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2017
  • Let us have a bird’s eye view for the GST return preparation and due dates for the month of July 2017 and August 2017.
  • There have been widespread concerns over the smooth rollout of GST and there were some glaring concerns from trade and industry. These have led to a decision by the government that for the first two months of the GST implementation, GST would be payable basis a simple return form – Form GSTR-3B. This will contain a summary of outward and inward supplies and you need to submit this before 20thof the succeeding month.

2017
  • The term “profiteering” means making unreasonably high profits in the course of ordinary trade or business. The government of India is committed to protecting consumers from profiteering during the implementation of the Goods and Services Tax (GST) regime. In its efforts to prevent profiteering and ensure the proper levy of GST in India, the government will incorporate an anti-profiteering clause.
  • Since goods and services are taxed at multiple stages of the supply chain, any change in tax structure or tax rates creates an opportunity to improve profit margins at each stage. Thus, the Indian government intends to take measures to ensure that benefits accrued due to the introduction of the indirect tax regime are duly shared with consumers in the form of reduced prices.
  • Under the anti-profiteering clause in GST (Section 163), the central government is authorised to examine whether input tax credits claimed by any registered taxable person result in a “commensurate reduction in the price” of goods and services sold by that person. The central government is authorised to impose penalties in the event such price reductions are not implemented. However, the law is not intended to quash all profits — it’s designed to protect consumers from undue exploitation.

2017
Here are some of its major advantages of GST :
  1. GST is a win-win situation for the entire country. It brings benefits to all the stakeholders of industry, government and the consumer. It will lower the cost of goods and services, give a boost to the economy and make the products and services globally competitive. GST aims to make India a common market with common tax rates and procedures and remove the economic barriers, thus paving the way for an integrated economy at the national level.

    By subsuming most of the Central and State taxes into a single tax and by allowing a set-off of prior-stage taxes for the transactions across the entire value chain, it would mitigate the ill effects of cascading, improve competitiveness and improve liquidity of the businesses. GST is a destination-based tax. It follows a multi-stage collection mechanism. In this, tax is collected at every stage and the credit of tax paid at the previous stage is available as a set off at the next stage of transaction. This shifts the tax incidence near to the consumer and benefits the industry through better cash flows and better working capital management.
  2. GST is largely technology driven. It will reduce the human interface to a great extent and this would lead to speedy decisions.

2017
  • Small dealers and businesses could opt for the composition scheme known as Composition Levy. Under this scheme, a Composite Tax Payer pays tax only at a certain percentage of his turnover.
  • “Aggregate turnover” means the aggregate value of
    1. All taxable and non-taxable Supplies
    2. Exempt supplies and
    3. Exports of goods and/or services
    4. Interstate supplies of a person having the Same PAN
    to be computed on all India bases and excludes taxes, if any, charged under The CGST Act, SGST Act and the IGST Act, as the case may be;
  • Explanation – Aggregate turnover does not include the value of supplies on which tax is Levied on reverse charge basis and the value of inward supplies.

2017
  • Compliance is the biggest concern under GST, its cost may be too high as taxpayers will have to file separate returns for IGST, CGST & SGST
  • With the GST rates for most goods and services already determined, the Centre’s ambitious ‘one nation, one tax’ goal seems close to becoming a reality. However, the biggest lesson from the demonetisation exercise is that usually, the problem with most policies is not decision-making but the implementation.
  • The government believes that the unified tax code will bring in better compliance and better collection of indirect taxes and direct taxes. The government also claims that ultimately, GST will also lead to greater ease of doing business. However, most taxpayers are still worried about its demerits. The issue of compliance is the biggest concern. GST being a radical change from the current indirect tax regime, a proper system must be in place for a smooth transition.

2017
  • GST rates for goods at nil rate, 5%, 12%, 18% and 28% to be levied on certain services.
  • For more information please find below attached pdf file.

Financial Management