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]

In addition, new clauses are proposed to be incorporated in the Customs Act to provide for furnishing of information on import and export of goods to detect under or over-valuation and misuse of export promotion schemes.

[Ganeshan Kalyani]

GST 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]

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]

Existing tax payers are required to enroll on GST portal for registration migration under GST. For the first time login, you need to provide username and password that you received from the State VAT/Centre Tax Department. This username is a provisional ID.

[Ganeshan Kalyani]

A 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]

Over time, it is expected that 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.

[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.”

[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]

Godrej Group chairman Adi Godrej on Saturday hailed demonetisation and the proposed GST bill, stating that believers in India's strong future outstripped its doubters.

[Ganeshan Kalyani]

Demonetisation helped checking black money, ensuring mid- and long-term growth while the GST, which would be implemented from July, would help achieve positive economic growth of the country, Godrej said.

[Ganeshan Kalyani]

Right policy and decision of the government was shaping the reform in right direction and enhancing growth rate, said Godrej while speaking at the 61st Convocation of leading B-School XLRI School of Management.

[Ganeshan Kalyani]

Godrej, who was bestowed with Sir Jehangir Ghandy Medal for Social and Industrial Peace on the occasion, expressed confidence that the country would overtake US economy between 2030-40 and China by 2050 to emerge as economic super power of the world.

[Ganeshan Kalyani]

"I have always been and continued to be very optimistic about India's future especially with the election of a development-oriented government," Godrej said adding that now the number of believers in India's strong future outstripped that of doubters.

[Ganeshan Kalyani]

Godrej said that his confidence of bright future of India came from his belief in the country's demography, democracy and reform and growth-oriented mindset.

[Ganeshan Kalyani]

India, which has retained top spot on global consumer confidence index with 133 points in 2016, have been able to mitigate some of the negative consequences of global financial turmoil due to its large consumer market, Godrej said.

[Ganeshan Kalyani]

Turnover of less than INR. 15 million - 90% of businesses would be administered by States, and the balance 10% by Central Government.

[Ganeshan Kalyani]

The mechanism for split of the assessees would be based on the risk parameters/ profiles of the users .

[Ganeshan Kalyani]

In case of complex or contentious issues involved with respect to services (such as place of supply etc), assessment of the same may be undertaken by the Central Government.

[Ganeshan Kalyani]

States would have the power to levy taxes within 12 nautical miles under GST.

[Ganeshan Kalyani]

GST is now expected to be rolled out by 1 July 2017 (as opposed to the earlier date of 1 April 2017).

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.