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Osmania University to introduce GST curriculum for commerce students next year

Osmania University to introduce GST curriculum for commerce students next year

Osmania University to introduce GST curriculum

Two months after the Goods and Services Tax (GST) was rolled out, the Osmania University is all set to introduce a new GST curriculum for students opting for the commerce stream. According to OU officials, the curriculum will be offered both as a certificate course and an undergraduate programme. While the Osmania University is introducing the new curriculum next year at the undergraduate level, the Delhi University was the first one in the country to have introduced it for BCom graduates from this academic year itself.

“After the implementation of the GST, the commissioner of central taxes approached us offering to extend training services to our university , if we introduced a diploma and certificate course on the subject,” said Prof S V Satyanarayana, chairman of the board of studies, department of commerce at OU adding that the varsity initiated the process of drafting the GST curriculum soon after it came into effect on July 1.

As per plan, the certificate course will be introduced in the next few days. “Next year, the same curriculum will be updated and introduced as a compulsory portion of taxation for fifth and sixth semester BCom students, under the choice based credit system,” Satyanarayana said. The draft curriculum, framed by a committee constituted by OU, he added, was currently waiting for approvals from the board of faculty members. Once green-signalled, the certificate course will not only be offered to students but also to government employees and those with established businesses, varsity officials said. The university will train the participants in batches, for 50-60 hours. “The classes will either be held during the afternoon or evening hours. We will also conduct weekend classes, for the convenience of candidates,” said Satyanarayana.

The university’s decision has been lauded by faculty members who claim that the current BCom syllabus consists of the old taxation system.

“It covers topics such as value added tax, service tax etc that are irrelevant now.The new curriculum framed by the university will definitely help students gain knowledge about GST,” said Usha Kiran, a faculty member from the commerce department at OU.


Source :
GST: GSTN portal begins invoice uploading for businesses

GST: GSTN portal begins invoice uploading for businesses


The GSTN portal has started accepting uploading of sale and purchase invoices of businesses generated post Goods and Services Tax rollout on July 1.

GST Network (GSTN) is the company handling the IT backbone for the new tax regime.

The uploaded invoice data can be saved at the portal and the GST system operated by GSTN will auto populate the invoice data of the respective buyers, the company said in a statement.

The GST kicked in from July 1 and so far, the Goods and Services network has been facilitating registration of businesses.

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“If the taxpayer has limited number of invoices, he can directly enter the details at the GST portal. However, this would not be practicable if the number of invoices is in hundreds or thousands,” it said.

It added that to help such taxpayers, GSTN has developed a tool which can be downloaded from the portal and installed on the taxpayer’s computer to prepare the return in GSTR-1 format at one’s ease in an offline mode without connecting to the Internet.

“The GSTR-1 software and the offline java tool have been elaborately tested. The portal has started accepting invoice uploads into GSTR-1 from July 24. Now taxpayers can prepare GSTR-1 at their convenience on their own computer and upload the data to the Portal easily within a matter of minutes using the offline tool,” Navin Kumar, Chairman, GSTN said.

He said businesses, particularly MSMEs and larger businesses that generate a large number of invoices should to start uploading invoice data to portal straight away and not wait until September when the July return will be due.

The company has stated that the invoice upload facility is available 24×7.

“It has advised that the taxpayers, such as large manufacturers, distributors and wholesalers, should frequently upload their supply invoice details at regular interval to prevent any hiccups near the due date,” it added.

Generating invoices for dealings above Rs 200 and keeping invoice records in serial number even if maintained manually, are pre-requisites for claiming input tax credit under the GST regime.

Under GST, which is a single tax in place of multiple central and state levies like excise, service tax and VAT, businesses are required to upload on GSTN portal invoices of their trade every month.

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Source: ET

GST’s actual effect could be felt in 3 months: Arun Jaitley

GST’s actual effect could be felt in 3 months: Arun Jaitley

Arun Jaitley

Calling GST a win-win deal, finance minister Arun Jaitley on Wednesday said the new tax regime will smoothen business operations, augment revenue and end ‘inspector raj’ while eventually bringing down prices for the common man.

