With only a month left for the roll-out of the goods and services (GST) tax businesses would have to register on its network in the next fortnight.
“This is probably the last window before the GST goes online on 1st July. To raise an invoice under the new indirect tax regime one would have to be registered on the GST Network (GSTN),” said L Badri Narayanan, partner, Lakshmikumaran & Sridharan.
Businesses would also be able to amend any mistake made during registration earlier in this window. Click to read more
Despite the standoff over the Goods and Services Tax (GST) Bill, the program towards its implementation has been on course. The comprehensive tax law will bring reforms marking a model shift in the taxation system. It will impact businesses of all sizes, including startups.
Variations pursued by the GST
The tax law would be extended in its effect on the manufacturing, sale and consumption of goods and services throughout India. It would replace various different taxes that the Centre and State governments charge separately. Click to read more
With the GST rates for most goods and services already determined, the Centre’s ambitious ‘one nation, one tax’ goal seems close to becoming a reality. However, the biggest lesson from the demonetisation exercise is that usually, the problem with most policies is not decision-making but the implementation.
The government believes that the unified tax code will bring in better compliance and better collection of indirect taxes and direct taxes. The government also claims that ultimately, GST will also lead to greater ease of doing business. Click to read more
There is an excitement in the country about GST. People want to understand the process of GST. Through this article, we present some points about the process of filing returns.
Every trader will have to file returns once a month and pay tax. The input credits of taxes that have been paid on purchases will be automatic and will be available to every trader. The whole process of filing returns is online. If accounts are kept in the Excel sheet provided by GSTN, then the same account will automatically be converted into returns with the help of an offline tool every month. Click to read more
Mobile phone companies are set to shortly press the finance ministry to lower the goods & services tax (GST) rate on an essential service like telecoms to 12%, to ensure parity with the applicable tax rate for mobile handsets, while pushing for an extension to the July 1 deadline for implementation of the new tax regime.
The Cellular Operators Association of India (COAI), which represents India’s biggest phone companies such as Bharti AirtelBSE 2.96 %, Vodafone India, Idea CellularBSE 0.31 % and Reliance Jio Infocomm, is likely to question the logic of the finance ministry’s decision to impose an 18% GST rate on telecom services while choosing to levy a 12% tax on mobile handsets. Click to read more
GST will be charged at four different slab rates of five percent, 12 percent, 18 percent and 28 percent on services. At the outset, it may appear that the burden of service tax would increase. However, the GST regime allows service providers to claim credit of tax paid on goods (and services) used as input in their profession. This means the cost of services may come down. Under service tax laws, tax paid on only input services was only available for paying service tax dues. Click to read more
Finance Minister Arun Jaitley on Thursday asked industry to look into the existing incidence of indirect tax before seeking reduction in Goods and Services Tax rates as proposed by the GST Council.
He further said that industry should gear itself for GST, which the government proposes to roll out from July 1. “We are passing through a stage where the government is ahead of the industry. I will expect that the industry, or those sections which say they are not ready, should also fall in line because we are quite clear about the date,” Jaitley told reporters. Click to read more
July might prove to be a difficult month for people heavily dependent on medication as medical stocks are expected to run low due to the impending transition to the Goods and Services Tax (GST).
While currently a five per cent Value Added Tax (VAT) is levied on most medicines, the GST will range between 12 and 28 per cent.However, there is no clarity on just how much GST will be applicable and on which medicine. Click to read more