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No extension for sale of pre-GST stock with revised MRP stickers: Paswan

No extension for sale of pre-GST stock with revised MRP stickers: Paswan

The government will not further extend the deadline for selling pre-GST stock with revised MRP stickers beyond this month, Centarl Minister Ram Vilas Paswan has said.GST:Ram Vilas Paswan

When the goods and service tax  came to be implemented from July 1st last year, the government had allowed marketers to display alongside the old MRP, details of the revised MRP on pre-GST stocks by way of stamping, putting sticker, or online printing.

“Retailers will display only one MRP after 31st March. We are not in favour of providing an extension of deadline for MRP stickering,” Paswan told reporters on the sidelines of World Consumer Rights Day briefing here on Thursday.

The process of sticking revised MRP on packaged products had to be undertaken by manufacturers, packers and importers only, the department had notified.

The department of consumer affairs had been receiving requests from the industry to extend the deadline so it was easier to liquidate pre-GST stocks. The deadline was extended from September 30th to December 31st last year, and finally to 31st March this year.

The Minister said that the industry has received enough time to comply with post-GST changes.

“If retailers do not comply with the mandate, we will see what punishment suits them,” Ram Vilas Paswan said on Thursday.

In case of increase in price of the commodity after implementation of GST, it had to be notified to the department (of consumer affairs) and also advertised in national newspapers by the manufacturers.

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Sourec: ET
Government extends deadline to file GST TRAN 1 till October 31

Government extends deadline to file GST TRAN 1 till October 31

file GST TRAN 1

After a lot of confusion, the Government has clarified and extended the filing of GST TRAN 1 to October 31. The Government has issued a notification under rule 117 of the Central Goods and Services Tax Rules, 2017 to make the changes.

Confusion arose when the GST Council after its 21st meeting said in a press note that date to file TRAN 1 has been extended to October 31. However, a subsequent government notification was worded in such a manner that it meant taxpayers could file their TRAN 1 only till September 28th and only revisions to what was originally filed would be allowed till October 31.

Also read: How to File GSTR 3B in Details and download GSTR 3B- Format

This created a lot of confusion among taxpayers who relied on the press note and did follow the notification. As taxpayers were taken by surprise, GST’s official Twitter handle stated there has been no extension to file the original TRAN 1. For many it suddenly became a last minute rush in the face of upcoming holidays in the many parts of India to get TRAN 1 filed. This happened because the first notification was only issued under rule 120(A), which only extended the deadline for revisions and  not original filing. The government seems to have now rectified that anomaly by making changes to rule 117.


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GST Govt.

ET.com was first to report on the issue and it seems the government has now taken notice. “On the recommendation of the Council, the period for submitting the declaration in Form GST TRAN-1 is extended till October 31st, 2017,” said the notification.

“This is aligned with the decision made by the Council and has brought relief to many taxpayers who otherwise would had to do a rush filing in a week’s time with festivals coming up during next week,” says KPMG, Partner, Priyajit Ghosh

However, there are two more provisions – 118, 119, which have not seen any change through a notification. It is not clear what the implication are currently and the article will be subsequently updated once we have some clarity on it.

TRAN 1 is a very important document for taxpayers as it allows them to calculate the tax benefits and input credits that were available to them under the previous indirect tax regime – VAT, Service Tax, Excise Tax etc. Till June 30th, every aspect of a taxpayers business had some tax implications and businesses can now claim credit on the taxes they have already paid through TRAN 1.


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Source :  The Economic Times
Government collected GST amounting to INR 42,000 crore so far, for the month of July, 2017.

Government collected GST amounting to INR 42,000 crore so far, for the month of July, 2017.

GST amounting to INR 42,000 crore

As much as Rs 42,000 crore has already come in as taxes so far in the first monthly filing under the new Goods and Services Tax (GST) regime and the revenues are expected to swell further as the filing cycle closes this later this week.

A senior official said that about Rs 15,000 crore has come in as Integrated-GST, which is levied on inter-state movement of goods, and another Rs 5,000 crore by way of cess on demerit goods like cars and tobacco.

The remaining Rs 22,000 crore has come in as Central-GST and State-GST, which would be split equally between the Union and state government.

“Tax deposited till this morning was Rs 42,000 crore,” the official said.

So far, 10 lakh tax payers have filed returns and another 20 lakh have logged in and saved return forms.

