement. - Reply By Ganeshan Kalyani - The Reply = GST is an opportunity to remove tax arbitrage in tobacco taxation and disincentivise illegal and contraband products which have been flooding the Indian market. GST is also an opportunity to remove discrimination among various classes of tobacco farmers. There should not be any discrimination among cigarette, bidi, chewing tobacco farmers, said Babu. - Reply By Ganeshan Kalyani - The Reply = Even as Amazon India prepares for the much-awaited Goods and Services Tax (GST) roll-out on July 1, it is still worried about the proposed 1 per cent Tax Collection at Source (TCS) on e-commerce players. Industry players feel the TCS would impact the working capital of small sellers and lead to massive job loss. - Reply By Ganeshan Kalyani - The Reply = Many banks and financial institutions may be in for a lot of trouble as they could just see the complexity in paying taxes increase under the incoming goods and services tax (GST). - Reply By Ganeshan Kalyani - The Reply = The Confederation of All-India Traders (CAIT) raised their concern over the GST clause which links availability of input tax credit t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o payment of tax by their suppliers. - Reply By Ganeshan Kalyani - The Reply = Under the GST law, input credit against taxes paid by the purchaser can be availed of only if the seller deposits the tax. In the event of non-compliance at the end of seller, it is the purchaser who will be denied input credit. - Reply By Ganeshan Kalyani - The Reply = We are happy that the GST Council has cleared the way for the new law to get implemented. The trading community and other small businesses will benefit from the single tax regime undoubtedly, Praveen Khandelwal, CAIT secretary general said. - Reply By Ganeshan Kalyani - The Reply = Fiscal policy expert Parthasarathi Shome has said that the success of the goods and services tax (GST) hinges on the preparedness of businesses to comply with the new levy. - Reply By Ganeshan Kalyani - The Reply = GST is meant to create a seamless common market and the Centre is hopeful of rolling out the new levy on July 1. - Reply By Ganeshan Kalyani - The Reply = GST excludes real estate, electricity and alcohol besides petroleum products that will be brought under the net subsequently. - Reply By Ganeshan Kalyani - The Reply = GST will be ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ministered both by the Central and state tax authorities. So Shome underscores the need for proper training of the tax administration to ensure ease of doing business. - Reply By Ganeshan Kalyani - The Reply = The Centre and states will be forced to make improvements in the GST design if taxpayers find it difficult to comply with the new regime. - Reply By Ganeshan Kalyani - The Reply = The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) expects number of pending tax disputes would go down before implementation of Goods and Services Tax as it is disposing of cases quickly, an official said. - Reply By Ganeshan Kalyani - The Reply = Currently there are about 88,000 pending cases with the tribunal. We are trying to dispose the cases as quickly as possible given the constraints of members and funding, said President of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) Justice Satish Chandra. - Reply By Ganeshan Kalyani - The Reply = We are disposing close to 100 cases per day and we are very serious about reducing the number of pending cases, said Chandra at an event organised by Merchants' Chamber of Commerce and Industry. - Reply By Ganeshan K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alyani - The Reply = Passage of all the legislations would pave the way for introduction of Goods and Services Tax (GST) from July 1. - Reply By Ganeshan Kalyani - The Reply = While a composite GST will be levied on sale of goods or rendering of services after the new indirect tax regime is rolled out, the revenue would be split between the Centre and the states in almost equal proportion. - Reply By Ganeshan Kalyani - The Reply = While the C-GST will give powers to the Centre to levy GST on goods and services after Union levies like excise and service tax are subsumed, the I-GST is to be levied on inter-state supplies. - Reply By Ganeshan Kalyani - The Reply = The S-GST will allow states to levy the tax after VAT and other state levies are subsumed in the GST. - Reply By Ganeshan Kalyani - The Reply = The Council has already finalised a four-tier tax structure of 5, 12, 18 and 28 per cent, but the model GST law has kept the peak rate at 40 per cent (20 per cent to be levied by the Centre and an equal amount by the states) to obviate the need for approaching Parliament for any change in rates in future. - Reply By Ganeshan Kalyani - The Reply = The cess will be levied o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n top of peak rate on selected demerit goods like luxury cars for creation of a corpus that will be used for compensating states for any loss of revenue from GST implementation in the first five years. - Reply By Ganeshan Kalyani - The Reply = Prime Minister Narendra Modi emphasised the importance of clearing the landmark reform, the national Goods and Services Tax (GST), which the government wants to roll out on July 1. - Reply By Ganeshan Kalyani - The Reply = The long awaited GST will replace a slew of central and state levies, transforming Asia's third-largest economy into a single market for the first time. - Reply By Ganeshan Kalyani - The Reply = Proposed tax rates range from five to 28 per cent, with 12 per cent and 18 per cent being the standard rates. - Reply By Ganeshan Kalyani - The Reply = It has not been decided yet which tax rates will apply to which categories of goods. - Reply By Ganeshan Kalyani - The Reply = The three bills that need to be cleared will be introduced as Money Bills - which means that once they are cleared by the Lower House or Lok Sabha, the Rajya Sabha or Upper House can only recommend changes, not insist on them. - Reply By Gane ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shan Kalyani - The Reply = The GST is expected to make business simpler and reduce business transaction costs. - Reply By Ganeshan Kalyani - The Reply = The Union Cabinet has cleared amendments in the Customs and Excise Act relating to abolition of cesses and surcharges on various goods and services to facilitate implementation of GST. - Reply By Ganeshan Kalyani - The Reply = 16 cesses and surcharges on union excise and service tax will get abolished as a pre-cursor to rolling out Goods and Services Tax (GST) from July. - Reply By Ganeshan Kalyani - The Reply = Amendments or repeal of various provisions of other Acts which will no longer be relevant consequent on rollout of GST will result in cleansing of the irrelevant portions from the Statute Book and reduce multiplicity of taxes, an official release said after the Cabinet meeting chaired by Prime Minister Narendra Modi. - Reply By Ganeshan Kalyani - The Reply = It also approved repeal of the Central Excise Tariff Act, 1985 and amendment or repeal of the provisions relating to Acts under which cesses are levied. - Reply By Ganeshan Kalyani - The Reply = In addition, new clauses are proposed to be incorporated i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the Customs Act to provide for furnishing of information on import and export of goods to detect under or over-valuation and misuse of export promotion schemes. - Reply By Ganeshan Kalyani - The Reply = Existing tax payers are required to enroll on GST portal for registration migration under GST. For the first time login, you need to provide username and password that you received from the State VAT/Centre Tax Department. This username is a provisional ID. - Reply By Ganeshan Kalyani - The Reply = Times where government is leaving no stone un-turned to roll out Goods and Services Tax (GST) from July 1, 2017 there are doubts for preparedness of India Inc. and especially in case of SMEs. - Reply By Ganeshan Kalyani - The Reply = As per the latest government data only 11.22% of taxpayers who are registered under Service Tax Act but not registered under State VAT have migrated to GST. While it appears that tax payers are delaying to migrate, the other side of coin is that GSTN has not been able to provide provisional ID and password (required for migration to GST) in all cases. - Reply By Ganeshan Kalyani - The Reply = Migration is the foremost step that a tax payer needs to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... undertake in order to move to GST regime. Migrating to GST does not in any way just mean conversion of registration or change in name of tax, it entails change in IT systems, processes, supply chain, invoicing, compliance etc. - Reply By Ganeshan Kalyani - The Reply = 89% (Approx) of registrants have not migrated, to GST. - Reply By Ganeshan Kalyani - The Reply = Looks like prospective car buyers are going to have to consider more factors than just make and model or gas mileage before investing in a car once the Goods and Services Tax is implemented this year. - Reply By Ganeshan Kalyani - The Reply = Automobiles in India are taxed under the following parameters at the moment: Excise duty (ranging from 12% to 27%), infrastructure tax (1% to 4%) VAT (12.5% to 14.5%), octroi / entry tax (specific states) (4% to 6%) and road tax. - Reply By Ganeshan Kalyani - The Reply = The GST for cars will subsume Excise duty, infrastructure tax and VAT. Octroi is most likely to be abolished under GST as GST is a destination based tax that is levied at point of sale and not purchase. - Reply By Ganeshan Kalyani - The Reply = Finance Minister Arun Jaitley, at the 13th GST council meet in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... New Delhi stated that the government will be keeping a headroom of about 3 per cent for imposing the cess on demerit goods (at a rate of 15 per cent.) - Reply By Ganeshan Kalyani - The Reply = If the supplier of goods or services and place of supply of goods or services are located in same State, then CGST and SGST is payable. SGST of that state is payable, when supplier and place of supply is in one state. However, if the supplier and the place of supply are located in different States, then IGST is payable. - Reply By Ganeshan Kalyani - The Reply = As per revised Model IGST Law, place of supply involving movement of goods shall be the location of the goods where movement of goods terminates for delivery to the recipient. - Reply By Ganeshan Kalyani - The Reply = Where supply does not involve movement of goods; the place of supply will be the location of goods at the time of delivery to the recipient. - Reply By Ganeshan Kalyani - The Reply = The place of supply of goods in case of assembly or installation of goods will be the place of installation or assembly. - Reply By Ganeshan Kalyani - The Reply = The place of supply in case of goods taken onboard for consumption in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aircraft, is the place or location at which such goods are taken on board. For example, if an aircraft departs from Bangalore to Mumbai after taking onboard food for consumption on board, the place of supply will be Bangalore. - Reply By Ganeshan Kalyani - The Reply = The location of supply of goods exported from India shall be the location outside India. - Reply By Ganeshan Kalyani - The Reply = Revised Model IGST Law provides that any service provided directly in relation to an immovable property including services provided by architects, interior decorators, surveyors, engineers and other related experts or estate agents, any service provided by way of grant of rights to use immovable property or for carrying out or coordination of construction shall be the location at which the immovable property is situated. - Reply By YAGAY AND SUN - The Reply = Government to Soon Introduce 5 Bills for Implementation of GST The Government will bring before Parliament four GST legislations and there will be a fifth legislation as Excise and Customs Acts will have to be amended. We will bring these legislations together to Parliament in the next few days, Arun Jaitley said. - Reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... By YAGAY AND SUN - The Reply = Jaitley hopes GST roll out from July 1 to make goods cheaper - Reply By YAGAY AND SUN - The Reply = Jaitley says tax collection will improve after GST roll out. - Reply By YAGAY AND SUN - The Reply = KitKat is a biscuit and Parachute Coconut oil is edible! That's the new topic for GST debate - Reply By YAGAY AND SUN - The Reply = Consumer goods distributors, wholesalers to bear the brunt of GST. - Reply By YAGAY AND SUN - The Reply = With the GST's implementation, the middlemen will come into the organised bracket and will have to pay taxes for the very first time. - Reply By YAGAY AND SUN - The Reply = Officers can explain benefit of GST to people: IRS association - Reply By YAGAY AND SUN - The Reply = GST an opportunity to remove anomalies in tobacco taxation - Reply By YAGAY AND SUN - The Reply = Expect positive benefits of GST to show up in Q4: Aditi Nayar, ICRA - Reply By YAGAY AND SUN - The Reply = From taxes on alcohol to GST on Uber rides: The top seven ways this budget will help or hit your pocketbook. - Reply By YAGAY AND SUN - The Reply = GST coming soon, but don t expect quick benefits; rich valuation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to stall stocks. - Reply By YAGAY AND SUN - The Reply = GST debate now continues on categorisation of products. - Reply By YAGAY AND SUN - The Reply = GST: Modi govt can't levy taxes if Parliament doesn't pass 4 Bills till Sept 15. - Reply By YAGAY AND SUN - The Reply = If the GST fails to roll out by September 15, the government will not be able to levy indirect taxes. With GST Constitution Amendment Act, the old tax regimes will cease to be effective on September 16. - Reply By YAGAY AND SUN - The Reply = Why can't politicians leave the GST alone? - Reply By YAGAY AND SUN - The Reply = CBEC to be Renamed CBIC Under GST Regime. - Reply By YAGAY AND SUN - The Reply = GST good for Titan, structural increase in market share likely - Reply By Ganeshan Kalyani - The Reply = If the supplier of goods or services and place of supply of goods or services are located in same State, then CGST and SGST is payable. - Reply By YAGAY AND SUN - The Reply = Cabinet clears abolition of cesses for GST rollout, government to incur ₹ 65,000-crore loss - Reply By Ganeshan Kalyani - The Reply = If the supplier and the place of supply are located in differen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t States, then IGST is payable. - Reply By YAGAY AND SUN - The Reply = FAITH hands over GST representation to Ministry of Finance Hospitality industry's apex body Federation of Associations in Indian Tourism and Hospitality or FAITH has handed over its GST representation to the Ministry of Finance in charge for recommending rates to the GST council. - Reply By YAGAY AND SUN - The Reply = Rupee unlikely to breach 70/$ in 2017; bet on GST related sectors: Lalit Nambiar Domestic liquidity flows into the equity market seemed to have bolstered valuations given that all other asset classes including reality, gold, fixed deposits all look relative unattractively placed. - Reply By YAGAY AND SUN - The Reply = Service contracts set to be renegotiated under GST - Reply By YAGAY AND SUN - The Reply = Some of the service contracts are set to be renegotiated under the goods and services tax (GST) framework as it levies different tax rates in some peculiar situations, said industry trackers. - Reply By YAGAY AND SUN - The Reply = Expect an atmosphere of stability once GST is implemented: Godfrey Philips - Reply By YAGAY AND SUN - The Reply = In an exclusive intervie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w to CNBC-TV18 s Latha Venkatesh, Anuj Singhal, and Sonia Shenoy, KK Modi, President MD at Godfrey Philips India spoke about outlook going forward for the cigarette industry and the impact of GST on the industry. - Reply By YAGAY AND SUN - The Reply = Even as the GST Council granted approval to all five draft laws, industry experts feel clarity is required on several fronts ahead of the proposed July 1 rollout. - Reply By YAGAY AND SUN - The Reply = Are 3 months enough for industry to prepare for GST, ask experts. - Reply By YAGAY AND SUN - The Reply = Blue Star stalls ₹ 220-crore investment in J K over GST query - Reply By YAGAY AND SUN - The Reply = Blue Star s Mukundan Menon says the firm has put on hold its investment as J K has not clarified whether relief in excise duty is going to continue after GST implementation - Reply By Ganeshan Kalyani - The Reply = Goods and Services Tax is India s biggest reform in India s indirect tax structure. - Reply By Ganeshan Kalyani - The Reply = UTGST Bill provides for levy of GST on intra-UT supply of goods and services in the Union Territories without legislature. - Reply By Ganeshan Kalyani - The Reply = The Comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ensation Bill provides for compensation to the states for loss of revenue due to GST for a period of five years. - Reply By Ganeshan Kalyani - The Reply = The introduction of GST bill will help in simplifying administration as it removes multiple taxation systems at every stage of trade model. - Reply By Ganeshan Kalyani - The Reply = With the Union and the States gearing up to introduce GST Bills in their respect Houses, the Union of India has approval the proposal to rename CBEC as Central Board of Indirect Taxes Customs (CBIC). In this regard the Central Board of Revenue Act, 1963 would be amended to approve the new name for the CBEC. - Reply By Ganeshan Kalyani - The Reply = The Union Finance Minister, Mr Arun Jaitley, has approved a restructuring plan for the CBEC. The Board in its new avataar will have 21 Zones, 101 GST Tax payer Services Commissionerates comprising 15 sub-Commissionerates, 768 Divisions, 3969 Ranges, 49 Audit Commissionerates and 50 Appeals Commissionerates. This will ensure rendering of taxpayer services to all the taxpayers through an indirect tax administration structure, having pan-India presence. - Reply By Ganeshan Kalyani - The Reply = ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... For a robust IT Network, the Directorate General of Systems under CBEC is being strengthened. The Directorate General Tax Payer Services is being expanded for greater out- reach for facilitating smooth transition for the taxpayers to the GST environment. The existing training establishment, to be renamed as National Academy of Customs, Indirect Taxes and Narcotics will have an all India presence, to enable capacity building to the employees of the indirect tax administration of the Centre as well as of the State Governments and to members of Trade and Industry. The renamed Directorate General of Goods Service Tax Intelligence is also being strengthened and expanded to become an important wing of the Government in its fight against Tax Evasion and Black Money. - Reply By Ganeshan Kalyani - The Reply = The GST Council has set up Working Groups to address peculiar problems of some of the sectors for their hassle-free transition into the new tax regime. - Reply By Ganeshan Kalyani - The Reply = The Working Groups have been directed to take a quick look at the key issues and suggest ways and means to overcome the key concerns. They may interact with concerned administrative m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inistries and key Industry bodies/associations, professionals and other suitable persons. - Reply By Ganeshan Kalyani - The Reply = With the goods and service tax (GST) set to be rolled out from July 1, the government has set up 10 working groups to address the concerns of industry. - Reply By Ganeshan Kalyani - The Reply = The groups cover banking, telecom, exports, information technology, transport, textiles, MSMEs, gems and jewellery and services received and provided by the government. - Reply By Ganeshan Kalyani - The Reply = Some of the issues that would be tackled by the groups include how to handle services provided between establishments of the same entity without invoice or payment in certain sectors with high volumes of transactions when operations are spread across the country. - Reply By Ganeshan Kalyani - The Reply = Pratik Jain of PwC said, The move of setting up 10 working groups to address the concerns of industry will provide much needed clarity to the industry on sector specific issues. However, the timeline for submitting the report looks tight. - Reply By Ganeshan Kalyani - The Reply = Commerce and Industry minister Nirmala Sitharaman said Amerci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an phone-maker Apple s demand for tax incentives to set up a manufacturing unit in the country will have be looked at after the Goods and Services Tax (GST) is rolled out. - Reply By Ganeshan Kalyani - The Reply = The government has not accepted most of the demands of the iPhone maker, Commerce and Industry minister Nirmala Sitharaman said. - Reply By Ganeshan Kalyani - The Reply = The American tech giant has sought various concessions on taxation and import of components for setting up the Apple manufacturing unit. - Reply By Ganeshan Kalyani - The Reply = Apart from tax sops, Apple also wants relaxation in the mandated 30 per cent local sourcing of components. Earlier reports had said the company would be importing all its components on the grounds that it is bringing in cutting-edge technology to the country. - Reply By Ganeshan Kalyani - The Reply = In January, Apple had indicated to the government that it was ready with a blueprint to begin manufacturing iPhones, but wants fiscal concessions, including Customs duty waiver on imported components. - Reply By YAGAY AND SUN - The Reply = GST- Chemical industry will grow to $226b by 2020: Sitharaman. - Reply By YAGA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Y AND SUN - The Reply = If GST tax is capped at 18-20%, it will benefit chemicals industry: Ajay Durrani. - Reply By YAGAY AND SUN - The Reply = Indirect tax wing rejigged ahead of GST launch. - Reply By YAGAY AND SUN - The Reply = FM approves the re-organisation of the field formations of the Central Board of Excise Customs (CBEC) for the implementation of Goods Services Tax (GST); CBEC is being renamed as the Central Board of Indirect Taxes Customs (CBIC), after getting legislative approval. - Reply By YAGAY AND SUN - The Reply = GST: CST compensation to States: Centre to release ₹ 5834 Crore before Mar 31st. - Reply By YAGAY AND SUN - The Reply = Companies, consultants grope in the dark to meet GST deadline . - Reply By YAGAY AND SUN - The Reply = GST Council meet: No e-wallets for exporters, but tax refunds in 7 days. - Reply By YAGAY AND SUN - The Reply = Last gasp tasks: GST bills and rate fitment process. - Reply By YAGAY AND SUN - The Reply = GST Network gearing up to handle more than 3600 Crore invoices annually. - Reply By YAGAY AND SUN - The Reply = Govt may table GST Bills in Parliament on Monday - Reply By YAG ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AY AND SUN - The Reply = Central GST, integrated GST, Union Territory GST and the compensation law are likely to be introduced in the Lok Sabha and could be taken up for discussion as early as 28 March. - Reply By YAGAY AND SUN - The Reply = Once these GST Bills are cleared by Parliament, the states will then take the state GST Bill to their respective assemblies. - Reply By YAGAY AND SUN - The Reply = GST: Bhopal Cuts dwon transportation costs, - Reply By YAGAY AND SUN - The Reply = GST on fast-track, but businesses still not on network. - Reply By YAGAY AND SUN - The Reply = GST Boon or bane for realty? - Reply By YAGAY AND SUN - The Reply = Exempt low-cost housing from service tax under GST: Venkaiah Naidu - Reply By YAGAY AND SUN - The Reply = GST would reduce tax load on property buyers. - Reply By YAGAY AND SUN - The Reply = Don t keep punching new holes in GST. - Reply By YAGAY AND SUN - The Reply = Greenply: preparing for a better future after GST Greenply getting ready to meet the expected higher demand as a result of implementation of GST, which may encourage a shift from unorganized to organized markets - Reply By YAGAY AND SUN - The Reply = ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) CENTRAL BOARD OF EXCISE AND CUSTOMS OFFICE ORDER Dated: March 24, 2017 Government sets up Working Groups to address peculiar problems of industry WITH the Union Government setting the stage for the passage of the GST Bills, the GST Council has set up Working Groups to address peculiar problems of some of the sectors for their hassle-free transition into the new tax regime. Some of the key issues are: i. Services provided between establishments of same entity without invoice or payment in certain sectors with high volumes of transactions with operations spread on a country-wide basis; ii. Compliance challenges for small and medium sector in an automated environment with end-to-end matching of invoices; iii. Issues raised by sectors employing large work force and with vast disparity, e.g., textiles; iv. Special regime in sectors with disproportionate high value with relatively lesser value addition and large number of job workers; v. Cascading due to the exclusion of certain products from the GST and commitments relating fiscal stability clause in Production Sharing Contracts; vi. Issues du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to existing abatements in transport sector together with compliance challenges; vii. Critical infrastructure of the country viii. Exports, including value addition and manufacturing in domestic tariff area (DTA) for export /EOUs and SEZs. ix. Government services to obtain clarity as to what constitutes a taxable supply for consideration. Recognizing all such concerns, it has been decided to set up some Working Groups to address the concerns of some key sectors: a. Banking, Financial : Upender Gupta, Commissioner, GST and Insurance Sector b. Telecommunication : Amitabh Kumar, JS, TRU-II c. Exports, including EOUs and SEZs : Dr Tejpal Singh, ADG, DGEP, Manish Sinha, Commissioner, CX d. IT /ITES : M. Vinod Kumar, Chief Commissioner e. Transport and Logistics : J. M. Kennedy, ADG DGRI (Road, rail, air, sea, pipelines, airport, sea port) f. Textiles: Yogendra Garg, Commissioner CX. g. MSMEs, including job work : Manish Sinha, Commissioner CX h. Oil Gas (Upstream and Downstream) : P. K. Jain, Chief Commissioner (AR) i. Gems and Jewellery : Reyaz Ahmad, Director TRU j. Services received and provided by : D. P. Nagendr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Kumar, Pr. Commissioner the Government The Working Groups have been directed to take a quick look at the key issues and suggest ways and means to overcome the key concerns. They may interact with concerned administrative ministries and key Industry bodies/associations, professionals and other suitable persons. The emphasis of the Groups would be on procedural simplification and possible rate structure and will have to submit their reports latest by April 10, 2017. Based on their initial reports, decision on further action to expand the working groups by including officers from the state governments may be taken. (F. No. 349/36/2017-GST) (Ram Tirath) Member (Budget GST) - Reply By YAGAY AND SUN - The Reply = Ministry of