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]

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.

[Ganeshan Kalyani]

The groups cover banking, telecom, exports, information technology, transport, textiles, MSMEs, gems and jewellery and services received and provided by the government.

[Ganeshan Kalyani]

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.

[Ganeshan Kalyani]

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."

[Ganeshan Kalyani]

Commerce and Industry minister Nirmala Sitharaman said Amercian 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.

[Ganeshan Kalyani]

The government has not accepted most of the demands of the iPhone maker, Commerce and Industry minister Nirmala Sitharaman said.

[Ganeshan Kalyani]

The American tech giant has sought various concessions on taxation and import of components for setting up the Apple manufacturing unit.

[Ganeshan Kalyani]

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.

[Ganeshan Kalyani]

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.

[YAGAY and SUN]

• GST- Chemical industry will grow to $226b by 2020: Sitharaman.

[YAGAY and SUN]

• If GST tax is capped at 18-20%, it will benefit chemicals industry: Ajay Durrani.

[YAGAY and SUN]

• Indirect tax wing rejigged ahead of GST launch.

[YAGAY and SUN]

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.

[YAGAY and SUN]

GST: CST compensation to States: Centre to release ₹ 5834 Crore before Mar 31st.

[YAGAY and SUN]

• Companies, consultants grope in the dark to meet GST deadline.

[YAGAY and SUN]

• GST Council meet: No e-wallets for exporters, but tax refunds in 7 days.

[YAGAY and SUN]

• Last gasp tasks: GST bills and rate fitment process.

[YAGAY and SUN]

• GST Network gearing up to handle more than 3600 Crore invoices annually.

[YAGAY and SUN]

Govt may table GST Bills in Parliament on Monday

[YAGAY and SUN]

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.

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.