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]

The industry continues to await clarity with respect to the mechanism of implementing anti-profiteering provisions and e-way bills. Further, few other aspects such as treatment of transactions between J&K and other states and refund of CGST paid in case of goods manufactured in excise free zones await clarification as well.

 

[Ganeshan Kalyani]

The industry now has a week's time to make any further representations on GST rates as the next council meeting will be held on 18 June.

[Ganeshan Kalyani]

Overall, the decisions taken by the council meeting are positive and demonstrate a constructive dialogue with the Government, which should be a key feature of any reform. The Government has kept the window for such dialogues open by forming sectoral groups to resolve various industry-specific issues and provide guidance.

[Ganeshan Kalyani]

Traders, manufacturers and restaurants with a turnover of up to ₹ 75 lakh can avail the composition scheme, against ₹ 50 lakh earlier.

[Ganeshan Kalyani]

Next meeting of GST Council will be held on June 18 where the GST rates on lottery taxes and e-way bills will be decided.

[Ganeshan Kalyani]

Twenty Four (24) States have passed the State GST (SGST) Act till yesterday i.e. 5th June, 2017 while 7 States viz. Meghalaya, Punjab,Tamil Nadu, Kerala, Karnataka, Jammu & Kashmir and West Bengal have yet to pass the State GST (SGST) Act.

[Ganeshan Kalyani]

List of States that have passed the SGST Bill:
1. Telangana
2. Bihar
3. Rajasthan
4. Jharkhand
5. Chhattisgarh
6. Uttarakhand
7. Madhya Pradesh
8. Haryana
9. Goa
10. Gujarat
11. Assam
12. Arunachal Pradesh
13. Andhra Pradesh
14. Uttar Pradesh
15. Puducherry
16. Odisha
17. Maharashtra
18. Tripura
19. Sikkim
20. Mizoram
21. Nagaland
22. Himachal Pradesh
23. Delhi
24. Manipur

[Ganeshan Kalyani]

States are enthusiastically taking initiative in passing SGST Bill. PM Modi took stock of GST preparedness and was informed that GST systems such as IT infrastructure, training of officials, integration with banks, and enrolment of existing taxpayers will be in readiness well in time for the July 1 implementation date.

[Ganeshan Kalyani]

The Central Board of Excise & Customs is being renamed as the Central Board of Indirect Taxes & Customs (CBIC), after getting legislative approval. The proposed CBIC shall, inter alia, supervise the work of all its field formations and Directorates and assist the Government in policy making in relation to GST, continuing Central Excise levy & Customs functions.

[Ganeshan Kalyani]

The CBIC will have 21 Zones, 101 GST Tax payer Services Commissionerates comprising 15 sub-Commissionerates, 768 Divisions, 3969 Ranges, 49 Audit Commissionerates and 50 Appeals Commissionerates. This will ensure rendering of taxpayer services to all the taxpayers through an indirect tax administration structure, having pan-India presence.

[Ganeshan Kalyani]

Revenue secretary Dr. Hasmukh Adhia has cleared the rumors spreading through social networking apps and sites on delay in GST roll out. Through a tweet, Dr. Adhia said “The rumours about GST implementation being delayed are false. Please do not be misled by it.”

[Ganeshan Kalyani]

After the end of the seventeenth meeting of the GST Council, the Government has categorically reiterated the introduction of GST from 01 July.

[Ganeshan Kalyani]

Considering the preparedness of the Industry, the GST Council has relaxed the return filing timelines for the first two months after the introduction of GST.

[Ganeshan Kalyani]

The GST Council also finalised five sets of rules (except e-way bills) and the rate of tax on lottery, in addition to amending the rate of tax for the hospitality industry

[Ganeshan Kalyani]

The decision on the E way bills has been deferred and in the interim period, the States are allowed to follow the existing way bills provisions.

[Ganeshan Kalyani]

The new registrations under GST would start from 25 June.

[Ganeshan Kalyani]

The Government also clarified that the provisional GST Number allotted to the taxpayers would be the final GST Number and this would not change.

[Ganeshan Kalyani]

Details of relaxed return filing procedure under GST (Applies for July and August 2017)

[Ganeshan Kalyani]

The official date of introduction date of GST has been notified as 1.7.2017 - Goods and Services Tax

[Ganeshan Kalyani]

Welcome GST

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.