Blog

2016

GST and its impact on consumers

  • The finance ministry released the recently released draft of goods and sales tax. And, based on the current scheme of affairs, consumers are expected to pay a service charge tax of around 14.5-15% for all broadcast services like Television that includes Cable and DTH also films and digital content. Besides this, an entertainment tax of around 8-12% is further levied increasing the average tax to as much as 25%.
  • However, once GST comes into play, consumers would have to pay a single tax between that can be anything between 18-20%. Hence, the overall tax burden on consumers is set to reduce.

Archive


2016
  • Online business (E-Commerce) is the most preferred way of doing business and reach every segment (Age, Price, Location, Gender, Products & Services, etc). Online business (E-Commerce) works in a different way than other conventional businesses in India. Currently, with Foreign investment pumping huge money in online business; their unique operations model has been challenging to government on understanding and applying taxes to online businesses. This demand for GST to be upgrade in Indian market and be in par with other 140 countries.
  • GST would impact industry sectors, product manufacturers and distributors due to its broad-based consumption tax in several ways. Maximum Online business (E-commerce) companies have invested money on tax experts to deal with the problem and have finding solutions for easy GST implementation.

2016
  • GST is one of the most revolutionary tax systems to be rolled-out in the country. However, as with all tax things, there exists some confusion like division of taxation powers between the Central and State government. But, producers and manufacturers believe it would make the entire taxation system more fair, transparent and efficient. This blog throws light on how GST will operate in India.
  • Indian government is set to implement dual GST tax system, which would be administered at both Central and the State Government levels. Dual GST will comprise of SGST (collected by the State government), CGST (collected by the Central government) and IGST (collected by the central government on inter-State supply of goods and services).
  • Under the new levy, a transaction of sale within the state shall have the following taxation structure:
    1. SGST, collected by the State government
    2. CGST collected by the Central government
    3. Sale from one state to another shall have only one type of tax i.e., IGST collected to the Central government.

2016
  • Please find the answers to the various frequently asked questions relating to GST in the document attached herewith:

2016
  • The Wednesday of 3rd Aug 2016, a day when Rajya Sabha finally took the big step in, by passing the GST bill in India, after a period long wait and arrays of debates and discussions over it. GST is the biggest transformation in tax reforms India has seen in years and has left everyone, from a common consumer to business entrepreneurs, curious over what changes it may bring upon.
  • So let us dig in further, beginning with how GST is different from VAT

2016
  • The Income Tax Department has announced that it will bring up new ASKs (Aayakar Seva Kendra) soon in its endeavor to improve its services. ASKs were introduced by the tax department with the aim to make its services more accessible to common people. Now tax department will add 60 more centres to in several third tier cities like Goalpara, Morigaon, Siliguri, Haldia, Dharmapuri, Hardoi, Neemuch, Mandsar, Rewari, Sonepat, etc. covering areas from Assam to Madhya Pradesh. More than 300 ASKs are already operational in many prominent cities out of which 58 were added last year by the government.
  • CBDT has taken up the task of creating new ASKs on priority. CBDT has also asked the field offices of the tax department to create teams to undertake the task and speed up the process. This step will make common tax related services more accessible to the people. For those of you who do not know about ASK, here is a brief description about it:

Financial Management