Speaking at the BJP parliamentary party meeting, Jaitley said prices of goods had come down between 4-8% since the rollout of GST from July 1. He said the real effect could be felt after three months.

The FM said there was no longer ‘tax on tax” and transport of goods across the country has been going on unhindered now. “More than one crore firms will be migrating to the new tax regime against around 80 lakh companies earlier,” he said. Jaitley allayed fears of the MPs saying the new tax regime will be more beneficial for the states.

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External affairs minister Sushma Swaraj separately briefed party MPs on recent foreign visits of PM Narendra Modi and said no Indian PM had ever received the kind of welcome in the US like Modi did (from President Donald Trump).

Swaraj gave a detailed presentation on recent visit of Modi to the US and Israel as she termed the visits as one of the most successful since heads of both the countries offered a warm welcome to the visiting PM.

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Source: TOI
With GST, India Manages Its Biggest Reform In Years: Foreign Media

With GST, India Manages Its Biggest Reform In Years: Foreign Media

GST India

A country rarely praised for its efficient bureaucracy, India has managed its biggest administrative reform in years pretty well. Its new goods-and-services tax, replacing 40 other taxes and levies, came into force earlier this month without undue disruption. This policy deserves to be a great success — but to make the most of it, the government still has work to do.

Prime Minister Narendra Modi’s previous big idea — declaring 86 percent of India’s banknotes void overnight — took the public by surprise and caused the economy to seize up. Employers couldn’t pay wages and workers couldn’t buy even basic staples. The full cost of the disruption is still being calculated.

After that, fears about the GST roll-out ran high. Too high, as it turned out. It helped that the plan was not a shock: Successive administrations had debated the idea for years. The government also adjusted the rules to appease various constituencies, and gave businesses a two-month cushion to comply.

Partly for that reason, though, the project is far from finished. In excluding certain goods from the scheme, the central government has given state governments discretion to raise taxes on them at any time. Some states have already tried to impose taxes and fees on products already taxed under GST, including automobiles and movie tickets. The infamous customs posts where truck drivers had to halt and fill out paperwork before crossing a state line have begun to come down — but local officials can still clog the roads by demanding inspections or fees.

The new tax is also giving rise to new kinds of regulation. An “anti-profiteering” clause threatens companies with fines or closure if they don’t pass GST-related savings on to consumers.

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India’s Aspirations

All this undermines the whole purpose of GST — to simplify a complex and fractured system. The design of the tax itself makes things worse. Long negotiations have produced a convoluted structure. Goods are divided into four or five different tax brackets (some are subject to additional “sin” charges as well), in ways that don’t always make sense. Hotel rooms are charged at different rates depending on how expensive they are; food at restaurants with air-conditioning is taxed at a higher rate than at those without. This will encourage companies to game the system and agitate for shifting their goods into lower brackets.

To head this off, the government should keep working on simplifying the system — narrowing exemptions as far as possible and reducing the number of tax brackets to one or two. Officials say that this is their eventual goal, but too much delay could be fatal. The longer tax preferences are in place, the harder they’ll be to dislodge. Companies will fight to keep their products in lower brackets, and tax officials will resist efforts to curtail their powers.

The roll-out went well. But if the government wants this reform to be a lasting success, it can’t afford to relax.

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Source: NDTV
GST Bill: GST rolls out big tech business for Indian startups

GST Bill: GST rolls out big tech business for Indian startups

GST rollout

Startups providing technology and software for the implementation of and training on GST, and for uploading and reconciling taxes are sensing a great opportunity in the GST Suvidha Provider (GSP) scheme.

GSPs are government mandated platforms that can build their own GST return filing software on the GST Network (GSTN).

GSTN shortlisted 34 companies to be GSPs in the first phase. The criterion then was the firms must have been in existence for at least three years and must have at least a Rs 10-crore average annual turnover. For the second phase of GSP selection, GSTN has lowered the turnover required to Rs 5 crore.

Among those that have applied in this phase are startups like ClearTax, LegalRaasta, GST Star, and Moglix.

