The government has deferred implementation of a provision that required ecommerce players such as Amazon and Flipkart to deduct tax on payments made to their vendors from July 1, under the new Goods and Service Tax regime.
In addition, small businesses that sell through these ecommerce platforms don’t have to register themselves immediately, the government said.
Ecommerce players had feared losing business as a large number of small suppliers were yet to register their operations as required under GST guidelines. Click to read more
The countdown to the ‘One Nation One Tax’ has already started and with just a few days to go for actual implementation on 1st July, most analysts are flagging caution.
The one nation one tax will subsume host of levies, including excise, service tax, VAT and other local levies. It is expected to widen the tax base, and add about 2 percent to Gross Domestic Product (GDP).
The goods & services tax (GST) has many positive factors for the industry but could lead to short-term disruptions in the short term as no one estimate the damage it may cause. Click to read more
GST or Goods and Services Tax is set for a midnight launch on June 30. Various government departments and agencies are working towards a seamless transition into the new indirect tax structure. The Central Board of Direct Taxes, under the purview of the Department of Revenue, has said GST will provide a “big relief” to small traders, manufacturers and restaurants. In most states, taxpayers like manufacturers, service providers and traders with annual turnover below Rs. 20 lakh “need not pay any GST and need not register”, according to the CBEC. This limit is Rs. 10 lakh for Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim, Uttarakhand and Himachal Pradesh, it added. Click to read more
More than 92% of traders, companies and others who pay value added tax in Tamil Nadu have migrated to goods and services tax (GST) by registering themselves in the new tax website. A year ago, the state commercial taxes department had introduced a new software called total solution project to help traders register and pay tax online.
“The total solution project is similar to the GST software. We just need to change the registration and ask the traders to learn a few steps to upload the documents for paying tax. So far, it has been easy to get traders and companies migrate to GST,” said a senior commercial tax officer. Click to read more
The Confederation of All India Traders (CAIT) on Monday demanded setting up of an ‘impartial authority’ like an ombudsman or Lokpal, whom businessmen can voice their grievances related to the goods and services tax (GST) and seek redressal.
“At present, if I have a taxation-related grievance, the appellate authority is also a person who is part of the system. The way there is an ombudsman everywhere else, under GST also there should be a provision for a Lokpal or ombudsman,” CAIT secretary general Praveen Khandelwal told reporters. “If I have a problem, there has to be an impartial authority where I can go and air my grievances,” he added. Click to read more
On September 8, 2016, President Pranab Mukherjee gave his assent to the landmark Goods and Services Tax bill, a major step towards rolling out the new indirect tax regime. The GST will come into effect from July 1. Just like everyone else, I was excited at the prospect of one indirect tax for the whole nation. But all my hopes were dashed to the ground, when the GST rates on categories of goods were released on May 18. Here’s why: The GST on Braille typewriters and papers, carriages for the disabled and wheelchairs and other assistive devices have been fixed at rates varying between 5 to 18%. Click to read more
The new GST regime is a work in progress, it must be fixed urgently
Sixteen years in the making, India is finally set to roll out the Goods and Services Tax (GST) from July 1. Prime Minister Narendra Modi will inaugurate the new indirect tax at the stroke of midnight in Parliament, taking a leaf out of Jawaharlal Nehru’s book. “A moment comes, which comes but rarely in history, when we step out from the old to new,” Nehru had said while ringing in India’s independence. The two events are obviously not comparable — nonetheless, the GST’s introduction could have been a rare transition, but is not. Click to read more
The Goods and Services Tax (GST), touted to be India’s biggest tax reform since Independence, has found a supporter in US President Donald Trump, who told Prime Minister Narendra Modi, it (GST) was “the largest tax overhaul in your country’s history”.
“We’re doing that also, by the way. Creating great new opportunities for your citizens. You have a big vision for improving infrastructure, and you are fighting corruption, which is always a grave threat to democracy,” Trump said. Click to read more
India’s implementation of the “complex” Goods and Services Tax (GST) could be studied by US business schools, Prime Minister Narendra Modi has said, as he invited top American companies to invest in the country which has initiated major reforms.
“The implementation of the landmark initiative of GST could be a subject of studies in US business schools,” Modi said yesterday while interacting with 20 top American CEOs at a round table here ahead of his first meeting with US President Donald Trump. Click to read more
With less than a week to go for the new indirect tax regime to kick in, small businesses are trying to understand the modalities of the goods and services tax (GST) as the compliance burden for them is set to significantly rise.
Making a relaxation for small businesses, rules allow those with an annual turnover between ₹20 lakh and ₹75 lakh (or up to ₹50 lakh for hilly States) to opt for the composition scheme and file returns every quarter, the bigger challenges seems to be automating their systems and installing at least one computer for making and uploading invoices. Click to read more