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]

Government has extended the deadline to migrate existing registration (a.k.a GST Enrolment) to 30th April 2017 for all existing registrations to be migrated across state and centre.

[Ganeshan Kalyani]

“The voluntary enrollment process started six months ago and 73 per cent of the businesses have registered. We will be extending time till April 30, for the others to enroll,” Prakash Kumar, CEO, Goods and Services Tax Network said.

[Ganeshan Kalyani]

Draft rules for input tax credit, valuation, transition and composition scheme have been released for public comments and will be taken up for finalization in next GST Council meeting on May 18-19 in Srinagar.

[Ganeshan Kalyani]

Experts believe that since few rules are yet to be finalized by the GST Council in it’s next meeting, 2-3 months is very short period for industry to prepare for GST roll out. Companies need to have their systems, processes ready with revised structural requirements. Revenue Secretary had admitted that outreach to industry would be a tough task.

[Ganeshan Kalyani]

The council will take up on May 18-19 the last big remaining task of fitting individual goods into the four tax slabs already decided.

[Ganeshan Kalyani]

The Govt. wanted to include real estate in GST but the States opposed to including same in first year.

[Ganeshan Kalyani]

Under the GST Regime, the HSN (Harmonised System of Nomenclature) code shall be used for classifying the goods. Taxpayers whose turnover is above ₹ 1.5 crores but below ₹ 5 crores shall use 2-digit code and the taxpayers whose turnover is ₹ 5 crores and above shall use 4-digit code. Taxpayers whose turnover is below ₹ 1.5 crores are not required to mention HSN Code in their invoices.

Services will be classified as per the Services Accounting Code (SAC).

[Ganeshan Kalyani]

The Central Government has issued draft rules for credit, valuation, transition and composition and amended rules relating to registration, invoicing, payment, refunds and returns issued earlier. With this, the Government has issued most of the rules for Goods and Services Tax (GST) regime.

[Ganeshan Kalyani]

In the reply no. 997 Dated: 1-4-2017 to issue id 110747, please read as 30th April 2017.

[Ganeshan Kalyani]

The Rajya Sabha Today (06.04.2017) passed Four Bills viz 1.The Central Goods and Services Tax Bill, 2017, 2.The Integrated Goods and Services Tax Bill, 2017, 3. The Goods and Services Tax (Compensation to States) Bill, 2017 and 4. The Union Territory Goods and Services Tax Bill, 2017.

[Ganeshan Kalyani]

GST New Rules released on 1st April 2017 by Govt. covers Transition, Composition, Valuation, Input Tax Credit, Payment, Refund, Registration & Invoicing in GST regime.

[Ganeshan Kalyani]

With the GST, a product can move from Kashmir to Kanyakumari without fear of double taxation or having to comply with state-by-state tax laws. Producers will find it easier to maintain accounts as it’s all digital, and consumers eventually benefit from lower, uniform prices across the country.

[Ganeshan Kalyani]

The Goods and Services Tax (GST) will replace nearly a dozen central and state levies into a single national sales tax. It will make the movement of goods cheaper and seamless across the country. It would be far simpler than the current system, where a good is taxed multiple times and at different rates.

[Ganeshan Kalyani]

There would be four tax slabs of 5, 12, 18 and 28 per cent, plus a levy on taxes on luxury items like cars, aerated drinks and tobacco products to compensate states for any revenue losses in the first five years.

[Ganeshan Kalyani]

The GST council is yet to decide which goods fall in which slab. The GST rates will remain broadly in line with the existing rates. To keep inflation under check, essential items including food, which presently constitute roughly half of the consumer inflation basket, will be taxed at zero rate.

[Ganeshan Kalyani]

With the implementation of GST, consumers will not be subjected to double taxation. All taxes that are levied while purchasing good will include both the central government’s taxes as well as the state government’s taxes.

[Ganeshan Kalyani]

Companies will have to overhaul their accounting systems, which may involve one-time investment costs.

[Ganeshan Kalyani]

The government has trained 49,000 officers of the states and the Centre.

[Ganeshan Kalyani]

GST Network (GSTN)-GST's IT infrastructure arm-and CBEC together will now conduct trainings so that businesses know how to file their returns.

[Ganeshan Kalyani]

Logistics companies stand to gain as it becomes easier to ferry goods across India. Other sectors largely depend on the fine print of the GST, including exemptions.

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.