“We are seeing good compliance and our estimation is that 90-95 per cent of the assesses will file returns and pay taxes,” he said.


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Under the GST regime, which was implemented from July 1, businesses are expected to file the monthly tax return.

Tax for the first month is to be filed by an extended deadline of August 25. The deadline was extended as the tax return filing website snapped just a day before the due date ended on August 20.

GST unifies more than a dozen central and state levies including excise duty, service tax, and VAT, and the revenue generated is to be split equally between the Centre and states.

In July last year, Rs 31,782 crore of excise duty was collected and Rs 19,600 crore of service tax.

An estimate for the combined sales tax or VAT collection by states was available.

While 72 lakh assessees of the old indirect tax regime have migrated to the GST Network portal, nearly 50 lakh have completed the migration process.

Besides, of the 15 lakh fresh registrations that have happened, as many as 10 lakh are expected to file returns for July.

A total of 60 lakh businesses are expected to file returns and pay taxes for July, the official added.

As per the GST law, any registered person who fails to furnish the details of outward or inward supplies or returns required by the due date will have to pay a late fee of Rs 100 for every day during which such failure continues subject to a maximum amount of Rs 5,000.

Besides, every person who fails to pay the tax within the period prescribed, shall for the period for which the tax or any part thereof remains unpaid, will be required to pay interest at 18 per cent from the day succeeding the day on which such tax was due to be paid.

The collections from customs duty and IGST from imports post-implementation of GST have almost doubled to Rs 30,000 crore in July.

This compares to indirect tax collection of over Rs 16,000 crore of the same month of 2016.


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Source: TOI
50 days of GST: Tough lessons learnt; road ahead looks good

50 days of GST: Tough lessons learnt; road ahead looks good

50 days of GST

Over the past 50 days, the transformative  GST (goods & services tax) has evolved at a very fast pace. Once the rollout became a certainty, the government and stakeholders have moved in fast to tweak rules, revise taxes and introduce new features in a bid to progress on the stated motto of making India a unified market.

Successive GST Council meetings, interactions with taxpayers and on-ground feedback have enabled smooth functioning of this new tax system that is young and still learning.

Over 71.30 lakh excise, service tax and VAT payers have migrated to the GSTN portal and over 15 lakh new assessees have registered on the platform.

Let’s look at the lessons from the past 50 days and understand the way forward.

Nifty-fifty days

While legislative provisions were framed before July 1, 2017, many of the practical solutions have been announced later. From the date of filing first GST returns, to dealing with trends like deregistration of brands post-GST to avoid taxes, to hike in luxury car cess, to changes in invoice rules – various enabling and implementation procedures and clarifications are being introduced along with the onset of GST.

Here is a brief assortment of important developments in the past 50 days:

• The government has notified the timeline for furnishing final tax returns for July and August under the GST regime. The GST Council had in June allowed businesses extended timeline for filing final GST returns in forms GSTR-1, GSTR-2 and GSTR-3 for July and August. In the interim period, businesses have to file GSTR-3B which is a summary of self-assessed tax liabilities with consolidated details of outward supplies and input credit.

• The GST Council in its 20th meeting decided to reduce the tax rate for job work for the entire value chain of textiles sector to 5 per cent. Alongside, it lowered rate for tractor parts to 18 per cent from 28 per cent. Also, the Council gave the in-principle nod to the e-way bill rules.

• The GST Council will soon start publishing rates of various products to prod companies to pass on gains, including those from input tax credit. To begin with, 150 items will be taken up. Once the rates of 150 items have been released, more items could be added later.

• The GST Council in its first review meeting since the implementation of India’s biggest tax reform since independence hiked the fixed cess on cigarettes by Rs 485-792 per 1,000 sticks, depending on the length of the stick. This is in addition to the 5% ad valorem cess which continues. The government has fixed a peak GST rate of 28% on cigarettes, with the cess being levied on top of the tax.


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Dynamic approach required

The quick and evolving nature of GST tax system has kept assessees on their toes for monitoring regular updates on various aspects with respect to GST. Hence, tax payers, be it trading houses to large global corporations, will be best-placed if they have a single window solution.

The approach needs to be a proactive one since the old way of reacting to changes slows down the compliance and may lead to temporary business disruptions. As the GST regime evolves, businesses that are open to new changes, and modifications around rates, processes and systems will ultimately be able to come out with flying colours.