Unlike an income tax return filing, or TDS payment, GST returns are to be filed thrice a month by all kinds of businesses, thus increasing the potential customer transactions for the platforms providing GST-compliant software.

Larger enterprises have their own ERP (enterprise resource planning) solutions from the likes of SAP and Oracle. But those tend to be expensive for small and medium enterprises (SMEs). Startups will find ready clientele in this segment. GST software along with training, uploading, reconciling and other services will be a $2-billion market this year, of which the majority of the opportunity will be for startups working in this space,” said V Balakrishnan, co-founder of Exfinity Venture, an early stage funder, and former CFO of Infosys.

Get GST APIs & GST Compliance Solution for your ERP.‎‎

Balakrishnan, who has invested in GSTStar, a Bengaluru-based GST solutions company founded by Infosys veterans Shailesh Agrawal and Balaji GS Rao, said startups providing cost-efficient solutions and who can do it for thousands of customers can become very successful.

“In the first year, SMEs will even need some handholding as they will be filing invoices for the first time ever,” he said.

Online income tax filing platform Cleartax has been working on a GST-compliant platform for a year now.It has tied up with e-commerce platforms like Amazon and Voonik, as also traditional companies across various sectors.

Archit Gupta, founder of Cleartax, which has 400 employees now, said the company has invested around $5 million on building the GST platform. “Our team has expanded twice since. We have seen a sharp increase in the demand for our software. Right now, we have 2.5 lakh businesses on our platform and aim to reach 10 lakh businesses in the next 12 months,” he said. LegalRaasta, which started as an online legal services platform, has now built a GST solution for SMEs and chartered accountants. Last month, the company raised $5 million from venture funds, mainly on the strength of the GST platform.

Software for GST Returns – GST Returns Prepation & Filing‎‎

“Our current GST software is a 360-degree turn from what it was before because the rules weren’t clear at all when we started,” said Himanshu Jain, founder, LegalRaasta.

The company has over 80,000 SMEs on its platform and expects to touch 5 lakh SMEs by end of this fiscal year.

Moglix is a business-to business e-commerce firm, but when founder Rahul Garg saw that the thousands of buyers and sellers on its platform needed help to be compliant with GST, he decided to work on an in-house solution for manufacturing units. “We were exposed to the complexities of the Indian taxation system and we understood the supply chain,” said Garg, whose venture is backed by Ratan Tata.

All startups deliver their solutions over the cloud, which means users need to just take a subscription and not buy the software. It also avoids the complexity of keeping IT staff to manage the software and hardware.ClearTax and LegalRaasta currently function as application solution providers (ASP) that work with GSPs to provide their software. A GSP license would help them provide their own infrastructure to the SMEs.

Balakrishnan estimates that there are a hundred startups working in the space. He said that from the second year onward, the data and open API (application programming interfaces) of GSTN will help startups to provide a plethora of financial services based on the tax payer profile.

Source: TOI
Bribes, Borders And Middlemen: Why GST Is A Game Changer

Bribes, Borders And Middlemen: Why GST Is A Game Changer

The Goods and Services Tax (GST) would be PM Modi’s most significant economic reform since coming to power in 2014.

GST Is A Game Changer

Seized vehicles. Bribes.Days-long delays. Moving goods across Indian states isn’t exactly easy — and that’s a major barrier to economic growth.

Rolling a truck of vegetables into Gujarat, the state once governed by Prime Minister Narendra Modi, requires a bribe of 500 rupees to 2,000 rupees even with your papers in order, according to Rakesh Kaul, vice-president of Caravan Roadways Ltd., which has about 400 trucks plying India’s pot-holed roads.

But getting past the state tax collectors into Uttar Pradesh, India’s most populous state will cost you more: Upwards of 20,000 rupees, Mr Kaul says. The penalty for not paying off the right people is steep fines from factories whose raw materials are stuck at state borders — sometimes for as long as five days.

