Connect us on:
  • twitter
  • linkedin
  • instagram
  • Youtube
  • business
Munimji

Blog

Dec05

2016

Key changes in Revised Model GST Law and suggestions invited for submission to Government

  • Taking into consideration majority of the concerns raised by the Trade and Industry, the Government has, on November 26, 2016, released the Revised version of the Model GST Law along with Draft GST Compensation Bill. Apart from addressing key concerns of the Industry in a very decent manner, the Revised Model GST Law has also proposed an anti-profiteering mechanism to ensure benefit of lower taxes is shared with consumers, and also ensures no tax on securities and subsidies provided by the Government.
  • The Draft GST Law is a model which the Central Government and each of the State Governments would use to draft their respective Central and State GST Acts. Further, a Revised Model of the Integrated GST Act, 2016, which will govern levy of GST on inter-State supplies by the Central Government, is also issued.

Archive


Categories

Nov28

2016

  • The threshold limit has been provided as the person whose aggregate turnover in a financial year exceeds Rs 20 lacs for all over India except north eastern states and Rs 10 lacs for north eastern states regarding the taxable supply of goods and services. Person Under GST includes proprietorship, HUF, company, partnership firm, LLP and any other legal entity.
    • Persons making Interstate supply, irrespective of any threshold limit
    • Casual taxable persons irrespective of the threshold limit
    • Persons who are required to pay tax under reverse charge for personal use beyond threshold limit or for other use

Nov21

2016

  • By now you would have woken up to the news of Rajya Sabha passing GST bill and being one step closer to implementation of the biggest tax reform in India since 70 years. GST is set to replace at least 17 federal and state taxes to implement a single and unified tax – Goods and Services Tax. The reason that our Hon’ble Prime minister Mr. Narendra Modi was vouching fervently for the bill to pass because it will help to increase at least 2% in the current GDP and that is a huge amount in itself, stemming India as one of the fastest growing economies in the world.
  • For long India’s tax system had layers of direct and indirect taxes which added somewhere between 25% and 40% to the COGS. Currently, abolishing all the taxes in between, GST is pegged at between 18% and 20%, with only 8 months left to implement the same – a timeline that Mr. Narendra Modi has set for the rollout.
  • It is beyond doubt that all industries will get affected by this news. With a standard of 18% being speculated to being implemented, there will be some areas that the consumers may benefit and some places where it might not. Looking at banking and financial sector, one of the crucial sectors for consumers, one might say that it can get a bit expensive for the consumers.

Nov14

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.

Nov07

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.

Oct31

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.

Financial Management