With a deluge of tax-content and developments, a calculation-to-compliance approach enabled by technology will be necessary to accurately calculate GST based on the place of supply rules for the sale and acquisition of goods and services.

Given that transactions may be for intrastate, interstate, import, export, and stock transfer, it is important that the right logic be applied to enable CGST, SGST, and IGST calculations for domestic sales and purchases as well as imports and exports. Businesses will also need support for the Goods and Service Tax compensation fund cess on luxury and sin tax items.

Finally, perfect integration with the GSTN, supporting notifications, signatures and required validations are as important as automation of the import of data from existing ERP systems. Only a seamless and systematic approach, driven by technology and practical sense, can help a business furnish three returns a month and one annual return.


XatTaX: India’s most trusted GST compliance software – 100% accurate GST filing

Source :  The Economic Times
GST Impact: Monthly GST returns to burden professionals

GST Impact: Monthly GST returns to burden professionals

GST impacts almost all types of industries, and professional are no exception. Until recently, professionals enjoyed the benefit of centralised service tax registration for all their offices located across India. However, with advent of GST, professionals operating from multilocation office will have to obtain state-wise registrations.

The compliance and report ing requirements for professionals will also increase under GST. Under the erstwhile service tax regime, professionals could file half-yearly service tax returns requiring disclosure of the revenue and eligible input tax credit on an aggregate basis.

However, under GST they need to file monthly GST returns with disclosure of invoice level details for all their sales and purchase. Also, for professionals operating as individuals and partnership firms doing away with the option of quarterly tax payment, it increases the need for additional working capital.

While the government has provided a composition scheme for small manufacturers/traders up to an annual turnover of Rs 75 lakh, however, such an option is not extended to the professional service providers.


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Though the tax rate under GST has increased from 15% to 18%, there’s good news for professionals, as they will now be entitled to higher input tax credit due to withdrawal of non-creditable state taxes such as VAT/CST/entry tax/octroi on procurement of goods and certain cesses levied by central government.

The place of supply was not too relevant for professional s under service tax law (except for import and export), but they will now be required to change their IT system to map the place of supply for each supply of services (intra-state and interstate) and set up the reporting requirement accordingly. Besides the above compliances, professionals will also have to comply with reverse charge provision in case of purchases from unregistered dealers.

Overall, it appears that GST has a mixed impact on professionals with both positives and negatives.


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Source: ET
GST Council may take up certain tax issues at August meet

GST Council may take up certain tax issues at August meet

gst council

The GST Council at its meeting next month is likely to take up taxation issues raised by sectoral bodies along with a review of the implementation of the new tax regime, a top official said.

Central Board of Excise and Customs (CBEC) Chairperson Vanaja Sarna also said the department is keeping track of revenue trends post the GST rollout from July 1, but actual positions will be known after returns are filed in September.

The GST Council, chaired by Finance Minister Arun Jaitley and comprising state counterparts, will meet on August 5 to review implementation of the new tax regime.

“Different issues will be coming to the table (at the next Council meeting). Things that have been brought to our notice may be on the rules and the implementation. Maybe, even on rates,” Sarna told reporters on the sidelines of a Ficci event here.

Asked if concerns raised by the textile sector will be taken up, she said “possibly”.

Certain textile traders have been protesting against 5 per cent GST rate on fabric. They want the tax rate to be zero. Surat-based traders who have been protesting, however, withdrew the strike earlier this week.

“Whatever issues have been raised… will be taken up (by the Council). When you roll out something as mammoth as GST, I would say you will always find problems or issues probably coming in till six months or a year,” Sarna said.

Asked about revenues from Customs post July 1, she said revenue has been “good and buoyant”.

The goods and services tax (GST), rolled out from July 1, is a uniform tax structure that replaces 17 different levies, including excise, service tax and VAT.


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Source: ET

First collection numbers show GST off to a easy begin

First collection numbers show GST off to a easy begin

First collection numbers show GST off to a smooth start

The first set of numbers after the rollout of the GST should calm any jitters about its prospects. Integrated goods and services tax (IGST) collections on imports in the first 10 days of the new regime crossed Rs 4,000 crore, in line with expectation and suggests that the rollout has been largely smooth.

