Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Home Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles News Highlights
Extracts
Home List
← Previous Next →

CONCEPT & STATUS (Updated as on 01st September 2017)

Goods and Services Tax - GST - Dated:- 9-9-2017 - INTRODUCTION: The introduction of Goods and Services Tax on the 1st of July 2017 was a very significant step in the field of indirect tax reforms in India. By amalgamating a large number of Central and State taxes into a single tax, the aim was to mitigate cascading or double taxation in a major way and pave the way for a common national market. From the consumer point of view, the biggest advantage would be in terms of a reduction in the overall .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

it was proposed that GST would be introduced from 1stApril, 2010. The Empowered Committee of State Finance Ministers (EC) which had formulated the design of State VAT was requested to come up with a roadmap and structure for the GST. Joint Working Groups of officials having representatives of the States as well as the Centre were set up to examine various aspects of the GST and draw up reports specifically on exemptions and thresholds, taxation of services and taxation of inter-State supplies. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

levy tax on the manufacture of goods (except alcoholic liquor for human consumption, opium, narcotics etc.) while the States have the powers to levy tax on sale of goods. In case of inter-State sales, the Centre has the power to levy a tax (the Central Sales Tax) but, the tax is collected and retained entirely by the originating States. As for services, it is the Centre alone that is empowered to levy service tax. Since the States are not empowered to levy any tax on the sale or purchase of goo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t the GST. The assignment of concurrent jurisdiction to the Centre and the States for the levy of GST would require a unique institutional mechanism that would ensure that decisions about the structure, design and operation of GST are taken jointly by the two. For it to be effective, such a mechanism also needs to have Constitutional force. CONSTITUTION (ONE HUNDRED AND FIRST) AMENDMENT ACT, 2016: 4. To address all these and other issues, the Constitution (122nd Amendment) Bill was introduced in .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

commerce (including imports) in goods or services. The Central Government will have the power to levy excise duty in addition to the GST on tobacco and tobacco products. The tax on supply of five specified petroleum products namely crude, high speed diesel, petrol, ATF and natural gas would be levied from a later date on the recommendation of GST Council. 5. A Goods and Services Tax Council (GSTC) was constituted comprising the Union Finance Minister, the Minister of State (Revenue) and the Sta .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

for majority because Centre would have one-third weightage of the total votes cast and all the States taken together would have two-third of weightage of the total votes cast. 6. The Constitution Amendment Bill was passed by the Lok Sabha in May, 2015. The Bill was referred to the Select Committee of Rajya Sabha on 12.05.2015. The Select Committee had submitted its Report on the Bill on 22.07.2015. The Bill with certain amendments was finally passed in the Rajya Sabha and thereafter by Lok Sabha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

i. The threshold exemption limit would be ₹ 20 lakh. For special category States (except J&K) enumerated in article 279A of the Constitution, threshold exemption limit has been fixed at ₹ 10 lakh. ii. Composition threshold shall be ₹ 75 lakh. Composition scheme shall not be available to inter-State suppliers, service providers (except restaurant service) and specified category of manufacturers. For special category States (except J&K and Uttarakhand) enumerated in artic .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

vices have been finalized and notified. Besides, some goods and services would be under the list of exempt items. The exempted services has been finalized which is same as the services exempted under existing service tax law, except services supplied by Goods and Services Tax Network which is the addition to the list of exempted services under service tax. Rate for precious metals is an exception to four-tax slab-rule and the same has been fixed at 3%. A cess over the peak rate of 28% on certain .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

strative control over 90% of taxpayers having turnover below ₹ 1.5 crore would vest with State tax administration and over 10% with the Central tax administration. Further all administrative control over taxpayers having turnover above ₹ 1.5 crore shall be divided equally in the ratio of 50% each for the Central and State tax administration. vii. Powers under the IGST Act shall also be cross-empowered on the same basis as under CGST and SGST Acts with few exceptions. viii. Power to c .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

recommended and notified. xi. www.gst.gov.in, managed by GSTN, shall be the Common Goods and Services Tax Electronic Portal. xii. Rate of interest on delayed payments and delayed refund has been recommended and notified. xiii. The rules for the National Anti-Profiteering Authority have been recommended by the GST Council, and a selection committee under the Chairmanship of Cabinet Secretary for identification of eligible person for appointment of Chairmen and Members of National Anti-Profiteeri .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

g it on a common base. The GST to be levied by the Centre would be called Central GST (central tax- CGST) and that to be levied by the States [including Union territories with legislature] would be called State GST (state tax- SGST). Union territories without legislature would levy Union territory GST (union territory tax- UTGST). (iv) An Integrated GST (integrated tax- IGST) would be levied on inter-State supply (including stock transfers) of goods or services. This would be collected by the Ce .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

y the Centre: a) Central Excise Duty; b) Duties of Excise (Medicinal and Toilet Preparations); c) Additional Duties of Excise (Goods of Special Importance); d) Additional Duties of Excise (Textiles and Textile Products); e) Additional Duties of Customs (commonly known as CVD); f) Special Additional Duty of Customs (SAD); g) Service Tax; h) Cesses and surcharges insofar as they relate to supply of goods or services. (ix) State taxes that would be subsumed within the GST are: a) State VAT; b) Cent .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

date to be recommended by the GSTC. (xii) Tobacco and tobacco products would be subject to GST. In addition, the Centre would continue to levy Central Excise duty. (xiii) A common threshold exemption would apply to both CGST and SGST. Taxpayers with an annual turnover of ₹ 20 lakh (Rs. 10 lakh for special category States (except J&K) as specified in article 279A of the Constitution) would be exempt from GST. A compounding option (i.e. to pay tax at a flat rate without credits) would be .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

