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]

Apart from maintaining accounting and tax invoice registers, entities will also have to record the complete address of premises where goods are stored, including goods in transit. If the goods are found to be stored elsewhere than the declared place, a tax would be payable as if they were supplied by the same entity.

[Ganeshan Kalyani]

“Considering the government’s stated intention of introduction of GST with effect from 01 July 2017, it would be a very difficult task for the industry to make changes in the IT systems to adhere to the record-keeping requirements,” said PwC India’s tax and regulatory services team in a note on the draft rules.

[Ganeshan Kalyani]

The rollout of the GST Bill will be a collective effort of the Central and State Governments, the tax payers and the IT platform provider i.e. GSTN, CBEC and State Tax Departments. Besides these main participants there are going to be other stakeholders e.g. Central and States tax authorities, RBI, the Banks, the tax professionals (tax return preparers, Chartered Accountants, Tax Advocates, STPs etc.), financial services providing companies like ERP companies and Tax Accounting Software Providers etc.

[KASTURI SETHI]

Latest news is that Govt. is firm to implement GST from 1.7.17 despite hurdles with determination to remove the hurdles. Let us see what happens.

[Girish D]

Dear All,

Any views on continuing of upfront duty exemptions under the export promotion schemes, such as EOU, STP, EHTP, EPCG, Advance Authorisation etc., under the GST regime?

[Ganeshan Kalyani]

Item wise GST rate is declared yesterday in the 14th GST Council meeting held at Srinagar.

[Ganeshan Kalyani]

[Ganeshan Kalyani]

http://www.cbec.gov.in/resources//htdocs-cbec/gst/chapter-wise-rate-wise-gst-schedule-18.05.2017.pdf

[Ganeshan Kalyani]

After the GST rollout, Entry level cars and two wheelers, paint and cement, electrical items and consumer durables are expected to get cheaper. Also movie tickets with entertainment tax expected to come down.

[Ganeshan Kalyani]

Cigarettes, branded jewellery and other high-end goods, rail, bus and flight tickets and mobile phone calls are expected to be costlier in the GST regime. Service

Dear all experts,

I need your help on the following points

1. I we fail to make payment to supplier within 180 days from date of invoice, credit has to be reversed. can we take credit once we complete the payment?.

2. GST is payable on advance if any received from customer. In that case, advance tax paid to be adjusted at the time of supply of goods and details to be reflected on invoice. is it correct?

Regards

Arunachalam

[Ganeshan Kalyani]

1) yes once you make the payment to the supplier you are eligible to the credit which was reversed.

2) yes the tax paid on the advance amount received can be adjusted against the tax payable on the actual supply.

Thanks

[JAIPRAKASH RUIA]

Dear Sir,

for point No. 2, there may be two scenario.

a) GST liability is paid by supplier on advance received from customer and at the time of supply, supplier raise the invoice by charging the GST reduced by what has been discharged on advance payment by mentioning the same in invoice.

b) GST liability is paid by supplier on advance received from customer and at the time of supply, supplier raise the invoice by charging full GST as applicable and at the time of payment, pay the GST by taking credit of GST paid on advance against the said supply. That means whether what we say " will be adjusted for payment against supply " will

be treated as taking the credit of GST paid on Advance received. In that case whether the input tax credit section/rule empower the supplier to take credit/adjust the GST on advance paid.

[Ganeshan Kalyani]

Declaration of valid GSTIN in Customs documents (BE/SB) would be mandatory w.e.f. 0000 hrs of 01-07-2017, the likely implementation date of GST, to avail IGST credit on Imports or GST refund on exports. The declared GSTIN would be validated for correct IEC/ PAN linkage.

[Ganeshan Kalyani]

During GSTIN registration, ensure declaration of correct IEC and the same PAN [earlier registered with DGFT for getting IEC]. In case of any difference in PAN declared for GSTIN vis-à-vis the PAN declared for IEC registration, amendment of PAN in IEC may be undertaken immediately.

All concerned may make use of the special drive by GSTN from 01-06-2017 to 15-06-2017 for updation of IEC in GSTIN.

[Ganeshan Kalyani]

"India’s GST is the most complex of all the countries which have implemented GST," chairman of the GSTN Navin Kumar told Bloomberg, noting that work on the system began two years ago when the only available guidance available was draft laws. "Despite not having all the input, we have been working on it and we will be ready by July."

[Ganeshan Kalyani]

The GST Network, the company providing IT backbone for GST rollout, has received as many as 160 applications from firms that have evinced interest in acting as GST Suvidha Providers.

[Ganeshan Kalyani]

The GSTN in December last year had named 34 firms, including Tata Consultancy Services, Deloitte Touche, EY and Tally Solutions, to act as GST Suvidha Providers (GSPs).

[Ganeshan Kalyani]

The fitment of rates of goods were discussed during the 14th GST Council meeting held at Srinagar, Jammu & Kashmir. The Council had broadly approved the GST rates for goods at nil rate, 5%, 12%, 18% and 28% to be levied on certain goods. The information was also being uploaded immediately after the GST Council’s decision and it will be subject to further vetting during which the list may undergo some changes.

[Ganeshan Kalyani]

With few weeks to go before the nationwide goods and services tax (GST) is implemented, Indian companies are rushing to bring in experts to help prepare the accounting and information technology systems for the tax-system overhaul. That’s created a windfall for international professional services firms, including PricewaterhouseCoopers LLP and KPMG LLP.

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.