That’s why he and other companies are cheering the July 1 implementation of India’s biggest tax reform since independence in 1947. The move will replace more than a dozen levies with a new goods and services tax. That should help reduce the immense power India’s myriad middlemen wield at state borders, free up internal trade, make it easier to do business and widen the country’s tiny tax base.

“Even if your documents are correct, they will find some small error and hold your vehicle,” Kaul says in his New Delhi office, located in a dusty trucking depot where hundreds of drivers sit near their brightly painted trucks in the 42-degree Celsius (108-degrees Fahrenheit) heat. “Once GST is there, all that is gone.”

Common Market

The new tax would be PM Modi’s most significant economic reform since coming to power in 2014. Yet with less than two weeks to go before its implementation, the government is still refining the details, announcing on Sunday it would relax initial filing requirements for July and August amid concerns businesses were not ready. Despite the last-minute tweaks, Finance Minister Arun Jaitley confirmed on Tuesday the tax would roll out on July 1.

While India already boasts one of the world’s fastest growing major economies, architects of the reform say it will stoke efficiency and growth by creating a common market of 1.3 billion consumers — a population greater than the US, Europe, Brazil, Mexico and Japan combined.

Take the border crossings: Lorry drivers in India lose 60 per cent of transit time to road blocks, tolls and other stoppages, which means logistics costs are up to three-times higher than international benchmarks. While truck drivers may still need to stop to have their goods checked, cut that time in half, and logistics costs could fall by up to 40 per cent, according to a 2014 World Bank report.

There’s no shortage of hyperbole when it comes to describing the GST changes, which took more than a decade of protracted negotiations before Parliament pushed it through. The government’s Chief Economic Adviser Arvind Subramanian described it as “transformational.”

“The GST is super important,” he said in an April interview. “It is also a daring, bold experiment in what I call the good governance of cooperative federalism.”

Four Brackets

The GST rollout comes less than a year after the government’s surprise move in November to remove 86 per cent of currency in circulation — a decision that contributed to a sharp slowing in growth during the January to March quarter. While the GST is seen as a leap forward in simplifying India’s system, getting the reform across the line has required compromises: India will have four tax brackets instead of the flat rate many other countries have.

Air conditioners, refrigerators and makeup will be taxed at 28 per cent, for example, while toothpaste lands at 18 per cent. Plane tickets attract a 5 per cent GST rate, but business class tickets are 12 per cent. Staples such as food grains and fresh vegetables are not taxed, while education and health services will continue to be exempted.
“India is obviously a huge and complex country in which governments’ ability successfully to implement major reforms is limited,” said Ian Hall, acting director of the Griffith Asia Institute.

‘Different Countries’

The incoming GST will also force companies to consolidate their supply chain among fewer, larger facilities, says Vineet Agarwal, the managing director of Transport Corp. of India Ltd., which has about 10,000 trucks and around 11 million square feet of warehouses.

Currently, companies operate smaller factories and warehouses to take advantage of tax breaks offered by various states, as well as to avoid transporting goods over too many borders. “Literally, almost all states act like different countries,” Agarwal said.

One of the biggest goals of the GST is to widen the tax net in an economy where more than 90 per cent of workers are employed informally. Companies will need to be in the tax system and prove they paid taxes to claim a credit against their costs. Pressure to comply will increase along the line and the black economy should shrink.

Inevitable Disruption

Still, the tax may throw up losers. Manufacturing states may initially suffer as the extra revenue is generated in more populous consuming states. There are also sectors untouched by the new tax, including alcohol and real estate. Thousands of tax staff will also need to be trained and complex new IT systems adopted.

“There will inevitably be disruption as a result of the implementation of the GST,” said Samir Saran, vice president of the New Delhi-based Observer Research Foundation.

To be sure, India isn’t alone in introducing a new tax that crosses jurisdictions and territories. More than 150 countries have a value added tax or GST including Canada, Australia and the European Union, according to Deloitte.

The optimistic case is that initial ruffles are soon smoothed over, according to Eswar Prasad, a professor at Cornell University in Ithaca, New York. “As in the case of the recent demonetisation gambit, any disruption in commerce and economic activity is likely to be short-lived, while the longer-term benefits could be significant,” he said.

