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.

[YAGAY and SUN]

Amazon India brings out ‘A-Z GST Guide’ programme

The ‘A-Z GST Guide’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.

[YAGAY and SUN]

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.

[YAGAY and SUN]

Maharashtra govt gears up for GST, seeks VAT dues

[YAGAY and SUN]

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

[YAGAY and SUN]

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the following four GST related bills:

1. The Central Goods and Services 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 account 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.

[YAGAY and SUN]

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.

[YAGAY and SUN]

GST impact on inflation to be less than 20 bps: Nomura

[YAGAY and SUN]

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

[YAGAY and SUN]

Protect tobacco farmers' interest in GST laws: FAIFA

[YAGAY and SUN]

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

[YAGAY and SUN]

I want entire country to discuss, understand GST, says Narendra Modi

[Ganeshan Kalyani]

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.

[Ganeshan Kalyani]

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.

[Ganeshan Kalyani]

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.

[Ganeshan Kalyani]

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.

[Ganeshan Kalyani]

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.

[Ganeshan Kalyani]

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.

[Ganeshan Kalyani]

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 the requirements of the impending GST regime, which is a destination based tax.

[Ganeshan Kalyani]

“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.

[Ganeshan Kalyani]

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.

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.