Finance Release ID: 159886 24-March, 2017 16:54 IST Releasing of GST Compensation to States Pending introduction of GST in the Country, Union Cabinet in its meeting held on 17.03.2015, decided for payment of 100% CST compensation to the States/UTs for year 2010-11, 75% CST compensation for year 2011-12 and 50% CST Compensation for year 2012-13 to be worked out as per guideline dated 22.08.2008. Accordingly, full CST comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ensation for year 2010-11 and 2011-12 has been released to the States during FY 2014-15 2015-16. ₹ 11709.4 cr. CST compensation is admissible to States/UTs for year 2012-13. Out of which 1st installment of CST compensation amount ₹ 5854.73 cr. has been released to the States/UTs in July, 2016. Balance amount of ₹ 5854.69 cr. CST compensation for year 2012-13 is proposed to be released during current FY. This is the final payment of CST compensation to the States/UTs. This was stated by Shri Santosh Kumar Gangwar, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today. ***** DSM/KA () - Reply By YAGAY AND SUN - The Reply = Cabinet (Release ID :159759) 22-March, 2017 20:57 IST Cabinet approves Amendment of in the Customs and Excise Act, relating to abolition of cesses and surcharges on various goods and services to facilitate implementation of GST Regime Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the following proposals: i. Amendment to the Customs Act, 1962 ; ii. Amendments to the Customs Tariff Act, 1975 ; iii. Amendment to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Excise Act, 1944 ; iv. Repeal of the Central Excise Tariff Act, 1985 ; and v. Amendment or repeal of the provisions relating to Acts under which cesses are levied. The above proposals will result in the following benefits: i. Insertion of Sections 108A and 108B in the Customs Act, 1962 seeks to provide for furnishing of information relating to import/export of goods by specified persons to enable analysis and detection of cases of unter/over-valuation in imports and exports, misuse of export promotion schemes including the Drawback Scheme and violations of the provisions of the Customs Act and various other laws under which Customs officials have been authorized to effectively implement these laws; and ii. Amendments or repeal of various provisions of other Acts which will no longer be relevant consequent upon roll out of GST will result in cleansing of the irrelevant portions from the Statute Book and reduce multiplicity of taxes. - Reply By YAGAY AND SUN - The Reply = GST Suggestion: Schedule containing list of Capital Goods be annexed to the Draft Law and should include items newly included in recent amendments of CENVA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T Credit rules, 2004 . - Reply By YAGAY AND SUN - The Reply = Works contract, transfer of right to use has been defined as service in GST Law but section 366(29A) has not been deleted. This needs to be deleted. - Reply By YAGAY AND SUN - The Reply = Section 154 should provide for dealing with refund claims made after appointed date but related to earlier period. This is not provided yet in the transitional provisions - Reply By YAGAY AND SUN - The Reply = The input tax credit if any left in electronic credit ledger be allowed to be set off against future liability or be refunded. - Reply By YAGAY AND SUN - The Reply = A State-wise single registration for a taxpayer for filing returns, paying taxes, and to fulfil other compliance requirements. Most of the compliance requirements would be fulfilled online, thus leaving very little room for physical interface between the taxpayer and the tax official. - Reply By YAGAY AND SUN - The Reply = A taxpayer has to file one single return state-wise to report all his supplies, whether made within or outside the State or exported out of the country and pay the applicable taxes on them. Such taxes can be Central Goods and Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvices Tax (CGST), State Goods and Services Tax (SGST), Union Territory Goods and Services Tax (UTGST) and Integrated Goods and Services Tax (IGST). - Reply By YAGAY AND SUN - The Reply = A business entity with an annual turnover of up to ₹ 20 lakhs would not be required to take registration in the GST regime, unless he voluntarily chooses to do so to be a part of the input tax credit (ITC) chain. The annual turnover threshold in the Special Category States (as enumerated in Article 279A of the Constitution such as Arunachal Pradesh, Sikkim, Uttarakhand, Himachal Pradesh, Assam and the other States of the North-East) for not taking registration is ₹ 10 lakhs. - Reply By YAGAY AND SUN - The Reply = A business entity with turnover up to ₹ 50 lakhs can avail the benefit of a composition scheme under which it has to pay a much lower rate of tax and has to fulfil very minimal compliance requirements. The Composition Scheme is available for all traders, select manufacturing sectors and for restaurants in the services sector. - Reply By YAGAY AND SUN - The Reply = In order to prevent cascading of taxes, ITC would be admissible on all goods and services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used in the course or furtherance of business, except on a few items listed in the Law. - Reply By YAGAY AND SUN - The Reply = In order to ensure that ITC can be used seamlessly for payment of taxes under the Central and the State Law, it has been provided that the ITC entitlement arising out of taxes paid under the Central Law can be cross-utilised for payment of taxes under the laws of the States or Union Territories. For example, a taxpayer can use the ITC accruing to him due to payment of IGST to discharge his tax liability of CGST / SGST / UTGST. Conversely, a taxpayer can use the ITC accruing to him on account of payment of CGST / SGST / UTGST, for payment of IGST. Such payments are to be made in a pre-defined order. - Reply By YAGAY AND SUN - The Reply = In the Services sector, the existing mechanism of Input Service Distributor (ISD) under the Service Tax law has been retained to allow the flow of ITC in respect of input services within a legal entity. - Reply By YAGAY AND SUN - The Reply = To prevent lock-in 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the claimed amount on a provisional basis. - Reply By YAGAY AND SUN - The Reply = In order to ensure a single administrative interface for taxpayers, a provision has been made to authorise officers of the tax administrations of the Centre and the States to exercise the powers conferred under all Acts. - Reply By YAGAY AND SUN - The Reply = An agriculturist, to the extent of supply of produce out of cultivation of land, would not be liable to take registration in the GST regime. - Reply By YAGAY AND SUN - The Reply = To provide certainty in tax matters, a provision has been made for an Advance Ruling Authority. - Reply By YAGAY AND SUN - The Reply = Exhaustive provisions for Appellate mechanism have been made. - Reply By YAGAY AND SUN - The Reply = Detailed transitional provisions have been provided to ensure migration of existing taxpayers and seamless transfer of unutilised ITC in the GST regime. - Reply By YAGAY AND SUN - The Reply = An anti-profiteering provision has been incorporated to ensure that the reduction of tax incidence is passed on to the consumers. - Reply By YAGAY AND SUN - The Reply = In order to mitigate any financial hardship being suffere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by a taxpayer, Commissioner has been empowered to allow payment of taxes in instalments. - Reply By YAGAY AND SUN - The Reply = GST changes: Enabling provision for peak 40% rate Council suggests change from present 28%, with Centre and states each empowered to have up to 14%. - Reply By YAGAY AND SUN - The Reply = The Goods and Services Tax (GST) Council is likely to get the power to raise the rate up to 40 per cent for any item in future, without the need for parliamentary approval. The proposed move has not gone down well with tax experts, who want the rates to be moderate even in the future.a The Council, chaired by Finance Minister Arun Jaitley, has proposed an enabling provision in the GST Bills for a peak rate of 20 per cent each for Central GST (CGST) and state GST (SGST), from 14 per cent in the current draft, taking the limit to 40 per cent from 28 per cent. - Reply By YAGAY AND SUN - The Reply = Central Board of Excise Customs (CBEC) has initiated the process of migration of its existing Central Excise/Service Tax assessees to GST and a 24x7 Helpdesk (Through Toll-Free number and Email) started for the purpose. - Reply By YAGAY AND SUN - The Repl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y = PAN is mandatory for migration to GST. Hence, if the existing Central Excise/Service Tax Registration Code does not have PAN, then PAN has to be obtained from Income Tax Department and the Registration details have to be updated in the ACES Portal www.aces.gov.in - Reply By YAGAY AND SUN - The Reply = GSTN also has a HELP DESK number: 0124-4688999 and GSTN email address is: help@gst.gov.in A Step-by-Step Taxpayers User guide for Migration is available at www.aces.gov.in and at www.cbec.gov.in - Reply By YAGAY AND SUN - The Reply = CBEC is also sending Emails/recorded telephonic messages to all registered CENTRAL EXCISE / SERVICE TAX assessees requesting them to migrate to GST. Outreach programmes such as Awareness Workshops/ Training for CENTRAL EXCISE/SERVICE TAX assessees are being organized all over India at the Commissionerate and Divisional offices of CBEC. - Reply By YAGAY AND SUN - The Reply = All existing CENTRAL EXCISE/SERVICE TAX assessees are requested to migrate as early as possible, latest by 31-03-2017. - Reply By Ganeshan Kalyani - The Reply = Commerce and Industry minister Nirmala Sitharaman today said Amercian phone-maker Apple s dem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and for tax incentives to set up a manufacturing unit in the country will have be looked at after the Goods and Services Tax (GST) is rolled out. - Reply By Ganeshan Kalyani - The Reply = GST will be coming soon. So, tax-related incentives demanded by Apple will have to be looked from a different angle, Sitharaman told PTI on the sidelines of Chemexcil function here. - Reply By Ganeshan Kalyani - The Reply = Goods and Services Tax (GST) is slated to unify good and services under one tax. This entails unification (re-organisation) of government tax office organisational structure. - Reply By Ganeshan Kalyani - The Reply = CBIC will continue to perform Central Excise levy Customs functions. CBIC will have 21 Zones,101 GST Tax payer Services Commissionerates. - Reply By Ganeshan Kalyani - The Reply = FM Arun Jaitley, today, has approved re-organisation of field formations of the Central Board of Excise Customs (CBEC) for implementation of GST. - Reply By Ganeshan Kalyani - The Reply = Proposed CBIC to supervise the work of all its field formations Directorates assist the Government in policy making in relation to GST. - Reply By Ganeshan Kalyani - The Reply = GST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is expected to roll out from July 1, 2017 and replaces existing indirect taxes apart from Customs. - Reply By Ganeshan Kalyani - The Reply = Goods and Services Tax (GST) portal has initiated a portal to check status of conversion of existing registration to GST. - Reply By Ganeshan Kalyani - The Reply = Tax payer can now check whether the existing registration has successfully migrated to GST. - Reply By Ganeshan Kalyani - The Reply = Tax payer can now check whether the existing registration has successfully migrated to GST. For the same tax payers need to follow following steps: 1. Select the concerned state from the drop down. 2. For the purpose of reference number, ID Type needs to be selected. Tax payers can choose from Provisional ID, PAN or Registration number. On submission, portal will show whether the migration has been successfully completed or not. - Reply By Ganeshan Kalyani - The Reply = The anti-profiteering clause introduced under the Goods and Services Tax (GST) regime is unlikely to lead to any immediate cost benefits to customers. Experts have raised concern over its implementation. - Reply By Ganeshan Kalyani - The Reply = GST tax rates will be rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ised for 80,000 items in the country depending on the type of product and the ingredients used in its manufacturing. While rates have not yet been disclosed for any product or service, the GST regime will be applicable from July 1, 2017. - Reply By Ganeshan Kalyani - The Reply = The concern raised on anti-profiteering clause in GST is primarily for the reason that tracking all registered companies could pose to be a challenge. - Reply By Ganeshan Kalyani - The Reply = MS Mani, Senior Director, Deloitte Haskins and Sells said that while the aim of the GST Council is to ensure that no manufacturer pockets the profits that they get due to a lower rate of tax it will be a big task to track each company and whether or not they have reduced prices. - Reply By Ganeshan Kalyani - The Reply = If one company reduces prices, others may need to bring down prices. With respect to the B2B business, Mani added that the clients will be forced to adopt competitive pricing. - Reply By Ganeshan Kalyani - The Reply = There has been a four-rate GST structure of 5 percent, 12 percent, 18 percent and 28 percent that has been finalised for the country. This will subsume all other taxes including e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcise, value-added tax and octroi. - Reply By Ganeshan Kalyani - The Reply = Mani explained that companies could even argue that their overall costs including production and manpower have gone up, leaving little room to keep rates low. - Reply By Ganeshan Kalyani - The Reply = There is a possibility of manufacturers arguing that costs necessitate them to increase prices whereas they have, in fact, kept prices stable, MS Mani, Senior Director, Deloitte Haskins and Sells said. - Reply By Ganeshan Kalyani - The Reply = If taxes go up and the company faces a direct hit, the end consumer will have to pay a premium for the regular products that he/she may purchase. In such case checking for anti profiteering clause would be difficult. - Reply By Ganeshan Kalyani - The Reply = The Union Cabinet has cleared amendments in the Customs and Excise Act relating to abolition of cesses and surcharges on various goods and services to facilitate implementation of GST. - Reply By Ganeshan Kalyani - The Reply = As a result of abolishing cesses and surcharges, 16 cesses and surcharges on union excise and service tax will get abolished as a pre-cursor to rolling out Goods and Services Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (GST) from July. - Reply By Ganeshan Kalyani - The Reply = Amendments or repeal of various provisions of other Acts which will no longer be relevant consequent on rollout of GST will result in cleansing of the irrelevant portions from the Statute Book and reduce multiplicity of taxes, an official release said after the Cabinet meeting chaired by Prime Minister Narendra Modi. - Reply By Ganeshan Kalyani - The Reply = The Union Cabinet has also approved repeal of the Central Excise Tariff Act, 1985 and amendment or repeal of the provisions relating to Acts under which cesses are levied. - Reply By Ganeshan Kalyani - The Reply = In addition, new clauses are proposed to be incorporated in the Customs Act to provide for furnishing of information on import and export of goods to detect under or over-valuation and misuse of export promotion schemes. - Reply By Ganeshan Kalyani - The Reply = GST 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... internal purposes. - Reply By Ganeshan Kalyani - The Reply = 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. - Reply By Ganeshan Kalyani - The Reply = Existing tax payers are required to enroll on GST portal for registration migration under GST. For the first time login, you need to provide username and password that you received from the State VAT/Centre Tax Department. This username is a provisional ID. - Reply By Ganeshan Kalyani - The Reply = A 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. - Reply By Ganeshan Kalyani - The Reply = Over time, it is expected that 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. - Reply By Ganeshan Kalyani - The Reply = Commenting on the issue, a Nomura Official told ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - Reply By Ganeshan Kalyani - The Reply = 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. - Reply By Ganeshan Kalyani - The Reply = Godrej Group chairman Adi Godrej on Saturday hailed demonetisation and the proposed GST bill, stating that believers in India's strong future outstripped its doubters. - Reply By Ganeshan Kalyani - The Reply = Demonetisation helped checking black money, ensuring mid- and long-term growth while the GST, which would be implemented from July, would help achieve positive economic growth of the country, Godrej said. - Reply By Ganeshan Kalyani - The Reply = Right policy and decision of the government was shaping the reform in right direction and enhancing growth rate, said Godrej while speaking at the 61st Convocation of leading B-School XLRI School of Management. - Reply By Ganeshan Kalyani - T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Reply = Godrej, who was bestowed with Sir Jehangir Ghandy Medal for Social and Industrial Peace on the occasion, expressed confidence that the country would overtake US economy between 2030-40 and China by 2050 to emerge as economic super power of the world. - Reply By Ganeshan Kalyani - The Reply = I have always been and continued to be very optimistic about India's future especially with the election of a development-oriented government, Godrej said adding that now the number of believers in India's strong future outstripped that of doubters. - Reply By Ganeshan Kalyani - The Reply = Godrej said that his confidence of bright future of India came from his belief in the country's demography, democracy and reform and growth-oriented mindset. - Reply By Ganeshan Kalyani - The Reply = India, which has retained top spot on global consumer confidence index with 133 points in 2016, have been able to mitigate some of the negative consequences of global financial turmoil due to its large consumer market, Godrej said. - Reply By Ganeshan Kalyani - The Reply = Turnover of less than INR. 15 million - 90% of businesses would be administered by States, and the balance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10% by Central Government. - Reply By Ganeshan Kalyani - The Reply = The mechanism for split of the assessees would be based on the risk parameters/ profiles of the users . - Reply By Ganeshan Kalyani - The Reply = In case of complex or contentious issues involved with respect to services (such as place of supply etc), assessment of the same may be undertaken by the Central Government. - Reply By Ganeshan Kalyani - The Reply = States would have the power to levy taxes within 12 nautical miles under GST. - Reply By Ganeshan Kalyani - The Reply = GST is now expected to be rolled out by 1 July 2017 (as opposed to the earlier date of 1 April 2017). - Reply By Ganeshan Kalyani - The Reply = Fitment of rates - The rate committee would finalise rates of different goods and services under GST and submit the same before the GST Council. - Reply By Ganeshan Kalyani - The Reply = The Constitution Amendment Bill for Goods and Services Tax (GST) was approved by The President of India post its passage in the Parliament (Rajya Sabha on 3 August 2016 and Lok Sabha on 8 August 2016). - Reply By Ganeshan Kalyani - The Reply = The Government of India is committed to replace all the ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irect taxes levied on goods and services by the Centre and States and implement GST by April 2017. - Reply By Ganeshan Kalyani - The Reply = With GST, it is anticipated that the tax base will be comprehensive, as virtually all goods and services will be taxable, with minimum exemptions. - Reply By Ganeshan Kalyani - The Reply = GST will be a game changing reform for the Indian economy by creating a common Indian market and reducing the cascading effect of tax on the cost of goods and services. - Reply By Ganeshan Kalyani - The Reply = GST will impact the tax structure, tax incidence, tax computation, tax payment, compliance, credit utilization and reporting, leading to a complete overhaul of the current indirect tax system. - Reply By Ganeshan Kalyani - The Reply = GST will have a far-reaching impact on almost all the aspects of the business operations in the country, for instance, pricing of products and services, supply chain optimization, IT, accounting, and tax compliance systems. - Reply By Ganeshan Kalyani - The Reply = GST would bring in significant change in doing business in India. Advocacy for best practices, gearing up for changes in processes, training teams a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd developing IT systems for being GST compliant are the key areas to be assessed. - Reply By Ganeshan Kalyani - The Reply = The Government is committed to introduce GST by April 2017. - Reply By Ganeshan Kalyani - The Reply = The Government is committed to introduce GST by July 2017. - Reply By Ganeshan Kalyani - The Reply = Tax payers need to be GST compliant to be able to test system changes in time. Depending on the operating geographies, size and sector, the changes would be substantial and may require proactive planning with a time-bound action plan. - Reply By Ganeshan Kalyani - The Reply = In order to prepare for the implementation of GST, companies need to understand GST policy development and its implications for scenario planning and transition roadmap preparation. - Reply By Ganeshan Kalyani - The Reply = GST is a value-added tax levied at all points in the supply chain with credit allowed for any tax paid on input acquired for use in making the supply. It would apply to both goods and services in a comprehensive manner, with exemptions restricted to a minimum. - Reply By Ganeshan Kalyani - The Reply = In keeping with the federal structure of India, it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proposed that GST will be levied concurrently by the Centre (CGST) and the states (SGST). - Reply By Ganeshan Kalyani - The Reply = It is expected that the base and other essential design features would be common between CGST and SGST across SGSTs for individual states. - Reply By Ganeshan Kalyani - The Reply = Both CGST and SGST would be levied on the basis of the destination principle. - Reply By Ganeshan Kalyani - The Reply = Exports would be zero-rated, and imports would attract tax in the same manner as domestic goods and services. - Reply By Ganeshan Kalyani - The Reply = As India gets ready for its biggest tax reform in decades, industries such as ecommerce, banking and insurance, logistics and others will get another chance to resolve any niggles they have with the goods and services tax (GST), which the government wants to put in place by July 1. - Reply By Ganeshan Kalyani - The Reply = Ahead of the introduction of GST-related legislation in Parliament this week, the government has set up 10 groups to iron out sectoral issues faced by trade and industry to ensure a smooth transition to the new regime with just a little over three months to go. - Reply By ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ganeshan Kalyani - The Reply = In a chat with ET Now, Suresh Narayanan , Chairman MD, Nestle India , says despite temporary blips, GST will usher in economies of scale and efficiencies, says Narayanan. He also said, while you might have some initial teething issues which is bound to be there in a fiscal change of this magnitude, I believe it can unleash economies of scale and economies of efficiencies that can be quite significant in the context of the country. And in such a case, these kind of temporary aberrations would be seen as blips. - Reply By Ganeshan Kalyani - The Reply = All four bills (The Central GST, Integrated GST, Union Territory GST and the Compensation Law) related to GST was on Wednesday passed in Lok Sabha with voice votes. - Reply By Ganeshan Kalyani - The Reply = The CGST and IGST Bills extend to whole of India except Jammu Kashmir. - Reply By Ganeshan Kalyani - The Reply = All four bills related to GST was on Wednesday passed in Lok Sabha with voice votes. With this government is positive to implementation of GST by 1st July 2017. - Reply By Ganeshan Kalyani - The Reply = Goods and Services Tax (GST) bills may have reached the final lap wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th their introduction in the Parliament on Monday but informed sources told DNA Money the road from here to the final of the proposed unified indirect tax could get stretched with the government seriously looking at shifting the date of the new tax going live from July 1 to September 1. - Reply By Ganeshan Kalyani - The Reply = This could be done to give industry more time to prepare for the new indirect tax regime and for further fine-tuning the GST bills. - Reply By Ganeshan Kalyani - The Reply = There seems to be an informal acceptance of GST date being pushed to September 1 among officials in the finance ministry, revenue department and CBEC, said one of the souro spoke on condition of anonymity. - Reply By Ganeshan Kalyani - The Reply = The exercise of finalising five draft GST legislations Central GST (CGST), State GST (SGST), Union Territory GST (UTGST), integrated GST (IGST) and Compensation to states by the GST Council, which comprises of finance ministers and officials from all states and is responsible for working out the broad contours for the draft bills, is slightly behind schedule. - Reply By Ganeshan Kalyani - The Reply = There have been representation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s by various industry and trade lobbies to the government for an extension of the GST deadline. - Reply By Ganeshan Kalyani - The Reply = Another source said many leading industrialists have communicated directly to the Prime Minister Narendra Modi on various concerns relating to certain provisions in the draft bills. - Reply By Ganeshan Kalyani - The Reply = GSTN launches a facility ''Check Registration Status'' for verification of registrations to promote transparency under GST. Goods and Services Tax Network (GSTN) has launched a facility, open to all, for verification of registrations. It provides with an option to check the enrolment and registration status of a person using his state and registration number or provisional ID given for enrolment purposes or Permanent Account Number. - Reply By Ganeshan Kalyani - The Reply = In addition to above, the Central Board of Excise and Customs (CBEC) has announced the availability of an additional e-sign services by NSDL, from 04 April 2017. E-sign service is an online electronic signature service that can facilitate an Aadhaar holder to digitally sign a document. This will promote the signing of enrolment applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ations using Aadhaar number of the authorised signatory. - Reply By Ganeshan Kalyani - The Reply = The enrolment under GST can now be done till 31 April 2017. - Reply By Ganeshan Kalyani - The Reply = Revenue Secretary Hasmukh Adhia has said that the biggest challenge for Government would be the outreach to trade and industry in next 3 months. He adds that right now focus is on migration existing tax payers to GST (transition). Currently, only 60% of the assessees have migrated to GST. - Reply By Ganeshan Kalyani - The Reply = The Goods and Services Tax (GST) Council approved the drafts of four sets of rules and finalized five others on Friday making steps towards GST roll out. These rules are for Valuation, Composition, Input Tax Credit and Transition. Five other rules involving registration, payment, refund, invoices and returns, the drafts of which were already approved. - Reply By Ganeshan Kalyani - The Reply = As government moves nearer to implementation of Goods and Services Tax (GST) in India, it has provided India Inc. one last chance to represent its concerns around GST Bills. 