Accounting Training

Blog

Archive


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.

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

2017
  • GST law provides for Goods and Services Tax Compliance Rating which is a new concept in India. Presently, there is no system of compliance rating under any tax laws in India. GST compliance rating is a concept which will be experimented as a legal provision for the first time in our country. Accordingly, every taxable person shall be assigned a GST compliance rating score based on his record of compliance with the provisions of the GST Act. Every taxable person irrespective of its nature or size or turnover shall be assigned a GST compliance rating.
  • As a governance issue, it is a fact that taxes and their compliances are increasingly being discussed at board level.

2017
  • The future of Indian logistic industry looks bright, thanks to e-commerce penetration, economy revival, proposed GST implementation and government initiatives like Make in India, National Integrated Logistic Policy, 100% FDI in warehouses, food storage facilities, etc. In the Indian logistics industry, transportation enjoys a lion’s share of 60% while warehousing, freight forwarding, value-added logistics, etc. together contribute only 40%. Experts predict India’s GDP growth to be robust. This means that logistics industry will also grow by leaps and bounds as it is directly correlated with economic activity. Considering this fact, the Indian logistic industry is predicted to grow at CAGR of 15-20% between F.Y. 2016 and F.Y. 2020.
  • This doesn’t mean that logistics industry in India isn’t plagued by any problem. It suffers from many issues like higher logistic costs and complex tax structure. GST Act can become its savoir. The implementation of Goods and Service Tax bill is hoped to bring down the logistic costs up to 20% from the current levels, however, development of a robust logistics infrastructure is extremely crucial to bring down persistently high logistics costs. Indian logistics industry is identified by 4 major parts which are transportation, warehousing, freight forwarding and value-added logistics. Transportation which has the major share in the industry comprises of means like road, rail, air and water. However, India being an emerging economy, is heavily dependent on transportation through rail and road.

2017
  • Manufacturing industry has been a growth driver for various developed countries in the past but India’s manufacturing sector has always been a lackluster performer. India’s complex tax structure can partly be blamed for the stagnant growth of this industry. Government knows the importance of this sector and has therefore taken several steps in the recent past to make India a manufacturing hub at global level. The new GST regime is also a step which will act as a catalyst for driving growth of manufacturing industry. It will have a far-reaching impact on business avenues, compelling organisations to realign bottlenecks such as production cost, production time, supply chain, compliance, logistics, etc. with the changing indirect tax structure.
  • There are still a lot of gaps in GST Act so it is difficult to make predictions about its impact on industry. However, using the information available we have done impact analysis of GST on manufacturing industry.

Compliance requirements may increase

  • GST will demand businesses to set-up mechanism for meeting the requirements of GST. Increased compliance will close loopholes in the tax framework but increase costs initially for businesses. Once businesses adapt themselves to meet the requirements of GST, compliance costs will come down drastically.

Financial Management