Buyers still confused over new GST math

Buyers still confused over new GST math

With the new fiscal year kicking off, home buyers are a confused lot, with many having a tough time with recently revised Goods and Services Tax (GST) calculations. The GST Council, in its 34th meeting, had finalized the modalities for the transition to new tax rates on residential flats, providing a flexible option for builders to choose from. According to the new scheme, developers have the option to apply for either the new GST rates — 1 percent for affordable…

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GST rule change to aid businesses with better cash flow management

GST rule change to aid businesses with better cash flow management

Reversing its February notification, the central board of indirect taxes and customs (CBIC) has provided relief to businesses in terms of using credit in the goods and services tax (GST) system towards tax payment. This will aid businesses with better cash flow management. “Input tax credit on account of Integrated tax (IGST) shall first be utilized towards payment of integrated tax, and the amount remaining, if any, may be utilized towards the payment of central tax (CGST) and State tax…

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Auto industry urges govt to reduce GST on automobiles from 28% to 18%

Auto industry urges govt to reduce GST on automobiles from 28% to 18%

Auto industry has approached the government to cut GST on passenger vehicles and two-wheelers from 28 percent to 18 percent to compensate the sector, which is expected to see a price hike in the range of 10-15 percent with the coming of new emission and safety regulations. The industry fears that with the increase in prices, the demand for their products would be impacted. Currently, automobiles attract peak GST rate of 28 percent with additional cess ranging from 1 percent…

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Council to review food aggregator’s GST woes.

Council to review food aggregator’s GST woes.

Online food aggregators such as Zomato, Swiggy, and UberEats are facing a curious issue in goods and services tax (GST) compliance, prompting a review. The aggregators are unable to show tax collected at source TCS from restaurants using their platform, thereby preventing the partner restaurants from claiming credit. The government has referred the matter to a law committee under the GST Council. “The industry has represented the issue… It will be examined by the law committee,” said a government official…

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Service providers can opt for GST composition scheme by April 30: CBIC

Service providers can opt for GST composition scheme by April 30: CBIC

The tax department has given service providers with a turnover of up to Rs 50 lakh time till April 30 to opt for the composition scheme and pay 6 percent GST. The option to pay Goods and Services Tax (GST) at a reduced rate of 6 percent would be effective from the beginning of the financial year or from the date of obtaining new registration during the financial year. Service providers opting for the composition scheme can charge a lower…

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GST officers seek clarification from companies for mismatch in sales returns, e-way bill data

GST officers seek clarification from companies for mismatch in sales returns, e-way bill data

GST officers have started seeking clarification from companies whose tax payments did not match with the e-way bills generated, as revenue authorities start matching supplies data to check tax evasion, sources said. Touted as an anti-evasion measure, e-way bill system was rolled out on April 1, 2018, for moving goods worth over Rs 50,000 from one state to another. The same for intra or within the state movement was rolled out in a phased manner from April 15, 2018. Following…

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View: A fair assessment of Good and Services Tax

View: A fair assessment of Good and Services Tax

After long deliberation, the goods and services tax (GST) was implemented in July 2017. Nearly two years have passed since, and there’s a widespread perception that GST revenue growth has not lived up to expectations. This is not a fair assessment. GST’s revenue performance must be measured against not the target set, but against the growth of nominal GDP. An assessment was made by Kapil Patidar & Arvind Subramanian in June 2018. This showed that in the first year of…

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Karnataka to physically verify GST payers

Karnataka to physically verify GST payers

Karnataka commercial taxes department has directed physical verification of registered taxpayers under goods and services tax (GST) to ascertain their credentials, potentially starting ‘inspector raj’ in the new tax regime. This directive could set precedence and other states may follow Karnataka’s footsteps. This is being done to check tax evasion in sensitive commodities. Some of the sectors in focus include arecanut, cashew, rubber, auto parts, electrical goods, electronic goods, edible oil, readymade garments, timber, cement, and construction material. Those entities…

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Lowering GST rate on cement next on agenda: Arun Jaitley

Lowering GST rate on cement next on agenda: Arun Jaitley

Finance Minister Arun Jaitley on Thursday said the BJP-led NDA will continue with fiscal prudence and lower tax rates if elected back to power. He further said the GST (Goods and Services Tax) Council has cut tax rates on consumption items to 12 or 18 percent from the highest slab of 28 percent and lowering rate on cement is next on agenda. “I speak in terms of taxation policies… I’m quite clear in my mind that on two issues at…

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CBIC asks tax officers to be cautious while processing fresh GST registration

CBIC asks tax officers to be cautious while processing fresh GST registration

Cracking down on tax evaders, the CBIC has asked tax officers to be cautious while processing an application for fresh GST registration by those businesses whose earlier registration has been cancelled due to non-compliance. The Central Board of Indirect Taxes and Customs (CBIC) also directed tax officers to analyze the information by an applicant in the fresh registration form regarding details of a proprietor, director/members of the managing committee of associations/board of trustees, etc vis-a-vis any cancelled registration having same…

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