GST

Goods and Services Tax

Goods and Services Tax (GST) in India is considered as one of most important tax reforms since independence. GST is one indirect tax for the whole nation on ‘supply’ of goods and services, right from the manufacturer / service provider to the ultimate consumer which will make India one unified common market. It is a comprehensive levy and envisages tax collection on both goods and services based on the principle of value added tax.

Both politically and economically, passage of The Constitution (One Hundred and First Amendment) Act 2016 was a major landmark. There were many complex issues which the Government had to resolve leading to introduction of dual GST structure. Now, both the Central and the State Government will simultaneously levy Central GST (CGST) and State GST (SGST) respectively across the value chain in intra-state supply. SGST shall be replaced by Union Territory GST (UTGST) in Union Territories. In case of inter-State transactions, the Central Government would levy and collect Integrated GST (IGST).

The GST Council, chaired by the Union Finance Minister of India, Shri Arun Jaitley, has approved various rules dealing with Registration, Returns, Invoice, Payment & Refunds, Valuation, Transition, Input Tax, Composition, Accounts & Records, Appeals & Revision, Advance Ruling etc. Further, the GST Council has broadly approved GST rate fitment structure for most products and services, the rates of GST Compensation Cess and the list of services to be covered under reverse charge mechanism. The transition provision to allow credit on goods held in stock where invoice /duty paying document is not available is a welcome move.

The Government has formed Goods and Services Tax Network (GSTN) as a non-profit organization to create an IT platform for all the concerned stakeholders to collaborate on a single portal. GSTN has entrusted GST Suvidha Providers (GSPs) with the responsibility of providing the much needed support to taxpayers in the IT ecosystem for GST. Further, Application Service Provider (ASPs) will act as a link between the taxpayers and the GSPs. ASPs will focus on taking taxpayers’ raw data on sales and purchases and converting it into the GST returns. This GST returns will then be filed with GSTN via GSPs. It emphasizes on voluntary compliance and accounts based reporting.

The Government is keen on roll-out of the historic tax reform by its target date of 1st July 2017.

Benefits of GST:

  • Uniformity of tax rates including similar rates for inter-state transactions
  • Removal of cascading effect due to seamless flow of credit throughout the value chain
  • Improved competitiveness due to reduced transaction cost
  • Better tax compliance and effective way out to reduce trade based revenue leakage
  • Reduced tax burden
  • Increased certainty and ease of doing business

How we can Assist:

  • GST Impact Analysis
  • Tax Credits, Payment and Accounting entries
  • Tax Credit Transitions
  • GST Registrations
  • GST Compliances & Returns

Highlights of the 22nd GST Council Meeting (7th October 17)

The 22nd GST Council Meeting was held at New Delhi on 6th October 2017 wherein decisions and changes pertaining to GST return filing, composition scheme, GST rates have been announced to improve ease of compliance for facilitating the trade and industry.

Highlights of the 22nd GST Council Meeting Click Here to read the key decisions

GST E-way Bill Rules (4th September 17)

The E-way Bill Rules were finalized in GST Council meeting on 5th August 2017 and formally notified vide Notification No. 27 /2017 – Central Tax dated 30th August 2017. The effective date of implementation of the Rules is yet to be notified.

E-way bill is an electronic way bill for movement of goods which can be generated online through the GST portal.

GST E-Way Bill Rules Click Here to read the key Provisions of the Rules

Our Webinar on GST

GST – Understanding Form GSTR-3B (8th August 17)

Goods and Services Tax (GST), biggest tax reform since independence is now entering into return filing compliance phase. There is an anxiety over when and how GST to be paid and returns to be filed with regulatory authorities.

In an endeavor to simplify transition and ease out the difficulties faced by business, we are representing our alert on next course of actions to be taken this month.

GST – Understanding Form GSTR-3B Click to read the Alert

GST Compliances (22nd July 17)

Goods and Service Tax (GST) dubbed as the biggest tax reform since independence has finally been rolled out on July 1, 2017. After undertaking un-depth GST impact analysis over the months, businesses are now gearing up to be compliant with the new law. The next big thing is to file monthly GST Returns and transition compliances. The Government is leaving no stone unturned to handhold the industry in this phase. As a stepping stone, the Government has already relaxed in filing invoice level Return for the first two months of its rolling out.

GST Compliances Click  to read the complete Bulletin.

GST Bulletin (9th June 17) – GST Transitional Provisions

The Government is keen on roll-out of the historic tax reform by its target appointed date of 1st July 2017. One of the keys to the success of Goods & Services Tax (GST) is smooth migration to new regime with minimum noise to business. The enrollment of existing or new taxpayers to GST is first step towards Transitional Provisions in the new regime.

The GST Council has approved rate structure on various items and also approved rules relating to GST Returns and Transition Provisions.

GST Bulletin – June 17 Click to read more

GST Bulletin (20th May 17) – GST Rates & Migration

The Goods and Services Tax (GST) Council, at its fourteenth meeting on 18th May 2017 held in Srinagar, has approved the rate structure on majority of the goods and services. The Government classified 1211 items under 98 categories of goods in various tax slabs i.e. 5%, 12%, 18% and 28% and has kept a large number of items under 18% tax slab.

As GST is set to be launched on 1st July 2017, it is important to understand who are required to get enrolled / registered before the appointed date i.e. the day when law comes into force.

GST Bulletin Click to read more.

Goods & Services Tax (19th August 16)

GST Click to read more

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