well as across States as far as possible. (xv) All Exports and supplies to SEZs and SEZ units would be zero-rated. (xvi) Credit of CGST paid on inputs may be used only for paying CGST on the output and the credit of SGST/UTGST paid on inputs may be used only for paying SGST/UTGST. In other words, the two streams of input tax credit (ITC) cannot be cross utilized, except in specified circumstances of inter-State supplies for payment of IGST. The credit would be permitted to be utilized in the fo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ment of IGST is transferred by the originating State to the Centre. Similarly the IGST used for payment of SGST would be transferred by Centre to the destination State. Further the SGST portion of IGST collected on B2C supplies would also be transferred by Centre to the destination State. The transfer of funds would be carried out on the basis of information contained in the returns filed by the taxpayers. (xviii) Input Tax Credit (ITC) to be broad based by making it available in respect of taxe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

vernment agencies, who are recipients of supply, to deduct tax at the rate of 1% from the payment made or credited to the supplier where total value of supply, under a contract, exceeds two lakh and fifty thousand rupees. The provision for TDS has not been notified yet. (xxii) Refund of tax to be sought by taxpayer or by any other person who has borne the incidence of tax within two years from the relevant date. (xxiii) Obligation on electronic commerce operators to collect tax at source , at su .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

or from the date of erroneous refund for raising demand for short-payment or non-payment of tax or erroneous refund and its adjudication in normal cases. (xxvii) Limitation period for raising demand is five (5) years from the due date of filing of annual return or from the date of erroneous refund for raising demand for short-payment or non-payment of tax or erroneous refund and its adjudication in case of fraud, suppression or willful mis-statement. (xxviii) Arrears of tax to be recovered using .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

(xxxi) Advance Ruling Authority would be constituted by States in order to enable the taxpayer to seek a binding clarity on taxation matters from the department. Centre would adopt such authority under CGST Act. (xxxii) An anti-profiteering clause has been provided in order to ensure that business passes on the benefit of reduced tax incidence on goods or services or both to the consumers. (xxxiii) Elaborate transitional provisions have been provided for smooth transition of existing taxpayers t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

to substantive economic growth; (v) Ultimately it will help in poverty eradication by generating more employment and more financial resources; (vi) More efficient neutralization of taxes especially for exports thereby making our products more competitive in the international market and give boost to Indian Exports; (vii) Improve the overall investment climate in the country which will naturally benefit the development in the states; (viii) Uniform SGST and IGST rates will reduce the incentive f .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

are at present governing our indirect tax system leading to simplification and uniformity; (iii) Reduction in compliance costs - No multiple record keeping for a variety of taxes- so lesser investment of resources and manpower in maintaining records; (iv) Simplified and automated procedures for various processes such as registration, returns, refunds, tax payments, etc; (v) All interaction to be through the common GSTN portal- so less public interface between the taxpayer and the tax administra .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ronic matching of input tax credits all-across India thus making the process more transparent and accountable. (C) Benefit to Consumers: (i) Final price of goods is expected to be lower due to seamless flow of input tax credit between the manufacturer, retailer and supplier of services; (ii) It is expected that a relatively large segment of small retailers will be either exempted from tax or will suffer very low tax rates under a compounding scheme- purchases from such entities will cost less fo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

be developing back-end IT modules for 27 States who have opted for the same. The migration of existing taxpayers has already started from November, 2016. The Revenue department of both Centre and States are pursuing the presently registered taxpayers to complete the necessary formalities on the IT system operated by GSTN for successful migration. 10. GSTN has selected more than 34 IT, ITeS and financial technology companies, to be called GST Suvidha Providers (GSPs). GSPs would develop applicati .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e Central Government also subsequently extended the CGST Act to J&K. 12. On 22nd June 2017, the first Notification was issued for GST and notified certain sections under CGST. Since than, 28 notifications under CGST Act have been issued notifying sections, notifying rules, amendment to rules and for waiver of penalty, etc. Six, three and one notifications have also been issued under IGST Act, UTGST Act and GST (Compensation to States) Act respectively. Further 23 rate related notifications e .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

and IGST law, which will be exclusive domain of the Centre. This apart, the CBEC has prepared itself for meeting the implementation challenges, which are quite formidable. The number of taxpayers is likely to go up significantly. The existing IT infrastructure of CBEC has been suitably scaled up to handle such large volumes of data. Based on the legal provisions and procedure for GST, the content of work-flow software such as ACES (Automated Central Excise & Service Tax) would require re-en .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e taxpayers base in GST scattered across the length and breadth of the country. Capacity building, particularly in the field of Accountancy and Information Technology for the departmental officers has to be taken up in a big way. A massive four-tier training programme has been conducted under the leadership of NACEN. This training project is aimed at imparting training on GST law and procedures to more than 60,000 officers of CBEC and Commercial Tax officers of State Governments. Officers of the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

GST and IGST law. In addition, excise duty regime would continue to be administered by the CBEC for levy and collection of central excise duty on five specified petroleum products as well as on tobacco products. CBEC would also continue to handle the work relating to levy and collection of customs duties. 19. Director General of Safeguards, CBEC has been mandated to conduct detailed enquiry on anti-profiteering cases and should give his recommendation for consideration of the National Anti-profi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ural formalities to migrate to the GSTN. The number of new taxpayers who have registered with the GSTN is 18.83 lakhs. 22. The last date for payment of GST for the month of July 2017 was 25th August, 2017. The last date for filing returns in cases, where the taxpayer wanted to avail transitional credit was 28th August, 2017 and, in all other cases, it was 25th August, 2017. 23. If we exclude the taxpayers who have registered with the GSTN in August 2017 and the composition dealers, total number .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Forum
what is new what is new
  ↓     bird's eye view     ↓  


|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version