Big companies will be prepared, Agarwal at Transport Corp. says, but he frets about the smaller, informal businesses. “There’s going to be chaos,” he says.

That informal workforce includes Babu Ram Rajput, a 28-year-old trucker in jeans and sandals who regularly drives goods across a vast swathe of north India.

“I have not got any training,” he says, holding up a sheaf of tattered, dirty documents related to his current cargo. “I only know that GST is coming.”

Source : NDTV
India to keep July 1 Date with GST, Revenue Secretary Adhia Trashes Delay Rumours

India to keep July 1 Date with GST, Revenue Secretary Adhia Trashes Delay Rumours

GST Roll Out

Rumours of a delay in the implementation of the Goods and Services Tax (GST) are false, Revenue Secretary Hasmukh Adhia tweeted on Tuesday morning.

Dr Hasmukh Adhia‏

The ambitious ‘one nation, one tax’ regime is set to come into effect on July 1 with few states, including West Bengal, yet to move the GST Bill in the Assembly. The state’s finance minister, Amit Mitra, has demanded that the rollout date be postponed by a month, objecting to the tax scheme in its current form.

However, it looks increasingly certain now that the rollout date will be adhered to, with the weight of the Finance Ministry and most states behind it.

GST, India’s most significant tax reform in 70 years, collapses the wide array of indirect taxes into a few levies, while expanding the tax base. It has been 15 years in the making since it was first proposed in 2002 and required amendments to the Constitution.

The GST Council had on June 12 slashed the rates of 66 items to meet demands from various quarters ahead of the rollout.

Within weeks of the all-powerful GST Council fitting over 1,200 items into one of the 5, 12, 18 and 28 per cent tax slabs, there were complaints from various quarters about high tax incidence on various goods and services.

The GST Council, which met for the 16th time on Sunday, took up demands for revision in tax rates of 133 items but reduced it only for 66, including agarbatti, computer printers, cashews, children drawing books and school bags.


Source : News18 Network

States may gain Rs 350-450 billion in revenue post GST: StanChart

States may gain Rs 350-450 billion in revenue post GST: StanChart

States can look at a higher revenue of Rs. 350-450 billion after GST implementation in mid-2017, says a Standard Chartered report.

According to Standard Chartered Bank’s report titled India – States’ Finances: The other half of the story post-GST implementation states can look at a total gain of Rs. 350-450 billion, roughly around 0.2-0.3 per cent of GDP.

The study that assessed underlying dynamics of various states’ finances over a decade said if they can keep their fiscal deficits within the budgeted target, and the Central government adheres to its target of 3.2 per cent of GDP, the combined 2017-18 deficit could be 6 per cent (or lower).

States May Gain Rs 350-450 Billion In Revenue Post GST The findings estimate that the 18 states tracked in the study aim to keep their 2017-18 fiscal deficit unchanged from 2016-17 at 2.7 per cent of GDP (excluding UDAY impact).

It is estimated that the risk of slippage is limited to 0.1 per cent of GDP as additional interest payments on UDAY bond issuance have been partially budgeted, most states are still assessing Pay Commission recommendations, and additional expenditure burden of farm-loan waivers for most states (apart from Uttar Pradesh) is likely to be small, the report said.

“The report expects the limited risk of slippage unless several states unexpectedly implement salary increases mid-year. Hence, additional strain on fiscal deficits can be easily absorbed, as impending GST implementation in mid-2017 should mean higher revenues for all states,” it said.

Moreover, the Central government has agreed to compensate states for any revenue loss for five years after GST implementation, it added.

GST: What still needs to be done

GST: What still needs to be done

What remains to be done between now and the final rollout? Here’s a lowdown.

The Goods and Services Tax Council will meet on May 18-19 to finalise various rules involved with implementing the new tax regime in the country, including on issues like input tax credit, valuation norms, composition and transition provisions, among others. What remains to be done between now and the final rollout? Here’s a lowdown.

What has been done so far?

