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]

GST is not just change in tax rate or type of tax. It entails huge change in pricing, valuation, processes – procurement and supply including supply chain. It also impacts the IT system of a company, from invoicing formats to generating input and output reports.

[Ganeshan Kalyani]

Under Goods and Services Tax (GST) regime, every taxpayer would be assigned a compliance rating based on the compliance record of the assessee. As per Section 149 of the CGST Bill passed by Parliament, “Every registered person may be assigned a goods and services tax compliance rating score by the Government based on his record of compliance with the provisions of this Act.”

[Ganeshan Kalyani]

While, the GST law does not prescribe the parameters for compliance rating as yet, Prakash Kumar, chief executive of GSTN throws some light on it. He said “Regularity in uploading the invoices, filing of returns and taxes will be the main criterion for rating the taxpayers. The ratings will be updated at periodic intervals and also will be put up in the public domain,”.

The rating would be made publicly available on the GST Network (GSTN) website as tax authorities intend to build peer pressure among companies to ensure compliance. This rating score will be updated at periodic intervals.

[Ganeshan Kalyani]

GSTN is getting ready to take load of more than 3 billion invoices a month from an estimated 8 million taxpayers.

[Ganeshan Kalyani]

While, the GST law does not prescribe the parameters as yet, Prakash Kumar, chief executive of GSTN throws some light on it. He said “Regularity in uploading the invoices, filing of returns and taxes will be the main criterion for rating the taxpayers. The ratings will be updated at periodic intervals and also will be put up in the public domain,”.

The rating would be made publicly available on the GST Network (GSTN) website as tax authorities intend to build peer pressure among companies to ensure compliance. This rating score will be updated at periodic intervals.

[Ganeshan Kalyani]

With the assent of Hon'ble President of India, to four supporting legislations of on GST i.e. CGST, IGST, UTGST and Compensation Cess after getting it passed from by both the houses of parliament the way of rollout of GST from 1st July, 2017 seems possible.

[KASTURI SETHI]

Yes, Sir. It seems possible. Still we are to use the terms of "possible".

[Ganeshan Kalyani]

Every registered person who causes movement of goods of consignment value exceeding Rs. 50000.00 - (i) in relation to a supply; or (ii) for reasons other than supply; or (iii) due to inward supply from an unregistered person, shall, before commencement of movement, furnish information relating to the said goods in Part A of FORM GST INS-01, electronically, on the common portal and (a) where the goods are transported by the registered person as a consignor or the recipient of supply as the consignee, whether in his own conveyance or a hired one, the said person or the recipient may generate the e-way bill in FORM GST INS-1 electronically on the common portal after furnishing information in Part B of FORM GST INS-01; or (b) where the e-way bill is not generated under clause (a) and the goods are handed over to a transporter, the registered person shall furnish the information relating to the transporter in Part B of FORM GST INS-01 on the common portal and the e-way bill shall be generated by the transporter on the said portal on the basis of the information furnished by the registered person in Part A of FORM GST INS-01: Provided that the registered person or, as the case may be, the transporter may, at his option, generate and carry the e-way bill even if the value of the consignment is less than fifty thousand rupees. Provided further that where the movement is caused by an unregistered person either in his own conveyance or a hired one or through a transporter, he or the transporter may, at their option, generate the e-way bill in FORM GST INS-01 on the common portal in the manner prescribed in this rule.

[Ganeshan Kalyani]

The Commissioner or an officer empowered by him in this behalf may authorise the proper officer to intercept any conveyance to verify the e-way bill or the e-way bill number in physical form for all inter-State and intra-State movement of goods.

[Ganeshan Kalyani]

Where a vehicle has been intercepted and detained for a period exceeding thirty minutes, the transporter may upload the said information in FORM GST INS- 04 on the common portal.

[Ganeshan Kalyani]

The facility of generation and cancellation of e-way bill may also be made available through SMS.

[Ganeshan Kalyani]

UNDER GST RULE - ELECTRONIC WAY BILL MANDATORY FOR CONSIGNMENTS ABOVE ₹ 50,000.00 W.E.F. 01.07.2017.

[Ganeshan Kalyani]

CBEC releases draft rules on Accounts and Records, Appeals and Revision and Advance Ruling under GST.

The Government has invited comments on these drafts rules from the stakeholders by 27^th April, 2017.

[Ganeshan Kalyani]

Every registered person who causes movement of goods of consignment value exceeding Rs. 50,000/-

(i) in relation to a supply; or

(ii) for reasons other than supply; or

(iii) due to inward supply from an unregistered person,

shall, before commencement of movement, furnish information relating to the said goods in Part A of FORM GST INS-01, electronically, on the common portal.

[Ganeshan Kalyani]

Where the goods are transported by the registered person as a consignor or the recipient of supply as the consignee, whether in his own conveyance or a hired one, the said person or the recipient may generate the e-way bill in FORM GST INS-1 electronically on the common portal after furnishing information in Part B of FORM GST INS-01.

[Ganeshan Kalyani]

Where the e-way bill is not generated under clause (a) and the goods are handed over to a transporter, the registered person shall furnish the information relating to the transporter in Part B of FORM GST INS-01 on the common portal and the e-way bill shall be generated by the transporter on the said portal on the basis of the information furnished by the registered person in Part A of FORM GST INS-01.

[Ganeshan Kalyani]

Where the movement is caused by an unregistered person either in his own conveyance or a hired one or through a transporter, he or the transporter may, at their option, generate the e-way bill in FORM GST INS-01 on the common portal in the manner prescribed in this rule.

[Ganeshan Kalyani]

Any transporter transferring goods from one conveyance to another in the course of transit shall, before such transfer and further movement of goods, generate a new e-way bill on the common portal in FORM GST INS-01 specifying therein the mode of transport.

[Ganeshan Kalyani]

Where multiple consignments are intended to be transported in one conveyance, the transporter shall indicate the serial number of e-way bills generated in respect of each such consignment electronically on the common portal and a consolidated e-way bill in FORM GST INS-02 shall be generated by him on the common portal prior to the movement of goods:

[Ganeshan Kalyani]

Where an e-way bill has been generated under this rule, but goods are either not being transported or are not being transported as per the details furnished in the e-way bill, the e-way bill may be cancelled electronically on the common portal, either directly or through a Facilitation Centre notified by the Commissioner, within 24 hours of generation of the e-way bill.

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.