“Collections would have crossed Rs 4,000 crore… Data is pouring in and final tabulations will be available in some time,” a senior government official told ET.

These collections exclude levies on petroleum and natural gas products, which aren’t covered by GST in any case. Besides, the final numbers will include collections from manual filings. GST came into effect July 1.

GST : Arun Jaitly

In July 2016, total customs collections amounted to Rs 16,625 crore, which on average yields Rs 5,360 crore for the 10 days, but that includes basic customs duty. The Rs 4,000 crore of IGST does not include customs duty.

“On the face of it, the pace of collections looks usual,” the official said. A detailed analysis will be carried out at the end of this month when more complete data will be available.


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Collection of IGST on imports started at midnight on rollout day as the levy became payable soon after goods entered the country unless specifically exempted. IGST on imports has replaced countervailing duty (CVD), levied in lieu of excise duty, and special additional duty (SAD).

IGST is the sum of central GST and state GST levied on a local product and is in addition to the basic customs duty. It is administered by customs officials. CVD and SAD formed part of customs collections until now. The government has also done away with a number of CVD exemptions that were available in the previous regime, such as that on some electronic products.

GST replaces multiple state and central taxes such as central excise duty, service tax, CVD, valueadded tax, octroi and purchase tax with a single levy to create a seamless national market in the country.

As many as 17 taxes and 23 cesses have been folded into one levy.


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Source: ET
GST, NPA resolution to enhance India’s credit score profile, says Moody’s Investors Service

GST, NPA resolution to enhance India’s credit score profile, says Moody’s Investors Service

Moody's

India’s key reforms including the impending Goods and Services Tax and sticky loan resolution is going to boost the country’s credit profile, Moody’s Investors Service said Thursday.

Moody’s said that the wide-ranging reforms, also including the improving fiscal framework following the Fiscal Responsibility and Budget Management Act (FRBM) recommendations will broaden the tax base and anchor fiscal consolidation.

“Under such outcomes, the government’s debt burden, a key constraint on India’s credit profile, would ease gradually,” the global firm said.

Moody’s report focuses on the potential credit impact of three key pending reforms: the GST, the fiscal framework following FRBM and NPA resolution measures.

“Recent government measures to address NPAs and the promulgation of the Insolvency and Bankruptcy Code 2016 are credit positive for the sovereign, as they provide a clearer framework for NPA resolution,” Moody’s said.

The NPA resolution measures are expected to materially reduce banks’ sticky loans burden and, as a result, growth financing should take a positive turn. Until NPAs are resolved, banks’ ability to finance potential investment will be constrained.

The report said that short-term impact of GST will be muted, but benefits will accrue over medium term. “The long-term benefits will include higher productivity growth, due to efficiency gains in business operations, greater investment as interstate tax barriers are reduced, enhanced tax compliance and an expanded revenue base.”

GST is likely to be implemented from July 1 2017.

Demonetisation and financial inclusion efforts will also help broaden tax base, while expenditure reforms enhance spending efficiency. The Aadhaar identification system will reduce fiscal leakage, Moody’s said.

Implementation of medium-term fiscal framework would help guide government debt lower. The FRBM framework offers an opportunity to anchor fiscal consolidation by setting a medium-term target for the debt burden.

Source : http://economictimes.indiatimes.com/news/economy/indicators/gst-npa-resolution-to-improve-indias-credit-profile-says-moodys-investors-service/articleshow/58939478.cms
GST rollout: 10 goods and services that will become expensive after July 1

GST rollout: 10 goods and services that will become expensive after July 1

With the Parliament clearing the way for four crucial GST bills in its April session, India’s landmark tax reform is all set for its rollout on July 1. While many hurdles with respect to implementation, still exist, a smooth rollout could see a huge change in the pricing of various goods and services across the country.

The GST is expected to provide a much-required framework for solid economic growth. The proposed sales tax under the GST  will also serve to reduce the current costs of production and boost the manufacturing sector. The GST council is yet to determine the rules regarding tax refund, registration, invoice debit and credit, the framework on input-tax credit, valuation.

Further, the council will set the norms for transitional provisions and composition at its next meeting on May 18. However, the council has made it clear that the GST will have rates that are split into four categories of 5, 12, 18 and 28 per cents and fitment for all the goods and services will be done taking into account the current levels of state and central levies exercised on them.

