Deferment of some of the key features under GST, including reverse charge mechanism (RCM), tax deducted at source (TDS) and tax collected at source (TCS) among others are some of the key recommendations submitted by a panel of officers.
The law review committee, comprising senior officers from the Centre and states, finalised their recommendations on January 5. These proposals would be reviewed by a group of officers from the finance ministry tomorrow, before they present it to the Goods and Services Tax (Council) on January 18. Click to read more
The Goods and Services Tax (GST), which was imposed on July 1 last year, radically changed many things in Indian economy. One change that has gone unnoticed is its impact on the Budget. The GST has shorn the Budget of its suspense and mystery by taking away half of its work, the indirect taxes. Now GST Council decides tax rates for goods and services. In fact, Finance Minister Arun Jaitley had dropped indirect tax proposals in his previous Budget in anticipation of GST coming in force after a few months. Click to read more
Presently the GST rate applicable to Real Estate Industry (i.e on sale of Flats) is 12% of the sales consideration. During the Pre GST era the applicable rate of Service Tax was around 4.5% and Value Added Tax of 1% was also levied, resulting in total tax outgo of 5.5% of the sales consideration.
In the GST regime the Input Tax credit is available on taxes paid on materials bought for construction which can be the adjusted against the GST liability, the effective tax rate post adjustment is quite high as compared to the old rate of 5.5%. Click to read more
The biggest compliance burden for large service providers such as banks and airlines, who were required to apply for multiple registrations in every state of operation under the new Goods and Services Tax (GST) regime, could be eased.
The GST Council’s law review committee has recommended centralised registration for large service providers operating across ten or more states with an annual aggregate turnover exceeding Rs 500 crore, which could offer big compliance-related relief for big service sector firms. Click to read more
The State Goods and Service Tax (SGST) department on Wednesday raided some 20 shops and the offices of 12 transporters in connection with selling cellphones, cellphone accessories, pen-drives, hard-disks and China-made electronic items without invoices at Relief Road, Naroda, Narol, Sarangpur, Changodar and Kubernagar areas of the city.
Tax officials said these were the first-ever raids in Gujarat the new tax regime was introduced. “Our teams raided around 32 establishments, mainly shops at Relief Road and transporters’ offices in other areas of the city, as they were selling goods including mobile phones, cell phone accessories, pen-drives, hard-disks, headphones and other China-made electronic goods without bills,” said a top SGST official. Click to read more
The finance ministry on Wednesday said that there is no extension of the due date for filing GST final returns and the deadline ends tonight.
The clarification comes after social media went abuzz with a fake notification which stated that the deadline for filing GSTR-1 has been extended.
“The last date for filing of return in FORM GSTR-1, for different classes of taxpayers for the relevant periods… remains 10 January 2018. There has been no further extension of date for filing return in FORM GSTR-1,” a finance ministry statement said. Click to read more
A government-appointed committee has recommended against inclusion of all services, barring restaurants, under the ambit of composition scheme in the Goods and Services Tax (GST) regime.
The 10-member Law Review Committee, comprising representatives from both the Centre and states, also suggested that the limit of services provided by a composition dealer should be limited to 10 per cent of the taxable turnover or Rs 5 lakh, whichever is higher.
The panel suggested a separate composition rate not exceeding 18 per cent for services supplied by composition dealer by way of job work, sources said. Click to read more
Mess facility provided to students and staff will attract 5 per cent GST irrespective of whether it is provided by educational institution or outside contractor, the finance ministry said today. The Central Board of Excise and Customs (CBEC) has issued the clarification in view of queries regarding the tax liability and the rate of Goods and Services Tax (GST) leviable on services provided by a college hostel mess.
“Supply of food or drink provided by a mess or canteen is taxable at 5 per cent without Input Tax Credit… It is immaterial whether the service is provided by the educational institution itself or the institution outsources the activity to an outside contractor,” the CBEC said. Click to read more