10 industry specific groups have been formed to iron out issues. The sectors up for revie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w include banking, finance, insurance, telecom, exports, IT/ITeS (information technology enabled. - Reply By Ganeshan Kalyani - The Reply = As a pre-requisite to shift to Goods and Services Tax (GST) Regime, every existing tax payer is required to migrate it s existing indirect tax registration to GST. Deadline to migrate all state VAT, Service Tax and Excise Duty registrations was set at 31st March 2017. - Reply By Ganeshan Kalyani - The Reply = Considering delay in rolling out laws and lack of preparation the timeline of GST enrollment is extended up to 31st April, 2017. - Reply By Ganeshan Kalyani - The Reply = Under GST a provision of payment of GST under reverse charge by a registered person upon procurement from un-registered person is provided. - Reply By Ganeshan Kalyani - The Reply = GST Bills were introduced as 'Money Bill' in Lok Sabha. - Reply By Ganeshan Kalyani - The Reply = In context to GST Rates, Revenue Secretary states that tax incidence will be closer to existing ones, while service tax rates will be 5%, 12% 18%, 18% being standard rate. - Reply By Ganeshan Kalyani - The Reply = Government has extended the deadline to migrate existing r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egistration (a.k.a GST Enrolment) to 30th April 2017 for all existing registrations to be migrated across state and centre. - Reply By Ganeshan Kalyani - The Reply = The voluntary enrollment process started six months ago and 73 per cent of the businesses have registered. We will be extending time till April 30, for the others to enroll, Prakash Kumar, CEO, Goods and Services Tax Network said. - Reply By Ganeshan Kalyani - The Reply = Draft rules for input tax credit, valuation, transition and composition scheme have been released for public comments and will be taken up for finalization in next GST Council meeting on May 18-19 in Srinagar. - Reply By Ganeshan Kalyani - The Reply = Experts believe that since few rules are yet to be finalized by the GST Council in it s next meeting, 2-3 months is very short period for industry to prepare for GST roll out. Companies need to have their systems, processes ready with revised structural requirements. Revenue Secretary had admitted that outreach to industry would be a tough task. - Reply By Ganeshan Kalyani - The Reply = The council will take up on May 18-19 the last big remaining task of fitting individual goods into the four ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax slabs already decided. - Reply By Ganeshan Kalyani - The Reply = The Govt. wanted to include real estate in GST but the States opposed to including same in first year. - Reply By Ganeshan Kalyani - The Reply = Under the GST Regime, the HSN (Harmonised System of Nomenclature) code shall be used for classifying the goods. Taxpayers whose turnover is above ₹ 1.5 crores but below ₹ 5 crores shall use 2-digit code and the taxpayers whose turnover is ₹ 5 crores and above shall use 4-digit code. Taxpayers whose turnover is below ₹ 1.5 crores are not required to mention HSN Code in their invoices. Services will be classified as per the Services Accounting Code (SAC). - Reply By Ganeshan Kalyani - The Reply = The Central Government has issued draft rules for credit, valuation, transition and composition and amended rules relating to registration, invoicing, payment, refunds and returns issued earlier. With this, the Government has issued most of the rules for Goods and Services Tax (GST) regime. - Reply By Ganeshan Kalyani - The Reply = In the reply no. 997 Dated: 1-4-2017 to issue id 110747, please read as 30th April 2017. - Reply By Ganeshan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kalyani - The Reply = The Rajya Sabha Today (06.04.2017) passed Four Bills viz 1.The Central Goods and Services Tax Bill, 2017, 2.The Integrated Goods and Services Tax Bill, 2017, 3. The Goods and Services Tax (Compensation to States) Bill, 2017 and 4. The Union Territory Goods and Services Tax Bill, 2017. - Reply By Ganeshan Kalyani - The Reply = GST New Rules released on 1st April 2017 by Govt. covers Transition, Composition, Valuation, Input Tax Credit, Payment, Refund, Registration Invoicing in GST regime. - Reply By Ganeshan Kalyani - The Reply = With the GST, a product can move from Kashmir to Kanyakumari without fear of double taxation or having to comply with state-by-state tax laws. Producers will find it easier to maintain accounts as it s all digital, and consumers eventually benefit from lower, uniform prices across the country. - Reply By Ganeshan Kalyani - The Reply = The Goods and Services Tax (GST) will replace nearly a dozen central and state levies into a single national sales tax. It will make the movement of goods cheaper and seamless across the country. It would be far simpler than the current system, where a good is taxed multiple times and at differe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt rates. - Reply By Ganeshan Kalyani - The Reply = There would be four tax slabs of 5, 12, 18 and 28 per cent, plus a levy on taxes on luxury items like cars, aerated drinks and tobacco products to compensate states for any revenue losses in the first five years. - Reply By Ganeshan Kalyani - The Reply = The GST council is yet to decide which goods fall in which slab. The GST rates will remain broadly in line with the existing rates. To keep inflation under check, essential items including food, which presently constitute roughly half of the consumer inflation basket, will be taxed at zero rate. - Reply By Ganeshan Kalyani - The Reply = With the implementation of GST, consumers will not be subjected to double taxation. All taxes that are levied while purchasing good will include both the central government s taxes as well as the state government s taxes. - Reply By Ganeshan Kalyani - The Reply = Companies will have to overhaul their accounting systems, which may involve one-time investment costs. - Reply By Ganeshan Kalyani - The Reply = The government has trained 49,000 officers of the states and the Centre. - Reply By Ganeshan Kalyani - The Reply = GST Network (G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... STN)-GST's IT infrastructure arm-and CBEC together will now conduct trainings so that businesses know how to file their returns. - Reply By Ganeshan Kalyani - The Reply = Logistics companies stand to gain as it becomes easier to ferry goods across India. Other sectors largely depend on the fine print of the GST, including exemptions. - Reply By Ganeshan Kalyani - The Reply = In GST Era, The CBEC Will be Renamed As Central Board of Indirect Taxes and Customs (CBIC) - Reply By Ganeshan Kalyani - The Reply = Input Service Distributor (ISD) means an office of the supplier of goods or services or both which receives tax invoices towards receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax (CGST), State tax (SGST)/ Union territory tax (UTGST) or integrated tax (IGST) paid on the said services to a supplier of taxable goods or services or both having same PAN as that of the ISD. - Reply By Ganeshan Kalyani - The Reply = An ISD is required to obtain a separate registration. The threshold limit of registration is not applicable to ISD. The registration of ISD under the existing regime (i.e. under Service Tax) woul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not be migrated in GST regime. All the existing ISDs will be required to obtain fresh registration under new regime in case they want to operate as an ISD. - Reply By Ganeshan Kalyani - The Reply = The distribution of credit would be done through a document especially designed for this purpose. The said document would contain the amount of input tax credit being distributed. - Reply By Ganeshan Kalyani - The Reply = The input tax credit of input services shall be distributed only amongst those registered persons who have used the input services in the course or furtherance of business. The common credit used by all the recipients can be distributed by ISD on pro rata basis i.e. based on the turnover of each recipient to the aggregate turnover of all the recipients to which credit is distributed. - Reply By Ganeshan Kalyani - The Reply = Valuation rules set guidelines as to what will be the value on which GST is required to be paid on goods and services. - Reply By Ganeshan Kalyani - The Reply = It has been observed in the past that calculation of tax on a transaction becomes very difficult when a pure agent is involved. It should be noted that previously there was no me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntion made of taxation on such transactions and why it has been reintroduced is a mystery to us because it makes things more complex, especially for service providers, M.S. Mani, senior director at Deloitte Haskins Sells LLP said. - Reply By Ganeshan Kalyani - The Reply = Existing tax payers are required to migrate to Goods and Services Tax (GST) regime. This GST enrolment activation drive kicked off in November for VAT registrants and in January for Service Tax and Excise registrants. Deadline to migrate is set at 30th April 2017. - Reply By Ganeshan Kalyani - The Reply = In terms of most number of tax payers who have migrated to GST, the state that tops the list is Karnataka with 92.83% conversion. 2nd in list is Maharashtra with 88.01% followed by Gujarat 87.44%. - Reply By Ganeshan Kalyani - The Reply = Taxpayers who are registered under Service Tax Act but not registered under State VAT stand at 30.1% and Taxpayers who are registered under Central Excise Act but not registered under State VAT at a very low 13.15% - Reply By Ganeshan Kalyani - The Reply = With goods and services tax (GST) now close to reality and the government aiming for rollout by July 1, Former Fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nance minister, P Chidambaram thinks October 1 would be the best time to rollout GST. - Reply By Ganeshan Kalyani - The Reply = In an exclusive interview to CNBC-TV18, Former Finance minister, P Chidambaram says people need more time to adjust to change in the tax regime. ?It's undesirable to set such a tight roll-out target for GST,? adding that it is also impractical. - Reply By Ganeshan Kalyani - The Reply = The Good and Services Tax (GST) Bills are far from perfect and are not ready for implementation yet, according to former Finance Minister P Chidambaram. Any rush to roll out GST by July 1 could prove harmful, he cautioned while batting for an October implementation of the new tax regime. - Reply By Ganeshan Kalyani - The Reply = Chidambaram said the Bills still have some ?imperfections?, including the multiplicity of rates, compliance provisions and a lack of clarity on compoundable offence. I think people should be given enough time to adjust. The second aspect is that the GSTN has to be proved in a trial. The Finance Minister spoke of 30 billion invoices a day. If that number if right, it is a humongous number. Is the GSTN capable of processing all that witho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut glitches? I think the GSTN should be allowed to run it on a trial basis for a month or two before you actually launch GST, he told The Financial Express. - Reply By Ganeshan Kalyani - The Reply = Chidambaram also raised questions over the 14 percent revenue figure for states that the government has assured. If this 14 percent has to be achieved, many goods could fall under the higher rate of 28 percent. - Reply By Ganeshan Kalyani - The Reply = The GST Bill have an anti-profiteering provision which ensures reduction of tax incidence is passed on to the customers. ?There is no definition of anti-profiteering, they are going to set up an authority, that authority will devise its own procedure. It?s clearly open to abuse,? Chidambaram told the paper. Also, there are separate bodies that deal with cases of profiteering already. In this case, why should an income tax official be given the right to take decision, which ideally should have be in hands, he asked. - Reply By KASTURI SETHI - The Reply = There is every possibility that GST will be implemented from 1.9.2017 or 1.10.17. - Reply By Ganeshan Kalyani - The Reply = As India Inc. awaits implementation of long awaited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revamped indirect tax regime i.e Goods and Services Tax (GST), it fears that 3 months is too short a time to prepare for it. - Reply By Ganeshan Kalyani - The Reply = Industry experts opine that 3 months is less time to get ready for GST. Post GST Council s meeting on 31st March GST Bills and Rules were released which had some key changes from the draft earlier released by government. - Reply By Ganeshan Kalyani - The Reply = The rates are now the big remaining issue, said Sudhir Kapadia, national tax leader at EY in India. If they get decided too late, then in all fairness the government should consider an extension of time. - Reply By Ganeshan Kalyani - The Reply = GST is not just change in tax rate or type of tax. It entails huge change in pricing, valuation, processes procurement and supply including supply chain. It also impacts the IT system of a company, from invoicing formats to generating input and output reports. - Reply By Ganeshan Kalyani - The Reply = Under Goods and Services Tax (GST) regime, every taxpayer would be assigned a compliance rating based on the compliance record of the assessee. As per Section 149 of the CGST Bill passed by Parliamen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, Every registered person may be assigned a goods and services tax compliance rating score by the Government based on his record of compliance with the provisions of this Act. - Reply By Ganeshan Kalyani - The Reply = While, the GST law does not prescribe the parameters for compliance rating as yet, Prakash Kumar, chief executive of GSTN throws some light on it. He said Regularity in uploading the invoices, filing of returns and taxes will be the main criterion for rating the taxpayers. The ratings will be updated at periodic intervals and also will be put up in the public domain, . The rating would be made publicly available on the GST Network (GSTN) website as tax authorities intend to build peer pressure among companies to ensure compliance. This rating score will be updated at periodic intervals. - Reply By Ganeshan Kalyani - The Reply = GSTN is getting ready to take load of more than 3 billion invoices a month from an estimated 8 million taxpayers. - Reply By Ganeshan Kalyani - The Reply = While, the GST law does not prescribe the parameters as yet, Prakash Kumar, chief executive of GSTN throws some light on it. He said Regularity in uploading the invoices, fili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng of returns and taxes will be the main criterion for rating the taxpayers. The ratings will be updated at periodic intervals and also will be put up in the public domain, . The rating would be made publicly available on the GST Network (GSTN) website as tax authorities intend to build peer pressure among companies to ensure compliance. This rating score will be updated at periodic intervals. - Reply By Ganeshan Kalyani - The Reply = With the assent of Hon'ble President of India, to four supporting legislations of on GST i.e. CGST, IGST, UTGST and Compensation Cess after getting it passed from by both the houses of parliament the way of rollout of GST from 1st July, 2017 seems possible. - Reply By KASTURI SETHI - The Reply = Yes, Sir. It seems possible. Still we are to use the terms of possible . - Reply By Ganeshan Kalyani - The Reply = Every registered person who causes movement of goods of consignment value exceeding Rs. 50000.00 - (i) in relation to a supply; or (ii) for reasons other than supply; or (iii) due to inward supply from an unregistered person, shall, before commencement of movement, furnish information relating to the said goods in Part A of FORM G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ST INS-01, electronically, on the common portal and (a) where the goods are transported by the registered person as a consignor or the recipient of supply as the consignee, whether in his own conveyance or a hired one, the said person or the recipient may generate the e-way bill in FORM GST INS-1 electronically on the common portal after furnishing information in Part B of FORM GST INS-01; or (b) where the e-way bill is not generated under clause (a) and the goods are handed over to a transporter, the registered person shall furnish the information relating to the transporter in Part B of FORM GST INS-01 on the common portal and the e-way bill shall be generated by the transporter on the said portal on the basis of the information furnished by the registered person in Part A of FORM GST INS-01: Provided that the registered person or, as the case may be, the transporter may, at his option, generate and carry the e-way bill even if the value of the consignment is less than fifty thousand rupees. Provided further that where the movement is caused by an unregistered person either in his own conveyance or a hired one or through a transporter, he or the transporter may, at their option, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... generate the e-way bill in FORM GST INS-01 on the common portal in the manner prescribed in this rule. - Reply By Ganeshan Kalyani - The Reply = The Commissioner or an officer empowered by him in this behalf may authorise the proper officer to intercept any conveyance to verify the e-way bill or the e-way bill number in physical form for all inter-State and intra-State movement of goods. - Reply By Ganeshan Kalyani - The Reply = Where a vehicle has been intercepted and detained for a period exceeding thirty minutes, the transporter may upload the said information in FORM GST INS- 04 on the common portal. - Reply By Ganeshan Kalyani - The Reply = The facility of generation and cancellation of e-way bill may also be made available through SMS. - Reply By Ganeshan Kalyani - The Reply = UNDER GST RULE - ELECTRONIC WAY BILL MANDATORY FOR CONSIGNMENTS ABOVE ₹ 50,000.00 W.E.F. 01.07.2017. - Reply By Ganeshan Kalyani - The Reply = CBEC releases draft rules on Accounts and Records, Appeals and Revision and Advance Ruling under GST. The Government has invited comments on these drafts rules from the stakeholders by 27 th April, 2017. - Reply By Ganeshan Kalyani - The Rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly = Every registered person who causes movement of goods of consignment value exceeding Rs. 50,000/- (i) in relation to a supply; or (ii) for reasons other than supply; or (iii) due to inward supply from an unregistered person, shall, before commencement of movement, furnish information relating to the said goods in Part A of FORM GST INS-01, electronically, on the common portal. - Reply By Ganeshan Kalyani - The Reply = Where the goods are transported by the registered person as a consignor or the recipient of supply as the consignee, whether in his own conveyance or a hired one, the said person or the recipient may generate the e-way bill in FORM GST INS-1 electronically on the common portal after furnishing information in Part B of FORM GST INS-01. - Reply By Ganeshan Kalyani - The Reply = Where the e-way bill is not generated under clause (a) and the goods are handed over to a transporter, the registered person shall furnish the information relating to the transporter in Part B of FORM GST INS-01 on the common portal and the e-way bill shall be generated by the transporter on the said portal on the basis of the information furnished by the registered person i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Part A of FORM GST INS-01. - Reply By Ganeshan Kalyani - The Reply = Where the movement is caused by an unregistered person either in his own conveyance or a hired one or through a transporter, he or the transporter may, at their option, generate the e-way bill in FORM GST INS-01 on the common portal in the manner prescribed in this rule. - Reply By Ganeshan Kalyani - The Reply = Any transporter transferring goods from one conveyance to another in the course of transit shall, before such transfer and further movement of goods, generate a new e-way bill on the common portal in FORM GST INS-01 specifying therein the mode of transport. - Reply By Ganeshan Kalyani - The Reply = Where multiple consignments are intended to be transported in one conveyance, the transporter shall indicate the serial number of e-way bills generated in respect of each such consignment electronically on the common portal and a consolidated e-way bill in FORM GST INS-02 shall be generated by him on the common portal prior to the movement of goods: - Reply By Ganeshan Kalyani - The Reply = Where an e-way bill has been generated under this rule, but goods are either not being transported or are not bei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng transported as per the details furnished in the e-way bill, the e-way bill may be cancelled electronically on the common portal, either directly or through a Facilitation Centre notified by the Commissioner, within 24 hours of generation of the e-way bill. - Reply By Ganeshan Kalyani - The Reply = A registered person may obtain an Invoice Reference Number from the common portal by uploading, on the said portal, a tax invoice issued by him in FORM GST INV-1 , and produce the same for verification by the proper officer in lieu of the tax invoice and such number shall be valid for a period of thirty days from the date of uploading. - Reply By Ganeshan Kalyani - The Reply = The Commissioner may, by notification, require a class of transporters to obtain a unique RFID and get the said device embedded on to the conveyance and map the e-way bill to the RFID prior to the movement of goods. - Reply By Ganeshan Kalyani - The Reply = The Commissioner or an officer empowered by him in this behalf may authorise the proper officer to intercept any conveyance to verify the e-way bill or the e-way bill number in physical form for all inter-State and intra-State movement of goods. - Rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly By Ganeshan Kalyani - The Reply = The Commissioner shall get RFID readers installed at places where verification of movement of goods is required to be carried out and verification of movement of vehicles shall be done through such RFID readers where the e-way bill has been mapped with RFID. - Reply By Ganeshan Kalyani - The Reply = Physical verification of conveyances shall be carried out by the proper officer as authorized by the Commissioner or an officer empowered by him in this behalf: Provided that on receipt of specific information of evasion of tax, physical verification of a specific conveyance can also be carried out by any officer after obtaining necessary approval of the Commissioner or an officer authorized by him in this behalf. - Reply By Ganeshan Kalyani - The Reply = Where a vehicle has been intercepted and detained for a period exceeding thirty minutes, the transporter may upload the said information in FORM GST INS- 04 on the common portal. - Reply By Ganeshan Kalyani - The Reply = Sharing an article. Pls click on the link below. http://www.gstindia.com/gst-rules-one-leg-still-stuck-in-old-taxes/ - Reply By Ganeshan Kalyani - The Reply = Goods and Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvices Tax (GST) is a destination based tax on consumption of goods and services. It is proposed to be levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as setoff. In a nutshell, only value addition will be taxed and burden of tax is to be borne by the final consumer. - Reply By Ganeshan Kalyani - The Reply = Alcohol for human consumption is kept out of GST. Five petroleum products viz. petroleum crude, motor spirit (petrol), high speed diesel, natural gas and aviation turbine fuel have temporarily been kept out and GST Council shall decide the date from which they shall be included in GST. Electricity has also been kept out of GST. - Reply By Ganeshan Kalyani - The Reply = Prime Minister Narendra Modi today said the states should make legislative arrangements without delay for GST rollout from July 1. - Reply By Ganeshan Kalyani - The Reply = The Prime Minister reiterated that the legislative arrangements at the state-level for GST should be put in place without delay, an official statement said. The consensus on Goods and Services Tax (GST) reflects the spirit of 'one nation, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one aspiration, one determination', Modi earlier said in his opening remarks at the meeting. The GST, which will subsume central excise, service tax, Value Added Tax (VAT) and other local levies, is scheduled to be rolled out from July 1. - Reply By Ganeshan Kalyani - The Reply = Parliament has already passed the supporting GST bills and the states are also required to pass their separate legislations for smooth implementation of the new tax regime. - Reply By Ganeshan Kalyani - The Reply = The proposed rules for movement of goods in the goods and services tax (GST) regime, which requires the transporters to generate e-way bills on the GST portal, would involve substantial costs in installing radio frequency identification devices (RFIDs) at several posts. Experts say that there is no clarity on who will foot the bill for the infrastructure. - Reply By Ganeshan Kalyani - The Reply = The proposed system requires a transporter to generate a new e-way bill when the goods are transferred from one conveyance to another. Experts said that it is expected these rules would push the business towards greater transparency and would flush out businesses that are ope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rating beyond the tax net. Further, the requirement for officials to record the summary of inspection within 24 hours would deter unscrupulous inspectors, Nangia said. - Reply By Ganeshan Kalyani - The Reply = States of Tamil Nadu and Himachal Pradesh have shown keen interest in passing SGST Bill very soon. However, Odisha has some reservations over calculation of compensation to the states for loss of revenue.. - Reply By Ganeshan Kalyani - The Reply = Tamil Nadu Chief Minister Edappadi K Palaniswami said that his government would soon place the S-GST bill in the assembly for consideration and passage. A historic reform of indirect taxes in India has been achieved with the passage of the Central GST (C-GST), Integrated GST (I-GST) and GST Compensation Acts in Parliament. The Tamil Nadu GST bill will be placed before the