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News Indirect Tax-GST

  • Jul 17, 2018
  • Special drive launched to process pending GST refunds

    The government on Monday kicked off a special fortnight-long drive to facilitate pending GST refunds which will last till July 30. During this period, dedicated refund cells and help desks would be provided for exporters to get their refund claims processed in each commissionerate, an official statement said. This is the third such refund fortnight to clear Goods and Services Tax (GST) refunds after similar drives earlier held in March and June.

  • Jul 16, 2018
  • Guidelines issued for faster IGST refunds

    The government has issued guidelines for Integrated Goods and Services Tax (IGST) refunds for goods and services supplied to units in special economic zones (SEZ).The detailed guideline are based on notification/circulars issued by the Finance and Commerce Ministries.Based on the guidelines, the supplying companies will have to submit documents to specified officers. This will facilitate endorsing receipt of goods and services for authorised operations in SEZs, and finally the refund.The detailed guidelines have come at a time when the government is working very hard to issue GST refunds, especially to exporters.The government claims it has managed to refund IGST dues of more than ?21,000 crore with fewer complaints now.

  • Jul 14, 2018
  • Full ITC available even for supply at concessional rate, says AAR

    Businesses supplying goods at a concessional GST rate are allowed to avail of input tax credit (ITC) on raw materials, the Authority for Advanced Ruling (AAR) in Telangana said. The GST Council had approved a concessional GST rate of 5% on scientific and technical equipment supplied to public-funded research institutions.The applicant, Hyderabad-based Manjira Machine Builders, had sought clarification from the AAR on the matter as it sells products to institutions such as the Defence Research and Development Organisation labs and Indian Space Research Organisation.

  • Jul 14, 2018
  • No GST on foreign companies' payments to liaison offices for expenses: AAR

    Foreign companies having liaison offices in India will not have to cough up goods and servicesNSE 1.40 % tax (GST) on reimbursements of charges or expenses. A ruling by the Rajasthan Authority for Advance Rulings (AAR) has held that payment of salaries of employees and other working expenses are not services and not liable to tax. The industry had earlier represented to the government and GST Council on the tax being levied on such payments.

  • Jul 12, 2018
  • GST Council To Mull Rate Cut On Items With ‘Low Revenue Impact’ On July 21

    The Goods and Services Tax Council may consider a reduction in tax rates on a host of items with low revenue implications as part of the tax rationalisation exercise in its next meeting on July 21. The items which could be considered for cutting of tax rates might include sanitary napkins, handicrafts and handloom goods, besides certain services. That comes after several industry bodies and stakeholders have been demanding a duty cut on items, especially those linked to general health and employment generation in unorganised sector.

  • Jul 11, 2018
  • GST Council unveils draft of changes proposed to GST law

    India has proposed a slew of changes to the year-old goods and services tax law, including an amendment to deny credit in lieu of accumulated balances of education cess, secondary and higher education cess, Krishi Kalyan cess, and additional excise duties levied on textile and textile articles. The GST Council, the apex decision-making body for the tax, on Monday unveiled the draft of changes proposed to the GST law before they are introduced in the upcoming monsoon session of parliament.

  • Jul 11, 2018
  • GST Council to consider rate cut on items with low revenue impact on July 21

    The GST Council may consider reduction in tax rates on host of items with low revenue implications as part of the tax rationalisation exercise in its next meeting on July 21. The items which could be considered for cutting of tax rates might include sanitary napkins, handicrafts and handloom goods, besides certain services. Several industry bodies and stakeholders have been demanding duty cut on items, especially those linked to general health and employment generation in unorganised sector.

  • Jul 10, 2018
  • 46 GST law amendments likely; employers may get to claim input tax credit

    Employers will soon be able claim input tax credit on facilities like food, transport and insurance provided to employees under any law, once the proposed amendments to the GST Act are approved by Parliament and the state legislatures. The government has proposed as many as 46 amendments to the Goods and Services Tax (GST) laws — Central GST, State GST, Integrated GST and Compensation of Sates Act.

  • Jul 10, 2018
  • E-way bill: Distance, transportation, bill generation, validity – All your questions answered here

    The government introduced a mechanism for tracking the movement of goods within the country popularly known as the electronic-way bill (e-way bill). The e-way bill provisions require specified person like the consignor, consignee, transporter or other specified people to upload the prescribed information relating to the goods with consignment value of Rs 50,000 or more. The primary objective of the e-way bill is to create electronic surveillance to ensure minimal tax evasion.

  • Jul 09, 2018
  • GST Council may approve annual returns form on July 21; experts expect reconciliation with ITR

    Goods and Services Tax (GST) was rolled out on July 1, 2017, and this is the first year when businesses will have to file annual returns (GSTR-9) for 2017-18 fiscal by December 31, 2018. Also those businesses with turnover of more than Rs 2 crore will have to file audit reports along with the annual returns. The revenue officers have prepared a draft of the annual returns form, which will be deliberated by the all powerful GST Council chaired by Union Finance Minister and comprising state finance ministers as members, in its meeting on July 21.

  • Jul 09, 2018
  • How badly has GST hit unorganised sector? It's tough to say

    The Goods and Services Tax (GST), which has completed a year, was supposed to hit the unorganised sector. However, even after a year of GST implementation, there is no research or study on the impact of the new tax on the unorganised sector. Most of the reports on unorganised sector distress have been mostly based on anecdotes and not on any data. When asked on the reported distress in the unorganised sector due to GST, the revenue secretary Hasmukh Adhia told Business Today: "There are anecdotal stories that we get to hear, but they are not borne out of any research data."

