Goods and GST Bill passed

[Ganeshan Kalyani]

Dear All,

GST Bill is passed in Rajya Sabha on 03. 08.2016.

A panel under chief economic adviser Arvind Subramanian has recommended a revenue-neutral rate of 15-15.5%, with a standard rate of 17-18% be levied on most goods and all services.

But, there has been no agreement yet on rates of various goods and services, which remains a tricky issue. According to the Bill, passed in the Lok Sabha in May 2015, the rates were to be decided by a GST council headed by the central finance minister with state finance ministers as members.

Let us wait.

Thanks.

[Ganeshan Kalyani]

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.)

[Ganeshan Kalyani]

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.

[Ganeshan Kalyani]

Existing tax payers shall get registration 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.

[Ganeshan Kalyani]

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.

[Ganeshan Kalyani]

Taxable person specified in schedule III is liable to register under GST irrespective of threshold exemption.

[Ganeshan Kalyani]

Reverse charge is applicable on goods and services under GST unlike in current tax regime where only service is taxed under reverse charge basis.

[Ganeshan Kalyani]

There is no threshold limit prescribed for reverse charge under GST. Also no threshold limit provision is applicable in case of interstate transaction.

[Ganeshan Kalyani]

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.

[Ganeshan Kalyani]

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 dealer 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

[Ganeshan Kalyani]

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. )

[Ganeshan Kalyani]

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.

[Ganeshan Kalyani]

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 transaction. 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.

[Ganeshan Kalyani]

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.

[Ganeshan Kalyani]

The Winter session of the Parliament is be begin from November 16, 2016.

[Ganeshan Kalyani]

GSTN is going to launch website to facilitate existing registration to get migrated into GST.

[Ganeshan Kalyani]

There is no threshold limit for input service distributor to get registration under GST.

[Ganeshan Kalyani]

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, form F , H, I, EI, EII etc is going to be abolished. The objective is pay tax and take credit. No concession.

[Ganeshan Kalyani]

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.

[Ganeshan Kalyani]

Chhattisgarh & PUDUCHERRY TO BE FRONT RUNNERS IN ISSUING GST NUMBERS TO BUSINESSMEN

[Ganeshan Kalyani]

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

AI Summary

Goods and Services Tax consolidation creates a dual GST framework with GST Council oversight and a shared IT platform for compliance.
Goods and Services Tax establishes a destination based, dual tax framework subsuming central and state indirect levies, administered through a GST Council and implemented via a shared IT platform (GSTN). The model law sets out registration and return regimes, HSN/SAC classification by turnover bands, input tax credit carry forward, composition and reverse charge rules, refund and valuation procedures, compensation to states during transition, and institutional arrangements for cross empowerment, adjudication and dispute resolution.