The GST Council has met 13 times to finalise the minutiae of the five laws that will help bring the new tax regime to reality. Four of these laws have been cleared by the Union Cabinet and passed by Parliament. The fifth, the State GST law, needs to be passed by the legislative assemblies of each state and union territory with legislature. The Council still has to finalise the rules and rates of individual products and services.

Where is clarity needed?

According to experts, the draft rules that will be finalised during the upcoming Council meeting do not as yet address key operational issues that directly affect vendors, distributors, and service providers. These issues include the place of supply rules for service companies. Clarity on this will determine whether a service has been provided on an inter-state or intra-state basis, which in turn will determine whether the Integrated GST tax will apply.

Another major issue is the treatment of cases where the billing address is different from the shipping address. Since most companies have so far configured their ERP programs to incorporate GST as a destination-based tax, there is no clarity as yet in the rules as to what happens if the destination of the goods or service is different from where the bill is to be made. For example, if a company places an advertisement in the Mumbai edition of a Delhi-based newspaper, it can be billed in Mumbai only if the paper can show that it has an establishment in Mumbai and can print invoices there. Else, it will be billed to Delhi. Industry associations have sought for greater clarity on such issues from the government.

Another issue is the e-waybill, required for the transport of goods across the country. The e-waybill has to be accepted by the seller, transporter, and recipient for the transaction to be closed as far the GST Network is concerned. Tax experts say that the reconciliation of waybills is currently a big problem, with the recipient usually failing to accept the waybill, leaving the transaction incomplete. The e-waybill system will require a big change in behaviour for it to work, they say.

A larger issue is that incorporating GST will require SMEs to overhaul and computerise their systems, since even dealing with the Harmonized System of Nomenclature (HSN) codes for individual products will require a computer. The codes are up to 10 digits in length. The first four define the category and the subsequent digits specify the exact product. For example, Lay’s chips and Kurkure could have the same first four digits, but subsequent digits would be different. Such an overhaul of systems and the implementation of a new ERP system takes time. Industry players are complaining that with the rules only being decided upon on May 18-19, they will be able to finalise their software only by the first week of June, leaving barely any time for testing.

When can we expect tax rates to be made public?

The tax rates are not likely to be made public in the next meeting of the GST Council. Experts working on ERP systems say that there is no great urgency on this count, because the numbers can simply be plugged into the software as and when they are known without having to change the coding itself. The rules are more critical in that respect.

Also, revealing the rates too early may lead to people hoarding goods that are likely to become more expensive under GST due to higher tax incidence. However, knowing the tax rates of individual items could greatly help companies in their procurement decisions for the July-September quarter.

Source :  The Hindu
61 lakh taxpayers enrolled under GST, says Hasmukh Adhia

61 lakh taxpayers enrolled under GST, says Hasmukh Adhia

Ministry of Finance on Thursday informed Hasmukh Adhia, Revenue Secretary, held a detailed review meeting for smooth roll out of Goods and Service Tax (GST) from July 1, 2017.

Adhia reviewed the progress on enrollment of existing taxpayers. As on 30th April 2017, when Phase-1 of enrollment was closed, 60.5 lakh taxpayers out of 84 lakh had enrolled. The enrollment window will be re-opened for 15 days from 1st June,2017 to give another opportunity to taxpayers to enroll.

Ahead of July deadline, Adhia also reviewed IT Preparedness for GST System at the Goods and Services Tax Network (GSTN) office and Central Board of Excise and Customs (CBEC).

He was briefed about the software system being developed for GST, training of tax officials and outreach program being undertaken by Tax Departments across the nation.

As per the Ministry, out of 62,937 tax officials, 24,668 tax officials have been given hands-on training on the application software on live system while the remaining officials will be trained by 15 June, 2017. The training is being conducted on Registration, Returns and Payment Modules developed by GSTN.

Further, GSTN has been conducting a pilot on GST System Software from 2nd May to 16th May, 2017, where 3200 taxpayers drawn from each State/UT and Centre has been participating.

“The pilot covers all the three modules and is being run to give the taxpayers first hand opportunity to work on the live system as the creation of return has become an interactive process,” the Ministry added.

Source : Zee Business