The Central Board of Excise and Customs (CBEC) recently issued a clarification regarding applicability of Goods and Services Tax (GST) on under-construction and ready-to-move-in property. GST was implemented on 1 July 2017. Read more about how GST will be charged when you buy a house, at what rate and at what stage.
No GST on completed properties
Transfer of completed property is not considered as rendering services to a buyer and thus does not attract GST. According to the CBEC’s recent clarification, “Sale of building is an activity or consideration which is neither a supply of goods nor a supply of services. (Para 5 of schedule III of the CGST Act, 2017).” So if you buy a completed property, it will help you save money in form of tax. Click to read more
Goods and Services Tax Network (GSTN), the IT backbone of the new tax regime, has put a new function on its portal to allow taxpayers choose the frequency of filing GSTR 1 form on a quarterly or monthly basis. Taxpayers with an annual aggregate turnover up to Rs 1.5 crore in the previous financial year or anticipated in the current financial year can avail themselves of the option of filing quarterly returns. GSTR 1 summarises all the sales of a taxpayer. Click to read more
From our experience in advising law firms and advocates, it emerges that while most law firms are already registered under GST, individual lawyers are either not registered under GST or are reluctant to obtain registration. There is no logical basis for such differentiation in approach between individual lawyers and law firms as GST law does not differentiates between individuals and partnership firms, at least not in regard to obtaining registration. Click to read more
One of the great promises of the Goods and Services Tax (GST), which was rolled out from July 1 this year, was that it would greatly simplify tax compliance, bring every state in the country under the same tax, and thus reduce the incentive to do cross border shopping and tax arbitrage. The assumption was that since the goods would attract the same taxes and therefore be at the same price in every state, there would be less incentive for sellers to sell in one state but generate invoices in another because of the different rates of taxes in the two states. Click to read more
The government’s back and forth over implementation of the e-way bill, seen as a crucial piece of legislation for India’s road transport and logistics industry, seems to characterise the pitfalls in the ambitious GST regime. Never more than now, as India’s truckers and goods transporters continue to struggle with state enforcement machineries like in the pre-GST days, even as they complain about high input cost structure and under-the-radar goods’ transportation continues unabated. Click to read more
While it is true GST collections are falling short of estimates and that the system has not, as yet, been able to check tax evasion, the GST Council’s decision to use the E-way bill to fix the leakage is a bad idea. Already, taxpayers are struggling with the new system and increasing compliance at this point will be counter-productive. The GST Council was to have discussed the E-way bill at the January meeting, but it has now decided the inter-state E-way bill will be launched in February 2018 rather than in 2019 as earlier envisaged, and the intra-state bill in June. The loss of momentum in GST collections, which have been falling steadily over the months, is a valid concern. Click to read more
The centre is in favour of bringing petroleum products under the goods and services tax (GST) regime, but is waiting for a consensus to emerge among states, finance minister Arun Jaitley said on Tuesday.
“As far as the central government is concerned, we are in favour of bringing petroleum under GST. Let me categorically state this. But we would await the consensus of the states and I do hope at some stage, sooner or later, the states agree to bring this inside GST,” Jaitley said in the Rajya Sabha. Click to read more
With a consistent demand for the inclusion of petroleum products under the GST, the government may soon bring in these products under the uniform tax regime. The first clear indication on this came from Union Finance Minister in Parliament on Tuesday when he said the government was willing to include petrol, diesel and other allied products under the Goods and Services Tax (GST), and that before the GST Council took a decision, the government was awaiting response from different states of the country. Four days ago, Bihar Finance Minister and GST Council member Sushil Modi had said the government should bring in petroleum under the GST ambit. Click to read more