state legislative assembly shortly, Palaniswami said. - Reply By Ganeshan Kalyani - The Reply = Himachal Pradesh Chief Minister Virbhadra Singh said that steps were being taken to pass the HPGST law. Further, to address problems of taxpayers, steps such as setting up of helpdesk, organizing workshop are being taken. - Reply By Ganeshan Kalyani - The Reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... = Weighing the concerns over compensation loss Odisha Chief Minister Naveen Patnaik said Odisha has actively participated in the deliberations of the GST Council. We are on course to enact necessary State GST legislation. - Reply By Ganeshan Kalyani - The Reply = Fourteen state legislatures will approve their respective State Goods and Services Tax (SGST) laws by mid-May, according to Revenue Secretary Hasmukh Adhia. - Reply By Ganeshan Kalyani - The Reply = Addressing a GST Conclave here on Tuesday, he said all states were expected to pass their SGST laws by May-end to ensure that the GST regime was rolled out by July. - Reply By Ganeshan Kalyani - The Reply = Bihar and Telangana had already passed the SGST laws while Rajasthan was likely to approve the bill on Wednesday. - Reply By Ganeshan Kalyani - The Reply = Allaying fears that consumers would have to pay more for goods and services under the GST regime due to an increase in tax rates, Mr. Adhia said the prices of most items would decrease while those of services might stay at the same level. - Reply By Ganeshan Kalyani - The Reply = Though a majority of the services would see service tax rising to 18% under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GST regime from the current 15%, most services would get the benefit of input tax credit on purchases and, therefore, the overall tax incidence wouldstay the same, he said. However, there could be a marginal increase in tax for some services, Mr. Adhia added. - Reply By Ganeshan Kalyani - The Reply = The GST Council s next meeting is scheduled for May 18-19 and is expected to discuss fitment of commodities in the four-tier tax structure under GST. - Reply By Ganeshan Kalyani - The Reply = Under GST, every registered person would be assigned a compliance rating on the basis of the record of compliance in respect of specified parameters. The ratings would be made public. A prospective client would be able to see a supplier s rating and decide whether to deal with the supplier or not, said Prakash Kumar,CEO, GST Network (which provides IT infrastructure and services for implementation of GST). Mr. Kumar said it would help in healthy competition among taxable persons. - Reply By Ganeshan Kalyani - The Reply = Prices will not increase due to higher incidence of tax and, instead, are likely to come down under the Goods and Services Tax (GST) regime, the central government said o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Tuesday. - Reply By Ganeshan Kalyani - The Reply = Almost 60 per cent of the income of the Centre and states comes from items that attract 14 per cent value added tax and 12.5 per cent excise duty. There will be a likely decrease in the tax on each of these items under GST, Revenue Secretary Hasmukh Adhia told reporters at a GST conclave here. - Reply By Ganeshan Kalyani - The Reply = Adhia said that though most services will be taxed at 18 per cent under the GST regime, as against the current 15 per cent service tax, a majority of these will get input tax credit on purchases and the overall tax incidence will remain the same. About 18 per cent (service tax) will become equivalent to 15 percent. There will not be much of an increase in service tax. There could be a marginal increase of tax for some services, he said. It is a possibility that there will be more than one rate for service tax. It is not necessary all services will attract 18 percent tax. Abatement will be kept in mind. For a few services, the rate will be decided keeping in mind abatement (relief) that it attracts. For such services, rate will be less that 18 percent, Adhia added. - Reply By Ganesh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an Kalyani - The Reply = The government will try to finalise the rates of tax for each item at the earliest, the Revenue Secretary said. He also said that the government will soon issue the rules concerning the provision of GST Compliance Rating for an assessee under the law. - Reply By Ganeshan Kalyani - The Reply = The GST Network ( GSTN ) system will furnish the taxpayer track record regarding the compliance level, especially about the track record related to timely uploading of supply invoices giving details about the auto reversals that have happened for invoices issued by a supplier. - Reply By Ganeshan Kalyani - The Reply = If a taxpayer tries to evade tax, the GSTN software will be able to detect that and downgrade the compliance rating, the Secretary added. - Reply By Ganeshan Kalyani - The Reply = Adhia said the government plans to roll out GST from July 1. Our full effort is to roll out GST from July 1 and I urge trade and industry to not be complacent, he said. - Reply By Ganeshan Kalyani - The Reply = As many as 14 states have said they will pass the State GST (SGST) Bills by the middle of next month and by May-end all legislatures will have passed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SGST Bill, he added. - Reply By Ganeshan Kalyani - The Reply = While the businesses are waiting for the tax rates for various commodities under the Goods and Services Tax (GST), the government is unlikely to announce the rates soon. The fitment of rates will be made public only a few days before the July 1 roll-out, sources told FE, adding that an early announcement could give rise to market distortions and hoarding. Unlike the West, India has a price-sensitive market where any indication of minor increase or decrease in tax rates tempts the consumers to rate buy a product. This rate buying is not a good indication for any economy as it may result in black marketing and hoarding, Rajat Mohan, director-indirect taxation, Nangia Co said. - Reply By Ganeshan Kalyani - The Reply = Although the GST Council s next meeting is slated to be held in Srinagar on May 16 and 17, the council is only likely to review the progress made by officials in the rate fitment committee. The rate fitment committee which comprises tax officials of the central and state governments has only met once last week where they deliberated on fine-tuning the principle of application of rates, a source said. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Reply By Ganeshan Kalyani - The Reply = It s a possibility that a manufacturer may ramp up or slow down production till July 1 if it s known that a commodity will be taxed at a lower/higher rate under GST. But these are business decisions an entrepreneur needs to take, especially since transition rules allow only 40% of input tax credit on excise tax paid on the closing stocks, which may not be sufficient for many businesses, Archit Gupta, founder and CEO, Cleartax.com said. - Reply By Ganeshan Kalyani - The Reply = The source reiterated that the GST rate for an item will be, to the extent possible, the one that is nearest to the current rate. It is expected that the council will take into account is the real tax incidence at present rather than the nominal rate. - Reply By Ganeshan Kalyani - The Reply = The flip side of the delayed announcement of rates is the paucity of time for businesses to prepare themselves. Gupta said while large companies have been preparing for GST for over a year and are more likely to adjust to the late rate announcement, it can wreak havoc for small businesses. - Reply By Ganeshan Kalyani - The Reply = Professionals and businesses need time ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to access the impact of reduced tax rates and we feel the time is short in case the announcement of tax rates is made near to the date of implementation, especially for FMCG companies which would have numerous products with different rates, a source said. - Reply By Ganeshan Kalyani - The Reply = HSN (Harmonised System of Nomenclature) code shall be used for classifying the goods under the GST regime. Taxpayers whose turnover is above ₹ 1.5 crore but below ₹ 5 crore shall use 2-digit code and the taxpayers whose turnover is ₹ 5 crore and above shall use 4-digit code. Taxpayers whose turnover is below ₹ 1.5 crore are not required to mention HSN Code in their invoices. - Reply By Ganeshan Kalyani - The Reply = The ambitious Goods and Services Tax to be implemented from July 1 would help raise India's medium-term growth to above eight per cent, the International Monetary Fund has said adding that the reforms being done is expected to pay off in terms of higher growth in the future. - Reply By Ganeshan Kalyani - The Reply = We expect that the goods and services tax (GST), which is targeted to be applied starting in July, will help raise India's ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... medium-term growth to above 8 per cent, as it will enhance production and the movement of goods and services across Indian states, the IMF official said. - Reply By Ganeshan Kalyani - The Reply = With the introduction of the Goods and Services Tax (GST) from July 1, 2017, inter-state transportation of goods would become more efficient. And among all, the logistics sector, comprising inbound and outbound segments of manufacturing and services supply chains, is likely to get the much-needed boost. Logistics companies in India are moving from traditional setups towards integration of IT and technology and this is expected to reduce the costs incurred and meet service demands. - Reply By Ganeshan Kalyani - The Reply = Use of technology would facilitate efficient tax administration for registration, filing of returns, data exchange and efficient investigation, supervising, auditing and performance analysis. The implementation of GST from July 1, 2017, would not only allow logistics companies to set up just a few and big warehouses region wise, but also allow them to follow the hub-and-spoke model for freight movement from the warehouses to different manufacturing plants and whole ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale and retail outlets. - Reply By Ganeshan Kalyani - The Reply = Recently, the Central Board of Excise and Customs (CBEC) has put out a proposal on e-way bill, as a part of easing inter-state traffic movement under the GST regime; the ground-breaking reform in the Indian economy. It is expected that this remarkable initiative would enable standardisation of processes and bring more transparency in the system. With the shift in Indian logistics industry from unorganised to organised format, coupled with growth in consumer industries and increasing dispersal in demand, we may see investment opportunities in the areas such as road transportation, railways, multimodal logistics parks, online retail logistics and value-added services. - Reply By Ganeshan Kalyani - The Reply = Besides the logistic sector, GST implementation will also create a true unified national market in India and this is expected to make Indian economy more efficient and prosperous. Companies such as TCI express, Transport Corporation of India, Allcargo, Snowman Logistic, GDL, Gati and VRL Logistics are likely to see good growth going forward. - Reply By Ganeshan Kalyani - The Reply = While the businesses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are waiting for the tax rates for various commodities under the Goods and Services Tax (GST), the government is unlikely to announce the rates soon. The fitment of rates will be made public only a few days before the July 1 roll-out, sources told FE. - Reply By Ganeshan Kalyani - The Reply = ET VIEW: Make Clear Rules The onus lies on the Centre and states to ensure a smooth transition to the goods and services tax, which is the biggest indirect tax reform to create a unified market. Malaysia, which introduced GST two years ago, educated businesses and customers, but that did not suffice. India should be prepared better for the switch over to avoid any choas. So, rules must be clear, and the tax administration well-equipped to handle GST. Ideally, the new levy should be rolled out three months after the publication of GST rules to make transition smooth for businesses. - Reply By Ganeshan Kalyani - The Reply = The GST would not increase compliance burden on assessees and all apprehensions in this regard are misplaced, Revenue Secretary Hasmukh Adhia said today. Many people think that implementation of GST would result in increase in compliance cost. This is completely misp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laced, he said while addressing netizens on Facebook. Explaining the rationale, he said people have to keep different law books for filing return for various taxes like VAT, Excise etc in the present taxation regime. But with the roll out of GST, there would be a single tax and accounting for this will be very simple. It can be done through an offline excel form provided by GST Network. If someone uses this form for keeping record of purchase and sales, then he can use this for filing return. Thus, compliance would be minimised, he said. - Reply By Ganeshan Kalyani - The Reply = Adhia, who is spearheading implementation of the Goods and Services Tax (GST), said the finance ministry is gearing up for its roll out and five days training has already been given to officers. Besides, IT training for them is going on, he said. - Reply By Ganeshan Kalyani - The Reply = To promote the GST enrolment and lure pending tax payers to migrate, Bollywood superstar Salman Khan promotion with the tagline I have enrolled with the GST. Have you? have been circulated by CBEC. - Reply By Ganeshan Kalyani - The Reply = With government looking all set to implement Goods and Services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax (GST) from July 1, 2017, they are leaving no stone un-turned to get existing tax payers migrated to GST. - Reply By Ganeshan Kalyani - The Reply = There are over 80 lakh Value Added Tax (VAT) and Excise duty payees in the country. Out of these over 75 per cent of VAT and 73 per cent of the central excise assessees have switched to the GST Network (GSTN). Meanwhile, only a meagre 34 percent service taxpayers have made the shift. - Reply By Ganeshan Kalyani - The Reply = Process of migrating existing indirect tax registration (VAT/CST, Service Tax, Excise) to Goods and Services Tax (GST) began on 8th November 2016 with window opening for few VAT states in the beginning followed by other states and Service Tax and Excise tax payers. - Reply By Ganeshan Kalyani - The Reply = Government had set 31st March as deadline to migrate which was later extended to April 30th 2017. Over 60 lacs tax payers migrated to GST within this time frame. GST portal has expressed gratitude towards migrants by thanking them. It further adds that the Enrolment process has closed with effect from 1st May 2017. Data of all those who have signed the enrolment form will be migrated to the new GST Sys ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tem. - Reply By Ganeshan Kalyani - The Reply = As per the GST portal, The enrolment window will reopen at a later date for taxpayers who could not enrol themselves as well as for those who enrolled but did not sign the enrolment form. - Reply By Ganeshan Kalyani - The Reply = GST is expected to roll out from Jul 1 2017. - Reply By Ganeshan Kalyani - The Reply = Implementation of Goods and Services Tax in India carries notion of being a compliance loaded law. While the increase in compliance may be manifold for service providers but may not be as much for traders or manufacturers. - Reply By Ganeshan Kalyani - The Reply = Many people think that implementation of GST would result in increase in compliance cost. This is completely misplaced, he said. He said people have to keep different law books for filing return for various taxes like VAT, excise etc in the present taxation regime. But with the rollout of GST, there would be a single tax and accounting for this will be very simple. It can be done through an offline excel form provided by GST Network. If someone uses this form for keeping record of purchase and sales, then he can use this for filing return. Thus, com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pliance would be minimised, he said. - Reply By Ganeshan Kalyani - The Reply = Faced with multiple implementation challenges as they race to roll out the Goods and Services tax (GST) from July 1, a number of States as well as businesses want the new levy to be introduced from September 1. Migration of assessees is behind schedule. Also, the IT infrastructure for GST by the GST Network is still being tested. It is very likely that States will seek more time for the introduction of GST, said two sources close to the development. According to official data, barring the southern States, enrolment of businesses under GST continues to lag, with only about 70 per cent of them migrating as of the April 30 deadline. Migration of service tax and Central excise assessees to GST was also low at 43.73 per cent and 24 per cent, respectively. The issue is likely to be taken up at the GST Council meeting in Srinagar on May 18 and 19. Unless we have tested the GSTN how can we say we are ready? Then there are 14 draft GST rules in the public domain, which are yet to be finalised. We also have no clarity on whether new rules will come in or only 14 will be there. July 1 seems to be a very ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gressive date for rollout, Bimal Jain, Chairman, Indirect Taxes Committee, PHDCCI, said. Finance Minister Arun Jaitley is keen on launching GST from July 1 and the Finance Ministry is making every effort to ensure this. The Ministry argues that a July 1 rollout of GST, which has been delayed by seven years, would mean it starts from the beginning of a new quarter. It could be an accounting headache for firms if GST started from September 1, pointed out an official. However, businesses, too, are getting anxious about the final rules and fitment of commodities. Talks have only been taking place about goods; what about services? Here again there is no clarity, Jain added. It will be a race to the finish. If the GST Council finalises the rates and rules in the May meeting, companies will still need some time to tune their systems. With the planned anti-profiteering authority, everyone wants to be very careful, noted an industry representative, who did not wish to be named. A committee of officers under the GST Council is finalising the exact rate on goods and services under GST in the 4-tier structure. It would be good if the Council favourably considers the industry deman ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for a Sept 1 rollout. several critical issues need to be clarified and product wise rates have not been released as well, said Pratik Jain, Partner and Leader (Indirect Tax), PwC. Sources said that another cause of concern in some quarters is the passage of the State GST Bills. Only five States have passed the SGST Bill, although the Finance Ministry expects all States to enact it by May 31. Source: Hindu Business Line - Reply By Ganeshan Kalyani - The Reply = The Uttar Pradesh cabinet have also approved the SGST Bill today. The decision was taken at the fifth cabinet meeting of the state government headed by Chief Minister Yogi Adityanath. With this, Uttar Pradesh and Uttarakhand becomes sixth and seventh state to pass SGST Bill after Bihar, Jharkhand, Telangana, Rajasthan and Chhattisgarh. - Reply By Ganeshan Kalyani - The Reply = The complexity in taxes was a tax in itself. The GST is aimed to reduce these complexities and turn the country s into a developing economy , said Shekhawat, Industry Minister. - Reply By Ganeshan Kalyani - The Reply = The Uttar Pradesh government today approved implementation of the Goods and Services Tax (GST) in the state and the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... will be passed in the Assembly in the session commencing from May 15. - Reply By Ganeshan Kalyani - The Reply = The Finance Ministry will be setting up a new dedicated team to dispose of the cases related to tax issues pending before the Central Board of Excise and Customs (CBEC) before the implementation of the Goods and Services Tax (GST) regime. As per the ministry sources, a separate Legacy Commissionarate will be established at the zonal level, which will be headed by Commissioner level officer whose responsibility will be to resolve the cases which are pending before the department. - Reply By Ganeshan Kalyani - The Reply = Once the GST is implemented from July 1st onwards then all the new disputed cases will be handled by the GST Council team itself. Also, the current cases, which are pending before the CBEC for several years, will be handled and disposed of by the Legacy Commissionarate. - Reply By JAIPRAKASH RUIA - The Reply = Dear Experts, Please explain the following clause for Input tax credit of Chapter V of RGST Act 2017. below is excluded from ITC : (d) goods or services or both received by a taxable person for construction of an immovable propert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y (other than plant and machinery) on his own account including when such goods or services or both are used in the course or furtherance of business; - Reply By Ganeshan Kalyani - The Reply = In my view goods or services used for construction of immovable property is excluded from the definition of input tax credit. - Reply By Ganeshan Kalyani - The Reply = The committee tasked to fit rates of items under the Goods and Services Tax (GST) regime will meet on Friday and Saturday to finalise GST rates for individual items, a senior finance ministry official told Bloomberg Quint. Once the committee comprising state and central government officials fixes rates, these will be tabled before the GST Council in its next meeting on May 18-19. The council will then take a final call on individual rates for different commodities. - Reply By Ganeshan Kalyani - The Reply = Central Board of Excise and Customs (CBEC) Chairman Vanaja Sarna had told BloombergQuint in an interview that the rates on precious metals will be decided after rates on all other items are finalised. - Reply By Ganeshan Kalyani - The Reply = According to the official cited above, the GST Council will also deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de exemptions to be given to specific industries. Some working groups set up by the CBEC to address sector-specific concerns have submitted their report, while some are yet to submit their reports, the official added. - Reply By Ganeshan Kalyani - The Reply = All the above reports will be submitted before the council's next meeting, which will then decide whether certain industries will get exemptions in the new indirect tax regime, the official said. The apex indirect tax body was also instructed by the Prime Minister's Office to follow certain parameters while fixing GST rates closer to the existing tax rates, another senior finance ministry official told Bloomberg Quint. - Reply By Ganeshan Kalyani - The Reply = Finance Minister Arun Jaitley on Friday assured that new rates under the Goods and Services Tax (GST) regime will not bring any surprise as they won t be significantly different from the existing rates. - Reply By Ganeshan Kalyani - The Reply = We are now in the final stages of fixing tariffs for different commodities. The formula under which it is being done has also been explained, and therefore, nobody is going to taken by surprise, it s not g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oing to be very significantly different, Jaitley said while addressing the Confederation of Indian Industries annual summit. - Reply By Ganeshan Kalyani - The Reply = The GST Council has finalised four rate categories of 5, 12, 18 and 28 per cent after unifying levies like central excise, service tax and VAT. Fitment will be done by adding the total incidence of current taxation (central plus state levies) and then putting the good or service in the tax bracket closest to it. - Reply By Ganeshan Kalyani - The Reply = Jaitley said the GST Council has so far had 13 meetings and has never had to resort to voting to decide on any issue. And therefore, all states representing different political complexions have all agreed (on GST structure), he said. - Reply By Ganeshan Kalyani - The Reply = Jaitley also pointed out that the reduction in tax rates should be passed on to consumers by companies, and this principle cannot be questioned. - Reply By Ganeshan Kalyani - The Reply = The government has included an enabling provision in the Central Goods and Services Tax Bill, which asks for passing the benefits on tax reduction to consumers. - Reply By Ganeshan Kalyani - The Repl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y = The GST laws approved by Parliament have incorporated an anti-profiteering provision to ensure that the reduction of tax incidence is passed on to the consumers. - Reply By Ganeshan Kalyani - The Reply = The all important and most powerful body-GST Council has released its logo. Arun Goyal, additional secretary, GST Council tweeted to inform about the logo launch. GST Council was formed on 12th September 2016. - Reply By Ganeshan Kalyani - The Reply = The upcoming Goods and Services Tax (GST) regime, which the Centre intends to roll out from July 1, may turn out to be a record-keeping headache for firms, based on draft rules issued for accounts and records. - Reply By Ganeshan Kalyani - The Reply = Apart from maintaining accounting and tax invoice registers, entities will also have to record the complete address of premises where goods are stored, including goods in transit. If the goods are found to be stored elsewhere than the declared place, a tax would be payable as if they were supplied by the same entity. - Reply By Ganeshan Kalyani - The Reply = Considering the government s stated intention of introduction of GST with effect from 01 July 2017, it would b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e a very difficult task for the industry to make changes in the IT systems to adhere to the record-keeping requirements, said PwC India s tax and regulatory services team in a note on the draft rules. - Reply By Ganeshan Kalyani - The Reply = The rollout of the GST Bill will be a collective effort of the Central and State Governments, the tax payers and the IT platform provider i.e. GSTN, CBEC and State Tax Departments. Besides these main participants there are going to be other stakeholders e.g. Central and States tax authorities, RBI, the Banks, the tax professionals (tax return preparers, Chartered Accountants, Tax Advocates, STPs etc.), financial services providing companies like ERP companies and Tax Accounting Software Providers etc. - Reply By KASTURI SETHI - The Reply = Latest news is that Govt. is firm to implement GST from 1.7.17 despite hurdles with determination to remove the hurdles. Let us see what happens. - Reply By Girish D - The Reply = Dear All, Any views on continuing of upfront duty exemptions under the export promotion schemes, such as EOU, STP, EHTP, EPCG, Advance Authorisation etc., under the GST regime? - Reply By Ganeshan Kalyani - The Reply = ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Item wise GST rate is declared yesterday in the 14th GST Council meeting held at Srinagar. - Reply By Ganeshan Kalyani - The Reply = - Reply By Ganeshan Kalyani - The Reply = http://www.cbec.gov.in/resources//htdocs-cbec/gst/chapter-wise-rate-wise-gst-schedule-18.05.2017.pdf - Reply By Ganeshan Kalyani - The Reply = After the GST rollout, Entry level cars and two wheelers, paint and cement, electrical items and consumer durables are expected to get cheaper. Also movie tickets with entertainment tax expected to come down. - Reply By Ganeshan Kalyani - The Reply = Cigarettes, branded jewellery and other high-end goods, rail, bus and flight tickets and mobile phone calls are expected to be costlier in the GST regime. Service - Reply By Arunachalam siva - The Reply = Dear all experts, I need your help on the following points 1. I we fail to make payment to supplier within 180 days from date of invoice, credit has to be reversed. can we take credit once we complete the payment?. 