  • Jul 09, 2018
  • GST panel recommends no extra tax incentives for digital transactions

    A ministerial panel tasked by the Goods and Services Tax Council has decided against offering addition tax incentives for digital transactions for a year, citing revenue considerations. The panel headed by Bihar deputy chief minister and finance minister Sushil Kumar Modi will recommend to the Council, the apex decision making body, to defer any concessions for a year, Modi told reporters on Sunday.

  • Jul 07, 2018
  • Petroleum products to be brought under GST in stages, says Hasmukh Adhia

    Finance Secretary Hasmukh Adhia today said the all powerful GST Council will consider bringing petroleum products under Goods and Services Tax (GST) and it could happen in phases. Speaking on the issue, Central Board of Indirect Taxes and Customs Chairman S Ramesh said although there is demand for bringing petroleum products under GST, the GST Council will have to finalise modalities. Currently, diesel, petrol, crude oil, natural gas and aviation turbine fuel are outside the purview of goods and services tax, and states have the right to impose value added tax on these items.

  • Jul 07, 2018
  • GST evasion of Rs 2,000 crore detected, says CBIC

    The indirect-tax department has detected goods and services tax (GST) evasion of Rs 2,000 crore over the last few months, John Joseph, member, Central Board of Indirect Taxes and Customs (CBIC), said on Friday, adding that a tenth of this came to light only last week. Independent analysts have, however, felt that the tax evasion exposed may be only a fraction of its actual incidence, given the “very high” transitional credits — a total of `1.6 lakh crore by December-end — claimed by a section of taxpayers for the taxes paid in the pre-GST regime.

  • Jul 06, 2018
  • Non-tariff charges in electricity bill to attract GST

    Electricity bills can have a goods and services tax (GST) component at times. Non-tariff charges, which include application fee for releasing connection, rentals charged against metering equipment and labour charges for shifting of meters and service lines, are liable to taxed at 18% under the GST. The AAR in Rajasthan has ruled that while distribution and transmission of electricity is outside the GST ambit, other associated services would attract the tax. Although the AAR hasn’t specified any GST rate, Rajat Mohan, partner at AMRG & Associates said, services in the GST regime usually attract 18% tax, unless specified otherwise.

  • Jul 06, 2018
  • GST no longer a pain, economic activity improving on ground, says Kotak’s fund manager

    After robust services PMI data showed that the manufacturing sector is growing at a robust pace, providing a big boost to the Narendra Modi-led government at the centre, Anshul Saigal of Kotak PMS noted that economic activity is indeed improving. “Economic activity on the ground on manufacturing is improving. GST plays which suffered last year because of supply chain getting affected, are coming back into vogue this year. A lot of things in the micro are improving,” Anshul Saigal, head and portfolio manager, Kotak PMS said in an interview to CNBC TV18.

  • Jul 05, 2018
  • GST credits taken by tech companies under taxman’s lens

    The indirect tax department is scrutinising capital expenditure incurred by information technology (IT) and information technology enabled services (ITeS) companies, suspecting they may have evaded Goods and Services Tax (GST) liabilities. Preliminary investigations by the indirect tax department found that many companies had increased their capital expenditure after GST was rolled out on July 1, 2017. In several cases, many Bengaluru and Hyderabad based IT and ITeS companies had placed orders for some equipment-—mainly servers—long before GST implementation but took deliveries of these after GST was rolled out.

  • Jul 05, 2018
  • GST: Where no tax is actually costlier than 5% slab

    In a room full of economists, industry experts and tax analysts, a voice emerged: Sir, please bring the health care services under 5% tax bracket. It was a post-Budget session with Finance Minister Arun Jaitley at FICCI. The Finance Minister, then, asked, “Are you saying that you want to be taxed?” The person replied, “Yes”, adding that GST exemption is becoming costlier. But how is it possible? The answer lies in GST’s Inverted Duty Structure, where the government offsets a part of unutilised input tax credit of the supplier.

  • Jul 04, 2018
  • Some developers not passing on full input tax credit under GST to home buyers: CBRE

    Some developers are not passing on the full benefit of input tax credit under the GST to home buyers who have booked flats in under-construction projects, property consultant CBRE said on completion of one year of the new indirect tax regime. The Goods and Services Tax (GST) came into effect from July 1 last year in the country. The demand for ready-to-move-in flats has gone up as completed projects do not attract the GST, prompting developers especially in South India to launch flats after execution of projects, it said in a report 'One year of the Landmark GST - Impact on the RE (Real Estate) Market'.

  • Jul 02, 2018
  • GST collection in June at Rs 95,610cr, says govt

    The government has collected Rs 95,610 crore from goods and services tax (GST) in June, finance secretary Hasmukh Adhia said on Sunday, asserting that the new tax measure has settled down well and has hardly had any adverse impact on inflation.GST collection in previous month of May was Rs 94,016 crore and monthly average in the last financial year was Rs 89,885 crore. Receipts from GST had crossed the Rs 1-lakh-crore mark in April due to the fiscal year-end effect and experts say that receipts may again spike in the months ahead as compliance rises and evasion is plugged. They added that the introduction of the e-way bill is expected to improve collection significantly. “The tax reform has hardly had any adverse impact on inflation and revenue collection, and the GST has stabilised within a short period of one year. Strong political will and crystal clear directives, constructive discussions, cooperative and collaborative decision-making in the GST Council is a huge achievement — we must acknowledge that,” said Adhia during the function to mark GST day.