The Goods and Services Tax is a fundamental revolution in the way we think about indirect taxes in India. It has created a single market, helping move goods seamlessly across state borders. The GST system has enrolled close to 10 million businesses onto a single national technology backbone, the GSTN, and already collected over Rs 3 lakh crores in taxes in less than six months. GST was welcomed because it aimed at creating an incentive for compliance, rather than punishment for non-compliance.
The basic driver of the GST is the Input Tax Credit (ITC). The tax paid by your suppliers, should be subtracted from the tax you pay to the government. The ITC is not a small deal. Without ITC, the tax you have paid becomes a cost. This tax can often be higher than the profit margin of the business. The market encourages Continue reading
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NEW DELHI: On Friday,the government told companies that they must print the revised MRP (maximum retail price) of goods they manufacture or face punishment, including a year in prison and a fine of up to Rs.1 lakh.
This is the latest effort by the government to ensure compliance by manufacturers and retailers with the new Goods and Services Tax (GST) amid complaints from consumers of overcharging and arbitrary tax rates.
“We have told companies to reprint revised rates on unsold goods. Stickers of new MRP should be pasted so that consumers are aware of the change in rates after GST,” consumer affairs minister, Ram Vilas Paswan, told reporters.
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NEW DELHI: E-commerce operators and TDS deductors will be able to register with GST Network beginning June 25, when the portal re-opens for fresh registration.
Also, existing excise, service tax and VAT assessees will get another chance to migrate to the GSTN portal as registration for them too opens on Sunday next and will remain open for three months.
The registration will also start for GST practitioners, Tax Deductors at Source (TDS) and e-commerce operators, which are required to collect tax at source, GSTN said in a statement.
GSTN, the company providing IT backbone for the new tax regime, will offer another opportunity to existing tax payers to migrate, five days before the rollout of Goods and Services Tax (GST).
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source: Hindustan Times
New Delhi: Finance Minister Arun Jaitley assured India Inc on Friday that goods and Services Tax (GST) rates will not be ” significantly different” from current levels, and said consumers will benefit from the country’s biggest tax reform as it will eliminate the cascading impact of various central and state levies.
Jaitley said some ” tough steps ” are required so that India increasingly becomes a tax compliant society.
Promising more reforms, he said the government was in the final stage of scrapping the 25 year old Foreign Investment Promotion Board(FIPB) to ease investment flows. The government will also come up with rules of attracting foreign investment in defence equipment.
Addressing on confederation of Indian industry annual meeting, Jaitley urged companies to pass on the benefit of lower tax burden to consumers.
While parliament has passed all four crucial laws— Central GST, Integrated GST, compensation rule and Union territories GST bills— state have to clear the state GST bill in their respective assemblies for the new tax regime to be implemented from July.
The GST council has finalised a four-slab GST structure of 5%, 12%, 18% and 28% with a provision for an upper cap of 40%. The council will meet in Srinagar on May 18-19 to finalise tax rates on different goods and services after unifying atleast 10 indirect taxes under GST.
“We are now in final stage of fixing tariffs for different commodities. The formula under which it is being done has also being explained and therefore nobody is going to be taken by surprise, it’s not going to be very significantly different ( from present).” Jaitley said.
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