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]

Union Finance Minister said that Area based exemption will be given by of refund only.

[Ganeshan Kalyani]

The rules released by the CBEC got approved.

[Ganeshan Kalyani]

All efforts are.put in by the Govt to meet the implementation date.

[YAGAY and SUN]

GST Council meet: Centre, state consensus on 5 key areas, but differ on service tax assessment.

[YAGAY and SUN]

GST Council falters on service tax control.

[YAGAY and SUN]

GST Council meeting: Waivers, draft rules okayed; differences over tax assessees

[Ganeshan Kalyani]

Need clarity on the exemptions given in the current tax regime. Whether it would continue for the time period given . Will have to see.

[Ganeshan Kalyani]

The area based exemption is going to be now by refund option. Where the Govt shall refund 80% and balance would be refunded after assessment it seems. The concern here is that paying the tax first would hit working capital and getting the tax paid from department is not a easy job. What will happen to existing company which got exemption because of setting up of factory in specified backward area. Have to wait and see.

[Ganeshan Kalyani]

Assessee have to gear up for GST. Understanding the concept, law of GST and training the staff is a big task. Government is also planning to train the government staffs And dealer. GST is knocking the door. Let us be ready to welcome it and embrace it.

[Ganeshan Kalyani]

In fact big companies have started doing impact analysis based on previous year data. The AS- IS preparation would help them to analyse the impact of tax change in upcoming GST. Every company/ assessee should carry out this activity. This will help them to understand the change in tax law and rate and its impact on business.

[Ganeshan Kalyani]

The rule for registration, invoice, payment, return and refund is approved by GST Council.

[Ganeshan Kalyani]

Every assessee has to file atleast 37 returns in total. In most of the companies the accounts person handles the indirect tax portfolio in additions to accounts . But if we see seriously into the number of returns that an assessee needs to be filed then it is understood that every company has to have dedicated tax officer who shall carry out complaince under GST.

[Ganeshan Kalyani]

The information technology also need to be made in line with GST. The reports required for filing of return should come from the system only. Such arrangement would help the dealers to comply with ease and without error.

[Ganeshan Kalyani]

Now the time has come to gear up for GST. That is we need to attend training , seminars etc. The tax officer in a corporate need to know the GST tax provison. There is nothing difficult for govt. They may issue notification mentioning the implementation date is with effect from 01.04.2017. The time is very shot.

[Ganeshan Kalyani]

RBI in support of 18% GST rate, says no material impact on inflation.

[Ganeshan Kalyani]

HSN need to be mentioned on invoice while raising invoice. To some dealer it is optional and others need to mention it mandatorily.

[Ganeshan Kalyani]

6 months to go for GST to come effective , the timeline set by the Govt for implementation. Are the dealers ready to take off their business into the new tax regime. Lot of work for tax officer in a company, For consultant, and department.

[Ganeshan Kalyani]

So many write ups on GST, So many concerns over the draft rules. So many expectations from GST, So many opportunities for foreign investment, So many tax conplaince reduced, so many tax authorities interaction minimised , so many tax leakage stopped, so many litigation shall be reduced, so many opportunity for tax experts, so many work for tax consultant, so many challenges for tax authority, So many .....

[Ganeshan Kalyani]

Economic Adviser Arvind Subramanian also suggest RNR of 15% to 18%. Hence it seems that 18% shall be considered by the council.

[Ganeshan Kalyani]

As per draft rule, the input credit outstanding as of 31.03.2017 shall be allowed to carry over in GST by automatically carry forwarding from last return under current tax regime. Hence the last return under current regime is crucial. Otherwise input credit would be available.

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.