2. GST is payable on advance if any received from customer. In that case, advance tax paid to be adjusted at the time of supply of goods and details to be reflected on invoice. is it correct? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Regards Arunachalam - Reply By Ganeshan Kalyani - The Reply = 1) yes once you make the payment to the supplier you are eligible to the credit which was reversed. 2) yes the tax paid on the advance amount received can be adjusted against the tax payable on the actual supply. Thanks - Reply By JAIPRAKASH RUIA - The Reply = Dear Sir, for point No. 2, there may be two scenario. a) GST liability is paid by supplier on advance received from customer and at the time of supply, supplier raise the invoice by charging the GST reduced by what has been discharged on advance payment by mentioning the same in invoice. b) GST liability is paid by supplier on advance received from customer and at the time of supply, supplier raise the invoice by charging full GST as applicable and at the time of payment, pay the GST by taking credit of GST paid on advance against the said supply. That means whether what we say will be adjusted for payment against supply will be treated as taking the credit of GST paid on Advance received. In that case whether the input tax credit section/rule empower the supplier to take credit/adjust the GST on advance paid. - Reply By Ganeshan Kalyani - The Rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly = Declaration of valid GSTIN in Customs documents (BE/SB) would be mandatory w.e.f. 0000 hrs of 01-07-2017, the likely implementation date of GST, to avail IGST credit on Imports or GST refund on exports. The declared GSTIN would be validated for correct IEC/ PAN linkage. - Reply By Ganeshan Kalyani - The Reply = During GSTIN registration, ensure declaration of correct IEC and the same PAN [earlier registered with DGFT for getting IEC]. In case of any difference in PAN declared for GSTIN vis- -vis the PAN declared for IEC registration, amendment of PAN in IEC may be undertaken immediately. All concerned may make use of the special drive by GSTN from 01-06-2017 to 15-06-2017 for updation of IEC in GSTIN. - Reply By Ganeshan Kalyani - The Reply = India s GST is the most complex of all the countries which have implemented GST, chairman of the GSTN Navin Kumar told Bloomberg, noting that work on the system began two years ago when the only available guidance available was draft laws. Despite not having all the input, we have been working on it and we will be ready by July. - Reply By Ganeshan Kalyani - The Reply = The GST Network, the company providing IT backbone for GS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T rollout, has received as many as 160 applications from firms that have evinced interest in acting as GST Suvidha Providers. - Reply By Ganeshan Kalyani - The Reply = The GSTN in December last year had named 34 firms, including Tata Consultancy Services, Deloitte Touche, EY and Tally Solutions, to act as GST Suvidha Providers (GSPs). - Reply By Ganeshan Kalyani - The Reply = The fitment of rates of goods were discussed during the 14th GST Council meeting held at Srinagar, Jammu Kashmir. The Council had broadly approved the GST rates for goods at nil rate, 5%, 12%, 18% and 28% to be levied on certain goods. The information was also being uploaded immediately after the GST Council s decision and it will be subject to further vetting during which the list may undergo some changes. - Reply By Ganeshan Kalyani - The Reply = With few weeks to go before the nationwide goods and services tax (GST) is implemented, Indian companies are rushing to bring in experts to help prepare the accounting and information technology systems for the tax-system overhaul. That s created a windfall for international professional services firms, including PricewaterhouseCoopers LLP and KPMG LLP. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reply By Ganeshan Kalyani - The Reply = The Revenue Secretary Dr Adhia had reviewed the progress on enrollment of existing taxpayers. As on 30th April 2017, when Phase-1 of enrollment was closed, 60.5 lakh taxpayers out of 84 lakh had enrolled. The enrollment window was said to be re-opened for 15 days from 1st June,2017 to give another opportunity to taxpayers to enroll. - Reply By Ganeshan Kalyani - The Reply = The Constitution (101 amendment) Act, 2016 provides that every decision of the GST Council shall be taken at a meeting by a majority of not less than 3/4th of the weighted votes of the Members present and voting. The vote of the Central Government shall have a weightage of 1/3rd of the votes cast and the votes of all the State Governments taken together shall have a weightage of 2/3rd of the total votes cast in that meeting. One half of the total number of members of the GST Council shall constitute the quorum at its meetings. - Reply By Ganeshan Kalyani - The Reply = Revenue Secretary Hasmukh Adhia is hopeful of a smooth transition to the GST regime and says it will help domestic firms to become more competitive apart from streamlining the taxation for all busine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss activities. - Reply By Ganeshan Kalyani - The Reply = The all important and most powerful body-GST Council in recent past released its logo. Arun Goyal, additional secretary, GST Council tweeted to inform about the logo launch. GST Council was formed on 12th September 2016. - Reply By Ganeshan Kalyani - The Reply = The Finance Ministry will be setting up a new dedicated team to dispose of the cases related to tax issues pending before the Central Board of Excise and Customs (CBEC) before the implementation of the Goods and Services Tax (GST) regime. As per the ministry sources, a separate Legacy Commissionarate will be established at the zonal level, which will be headed by Commissioner level officer whose responsibility will be to resolve the cases which are pending before the department. - Reply By Ganeshan Kalyani - The Reply = Migration of existing assessees to GST is a challengeable issue. 30.03.2017 was fixed as the deadline for migration to GST by the existing assessees. It is reported that only 70% of them migrating as of April 30 deadline. Migration of service tax and Central excise assessees was also low at 43.73% and 24% respectively. - Reply By Ganeshan K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alyani - The Reply = The onus lies on the Centre and states to ensure a smooth transition to the goods and services tax, which is the biggest indirect tax reform to create a unified market. Malaysia, which introduced GST two years ago, educated businesses and customers, but that did not suffice. India should be prepared better for the switch over to avoid any choas. So, rules must be clear, and the tax administration well-equipped to handle GST. Ideally, the new levy should be rolled out three months after the publication of GST rules to make transition smooth for businesses. - Reply By Ganeshan Kalyani - The Reply = Testing of the GSTN is under progress. - Reply By Ganeshan Kalyani - The Reply = The provision of input tax credit in the upcoming GST tax regime, scheduled to roll out from July 1 this year, will be beneficial for the construction and infrastructure sector, according to a study. - Reply By Ganeshan Kalyani - The Reply = In case of real estate ,prima facie, the GST rate does appear higher than the current taxation regime, the availability of input tax credit under the GST will neutralise the impact of higher taxes, Icra said in its report on Impact of GST on Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rporate Sector. - Reply By Ganeshan Kalyani - The Reply = Under GST, the composite supply of works contracts fall under the 18 per cent GST rate with full input tax credit (ITC). While prima facie, the GST rate does appear higher than the current taxation regime, in which majority of construction contracts fall under the nature of work contracts (which is overlapping between supply of services and supply of goods) and a combination of service tax and VAT is applicable, Icra said. - Reply By Ganeshan Kalyani - The Reply = Declaration of valid GSTIN in Customs documents (BE/SB) would be mandatory w.e.f. 0000 hrs of 01-07-2017, the likely implementation date of GST, to avail IGST credit on Imports or GST refund on exports. The declared GSTIN would be validated for correct IEC/ PAN linkage. Accordingly, during GSTIN registration, please ensure declaration of correct IEC and the same PAN [earlier registered with DGFT for getting IEC]. In case of any difference in PAN declared for GSTIN vis- -vis the PAN declared for IEC registration, amendment of PAN in IEC may be undertaken immediately. All concerned may make use of the special drive by GSTN from 01-06-2017 to 15-06-2017 for up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dation of IEC in GSTIN. - Reply By Ganeshan Kalyani - The Reply = GST Council is meeting for the 15th time today to finalise pending draft rules namely transition, accounts and records, return filing, advance ruling etc. GST Council will also finalise taxes to be levied on six commodities, including gold, textiles and biscuits, as the Centre and states gear up to roll out the new indirect tax regime from July 1. - Reply By Ganeshan Kalyani - The Reply = Goods and Services Tax (GST) is expected to roll out from July 1, 2017. With not much time left for roll out, the Indian Banks Association (IBA) has informed a Parliamentary panel that lenders are not yet geared up for implementation of the new indirect tax regime. - Reply By Ganeshan Kalyani - The Reply = Since the GST will be operational from July 1, 2017, banks have to make lot of changes in their systems and other procedures. The preparedness of all banks for implementation of GST on July 1, 2017, is a question mark, the IBA has conveyed to the Parliamentary Standing Committee on Finance. - Reply By Ganeshan Kalyani - The Reply = Banks are one of the few sectors which have to make humongous changes in their system i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nfrastructure and thus, getting ready for GST is not an average ask by any stretch of imagination. - Reply By Ganeshan Kalyani - The Reply = The speculation of government postponing GST roll out to Sept 1, 2017 will find some fuel with this update. There have been concerns over readiness of GSTN (GST s IT backbone). It remains to be seen if GST will get implemented from July 1 or not. GST is expected to boost the GDP growth by about 2 percentage points and impose a critical watch on tax evasion. - Reply By Ganeshan Kalyani - The Reply = GST is expected to boost the GDP growth by about 2 percentage points and impose a critical watch on tax evasion. - Reply By Ganeshan Kalyani - The Reply = The all powerful GST Council after its meeting yesterday cleared revised rules for GST returns. It also released formats of returns to be filed under GST. ( Download GST Return formats ) - Reply By Ganeshan Kalyani - The Reply = Under GST, primarily a tax payer is required to file following: 1. GSTR 1- Details of outwards supplies of goods or services 2. GSTR 2- Details of inward supplies of goods or services 3. GSTR 3- Monthly return Tax payers under composition scheme i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s required to file quarterly return under GSTR 4. - Reply By Ganeshan Kalyani - The Reply = What remains a huge concern for the industry is release of return formats such late in the hour and expecting industry to get system/ ERP ready before July 1. Share your thoughts on the return formats in the comments section.Thanks - Reply By Ganeshan Kalyani - The Reply = The Goods and Services Tax council met on Friday for its 15th meeting in New Delhi. The agenda for the 15th meeting of the GST Council was to clear two important rules related to transition provisions and returns to be filed under the new indirect tax regime. The council had to also fix rates for commodities like biscuits, cigarettes, beedis, agricultural equipment, precious metals and textiles. The rate on lottery tickets was also taken up for consideration. - Reply By Ganeshan Kalyani - The Reply = Key takeaways from today s meeting are: 1. GST Rules cleared including transition and return filing. 2. GST Council will set up committee to look into complaints regarding anti-profiteering clause. GST Rates 1. Solar Panels 5% 2. Packaged Food Items 5% 3. Bidi 28% (no cess) 4. Tendu Leaves 18% 5. Gold ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Silver and Processed Diamonds 3% 6. Jute 0% 7. Footwear below INR 500 5% and footwear above INR 500 18% 9. Readymade garments 12 %, with apparel costing below ₹ 1,000 5% 10. Biscuits 18% 11. Rough Diamonds 0.25% - Reply By Ganeshan Kalyani - The Reply = Next meeting of GST Council is scheduled to take place on June 11. Arun Jaitley again stressed on July 1 as the GST Roll out date. We are quite confident of sticking to the target date of July 1: FM Arun Jaitley With government putting all the requisite law in public domain, it is now upon industry to get ready for GST before July 1. - Reply By Ganeshan Kalyani - The Reply = A waybill is a document issued by a carrier giving details and instructions relating to the shipment of a consignment of goods. Typically it will show the names of the consignor and consignee, the point of origin of the consignment, its destination, and route. A provison of e-way bill has been placed in GST. - Reply By Ganeshan Kalyani - The Reply = Key highlights of e-WayBill Rules under GST are: 1. Moving goods worth more than ₹ 50,000 under GST will require prior online registration of the consignment and securing an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e-way bill that tax officials can inspect anytime during the transit to check tax evasion. 2. Upon generation of the e-way bill on the common portal, a unique e-way bill number (EBN) shall be made available to the supplier, the recipient and the transporter on the common portal 3. The person in-charge of conveyance will be required to carry the invoice or bill of supply or delivery challan, and a copy of the e-way bill or the e-way bill number , either physically or mapped to a Radio Frequency Identification Device (RFID) embedded on to the conveyance. 4. Where multiple consignments are intended to be transported in one conveyance, consolidated e-way bill shall be generated carrying serial number of e-way bills generated in respect of each such consignment electronically on the common portal. 5. Validity of eWayBill : A. Less than 100 km One day B. 100 km or more but less than 300km Three days C. 300 km or more but less than 500km Five days D. 500 km or more but less than 1000km Ten days E. 1000 km or more Fifteen days Verification of documents 6. The Commissioner shall get RFID readers installed at places where verification of movement of goods is required ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be carried out and verification of movement of vehicles shall be done through such RFID readers where the e-way bill has been mapped with RFID. 7. Provision of physical verification goods can be carried out by officer upon proper authorization from Commissioner. - Reply By Ganeshan Kalyani - The Reply = Inspection of Goods 8. A summary report of every inspection of goods in transit shall be recorded online by the proper officer in Part A of FORM GST INS 03 within twenty four hours of inspection and the final report in Part B of FORM GST INS 03 shall be recorded within three days of the inspection. Detention of Vehicle 9. transporter whose vehicle has been intercepted and detained for a period exceeding 30 minutes , he may upload the said information on the GSTN portal. Experts believe that through e-WayBill mechanism, black market or un-organised sector would take a big hit as the government would have details of every goods movement. - Reply By Arunachalam siva - The Reply = Sir, Assessee is not register under Excise but register under Sale tax. Not availing CENVAT credit. Now registered under GST. Can assessee avail CENVAT credit on goods received(invoice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issued before GST) after appointed date ? - Reply By Ganeshan Kalyani - The Reply = In the transition stock the cenvat credit is allowed to those possessing duty paid document. If there is no such document then 60% of credit of central GST payable is eligible. - Reply By Ganeshan Kalyani - The Reply = Principally, import of goods is governed by Customs Act followed by other indirect tax levies. The import of goods has been defined in the IGST Act, 2017 as bringing goods into India from a place outside India. In pre-GST scenario, import of goods is subject to duties of customs (basic customs duty, in lieu of excise duty, in lieu of VAT and cesses). Under GST, Customs Act has not been subsumed while Excise and VAT Laws have subsumed. - Reply By Ganeshan Kalyani - The Reply = Costly home appliances are now available at 20-40 per cent discounts, as electronic-goods retailers rush to clear their old inventories ahead of the July 1 rollout of the goods and services tax (GST) and minimize their losses. Television-sets, refrigerators, air-conditioners and washing machines now have their price tags slashed. Discounts vary, depending on the life of the old stock and the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st price: Retailers say they would make a loss of about 6 per cent on unsold stock purchased before May, and about 14 per cent on one-yearold inventories, against which input credits cannot be availed. - Reply By Ganeshan Kalyani - The Reply = The discounts are available even after the GST Council increased excise credit to 60 per cent from 40 per cent on the transitional stock during its last meeting on June 3. The usual discount offered by the retailers is around 10-15 per cent on maximum retail price (MRP) and it will now significantly go up -about three-fold. - Reply By Ganeshan Kalyani - The Reply = Even brands such as Samsung, Panasonic, Hitachi and Videocon have come up with consumer promotional offers - gifts and extended warranties - to boost sales since retailers and distributors have stopped picking up stock to clear the existing inventory, two senior industry executives said. - Reply By Ganeshan Kalyani - The Reply = It's almost a mid-year Diwali for consumers in June, as most retailers will be doling out huge discounts to clear inventory before GST is rolled out. Retailers want to liquidate their entire stock as they cannot bear the load of the remaining ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 40 per cent central GST which will not be credited to them on unsold inventory, said Pulkit Baid, director at Great Eastern, which is one of the largest white goods retailers in the East. - Reply By Ganeshan Kalyani - The Reply = Vijay Sales managing director Nilesh Gupta said every retailer would want to have the minimum stock by July. While we are clearing stock on discounts, we are also losing money to do so. It's a onetime pain and July sales will be hit badly due to an early discounting this year, he said. - Reply By Ganeshan Kalyani - The Reply = According to industry executives, some of the large consumer electronic retail chains are sadd led with old inventory of more than ₹ 100 crore each. These would make a big dent on their margins, since the white-goods makers have come up with compensation schemes for unsold stock purchased only in May and June. The old inventory would also include products that are on display on the shop floor, since several of them tend to be a year old and eventually sold to customers. A senior executive with a leading consumer electronics chain said the company is even sacrificing margins to clear out stock. - Reply By G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aneshan Kalyani - The Reply = The GST Council, in its last meeting Saturday, agreed to increase deemed credit to 60 per cent for products in the GST slab of 18 per cent and more. White goods, televisions, kitchen appliances and small appliances fall under the 28 per cent GST slab. - Reply By Ganeshan Kalyani - The Reply = The Council also proposed allowing 100 per cent credit in case of highvalue items priced above ₹ 25,000 based on the tracking of the product, even without documents detailing the actual payment of excise duty. However, the industry awaits clarification on the definition of tracking and whether it's on the MRP, base price, or market operating price. - Reply By Ganeshan Kalyani - The Reply = Godrej Appliances business head Kamal Nandi said if the industry can avail benefit of 100 per cent credit, around 25 per cent of the stock will be covered, and the balance 75 per cent must be liquidated by trade. Hence, the discount will continue at the retail end, he said. - Reply By Ganeshan Kalyani - The Reply = Even though the new tax comes into effect barely three weeks from now, many businesses have not prepared themselves for GST. - Reply By Ga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... neshan Kalyani - The Reply = In the five years Samiksha Dhingra has been running a small business of gift packaging, She has not felt the need to apply for a sales tax number. My business is very small and doesn't require sales tax registration, says the Gurgaon-based entrepreneur. But this will soon change because Dhingra plans to take her business online. The Goods and Services Tax (GST), which comes into effect from 1 July, requires all e-commerce businesses, including tiny outfits like Dhingra's, to register under the new tax regime. - Reply By Ganeshan Kalyani - The Reply = In Surat, textile manufacturer Devrishi Arora is vaguely aware that GST will soon come into effect but is yet to take concrete steps for migrating his business to the new tax. I have read a lot of newsreports on the GST and we are in touch with some tax professionals for this, says Arora. - Reply By Ganeshan Kalyani - The Reply = Dhingra and Arora are not alone. Even though the new tax comes into effect barely three weeks from now, many businesses have not prepared themselves for GST. In a recent survey by CA Club India, a platform for finance professionals, only 38% of the 1,100-odd respo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndents said they were ready for the rollout on 1 July. The others either needed more time or their clients were not fully prepared. - Reply By Ganeshan Kalyani - The Reply = The GST is not just a tax reform or even a business reform. It is a lifestyle reform that will change the way business is conducted in the country, says Minal Agarwal, a chartered accountant who advises corporate houses on GST compliance and related issues. Nearly 50% of Indian businesses are not aware of the changes that GST will usher in. Most of them think it is just another tax regime, says Bharat Goenka, Managing Director of Tally Solutions.Tally's accounting software is widely used by Indian companies. It is waiting for the GST rules to be finalized so that it can roll out its GST software for Indian companies. - Reply By Ganeshan Kalyani - The Reply = The level of unpreparedness is even greater among small businesses and tiny outfits. Many small entrepreneurs feel they can bypass the GST if their turnover is less than ₹ 20 lakh. That is true, but this exemption comes with its own set of problems. If you are not in GST, the businesses you supply to will have to bear the burden of your c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompliance. They may eventually switch to vendors who are registered under GST, she warns. It is adviced even if you are a small business with a turnover of less than the GST threshold of ₹ 20 lakh, get yourself registered. - Reply By Ganeshan Kalyani - The Reply = It may come as a surprise, but joining the GST is not the Himalayan task that some entrepreneurs and small businessmen presume it to be. One can register online by logging on to gst.gov.in . Some companies, such as tax filing portal ClearTax.in, charge a small fee for assisting companies and small businesses to get on board . We offer a bouquet of services, including cloud-based GST software, an end-to-end platform for filing GST returns and GST compliant billing supported by integrated learning modules. This single software can be used to do full GST compliance, says Archit Gupta, founder and CEO of ClearTax.in. - Reply By Ganeshan Kalyani - The Reply = Taxmann, a leading name in tax and corporate law and a GST Suvidha Provider, has also introduced One Solution , an integrated software that does all the GST-related compliances. Though the rates vary depending on the size of the organisation, they start as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... low as 99 paise per invoice. - Reply By Ganeshan Kalyani - The Reply = Other smaller outfits are also doing their bit to spread awareness about GST and get businesses to register. Delhi-based chartered accountant Aditya Agarwal has set up GSTsamadhan.in. His team not only helps in the registration formalities but also conducts training workshops for companies.In the past six months, Aditya has conducted training sessions for nearly 25 corporate clients, with charges varying according to the size and complexity of a company's account books. - Reply By Ganeshan Kalyani - The Reply = GST will require a very high level of compliance. Out go the hand-written ledgers, accounting books and notepads. Everything will now be online and will need to be updated regularly. A business will have to file 37 returns in a year (three returns per month and one annual return) per state. If it does business from offices in more than one state, the number of returns will go up accordingly. A business with a offices in three states will have to file 111 tax returns in a year. - Reply By Ganeshan Kalyani - The Reply = The GST provides some relief for smaller outfits that may not be able to meet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... these stiff requirements. An enterprise with a turnover of less than ₹ 50 lakh can opt for the composition scheme, which levies a presumptive tax of 0.5-2.5% on the turnover. However, this option is not open to everybody. Only manufacturers and specific service providers (restaurants) can opt for this composition scheme. - Reply By Ganeshan Kalyani - The Reply = Though the composition scheme requires lesser GST compliance, it has several drawbacks. For one, only businesses which operate within a particular state can opt for this. Plus, opting