While it is expected that most goods may become cheaper after the implementation of the Goods and Services Tax, quite a few services and some goods will become more expensive after the tax comes into effect. It is also expected that the Indian economy will see an inflationary effect immediately after the implementation of the GST.

Here are top 10 goods & services that will be expensive after GST:

  1. Telecom services: Cellular connections and mobile data are expected to become pricey after July 1. These will also be complemented by a hike in the charges of Wi-fi connections and DTH services.
  2. Insurance: If you’re looking to take out a life insurance or any other insurance, the right time might be before July 1. The GST is also expected to hike the cost of renewal premiums.
  3. Banking: Banking and other related services are expected to eat more into the common man’s pocket. This may also apply for investment portfolio management services.
  4. Transportation: Ticket prices for public transportation, especially in metro cities will cost more. This may have a higher impact on passengers commuting by metro or monorail systems. The cost of private transport and air travel is also expected to rise.
  5. Soft Drinks: In a bid to discourage the rampant growth of soft drinks, the government has proposed a higher taxation on Coke, Pepsi, Fanta and all other aerated drinks.
  6. Cigarettes: Falling under the category of ‘sin goods’, cigarettes will attract a higher rate of taxation raising their net costs after the implementation of the GST.
  7.  Alcohol: Just like cigarettes, alcoholic beverages also fall under the category of ‘sin goods’. The government aims to deter their consumption in states where they are not banned, by levying an additional amount of tax.
  8. Health Care: Moving away from the traditional socialistic policies, the government aims to cut down on certain long-existing subsidies. Health care will be one of the sectors affected by this policy.
  9. Education: Education will also see a few cuts in subsidies, like health care. this means that school tuition fees, both for public and private schools, could increase.
  10. Housing: GST is expected to have an inflationary effect on house rents across the country. However, with other acts like RERA being implemented, the cost of purchase is expected to suffer only a marginal impact.

Services seem to have a larger impact because of the GST, as they attract a higher tax rate of 18 percent under it. In comparison, the current system attracts only 15 percent tax on services. The inflationary impact of the Goods and Services tax is expected to be offset in the long run, as it gets regularised into the economy.

Source: http://bit.ly/2qkgEju
Venkaiah Naidu pitches for exemption of low-cost housing from service tax under GST

Venkaiah Naidu pitches for exemption of low-cost housing from service tax under GST

Union housing and poverty alleviation minister Venkaiah Naidu says his ministry is in talks with the finance ministry on the need to continue exemption of low-cost housing from service tax under the soon to be rolled out GST regime.

venkaiah-naidu

Urban development minister M Venkaiah Naidu on Monday pitched for exempting affordable housing from service tax under the GST regime so that prices for low-cost homes do not rise.

Naidu, who is also the minister of housing and urban poverty alleviation, also asked states to waive stamp duty for affordable housing projects and rationalise it for others.

Addressing the realtors’ body CREDAI event, he assured that the GST (Goods and Service Tax) would not lead to rise in prices and certainly not for the affordable housing segment.

“Currently affordable housing is exempt from service tax. My ministry has already taken up with the ministry of finance the need to continue with this exemption under the GST,” Naidu said.

The affordable housing has been given infrastructure status in the Budget and this would go a long way in placing more cash in the hands of home buyers and acting as catalyst for the development of such projects in the market, he said.

Naidu said the ministry has also recommended that the real estate sector should be taxed at a rate “which is revenue neutral and not at a higher tax rate”.

On industry demand that stamp duty should be included in GST, Naidu said: “We all know states have in their wisdom not adhered to inclusion of stamp duty under GST. The GST Constitutional Amendment Act also does not provide for it”.

The minister said although there is no clarity on the inclusion of real estate within the ambit of GST, the real estate sector would be benefited from this big reform ‘One Nation One Tax’.

“One big advantage GST is going to bring the industry is that cascading of taxes i.e tax on tax would become a thing of the past. Input tax credit would be available, thus there is a huge incentive to bring all transactions in the real estate sector within the formal system to enjoy credits,” he said.

Last week, the GST Council approved draft of key supporting legislations to enable rollout of the new indirect tax regime from July 1.

The Council approved the final draft of Central GST (C-GST) and Integrated GST (I-GST) and will take up for approval the State-GST and Union Territory-GST (UT-GST) laws at its next meeting on March 16.

Source : Hindustan Times