GST Ready India

GST Ready India’s Latest News and Updates

GST refunds issue refuses to go away

Apr 24, 2018

GST tweak to hit restaurants’ expansion plans

The withdrawal of input credit under the goods and services tax for restaurants will adversely affect their expansion plans this financial year, chains across formats said.

In the absence of input credit for expenses such as rent and other capital costs that attract GST of 18% to 28%, opening a new outlet has become substantially more expensive, said Speciality Restaurants, the operator of brands such as Mainland China and Oh! Calcutta. It typically costs Rs 2.5 crore to Rs 3 crore to set up a new restaurant. Click to read more

Duty-free shops at IGI not exempt from GST

International flyers buying goods from “duty-free” shops at Delhi’s IGI Airport will have to pay goods and service tax (GST), with the Authority for Advance Ruling (AAR) saying such airport outlets are not “free from duties” under the tax regime.

In the earlier regime of excise and service tax prior to GST rollout on July 1, 2017, duty-free shops were exempt from the levy of central sales tax and value added tax as sales from such shops were considered as exports and supply was taking place beyond the “customs frontiers” of India. Click to read more

GST refunds issue refuses to go away

Slow GST refunds continue to hurt exporters (who are entitled to complete refunds as exports are zero rated) in certain sectors, despite government claims.

The government claims that corrective measures taken in October to speed up refunds have alleviated the distress in the case of working capital-intensive sectors, but the impact on the ground appears to have been uneven.

Here, too, there seem to be two factors at work. First, the higher the working capital to sales ratio, the more the disruption in the sector concerned. Click to read more

Application of GST Rate finder app in GST

People by now has become well versed with GST and it is known factor that based upon the new tax system which is GST, the rate of the goods are varied but yet the public doesn’t have a clear idea on which goods and services actually the GST is showing its influence. And it is this concern of the government which lead to creation of GST rate finder app to bring awareness to public at large in understanding about GST rate, HSN/SAC classifications and this resulted in Form of  an application named GST Rate Finder App is launched, Click to read more

Four States, Puducherry To Roll Out Intra-State E-Way Bill From April 25

Four more states, including Madhya Pradesh, and Union Territory of Puducherry will roll out the e-way bill for intra-state movement of goods from April 25.

From April 1, the government had launched the electronic way or e-way bill system for moving goods worth over Rs 50,000 from one state to another. The same for intra or within the state movement has been rolled out from April 15. So far, 12 states have made e-way bill mandatory for intra-state movement of goods.

“Four more states – Madhya Pradesh, Arunachal Pradesh, Sikkim and Meghalaya – and union territory of Puducherry will roll out intra-state eway bill from April 25,” GSTN CEO Prakash Kumar told PTI in an interview. Click to read more

Tax talk: Employee contracts need to be re-worded post GST

Consideration, whether in cash or otherwise, paid to employees, termed as Cost to Company (CTC) for work done during employment, is exigible to income tax and not indirect taxes. In terms of the GST legislation, consideration paid by an employer to the employee (i.e. salary) for rendering services in the course of employment would not be liable to GST. However, the GST law does not provide clarity in cases where the employer reimburses certain expenses to its employees that are outside the purview of the employee’s CTC.. Click to read more

Ten States Account For Over 83% Of E-Way Bill Generation, Gujarat Tops Chart

As many as ten states account for over 83 percent of the e-way bills being generated in the last three weeks with Gujarat topping the chart, GSTN said today.

Between April 1-22, over 1.84 crore bills have been generated on the e-way portal.

Over 34.41 lakh e-way bills were generated by Gujarat, followed by 26.23 lakh generated by Karnataka and 21.06 lakh by Maharashtra, as per the GSTN data.

Besides, Uttar Pradesh has generated over 15.49 lakh e-way bills followed by Haryana (14.69 lakh) and Delhi (10.94 lakh). Click to read more

E-way bill implementation a grand success in Haryana: Abhimanyu

The implementation of e-way bill in Haryana under the Goods and Services Tax has seen a grand success, state Excise and Taxation Minister Abhimanyu said here today.

Since the launch of intra state e-way bill from April 20, 2018, the number of e-way bills generated in Haryana has more than doubled from the previous number when only inter state e-way bills were generated, he said.

He cited the e-way bills statistics for April 23, 2018 when more than 1.45 lakh bills were generated from Haryana. Click to read more

Govt exploring sugar cess, GST cut on ethanol, subsidy to growers: Ram Vilas Paswan

With cane arrears to farmers mounting, an informal ministerial panel today explored options such as production-linked subsidy, imposition of sugar cess and reducing GST on ethanol to help sugar mills in clearing dues worth Rs 19,000 crore to sugarcane farmers.

Road Transport and Highways Minister Nitin Gadkari, Food Minister Ram Vilas Paswan and Petroleum Minister Dharmendra Pradhan today held a meeting to discuss ways to deal with huge cane arrears to growers. Click to read more

Tax tangle: March GST mop-up hits Rs 96,000 crore

The goods and services tax (GST) collections for March exceeded Rs 96,000 crore by April 23, the largest mop-up for any month since the comprehensive indirect tax’s launch in July last year, an official source said. The March collections could cross the coveted Rs 1 lakh crore mark by April-end, as payments are still being made by a section of taxpayers with late penalties, analysts feel. Click to read more

Delay in dealing with GST refund delays

Commerce Minister Suresh Prabhu last week promised to address the problem of delayed refunds faced by exporters under the Goods and Services Tax (GST) regime and take up the issue with the Finance Ministry. In a meeting with industry representatives, the minister admitted that GST refund is a major issue for the sector and stressed on the need of a concrete plan to address the challenge. The assurance came in the background of claims by exporters that over 60 percent of their refunds are still stuck with the government. Click to read more

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