for composition breaks the chain of seamless input tax credit. Those who buy from a composition dealer will not be able to take credit of any input tax. A composition dealer cannot levy and collect any tax from its buyers. Should the composition dealer purchase from registered persons, he will not get input credit on the tax paid by him on inputs, says Preeti Khurana, chartered accountant and GST expert with ClearTax.in. - Reply By Ganeshan Kalyani - The Reply = In future, the government will also start rating companies and businesses on the basis of how well they have complied with the GST rules. Right now, not complying with sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es tax or excise rules means a penalty and interest. It can be prosecution in extreme cases. But under GST, the Compliance Rating Score (CRS) could mean that a poor score leads to loss of business, warns Minal. - Reply By Ganeshan Kalyani - The Reply = Credit rating provision is what many tax professionals are worried about. They fear the compliance score will be used to assess the credibility of a business. This could wipe out small businesses that face cash-flow problems and delay payments. Since their problems will now be public knowledge, buyers will avoid this company leading to further payment delays. This will slowly, but with certainty, drive almost every small business to eventual closure, contends Goenka. - Reply By Ganeshan Kalyani - The Reply = As the GST deadline approaches, many in the industry and in tax circles are hoping it will be deferred. Almost three out of five respondents to the CA Club India poll wanted the rollout to be postponed. As Indians, procrastinating is in our DNA. It is also the general human tendency to resist change. Instead, we must embrace this change in a positive light, says Vivek Jain, Founder of the CA Club India online forum. Def ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erring the roll-out will not help. The government should stick to the 1 July deadline, says Lakshmipriya, AVP Finance, Bankbazaar.com. - Reply By Ganeshan Kalyani - The Reply = Lakshmipriya says there are likely to be teething troubles when such a massive change is introduced, but over time these problems will get ironed out. The level of compliance is very high under GST.We hope the government is lenient towards compliance lapses so that businesses get used to the requirements under the new law, she says. - Reply By Ganeshan Kalyani - The Reply = GST will be a push for the unorganised sector to become mainstream. See it as a club which offers its members certain benefits such as input tax credit and access to a large number of buyers and sellers, which can impact business pos itively, says Khurana of ClearTax.in. - Reply By Ganeshan Kalyani - The Reply = GST registrations opened last week and will continue till 15 June. If you have a small business or shop, it will be beneficial to get your company registered under GST. We wish your business good luck and prosperity. - Reply By Ganeshan Kalyani - The Reply = All imports shall be deemed as inter-State supplies and acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ordingly Integrated tax shall be levied in addition to the applicable Custom duties. - Reply By Ganeshan Kalyani - The Reply = The IGST Act, 2017 provides that the integrated tax on goods imported into India shall be levied and collected in accordance with the provisions of the Customs Tariff Act, 1975 on the value as determined under the said Act at the point when duties of customs are levied on the said goods under the Customs Act, 1962 . - Reply By Ganeshan Kalyani - The Reply = The integrated tax on goods shall be in addition to the applicable Basic Customs Duty (BCD) which is levied as per the Customs Tariff Act. - Reply By Ganeshan Kalyani - The Reply = GST compensation cess, may also be leviable on certain luxury and demerit goods under the Goods and Services Tax (Compensation to States) Cess Act, 2017. - Reply By Ganeshan Kalyani - The Reply = The value of the goods for the purpose of levying integrated tax shall be, assessable value plus Customs Duty levied under the Act, and any other duty chargeable on the said goods under any law for the time being in force as an addition to, and in the same manner as, a duty of customs. - Reply By Ganeshan Kalyani ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - The Reply = The value of the imported article for the purpose of levying cess shall be, assessable value plus Basic Customs Duty levied under the Act, and any sum chargeable on the goods under any law for the time being, in force as an addition to, and in the same manner as, a duty of customs. The integrated tax paid shall not be added to the value for the purpose of calculating cess. - Reply By Ganeshan Kalyani - The Reply = Importer would not be required to pay the Integrated tax at the time of removal of goods from a customs station to a warehouse. - Reply By Ganeshan Kalyani - The Reply = Input tax credit of the integrated tax paid at the time of import shall be available to the importer and the same can be utilized by him as Input Tax credit for payment of taxes on his outward supplies. The integrated tax shall, in essence, be a pass-through to that extent. - Reply By Ganeshan Kalyani - The Reply = The Basic Customs Duty (BCD), shall however, not be available as input tax credit. - Reply By Ganeshan Kalyani - The Reply = The place of supply of goods, imported into India shall be the location of the importer. Thus, if an importer, say is located in Rajasthan, the sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te tax component of the integrated tax shall accrue to the State of Rajasthan. - Reply By Ganeshan Kalyani - The Reply = Buying a car is a long term decision and hence, a buyer looks around for every possible information available on any reduction in prices in near future before buying a car. Consumers planning to buy car are struggling to find answer to the question Whether they should buy car before GST or after GST? - Reply By Ganeshan Kalyani - The Reply = Cars will be taxed at the top rate plus a cess in the range of 1% to 15%. Small cars will be charged 1% cess on top of 28% tax, mid-sized cars will attract 3% cess and luxury cars 15% cess on top of the peak rate. - Reply By Ganeshan Kalyani - The Reply = Luxury cars are likely to get cheaper under GST. Currently, a consumer bears 45-55%. Under GST, the tax incidence will come down to 42-43%. - Reply By Ganeshan Kalyani - The Reply = In all likelihood, prices of luxury car/ SUVs will come down post implementation of GST owing to reduction in effective rate of tax. - Reply By Ganeshan Kalyani - The Reply = Small cars currently carry effective tax rate of around 26-34% (including cascading effect of VAT) in case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... petrol cars and 27-35% in case of diesel cars. Under GST, petrol cars are supposed to be taxed at 29% and diesel cars at 31%. Clearly, there is not much change and thus, it may not translate into price hike. - Reply By Ganeshan Kalyani - The Reply = Mid segment cars currently carry effective tax rate of around 40-48% (including cascading effect of VAT). Under GST, mid segment cars are to be taxed at 40-43%. Again, there is not much change and thus, it may not translate into price hike. - Reply By Ganeshan Kalyani - The Reply = Buyers of hybrid cars are in for a disappointment as these are proposed to be taxed at the highest GST rate bracket of 28% in addition to attracting of 15% cess. Keeping environmental concern in mind, it is only just and logical for government to bring subsidy in order to bring boost to Hybrid cars. - Reply By Ganeshan Kalyani - The Reply = This could act as a dampener for companies proposing to invest in hybrid technology and adversely impact sale of such vehicles, unless a subsidy is separately given by the Government to offset such tax incidence, said Sarika Goel, tax partner at EY India - Reply By Ganeshan Kalyani - The Reply = We are waiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng for an official notification on the GST rates and currently studying the effects that might emerge out of the GST implementation, said Roland Folger, managing director and chief executive at Mercedes Benz India Pvt Ltd. - Reply By Ganeshan Kalyani - The Reply = With the maximum cess on luxury cars getting capped at 15%, and with a GST rate of 28%, the maximum duty one is likely to pay is 43%, said Rajeev Pratap Singh, auto practice head at Deloitte Touche Tohmatsu India Pvt Ltd. - Reply By Ganeshan Kalyani - The Reply = Units in Special economic zone (SEZ) have always been at the forefront of benefits and exemptions by Government. Under current scheme of things, SEZ Unit/ Developer is required to meet certain conditions and undertake specified compliance flowing through service tax law, VAT laws, Excise law etc to avail benefits/ exemptions. However, never ever SEZ Unit has been required to take a mandatory separate registration under any indirect tax law. Come GST, things look very different. As per the registration rules under GST, a proviso has been created to Rule 1 mandating a SEZ Unit to take a separate registration under GST. This interpretation is based on overall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... understanding and intention of registration provisions under GST. Every person (X Ltd.) is required to take registration in each state from supply is made. Also, this interpretation keeps government s intention to track SEZ supplies and exemptions separately on track. If we drill each word and put together harmonious interpretation with registration provisions in general each person (person has been defined to be on PAN level/ entity level) having SEZ unit or units (seemingly it implies SEZ Unit or units in a state) in a Special economic Zone (here zone means SEZ authority which in all cases is one for one state) shall make separate registration. Until there is no clarity, the subject matter is open to interpretation. Do share your views in comments section. - Reply By Ganeshan Kalyani - The Reply = On the surface, provision creates a staunch requirement of separate registration for SEZ Unit/s from its other units as if it is a distinct business vertical. On in depth reading, the provision creates ambiguity by sprouting following possible interpretations: 1. Each SEZ unit will be required to take separate registration 2. All SEZ units covered under one Zone will be require ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to take one common GST registration 3. All SEZ units in one particular state will be required to take one common GST registration - Reply By Ganeshan Kalyani - The Reply = Lets discuss in brief what each one means for companies having SEZ and non-SEZ unit in light of freezed facts (for clarity of understanding): Facts Company: X Ltd. located in Haryana No. of offices: 5 (4 SEZ and 1 Non-SEZ) SEZ Units: 2 units in Infospace SEZ and 2 units in Silokhera SEZ 1. Each SEZ unit will be required to take separate registration This means that X Ltd. will be required to take 5 GST registrations in Haryana one each for 4 SEZ Units and 1 for non-SEZ unit. This interpretation draws support from the fact that every SEZ compliance is unit-wise in existing regime as well. 2. All SEZ units covered under one Zone will be required to take one common GST registration Based on this interpretation, X ltd will be required to take 3 registrations one registration for 2 units in infospace, one for 2 units in Silokhera (remember, the provision reads a person having a unit(s) in a Special Economic Zone.. shall make a separate application for registration) and one registration for non-SEZ u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nit. This interpretation may have backing upon plain reading in dictionary terms but does not throw up any logical support. 3. All SEZ units in one particular state will be required to take one common GST registration Based on this interpretation, X ltd will be required to take 2 registration one registration for 4 SEZ units in Haryana and one for non-SEZ unit. - Reply By Ganeshan Kalyani - The Reply = To have an automated seamless compliance under GST, software based applications to help tax payers do timely and convenient compliance are being developed. These players are called Application Service Provider (ASP) and these third party applications will connect with GST system via secure GST System APIs. The service providers developed these secure channels are called GST Suvidha Provider (GSP) . - Reply By Ganeshan Kalyani - The Reply = Role of ASP ASPs will focus on taking taxpayers raw data on sales and purchases and converting it into the GST returns (in case of multiple registrations, it is a huge task manually). These GST returns, or GSTRs, will then be filed on behalf of the filer with GSTN via the GSP. ASPs will act as a link between the taxpayers and the GS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ps. - Reply By Ganeshan Kalyani - The Reply = Role of GSP GSP provides a secured tunnel which feeds in data from ASP (in other words, ASP s output becomes input for GSP), submits it on GSTN and generates acknowledgement. - Reply By Ganeshan Kalyani - The Reply = ASP-GSP will do following activities for you : 1. Invoice data upload (B2B and large value B2C). 2. Upload GSTR-1 (return containing supply data) which will be created based on invoice data and some other data provided by the taxpayer. 3. Download data on inward supplies (receipts or purchase) in the form of Draft GSTR-2 from GST Portal created by the Portal based on GSTR-1 filed by corresponding suppliers. 4. Do matching of purchases made and that downloaded from GST portal. Finalize the same based on his own purchase (inward supply data) and upload GSTR-2 . 5. File GSTR-3 created by GST Portal based on GSTR-1 and 2 and other info and tax paid. 6. Meet other applicable compliance. - Reply By Ganeshan Kalyani - The Reply = Benefits of meeting GST compliance through ASP-GSP 1. Consumption across technologies and platforms (mobile, tablets, desktops, etc.) based on the individual requirements. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Automated upload and download of data. 3. Ability to adapt to changing taxation and other business rules and end user usage models. 4. Integration with customer software (ERP, Accounting systems) that tax payers and others are already using for their day to day activities. 5. Assisting in input tax credit matching. - Reply By Ganeshan Kalyani - The Reply = Outcome of today's GST Council meeting Rate of 28% will be maintained for all cinema tickets above ₹ 100. For those below ₹ 100, it will be reduced to 18%, FM Arun Jaitley says Received representation for about 133 goods. After considering representation, the GST council has reduced tax levels in 66 cases, he says. Next meeting of the council will be on June 18, 11.30am at the same venue, Jaitley adds. GST rate on insulin reduced from 12% to 5%; rate on school bags reduced from 28% to 18%, the finance minister says. About tax revision on sanitary napkins, he said what has been decided earlier remains. - Reply By Ganeshan Kalyani - The Reply = After the 16th GST Council meet concluded today, the rates of 66 items under the upcoming GST regime have been revised. - Reply By Ganeshan Kalyani - The Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply = Addressing the media at a press meet after the gst council meeting held today , Finance Minister Arun Jaitley said that the rates have been revised after getting feedback from industry players. - Reply By Ganeshan Kalyani - The Reply = Arun Jaitley said: After considering the recommendations, the GST Council has reduced the tax level in 66 out of 133 items on which representations were made by the industries. The reductions, he said, were based on two major principles -- maintaining equivalence and the change in the utilisation behavior. - Reply By Ganeshan Kalyani - The Reply = Some of the revised tax items, the FM highlighted were: Cashew revised from 12% to 5% Packaged food, including some fruits and vegetables, pickles, toppings, instant food, sauces revised from 18% to 12% Agarbatti revised from 12% to 5% Dental wax revised from 28% to 8% Insulin revised from 12% to 5% Plastic beads revised from 28% to 18% Plastic turpolin revised from 28% to 18% School bags revised from 28% to 18% Exercise books revised from 18% to 12% Coloring books revised from 12% to nil Pre-cast concrete pipes revised from 28% to 18% Cutlery revised from 18 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... % to 12% Tractor components revised from 28% to 18% Computer printers revised from 28% to 18% - Reply By Ganeshan Kalyani - The Reply = Another important item on which GST has been reduced was the entertainment tax on cinema. Under the GST, there will now be two categories for movie tickets. For tickets that cost less than ₹ 100, a tax of 18% will be levied. For the tickets costing more than ₹ 100, a GST of 28% will be levied. Presently, entertainment tax is levied by individual states. The states levy a different rate, ranging from 28-110%, and the weighted average for the entire country is about 30%. However, several state governments give an exemption to cinema of the particular language of that state. Under GST, there will now be no centralised exemption. Jailtley said: If states want, through the DBT (Direct Benifit Transfer), the state can refund the GST of regional cinema. - Reply By Ganeshan Kalyani - The Reply = For workers in industries like textile, diamond processing etc, where the workers take the work home, 18% tax that is now being charged will be fixed at 5% because the GST for these sectors have gone down as well. - Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply By Ganeshan Kalyani - The Reply = The next meeting for the GST Council will be on June 18th. - Reply By Ganeshan Kalyani - The Reply = At its sixteenth meeting, the GST Council decided to reduce the tax rates on 66 items out of the 133 items for which it had received representations. It also increased the upper limit of turnover for payment of tax under the composition option from INR 50 lacs to INR 75 lacs and approved the accounts and records rules. The next meeting of the GST Council will be held on 18 June, 2017. - Reply By Ganeshan Kalyani - The Reply = The Government had received representations from various industry associations with respect to rates after 03 June. After considering the principle of equivalence, changing consumption pattern and possible inverted tax structure, the Government has reduced tax rates on 66 items. - Reply By Ganeshan Kalyani - The Reply = Description of Goods Updated rate Initially proposed rate Printer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s* Tractor Components School bags Dental wax Cinema tickets of value upto INR 100 18% 28% Packaged food including pickles, toppings, instant food, sauces, ketchups, etc. Exercise books Cutlery 12% 18% Insulin Agarbatti Cashews 5% 12% Colouring books 0% 12% Job work services in case of textile, diamond processing, jewellery work etc. 5% 18% - Reply By Ganeshan Kalyani - The Reply = Printers were falling under two conflicting entries, and the entry under which they would be taxed was unclear. The Government has clarified that it would be taxed @ 18%. - Reply By Ganeshan Kalyani - The Reply = In addition to the above, the GST Council has also decided to increase the upper limit for the payment of tax under composition of tax option for traders, manufacturers and restaurants to INR 75 lacs from the previous INR 50 lacs. The service providers continue to remain ineligible to opt for the comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osition scheme. - Reply By Ganeshan Kalyani - The Reply = The GST Council has also approved the accounts and records rules. However, the anti-profiteering rules are under preparation and will be released upon finalisation. It was mentioned that the release of anti-profiteering rules is not linked with the introduction of GST and that it could be brought over anytime. - Reply By Ganeshan Kalyani - The Reply = The next meeting of the GST Council is scheduled to be held on 18 June, 2017, to consider e-way bill provisions and to decide the rate of tax on lottery. - Reply By Ganeshan Kalyani - The Reply = The industry continues to await clarity with respect to the mechanism of implementing anti-profiteering provisions and e-way bills. Further, few other aspects such as treatment of transactions between J K and other states and refund of CGST paid in case of goods manufactured in excise free zones await clarification as well. - Reply By Ganeshan Kalyani - The Reply = The industry now has a week's time to make any further representations on GST rates as the next council meeting will be held on 18 June. - Reply By Ganeshan Kalyani - The Reply = Overall, the deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sions taken by the council meeting are positive and demonstrate a constructive dialogue with the Government, which should be a key feature of any reform. The Government has kept the window for such dialogues open by forming sectoral groups to resolve various industry-specific issues and provide guidance. - Reply By Ganeshan Kalyani - The Reply = Traders, manufacturers and restaurants with a turnover of up to ₹ 75 lakh can avail the composition scheme, against ₹ 50 lakh earlier. - Reply By Ganeshan Kalyani - The Reply = Next meeting of GST Council will be held on June 18 where the GST rates on lottery taxes and e-way bills will be decided. - Reply By Ganeshan Kalyani - The Reply = Twenty Four (24) States have passed the State GST (SGST) Act till yesterday i.e. 5th June, 2017 while 7 States viz. Meghalaya, Punjab,Tamil Nadu, Kerala, Karnataka, Jammu Kashmir and West Bengal have yet to pass the State GST (SGST) Act. - Reply By Ganeshan Kalyani - The Reply = List of States that have passed the SGST Bill: 1. Telangana 2. Bihar 3. Rajasthan 4. Jharkhand 5. Chhattisgarh 6. Uttarakhand 7. Madhya Pradesh 8. Haryana 9. Goa 10. Gujarat 11. Assam 12. Arunachal Pradesh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 13. Andhra Pradesh 14. Uttar Pradesh 15. Puducherry 16. Odisha 17. Maharashtra 18. Tripura 19. Sikkim 20. Mizoram 21. Nagaland 22. Himachal Pradesh 23. Delhi 24. Manipur - Reply By Ganeshan Kalyani - The Reply = States are enthusiastically taking initiative in passing SGST Bill. PM Modi took stock of GST preparedness and was informed that GST systems such as IT infrastructure, training of officials, integration with banks, and enrolment of existing taxpayers will be in readiness well in time for the July 1 implementation date. - Reply By Ganeshan Kalyani - The Reply = The Central Board of Excise Customs is being renamed as the Central Board of Indirect Taxes Customs (CBIC), after getting legislative approval. The proposed CBIC shall, inter alia, supervise the work of all its field formations and Directorates and assist the Government in policy making in relation to GST, continuing Central Excise levy Customs functions. - Reply By Ganeshan Kalyani - The Reply = The CBIC will have 21 Zones, 101 GST Tax payer Services Commissionerates comprising 15 sub-Commissionerates, 768 Divisions, 3969 Ranges, 49 Audit Commissionerates and 50 Appeals Commissionerates. This will ensur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e rendering of taxpayer services to all the taxpayers through an indirect tax administration structure, having pan-India presence. - Reply By Ganeshan Kalyani - The Reply = Revenue secretary Dr. Hasmukh Adhia has cleared the rumors spreading through social networking apps and sites on delay in GST roll out. Through a tweet, Dr. Adhia said The rumours about GST implementation being delayed are false. Please do not be misled by it. - Reply By Ganeshan Kalyani - The Reply = After the end of the seventeenth meeting of the GST Council, the Government has categorically reiterated the introduction of GST from 01 July. - Reply By Ganeshan Kalyani - The Reply = Considering the preparedness of the Industry, the GST Council has relaxed the return filing timelines for the first two months after the introduction of GST. - Reply By Ganeshan Kalyani - The Reply = The GST Council also finalised five sets of rules (except e-way bills) and the rate of tax on lottery, in addition to amending the rate of tax for the hospitality industry - Reply By Ganeshan Kalyani - The Reply = The decision on the E way bills has been deferred and in the interim period, the States are allowed to f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollow the existing way bills provisions. - Reply By Ganeshan Kalyani - The Reply = The new registrations under GST would start from 25 June. - Reply By Ganeshan Kalyani - The Reply = The Government also clarified that the provisional GST Number allotted to the taxpayers would be the final GST Number and this would not change. - Reply By Ganeshan Kalyani - The Reply = Details of relaxed return filing procedure under GST (Applies for July and August 2017) - Reply By Ganeshan Kalyani - The Reply = The official date of introduction date of GST has been notified as 1.7.2017 - Goods and Services Tax - Reply By Ganeshan Kalyani - The Reply = Welcome GST - Reply By Ganeshan Kalyani - The Reply = 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. - Reply By Ganeshan Kalyani - The Reply = What this eventually means is that i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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. - Reply By Ganeshan Kalyani - The Reply = 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. - Reply By venkataraman swaminathan - The Reply = 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 - Reply By Ganesha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Kalyani - The Reply = No sir you cannot carry forward the utilised credit of education cess and secondary higher education cess to GST. - Reply By Ganeshan Kalyani - The Reply = 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 rat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, 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. - Reply By Ganeshan Kalyani - The Reply = 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. - Reply By Ganeshan Kalyani - The Reply = Online Information Database Access and Retrieval services (OIDAR) is a category o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f 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. - Reply By Ganeshan Kalyani - The Reply = 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. - Reply By Ganeshan Kalyani - The Reply = 5 Key questions concerning OIDAR under GST are: Q1. How would OIDAR services be taxable under GST? Answer: For any suppl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y to be taxable under GST, the place of supply in respect of the subject supply should be in India. In case, both the supplier of OIDAR Service and the recipient of such service is in India, the place of supply would be the location of the recipient of service i.e. it would be governed by the default place of supply rules. 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. - Reply By Ganeshan Kalyani - The Reply = Q2: Who will be responsible for paying the tax? Answer: In cases where the supplier of such service is located outside India and the recipient is a business entity (registered person) located in India, the reverse charge mechanism would get triggered and the recipient in India (registered entity under GST) will be liable to pay GST under reverse charge and undertake necessary compliances. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 on the internet. 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 processe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 - Reply By Ganeshan Kalyani - The Reply = Q3: How would the entity located outside India comply with the responsibilities entrusted under GST? The supplier (or intermediary) of online information and database access or retrieval services shall, for payment of integrated tax, take a single registration under the Simplified Registration Scheme in Form GST REG-10 . The supplier shall take registration at Principal Commissioner of Central Tax, Bengaluru West who has been the designated for grant registration in such cases. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - Reply By Ganeshan Kalyani - The Reply = Q4: Who is a Non-Taxable Online Recipient? Non-Taxable Online Recipient means any Government, local authority, governmental authority, an individual or any other person not registered and receiving online information and database access or retrieval services in relation to any purpose other than commerce, industry or any other business or profession, located in taxable territory. The expression governmental authority means an authority or a board or any other body: (i) Set up by an Act of Parliament or a State Legislature or (ii) established by any Government with ninety per cent or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243W of the Constitution . - Reply By Ganeshan Kalyani - The Reply = Q5. What are the examples of OIDAR? Answer: Following are few examples of services that qualify under OIDAR: a) Website supply, web-hosting, dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tance maintenance of programmes and equipment b) Supply of software and updating thereof c) Supply of images, text and information and making available of databases d) Supply of music, films and games, including games of chance and gambling games, and of political, cultural, artistic, sporting, scientific and entertainment broadcasts and events - Reply By Ganeshan Kalyani - The Reply = In a typical indirect tax system, there are two ways of paying taxes. one, under forward charge and second, under reverse charge. - Reply By Ganeshan Kalyani - The Reply = 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. - Reply By Ganeshan Kalyani - The Reply = 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). - Reply By Ganeshan Kalyani - The Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply = 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. - Reply By Ganeshan Kalyani - The Reply = 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. - Reply By Ganeshan Kalyani - The Reply = 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. - Reply By Ganeshan Kalyani - The Reply = Addressing the concern, government introduced some relief vide Notification No.8/2017-Central Tax (Rate) whereby the aforementioned reverse charge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provision triggers only when purchases from unregistered supplier exceeds INR 5,000 in a day (total value of all such purchases in a day whether goods or services and from one supplier or multiple suppliers). - Reply By Ganeshan Kalyani - The Reply = Post the notification, if you are registered under GST and you purchases goods and/ or services from person not registered under GST exceeding INR 5,000 in a day, then you will have to pay GST under reverse charge. However, you will get ITC of GST paid. - Reply By Ganeshan Kalyani - The Reply = If you become liable to pay tax under reverse charge under the said scenario, you are required to do necessary compliance also i.e. raise an invoice on self, report it in return to avail ITC. What will be challenging is determination of rate and HSN of the products so purchased. Clearly the government wants to discourage the practice of working without GST number and bring everyone under tax net - Reply By Ganeshan Kalyani - The Reply = A proposal to refund central goods and services tax (GST) on items made in formerly excise-free zones in Himachal Pradesh, Uttarakhand and the North-East is set to be presented to cabinet. The move will be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nefit companies such as CiplaBSE, Dabur, Dr Reddy s and TVS MotorBSE that invested in those areas because of the tax break. - Reply By Ganeshan Kalyani - The Reply = The Expenditure Finance Committee (EFC) has approved the scheme, which is likely to benefit a number of automobile, fast-moving consumer goods (FMCG) and pharmaceutical companies that have invested in these zones. - Reply By Ganeshan Kalyani - The Reply = Many companies in the cement sector have plants in such zones in the North-East. Department of Industrial Policy and Promotion, which anchors the scheme, will move the proposal for cabinet consideration. - Reply By Ganeshan Kalyani - The Reply = Industry had expected the rollout of the scheme along with GST, but the plan wasn t ready at the time. It would be in place before the first payment of GST becomes due, said a government official. - Reply By Ganeshan Kalyani - The Reply = The Delhi government today flagged off six mobile vans that will go across city markets to raise awareness on the Goods and Services Tax (GST) and address concerns of traders regarding the new tax regime. - Reply By Ganeshan Kalyani - The Reply = The GST awareness mobile vans we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re flagged off by Finance Minister Manish Sisodia from the Delhi Secretariat here and have senior officials of the trade and taxes department on board. - Reply By Ganeshan Kalyani - The Reply = These vans would run through different markets across the city for around 15 days and the officials would address the issues raised by traders. - Reply By Ganeshan Kalyani - The Reply = Sisodia, who is also the deputy chief minister, said traders can also give their suggestions pertaining to the tax system which he would take up during the GST council meeting. - Reply By Ganeshan Kalyani - The Reply = Sisodia said he would review the facility with the department s officers after two days. - Reply By Ganeshan Kalyani - The Reply = The Government is mindful of the concerns of tax payers, especially the small taxpayers, arising from transition to the GST regime from 1st of July, 2017. - Reply By Ganeshan Kalyani - The Reply = With a view to ease the compliance burden of provisionally migrated small taxpayers opting to pay tax under the Composition scheme, it has been decided to extend the time limit for filing intimation for Composition levy (filing of intimation FORM GST CMP-01 ) up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to 16th August, 2017. - Reply By Ganeshan Kalyani - The Reply = Similarly, the taxpayers who were provisionally migrated by virtue of being registered under the existing laws, but who are no longer required to be registered under GST, the period of applying for Cancellation of Registration is being extended up to 30th September, 2017. Relevant notifications are being issued. - Reply By Ganeshan Kalyani - The Reply = Existing taxpayers migrating under Goods and Services Tax (GST) and the ones looking to seek fresh registration under GST will be alloted a Goods and Services Tax Identification Number (GSTIN). - Reply By Ganeshan Kalyani - The Reply = It will be a 15 digit number. Rule 3(1) of Registration Rules cares to specify what each digit of GSTIN signify: (a) first two characters are for the State code ; (b) next ten characters for the PAN or the Tax Deduction and Collection Account Number; (c) next two characters for the entity code (including the z field in Provisional ID); and (d) the last digit is the checksum character (for internal use by government) - Reply By Ganeshan Kalyani - The Reply = Under GST, a regular taxpayer needs to furnish mont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hly returns and one annual return. There are separate returns for a taxpayer registered under the composition scheme, nonresident taxpayer, taxpayer registered as an Input Service Distributor, a person liable to deduct or collect the tax (TDS/ TCS) and a person granted Unique Identification Number. - Reply By Ganeshan Kalyani - The Reply = The basic features of the returns mechanism in GST include electronic filing of returns, uploading of invoice level information and auto-population of information relating to Input Tax Credit (ITC) from returns of supplier to that of recipient, invoice-level information matching and auto-reversal of Input Tax Credit in case of mismatch. The returns mechanism is designed to assist the taxpayer to file returns and avail ITC. - Reply By Ganeshan Kalyani - The Reply = It is important to note that a taxpayer is NOT required to file all types of returns. In fact, taxpayers are required to file returns depending on the activities they undertake. The government had relaxed return filing procedure for first two months i.e. July and August 2017. - Reply By Ganeshan Kalyani - The Reply = All the returns are to be filed online. Returns can be filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... using any of the following methods: GSTN portal (www.gst.gov.in ) Offline utilities provided by GSTN GST Suvidha Providers (GSPs) If you are already using the services of ERP providers such as Tally, SAP, Oracle etc., there is a high likelihood that these ERP providers would provide inbuilt solutions in the existing ERP systems - Reply By Ganeshan Kalyani - The Reply = Return Filing Process A normal taxpayer has to file the following returns: GSTR-1 (For reporting outward supplies) GSTR-2 (For reporting inward supplies) GSTR-3 (Monthly consolidated return) Annual Return - Reply By Ganeshan Kalyani - The Reply = GSTR-1 (Statement of Outward Supplies): This return signifies the tax liability of the supplier for the supplies effected during the previous month. It needs to be filed by the 10th of every month in relation to supplies effected during the previous month. For example, a statement of all the outward supplies made during the month of July 2017 needs to be filed by 10th August, 2017. - Reply By Ganeshan Kalyani - The Reply = GSTR-2 (Statement of Inward Supplies): This return signifies accrual of ITC (Input Tax Credit) from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he inputs received during the previous month. It is auto-populated from the GSTR-1s filed by the corresponding suppliers of the Taxpayer except for a few fields like imports, and purchases from unregistered suppliers. It needs to be filed by the 15th of every month in relation to supplies received during the previous month. For example, a statement of all the inward supplies received during the month of July 2017 needs to be filed by 15th August, 2017. - Reply By Ganeshan Kalyani - The Reply = GSTR-3 (Monthly return): This is a consolidated return. It needs to be filed by the 20th of every month. It consolidates outward supplies, inward supplies, tax payable, ITC etc. NOTE: Payment of GST is to be made on or before 20th of every month. - Reply By Ganeshan Kalyani - The Reply = Annual Return: This return needs to be filed by 31st December of the next Financial Year. In this return, the taxpayer needs to furnish details of expenditure and details of income for the entire Financial Year. - Reply By Ganeshan Kalyani - The Reply = GSTR-1 (Statement of Outward Supplies): File via GSTN/Easy upload tools provided by GSTN/GSPs. Periodical uploading allowed. Filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by 10th. Frozen after 10th. GSTR-2 (Statement of Inward Supplies): Auto-populated from GSTR-1 s filed by a Tax Payer s Suppliers. Changes allowed between 10th and 15th. Filed by 15th. What happens after 15th? Tax Payer can add additional invoices. Supplier has the option to accept/reject additional invoices. Supplier s GSTR-1 gets amended to that effect. GSTR-3 (Monthly return): Auto-populated from GSTR-1 and GSTR-2 . Filed by 20th. - Reply By Ganeshan Kalyani - The Reply = Revision of Returns The mechanism of filing revised returns for any correction of errors/ omissions has been done away with.The rectification of errors/ omissions is allowed in the subsequent returns. However, no rectification is allowed after furnishing the return for the month of September following the end of the financial year to which, such details pertain, or furnishing of the relevant annual return, whichever is earlier. - Reply By Ganeshan Kalyani - The Reply = Goods and Service Tax (GST) does not permit any revision of GST returns, which may create some challenges for taxpayers. - Reply By Ganeshan Kalyani - The Reply = A taxable event under GST is supply of goods or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... services or both. GST will be payable on every supply of goods or services or both unless otherwise exempted. The rates at which GST is payable for individual goods or services or both is also separately notified Classification of supply (whether as goods or services, the category of goods and services) is essential to charge applicable rate of GST on the particular supply. The application of rates will pose no problem if the supply is of individual goods or services, which is clearly identifiable and the goods or services are subject to a particular rate of tax. - Reply By Ganeshan Kalyani - The Reply = But not all supplies will be such simple and clearly identifiable supplies. Some of the supplies will be a combination of goods or combination of services or combination of goods and services both. Each individual component in a given supply may attract different rate of tax. The rate of tax to be levied on such supplies may pose a problem in respect of classification of such supplies. It is for this reason, that the GST Law identifies composite supplies and mixed supplies and provides certainty in respect of tax treatment under GST for such supplies. - Reply By Ganeshan Kalyan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i - The Reply = Under GST, a composite supply would mean a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply: Illustration: Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply. - Reply By Ganeshan Kalyani - The Reply = The rule is If various elements of a bundled service are naturally bundled in the ordinary course of business, it shall be treated as provision of a single service which gives such bundle its essential character - Reply By Ganeshan Kalyani - The Reply = Whether the services are bundled in the ordinary course of business, would depend upon the normal or frequent practices followed in the area of business to which services relate. Such normal and frequent practices adopted in a business can be ascertained from several indicators some of which are listed below : The perception of the consumer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the service receiver If large number of service receivers of such bundle of services reasonably expect such services to be provided as a package, then such a package could be treated as naturally bundled in the ordinary course of business. Majority of service providers in a particular area of business provide similar bundle of services. For example, bundle of catering on board and transport by air is a bundle offered by a majority of airlines. The nature of the various services in a bundle of services will also help in determining whether the services are bundled in the ordinary course of business. If the nature of services is such that one of the services is the main service and the other services combined with such service are in the nature of incidental or ancillary services which help in better enjoyment of a main service. For example, service of stay in a hotel is often combined with a service or laundering of 3-4 items of clothing free of cost per day. Such service is an ancillary service to the provision of hotel accommodation and the resultant package would be treated as services naturally bundled in the ordinary course of business - Reply By Ganeshan Kalyani - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Reply = Other illustrative indicators, not determinative but indicative of bundling of servicesin the ordinary course of business are: -There is a single price or the customer pays the same amount, no matter how much package they actually receive or use The elements are normally advertised as a package The different elements are not available separately The different elements are integral to one overall supply. If one or more is removed, the nature of the supply would be affected - Reply By Ganeshan Kalyani - The Reply = No straight jacket formula can be laid down to determine whether a service is naturally bundled in the ordinary course of business. Each case has to be individually examined in the backdrop of several factors some of which are outlined above. - Reply By Ganeshan Kalyani - The Reply = Under GST, a mixed supply means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply: Illustration: A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and fruit juices when supplied for a single, price is a mixed supply. Each of these items can be supplied separately and is not dependent on any other. It shall not be a mixed supply if these items are supplied separately. - Reply By Ganeshan Kalyani - The Reply = In order to identify if the particular supply is a mixed supply, the first requisite is to rule out that the supply is a composite supply. A supply can be a mixed supply only if it is not a composite supply. The following illustration given in the Education Guide of CBEC referred above can be a pointer towards a mixed supply of services: A house is given on rent one floor of which is to be used as residence and the other for housing a printing press. Such renting for two different purposes is not naturally bundled in the ordinary course of business. Therefore, if a single rent deed is executed it will be treated as a service comprising entirely of such service which attracts highest liability of service tax. In this case, renting for use as residence is a negative list service while renting for non-residence use is chargeable to tax. Since the latter category attracts highest liability of service tax amongst the two se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvices bundled together, the entire bundle would be treated as renting of commercial property. - Reply By Ganeshan Kalyani - The Reply = The tax liability on a composite or a mixed supply shall be determined in the following manner: (a) A composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply (b) A mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of tax - Reply By Ganeshan Kalyani - The Reply = Assessment in GST is mainly focused on self-assessment by the taxpayers themselves. Every taxpayer is required to self-assess the taxes payable and furnish a return for each tax period i.e. the period for which return is required to be filed. The compliance verification is done by the department through scrutiny of returns, audit and/or investigation. Thus the compliance verification is to be done through documentary checks rather than physical controls. This requires certain obligations to be cast on the taxpayer for keeping and maintaining accounts and records. - Reply By Ganeshan Kalyani - The Reply = Key points tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t are significant from the perspective of maintenance of accounts and records are: 1. Section 35 of the CGST Act and Accounts and Records Rules (hereinafter referred to as rules) provide that every registered person shall keep and maintain all records at his principal place of business. It has cast the responsibility on the owner or operator of warehouse or godown or any other place used for storage of goods and on every transporter to maintain specified records. The section also empowers the Commissioner to notify a class of taxable persons to maintain additional accounts or documents for specified purpose or to maintain accounts in other prescribed manner. It also provides that every registered person whose turnover during a financial year exceeds the prescribed limit shall get his accounts audited by a chartered accountant or a cost accountant. - Reply By Ganeshan Kalyani - The Reply = 2. Every registered person is required to maintain true and correct account of following: (a) production or manufacture of goods (b) inward and outward supply of goods or services or both (c) stock of goods (d) input tax credit availed (e) output tax payable and paid and (f) such o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther particulars as may be prescribed (g) goods or services imported or exported or (h) supplies attracting payment of tax on reverse charge along with the relevant documents, including invoices, bills of supply, delivery challans, credit notes, debit notes, receipt vouchers, payment vouchers, refund vouchers and e-way bills The aforementioned list is on a macro level and what needs to be stored on ground level as part of the list is given below: (a) accounts of stock in respect of goods received and supplied; and such account shall contain particulars of the opening balance, receipt, supply, goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples and balance of stock including raw materials, finished goods, scrap and wastage thereof (b) a separate account of advances received, paid and adjustments made thereto (c) an account containing the details of tax payable, tax collected and paid, input tax, input tax credit claimed together with a register of tax invoice, credit note, debit note, delivery challan issued or received during any tax period (d) names and complete addresses of suppliers from whom goods or services chargeable to ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x under the Act, have been received (e) names and complete addresses of the persons to whom supplies have been made (f) the complete addresses of the premises where the goods are stored including goods stored during transit along with the particulars of the stock stored therein (g) monthly production accounts showing the quantitative details of raw materials or services used in the manufacture and quantitative details of the goods so manufactured including the waste and by products thereof (h) accounts showing the quantitative details of goods used in the provision of services, details of input services utilised and the services supplied (i) separate accounts for works contract showing: the names and addresses of the persons on whose behalf the works contract is executed description, value and quantity (wherever applicable) of goods or services received for the execution of works contract description, value and quantity (wherever applicable) of goods or services utilized in the execution of works contract the details of payment received in respect of each works contract and the names and addresses of suppliers from whom he has received goods or services - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reply By Ganeshan Kalyani - The Reply = 3. In case more than one place of business is specified in the certificate of registration, the accounts relating to each place of business shall be kept at such places of business. If records can be maintained electronically and access to such records is at each place of business, no requirement to maintain hard copy records at each place of business. - Reply By Ganeshan Kalyani - The Reply = 4. If records are maintained electronically, following requirements have been prescribed: (a) data so stored shall be authenticated by way of digital signature (b) proper back-up of records (c) produce, on demand, the relevant records or documents, duly authenticated, in hard copy or in any electronically readable format - Reply By Ganeshan Kalyani - The Reply = 5. Any entry in registers, accounts and documents shall not be erased, effaced or overwritten and all incorrect entries, other than those of clerical nature, shall be scored out under attestation and thereafter the correct entry shall be recorded and where the registers and other documents are maintained electronically, a log of every entry edited or deleted shall be maintained. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Further each volume of books of account maintained manually by the registered person shall be serially numbered - Reply By Ganeshan Kalyani - The Reply = 6. Period for preservation of accounts: All accounts maintained together with all invoices, bills of supply, credit and debit notes, and delivery challans relating to stocks, deliveries, inward supply and outward supply shall be preserved for 6 years from the due date of furnishing of annual return for the year pertaining to such accounts and records. - Reply By Ganeshan Kalyani - The Reply = 7. Records to be maintained by owner or operator of godown or warehouse and transporters: The transporters, owners or operators of godowns, if not already registered under the GST Act(s), shall submit the details regarding their business electronically on the Common Portal in FORM GST ENR-01. A unique enrolment number shall be generated and communicated to them. A person in any other State or Union territory shall be deemed to be enrolled in the State or Union Territory. - Reply By Ganeshan Kalyani - The Reply = The GST Act defines an Agent as a person including a factor, broker, commission agent, arhatia, del credere agent, an au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another. - Reply By Ganeshan Kalyani - The Reply = So, who is a pure agent and why is a pure agent relevant under GST? Broadly speaking, a pure agent is one who while making a supplyto the recipient, also receives and incurs expenditure on some other supply on behalf of the recipient and claims reimbursement (as actual, without adding it to the value of his own supply) for such supplies from the recipient of the main supply. While the relationship between them (provider of service and recipient of service) in respect of the main service is on a principal to principal basis, the relationship between them in respect of other ancillary services is that of a pure agent. - Reply By Ganeshan Kalyani - The Reply = Let s understand the concept by taking an example: A is an importer and B is a Custom Broker. A approaches B for customs clearance work in respect of an import consignment.The clearance of import consignment and delivery of the consignment to A would also require taking service of a transporter.So A, also authorises B, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o incur expenditure on his behalf for procuring the services of a transporter and agrees to reimburse B for the transportation cost at actuals. In the given illustration, B is providing Customs Brokers service to A, which would be on a principal to principal basis. The ancillary service of transportation is procured by B on behalf of A as a pure agent and expenses incurred by B on transportation should not form part of value of Customs Broker service provided by B to A.This, in sum and substance is the relevance of the pure agent concept in GST. - Reply By Ganeshan Kalyani - The Reply = RELEVANCE OF PURE AGENT UNDER GST The concept is borrowed from the erstwhile Service Tax Determination of Value Rules, 2006 and carried forward under GST. Under the GST Valuation Rules 2017, a pure agent is given the following meanings. A pure agent means a person who: (a) enters into a contractual agreement with the recipient of supply to act as his pure agent to incur expenditure or costs in the course of supply of goods or services or both neither intends to hold nor holds any title to the goods or services or both so procured or provided as pure agent of the recipient of supply - Reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... By Ganeshan Kalyani - The Reply = (c) does not use for his own interest such goods or services so procured (d) receives only the actual amount incurred to procure such goods or services in addition to the amount received for the supply he provides on his own account The important thing to note is that a pure agent does not use the goods or services so procured for his own interest and this fact has to be determined from the terms of the contract.In the illustration of Importer and Customs Broker given above, assuming that the contract was for clearance of goods and delivery to the Importer at the price agreed upon in the contract.In such case, the Customs Broker would be using the transport service for his own interest (as the agreement requires him to deliver the goods at the importers place) and thus would not be considered as a pure agent for the services of transport procured. - Reply By Ganeshan Kalyani - The Reply = Another important fact is that, the person who provides any service as a pure agent receives only the actual amount for the services provided. Coming back to our example of Importer and Customs Broker, the agreement provides reimbursement of transport service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s utilized at actual. In this case, let s say the value of transport service was ₹ 10,000/-.If the Customs Broker charges any amount more than ₹ 10,000/-, then he will not be considered as a pure agent for the services of transport and the value of transport service will be included in the value of his Customs Broker service. EXCLUSION FROM VALUE Expenditure incurred as pure agent becomes relevant, when it comes to determining the value of a supply for levy of GST. The preceding para explains who will be considered as a pure agent.The valuation rules provide that expenditure incurred as pure agent, will be excluded from the value of supply, and thus also from aggregate turnover. However, such exclusion of expenditure incurred as pure agent is possible only and only if all the conditions required to be considered as a pure agent and further conditions stipulated in the rules are satisfied by the supplier in each case. The supplier would have to satisfy the following conditions (in addition to the condition required to be satisfied to be considered as a pure agent)for exclusion from value: (i) The supplier acts as a pure agent of the recipient of the supply, when he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... makes payment to the third party on authorization by such recipient (ii) The payment made by the pure agent on behalf of the recipient of supply has been separately indicated in the invoice issued by the pure agent to the recipient of service (iii) The supplies procured by the pure agent from the third party as a pure agent of the recipient of supply are in addition to the services he supplies on his own account. The following illustration will make the concept clearer: Corporate services firm A is engaged to handle the legal work pertaining to the incorporation of Company B Other than its service fees, A also recovers from B, registration fee and approval fee for the name of the company paid to Registrar of the Companies The fees charged by the Registrar of the Companies registration and approval of the name are compulsorily levied on B A is merely acting as a pure agent in the payment of those fees. Therefore, A s recovery of such expenses is a disbursement and not part of the value of supply made by A to B. CONCLUSION A pure agent concept is an important one for businesses as it has direct implications on the value of taxable service. It has direct bearing on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amount of GST charged on a particular supply. It also has bearing on the aggregate turnover of the supplier and therefore on calculating the threshold limit for registration. Whenever the intention is to act as a pure agent, care should be taken to ensure that the conditions specified for such pure agents and further conditions given in the valuation rules are also met so that only the real value of the service provided is subjected to GST. - Reply By Ganeshan Kalyani - The Reply = The concept is borrowed from the erstwhile Service Tax Determination of Value Rules, 2006 and carried forward under GST. Under the GST Valuation Rules 2017, a pure agent is given the following meanings. A pure agent means a person who: (a) enters into a contractual agreement with the recipient of supply to act as his pure agent to incur expenditure or costs in the course of supply of goods or services or both neither intends to hold nor holds any title to the goods or services or both so procured or provided as pure agent of the recipient of supply (c) does not use for his own interest such goods or services so procured (d) receives only the actual amount incurred to procure such goods or se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvices in addition to the amount received for the supply he provides on his own account The important thing to note is that a pure agent does not use the goods or services so procured for his own interest and this fact has to be determined from the terms of the contract.In the illustration of Importer and Customs Broker given above, assuming that the contract was for clearance of goods and delivery to the Importer at the price agreed upon in the contract.In such case, the Customs Broker would be using the transport service for his own interest (as the agreement requires him to deliver the goods at the importers place) and thus would not be considered as a pure agent for the services of transport procured. - Reply By Ganeshan Kalyani - The Reply = It has been reported in a certain section of media that some unscrupulous elements posing as GST officers have tried to fleece the shopkeepers and customers in the name of GST. It is hereby clarified by the Office of the Chief Commissioner of GST (Delhi Zone) that the Department only wants to facilitate the shopkeepers and traders during the transition period. No officer of the Department is authorized to visit the premises of the trad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers and shopkeepers without authorization. In case of any difficulty, complain at Phone no. 011-23370115, Central Revenue Building, I. P. Estate, New Delhi. - Reply By Ganeshan Kalyani - The Reply = The Comptroller and Auditor General (CAG) has finalised an End-to-End IT solution to audit the Goods and Services Tax (GST). The proposal envisages a pilot programme on the GST audit which will be ready by October this year and, after two beta versions, a final stage of near real-time peer review, and a digital audit report by March 2019. CAG Shashi Kant Sharma told The Indian Express that with GST becoming a reality, they too are in a position to come out with an audit on a digital platform within one working financial year. - Reply By Ganeshan Kalyani - The Reply = The GST digital audit, according to CAG officials, will create many firsts. It aims to leave a zero-paper trail and go completely paperless from day one with key features of the platform being a digitally-filed audit and real-time monitoring. Our idea is to create a data-driven platform for auditing the GST which is independent of time, place and person. Our State Auditor Generals are already interacting with stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e governments with requirements for the digital GST audit, he said. Sharma will be in Bangalore next month to inaugurate the nodal centre of the CAG for the GST auditing process. - Reply By Ganeshan Kalyani - The Reply = A data warehouse will be created by a security-cleared CAG team with data being collected from sources such as the GSTN, the Central Board of Excise and Customs and commercial taxes departments of all states and UTs. - Reply By Ganeshan Kalyani - The Reply = Data will also be collected by the CAG from third parties such as the Income Tax department, urban municipalities and corporations, e-commerce, Airport Authority of India, Medical Council of India, agricultural marketing committees and other regulatory bodies. - Reply By Ganeshan Kalyani - The Reply = According to the CAG proposal, information relating to audit observations raised in field inspection reports and, subsequently, draft paras prepared by GST audit officers will also be stored in the data warehouse and will be accessible to stakeholders after security clearance. - Reply By Ganeshan Kalyani - The Reply = The CAG proposes to use Aadhaar-based OTP and finger-print authentication for entry i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nto the portal by any user, entry by officers of the Indian Audit and Accounts Department (IAAD) working on the GST audit as well as for digital signatures of documents. - Reply By Ganeshan Kalyani - The Reply = E-way bill provision under GST is not made effective from 01.07.2017 as e-way bill system under GST is not yet ready. However, till 30.09.2017, a provision for e-way bill has been notified by Order vide G.O.MS No. 309 dated 24.07.2017. Order notifying e-way bill provision to be effective till 30.09.2017. e-Waybill is required for the movement of goods which are not exempted under the Act for all purposes i.e., coming into the State or going out of the State or for the movement within the State, it is required when the value of goods excluding tax exceeds Fifty Thousand Rupees. This notification will come into force with immediate effect and will be in operation till 30-09-2017. - Reply By Ganeshan Kalyani - The Reply = GST full form is Goods and Services Tax . GST applies throughout India and is indirect tax. Moreover from now onward GST replaces many taxes. Generally State and Central Governments levy taxes. But after many meetings, Finance Minister ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of India and Indian Government introduced GST on July 1 st 2017. Government of India introduced Goods and Services Tax as The Constitution Act 2017. - Reply By Ganeshan Kalyani - The Reply = There are total 5 GST tax rates. And these are 0%, 5%, 12%, 18% and 28%. Even there is special tax rate of 0. 25% on semi precious stones and rough precious stones. While there is 3% tax on gold. Luxury cars, aerated drinks and tobacco products have additional cess. This cess is of 15%. - Reply By Ganeshan Kalyani - The Reply = SGST full form is State GST or State Goods and Services Tax. Whereas CGST full form is Central GST or Central Goods and Services Tax. It means that Central Government and State Government levy CGST and SGST on transactions. It is only when transactions are in one state. - Reply By Ganeshan Kalyani - The Reply = IGST full form is Integrated Goods and Services Tax or Integrated GST. Additionally Central Government levies IGST on inter state transactions and imported goods and / or services. - Reply By Ganeshan Kalyani - The Reply = India sits at number 35 on the World Bank Logistics Index, which takes into account multiple variables such as customs, infrastructur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, international shipments, logistics quality and competence, tracking and tracing, and timeliness. - Reply By Ganeshan Kalyani - The Reply = As Prime Minister Narendra Modi pushes for better standards in ease of doing business, bolstering the economy by way of the Make-in-India initiative and looking to bring in increasing amount of foreign investment, it is important for us to analyse India s logistics backbone accordingly. - Reply By Ganeshan Kalyani - The Reply = While GST is expected to boost India s ease of doing business rankings, it is still unclear if the big bang tax reform will yield similar results for the logistics sector in general and the air express industry in particular. - Reply By Ganeshan Kalyani - The Reply = The ₹ 20,350 crore Indian air express industry which creates six indirect jobs for one direct job and handles roughly 30 million shipments on a daily business has voiced concerns on the e-Way bill , which comes as part of the GST reform. The big boys of the express delivery services (EDS) industry, including DHL, Blue Dart and FedEx, believe that the very construct of e-way bill is contrary to the core competency of the express indust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry, i.e. time-bound guaranteed delivery of shipments. - Reply By Ganeshan Kalyani - The Reply = As per the CBEC guidelines, any movement of goods exceeding the value of ₹ 50,000 cannot be made by a registered entity without an e-way bill. This bill can be generated at the GSTN portal or through an SMS. However, with the extent of information solicited by the e-way bill, the industry sees existential challenges in complying with the process requirements. - Reply By Ganeshan Kalyani - The Reply = Firstly, the bill aims to capture certain information such as vehicle registration number and driver details from express/courier and multi-modal transport operators prior to the movement of goods of consignment. In the existing business models, multiple individual consignments are collected by the EDS operator (delivery boys on foot, e rickshaw, bicycle in addition to vans or motor bikes). Moreover, when these individual shipments are received at a hub, they are sorted and allotted vehicles depending on cost and time optimization algorithms. Not only is it impossible to give registered vehicle numbers for delivery boys on foot, allotting transport vehicles well before the shipm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents reach the sorting centre would hamper efficiency, hurt cost and impact delivery commitments. - Reply By Ganeshan Kalyani - The Reply = Secondly, a new bill is required every time a shipment moves from one vehicle to another. In the express industry, which is dominated by real time decisions and cost optimisation, pronouncing the exact path and mapping the same to specific vehicle numbers will be a formidable operational challenge. - Reply By Ganeshan Kalyani - The Reply = All consignments of value less than ₹ 50,000 are exempted from an invoice at the time of shipment. However, the express delivery service provider still needs to submit details related to the particular shipment on the common portal, before the shipment is moved. This creates an additional liability for the delivery provider, since the value is declared by the customer the delivery provider is merely an agent to move goods from one location to another. It would be unfair to hold the delivery provider responsible for goods if the value is not the same as that declared by the sender. - Reply By Ganeshan Kalyani - The Reply = It is imperative for us to appreciate the distinct way that India s EDS mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... del operates. Considering that its services are extremely sensitive to time and accuracy, any lag in the delivery process on account of compliance would be insensitive to the industry as a whole. It is important to take cognisance of the role that the air express industry has played in facilitating India s trade competitveness. - Reply By Ganeshan Kalyani - The Reply = Validity of e-way bill As per the CBEC guidelines, e-way bills come with an expiry date. The validity period of a bill is dependent on the distance the goods have to be transported. Distance Validity Period Less than 100 km One day 100 km Distance 300 km Three days 300 km Distance 500 km Five days 500 km Distance 1,000 km Ten days More than 1,000 km Fifteen days - Reply By Ganeshan Kalyani - The Reply = Once an e-way bill expires, its validity can be extended by notifying the commissioner. However, the very fact of assigning an expiry date to an e-way bill is incomprehensible for two reasons. One, the industry itself is based on tenets of time-bound delivery. Thus, prescribing a time limit for this bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iness is absurd. Two, we all would agree that on multiple occasions, it is possible that these timelines are breached. Straightforward situations like a fallen tree on the road, metro rail repair, or even a VIP visit in a city can lead to unknowable delays. Inter-city delays in India are anyways commonplace and doomed. - Reply By Ganeshan Kalyani - The Reply = If and only if the consignment needs to be tracked based on the vehicle number, it should be done only from the first point of collection, up to the last collection node. Not only is the vehicle number not applicable in multiple instances of first/last mile delivery of individual shipments (delivery on foot/public transport), it will also impact business spontaneity, discourage exception handling (medicines etc.) and reduce resource optimisation. - Reply By Ganeshan Kalyani - The Reply = Shipments where the declared value is less than ₹ 50,000 should be excluded from consolidated e-way bill that the delivery provider is mandated to submit. - Reply By Ganeshan Kalyani - The Reply = The Way Bill , a state-specific bill that was expected to die a natural death along with VAT, has transcended in its new avatar, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e e-way bill. - Reply By Ganeshan Kalyani - The Reply = Considering the modalities of e-way bill are expected to be discussed by the GST council on August 5, 2017, one can only hope the overarching objective of GST, that is the simplification of processes and enabling ease of doing business, will be continue to be the order of the day. - Reply By Ganeshan Kalyani - The Reply = GST was first announced in 2000 by the then government. Seventeen years later it is now a reality with the date for implementation set for July 1, 2017. Since 3rd August, 2016, when the Rajya Sabha first passed the bill introducing GST in the 122nd Amendment of the Constitution, there have been many changes in the proposed GST bill and the rules and regulations pertaining to it. - Reply By Ganeshan Kalyani - The Reply = The persons who only supply goods/services on which reverse charge applies, are exempted from registering under GST registration. - Reply By Ganeshan Kalyani - The Reply = Ola pays GST on the drivers services on reverse charge basis. Drivers are not required to register under GST thus removing the burden of tax compliance from individuals with limited resources (drivers) to la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rge companies (Ola) with enough resources. - Reply By Ganeshan Kalyani - The Reply = With the Notification of 19 th June and 28 th June, most of the CGST Act is now in force. Only sections 51 52 (TDS TCS respectively) are not applicable as the government has relaxed TDS TCS provisions for the time being to give more time to the e-commerce sellers. - Reply By Ganeshan Kalyani - The Reply = Sections 42(9) 43(9) are not applicable. These clauses say that if the output tax liability is reduced (or input tax credit is increased) due to a debit note (or a credit note) [mismatch of invoices reconciliation] then such amount shall be refunded by crediting electronic ledger. This is not applicable right now as there will not be any reconciliation for 2 months. - Reply By Ganeshan Kalyani - The Reply = Every registered person with turnover more than 1.5 crores must mention the HSN Codes in each and every invoice. However, the numbers of digits to be mentioned in the Invoice depends on the annual turnover in the preceding financial year. Turnover in previous FY No. of digits Upto ₹ 1.50 Cr NIL More than ₹ 1.50 Cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . upto ₹ 5 Cr 2 digits More than ₹ 5 Cr 4 digits This is effective from 1 st July, i.e., all invoices from 1 st July must be GST compliant and have details of HSN codes. The same notifications have also been made under IGST (notification 5). - Reply By Ganeshan Kalyani - The Reply = Rates of interest- Notification 13/2017 The rates of interest are same as mentioned in the Act. The notification ratifies the rates. This notification shall come into force from the 1st day of July, 2017 Sections Interest p.a. Sec 50(1) - Failure to pay tax 18% Sec 50(3) - Less tax paid/ excess ITC availed 24% Sec 54(12) - Interest on refunds withheld in an appeal later given 6% Sec 56 - Interest on delayed refunds 6% Proviso to 56- Interest on refunds ordered in an appeal 9% The same notification has also been made under IGST (notification 6). - Reply By Ganeshan Kalyani - The Reply = Common Portal- Notification 4 /2017 It is notified that the website of the Common Portal is www.gst.gov.in managed by Goods an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Services Tax Network. - Reply By Ganeshan Kalyani - The Reply = Modes of verification- Notification 6 11/2017 The modes of verification are- Aadhaar based Electronic Verification Code (EVC) Electronic verification code generated through net banking login on the common portal Electronic verification code generated on the common portal [Points ii iii replacing the earlier Bank account based OTP as per earlier notification] - Reply By Ganeshan Kalyani - The Reply = Central Tax Rate Notification (28.06.2017) Most of the goods are kept at the same rates as announced by the GST council earlier but rough or nonindustrial unworked diamond or precious stones will be charged CGST at the rate of 0.125%. List of goods exempt from CGST. No change in the list. Oil, gas, coal and petroleum licenses and sub-contract licenses and leases will be charged GST at the rate of 2.5%. The person liable to deduct TDS as per the GST law supplying intrastate goods or services to an unregistered person would be exempt from CGST. Cashew nuts, not shelled or peeled, Bidi wrapper leaves (tendu), Tobacco leaves, silk yarn, Supply of lottery would have reverse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charge applicable under GST. Refund of the unutilized ITC would not be provided in the case of the tax on output being lower than the tax on inputs for certain goods mainly related to the textile and railways. The supply of goods by CSD to unit run canteens and authorized customers and supply of goods by the unit run canteens to the authorized customers. 50% of the tax paid on inward supplies of goods by the CSD for further supply to unit run canteens or authorized customers can be claimed as refund under GST. Person liable to deduct TDS as per the GST law supplying intra goods or services to an unregistered person would be exempt from CGST. Intrastate supply of second hand goods by a registered person who deals in selling second hand goods to an unregistered person would be exempt from CGST. - Reply By Ganeshan Kalyani - The Reply = Cases where the e-commerce operator will pay IGST- Notification No. 14/2017 E-commerce operator will pay the IGST in the following services- Transportation of passengers by a radio-taxi, motorcab, maxicab and motor cycle (Eg. Ola outstation from Bangalore to Chennai) Providing accommodation in hotels, inns and other comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ercial places meant for residential or lodging purposes. For example a small hotel registered on Oyo rooms. Oyo rooms will pay IGST However, if the person (hotel) supplying such service through e-commerce is liable for registration under GST then that person will pay. Eg, Ibis Hotel is a large multi-chain hotel also registered on Oyo rooms. Then Ibis Hotel will pay. It will come into force with effect from the 1st July, 2017. - Reply By Ganeshan Kalyani - The Reply = Goods on which reverse charge applies- Notification No.4/2017 A list of goods on which reverse charge applies is issued by CBEC. When the supply is made by the specified person, then IGST will be payable on reverse charge basis by the recipient of the intra-state supply of such goods. All the provisions of will apply to such recipient. - Reply By Ganeshan Kalyani - The Reply = No ITC for Construction- Notification No. 12/2017 No refund of unutilized ITC will be allowed input tax credit shall be allowed for IGST in construction of a complex, building etc. (works contract). Except in cases where the entire consideration has been received after issuance of completion certificate or after ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its first occupation, whichever is earlier. - Reply By Ganeshan Kalyani - The Reply = Reverse Charge- Notification No. 10/2017 List of services on which reverse charge is applicable is issued. It is the same as issued under CGST Act. - Reply By Ganeshan Kalyani - The Reply = Army Canteens- Notification No. 6 7/2017 In the public interest exempts, the following are exempted from IGST ( also CGST)- The supply of goods by the Canteen Stores Department (CSD) to the Unit Run Canteens or The supply of goods by the CSD/Unit Run Canteens to the authorized customers The CSD can claim a refund of 50% on IGST of all input goods received by it for subsequent supply of such goods to the Unit Run Canteens or to the authorized customers of the CSD. This notification shall come into force with effect from the 1st July, 2017. - Reply By Ganeshan Kalyani - The Reply = Inverted Rate Structure- Tax On Inputs Tax On Outputs- Notification No.5/2017 Refund of unutilised ITC will NOT be allowed, when the ITC is accumulated due to rate of tax on inputs being higher than the rate of tax on the output goods (except nil rated or fully exempted goods) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . High tax on the imported raw materials compels manufacturers to raise price. On the other hand, foreign finished goods have lower tax rate.. In conclusion, manufactured goods by the domestic industry becomes uncompetitive against imported finished goods. List of goods on which this notification applies. - Reply By Ganeshan Kalyani - The Reply = For UIN Diplomats Notification No. 13/2017 This notification specifies the conditions applicable UN or specified international organisations and Foreign diplomats in India - Reply By Ganeshan Kalyani - The Reply = Panchayat services- Notification No. 11/2017 Constitutional services of the Panchayat are not covered under GST. - Reply By Ganeshan Kalyani - The Reply = News on GST Act The entire framework of GST is based on GST Act. It was devised by the GST Council, which is a committee consisting of the Union Finance Minister (Chairperson), the Union Minister of State, the minister in-charge of finance or taxation or any other minister nominated by each State Government. - Reply By Ganeshan Kalyani - The Reply = News on Rule Changes The GST is a constitutional amendment, and any c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hange in the law will also affect the rules therein. Rules for invoicing, rules for penalty, rules defining the point of taxation these are just some of the examples of any rule change in the model law. - Goods and GST Bill passed - Query Started By: - Ganeshan Kalyani Dated:- 3-8-2016 Last Replied Date:- 26-7-2017 Goods and Services Tax - GST - Got 1401 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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