GST Ready India

GST Ready India’s Latest News and Updates

GST Effect: How The Rates Of Daily Use Items Have Changed

Aug 14, 2017

18% GST on food takeaway from non-AC area at AC restaurant

A uniform GST rate of 18 per cent will be charged on takeaways as well as food served from a non-AC area of a hotel or restaurant if any of its part has a facility of air conditioning, the government has said.

The new Goods and Services Tax (GST) regime, which was rolled out from July 1, provides for levy of 12 per cent on food bill in non-AC restaurants. The tax rate for AC restaurants and those with liquor licence will be 18 per cent while 5-star hotels will charge 28 per cent. Click to read more

GST: ‘Number of tax slabs may drop if revenues improve’

The Centre may look at bringing down the tax slabs under the GST regime as revenues improve, Minister of State for Finance and Corporate Affairs, Arjun Ram Meghwal, said.

The GST currently has five tax slabs that include an exempted category (0 per cent rate) and four others with rates of 5 per cent, 12 per cent, 18 per cent and 28 per cent.

“The Centre may consider bringing down the number of tax slabs once it is convinced of improvement in revenues,” Meghwal said during an interactive session organised by Indian Chamber of Commerce. Click to read more

GST Effect: How The Rates Of Daily Use Items Have Changed

GST or Goods and Services Tax replaced a slew of central and state levies from July 1. According to the new rules, firms are required to file simplified, self-assessed GST returns by August 20. Amid all this, the Central Board of Excise and Customs has once again listed some common-use items – and their pre-GST tax rates – where the tax incidence is lower or equal ever since GST came into effect. It has mentioned several “items of common use” comparing GST rates with the earlier indirect taxes. Items that now attract nil taxes under GST include wheat/rice, unbranded flour, curd, butter milk, unbranded natural honey and children’s drawing books. The earlier tax incidence on such items was in the range of 2.5-7 per cent, according to the CBEC. Click to read more

How to Determine the Place of Supply of Transportation Services

Under Goods and Services Tax (GST), ‘supply’ will be the single taxable event and the major transformation that will occur is ‘Destination based consumption tax’, where tax will accrue to the state in which the supply is consumed. The place of supply determines the tax type to be levied on the supply.

Let us have a look at the importance of an accurate determination of place of supply for businesses. The reasons for the same are as follows: Click to read more

GST Software – GST Challenges and Solutions

India’s complex and multi-layered tax structure came to an end with GST implementation on 1st of July 2017. GST gets the credit to make business owners aware of the applicable tax rate they would be paying, to whom and where. This increases work for the Government of India as well when approximately 260-300 crore invoices will pass through the GSTN (GST Network) and returns will be filed thrice a month! Click to read more

GST on restaurant bills: Find out how much tax you have to pay on takeaways from non-AC area of an AC hotel

Ever since the Goods and Services Tax (GST) was implemented on July 1 across the country, it has affected the customers directly. The new tax regime is considered as one of the biggest economic reforms since India’s Independence but its complex nature has left many people and traders confused. Just like other goods, the GST also had an impact on your restaurant bills making dining at luxurious places slightly expensive. What remained unclear, however, was that how much tax will be levied on takeaways. Click to read more

Consumer goods sector feels the GST heat, retail earnings offer some comfort

GST had quite an impact on the performance of corporate India, as seen in the earnings season. Most of the consumer-centric businesses — staples, durables, electricals — attributed their underperformance to GST transition.

However, from a broader perspective, numbers from the retail sector were much better. How did they weather the storm so well? Click to read more

FMCG firms hit in Q1 due to pre-GST sales impact: Experts

Top FMCG players, including Hindustan Unilever, Dabur, Marico and Emami would have performed much better in first quarter had sales not been impacted by de-stocking ahead of GST implementation, according to industry experts.

While HUL reported a 9.28 per cent increase in its first quarter net profit at Rs 1,283 crore, Dabur India saw its net profit dip by 9.80 per cent at Rs 264.86 crore. Click to read more

GST in electricity, construction equipment & highways

There is no denying that the goods and services tax (GST) has had a major positive impact on the infrastructure sector. The complexities associated with the plethora of existing indirect tax systems have vanished (customs, excise, value-added tax or VAT, central sales tax, entry tax, cesses, etc) and their cascading effect extinguished. There is seamless flow of credits where earlier many restrictions existed on availing and utilising them; and a single internet-based interface between all modes of the supply chain has given a fillip to transportation and logistics. Click to read more

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