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]

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

[Ganeshan Kalyani]

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.

[Ganeshan Kalyani]

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.

[Ganeshan Kalyani]

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. 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.

[Ganeshan Kalyani]

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.

[Ganeshan Kalyani]

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

[Ganeshan Kalyani]

Many big retail chains give contracts to farmers for growing certain 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.

[Ganeshan Kalyani]

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.

[Ganeshan Kalyani]

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.

[Ganeshan Kalyani]

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 product, both the states and the Centre will get 9 percent each called the CGST and SGST rates.

[Ganeshan Kalyani]

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.

[YAGAY and SUN]

Finally, GST is coming in July: A primer on India's biggest tax reform

[YAGAY and SUN]

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.

[YAGAY and SUN]

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.

[YAGAY and SUN]

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 pointed out on Friday.

[YAGAY and SUN]

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.

[YAGAY and SUN]

Improvements in GST feasible as we move along, says Partho Shome

[Ganeshan Kalyani]

GST Council's next meeting is fixed on March 31.

[YAGAY and SUN]

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."

[YAGAY and SUN]

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.

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.