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.

[YAGAY and SUN]

Life insurers want exemption from GST; general differential rates.

[YAGAY and SUN]

If GST tax is capped at 18-20%, it will benefit chemicals industry: Ajay Durrani

[YAGAY and SUN]

Indian Textile Industries gearing up for GST, new tax system

[YAGAY and SUN]

GST will change the way India does business

[YAGAY and SUN]

GST reform will also give a boost to the chemical industry by lowering the transaction cost and avoiding cascading effect on taxes

[Ganeshan Kalyani]

Seafood should be treated as agricultural produce and should be exempted. Said an associate of marine product expert's association.

[Ganeshan Kalyani]

The authority has been doing detailed analysis of impact of GST in marine industry

[Ganeshan Kalyani]

Senior IAS officer Arun Goyal has been appointed as Additional Secretary in the goods and service tax council.

[Ganeshan Kalyani]

Congress Chief ministers and finance minister are expected to press for an 18%GST cap at the meeting of 3 days gst council beginning Oct 17, and stress that a higher rate would burden the commons man.

[Ganeshan Kalyani]

Congress rationale is that higher rate will burden the common man and will defeat the very purpose of GST to create a common market and reduce the burden of both producer and consumer.

[Ganeshan Kalyani]

The state authorities would have jurisdictions over assesses having turnover of less than 1.5 crore

[Ganeshan Kalyani]

Countries with booming exports such as Singapore, Malaysia and Australia have introduced mechanism in GST to neutralise the input tax.

[Ganeshan Kalyani]

The South Indian film chamber of commerce will make a representation to the union finance on how GST would adversely affect the film industry . The film chamber has taken the opinion of thr consultant on te issue. And will present before the union finance soon.

[Ganeshan Kalyani]

In AP and Telangana the the entertainment tax is 24%. If GST is introduced nonloca films will be benefited as the GST Will be less than the entertainment slab now.

[Ganeshan Kalyani]

HSN (Harmonised System of Nomenclature) is an internationally accepted product coding system formulated under General Agreement on Tariffs and Trade (GATT).

In India, currently, adapted HSN coding is currently used under Excise and Customs for classification of products. It is necessary to determine correct applicable rate (including exemptions, if any).

Under GST, government shall continue the concept of classification based on HSN but a slightly modified version will be implemented wherein turnover of the taxpayers will play a pivotal role in determine coding. However, there will be separate codes for goods and services.

Broad rule is as under:
– Taxpayers whose turnover is above ₹ 1.5 crores but below ₹ 5 crores shall use 2 digit code;
– Taxpayers whose turnover is ₹ 5 crores and above shall use 4 digit code;and
– Taxpayers whose turnover is below ₹ 1.5 crores are not required to mention HSN Code in their invoices.

Services will be required to be classified per the Services Accounting Code (SAC)

[Ganeshan Kalyani]

Assurance giant KPMG and industry body FICCI have signed a Memorandum of Understanding (MoU) for a multi-city awareness campaign about the Goods and Service Tax (GST) law, its benefits, issues, and sector challenges, KPMG ​stated in a press release.

Experts from KPMG will be taking sessions across various cities PAN India and throw light on various aspects of GST like levy, supply, exemptions, valuation, ERP impact etc.

First session will be in Mumbai. Other sessions will be held in Trivandrum (October 6), Chennai (October 7), Kochi (October 19), Vizag (October 20) and Hyderabad (October 21), with more sessions notified in due time.

[Ganeshan Kalyani]

Composition dealer under GST shall not be able to take input tax credit, nor shall he be able to collect tax from customer. He has to pay tax not less than tax 1%. The dealer can opt for composition at his option.

[Ganeshan Kalyani]

The threshold for composition scheme is ₹ 50 Lakhs of aggregate turnover in financial year. 'Aggregate turnover' manes 'value of all supplier (taxable and non-taxable supplies + Exempt supplies +Exports) and it excludes taxes levied under CGST Act, SGST Act and IGST Act, Value of inward supplies + Value of supplies taxable under reverse charge for a person having the same PAN.

[Ganeshan Kalyani]

Composition scheme is applicable subject to the condition that the taxable person does not affect inter-state supplies.

[Ganeshan Kalyani]

GSTN stands for Goods and Service Tax Network (GSTN). A Special Purpose Vehicle called the GSTN has been set up to cater to the needs of GST. The GSTN shall providea shared IT infrastructure and services to Central and State Governments, tax payers and other stakeholders for implementation of GST. The functions of the GSTN would, inter-alia include: (i) facilitating registration; (ii) forwarding the returns to Central and State authorities; (iii) computation and settlement of IGST; (iv) matching of tax payment details with banking network; (v) providing various MIS reports to the Central and State Governments based on the tax payers return information; (vi) providing analysis of tax payers's profitle, and (vii) running the matching engine for matching, reversal and reclaim of input tax credit.

The GSTN is developing a common GST portal and applications for registration, payment, return and MIS/reports. The GSTN would also be integrating the common GST portal with the existing tax administration IT systems and would be building interfaces for tax payers. Further, the GSTN is developing back-end modules like assessment, audit, refund, appeal etc. for 19 States and UTs (Model II States). The CBEC and Model I States (15 States) are themselves developing their GST back-end systems. Integration of GST front-end system with back-end systems will have to be completed and tested well in advance for making the transition smooth.

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.