Search Result for : Gst Bill

The Dollar Business Bureau Exporters’ body Apparel Export Promotion Council (AEPC) has asked the Ministry of Finance for the refund of Integrated Goods and Service Tax (IGST) paid on the import of machinery used by apparel manufacturer exporters. AEPC, in a letter written to Ministry of Finance, has stated that after the implementation of GST from July 1, 2017, apparel exporters are required to pay IGST up to 18% on assessable value plus basic customs duty (BCD) while clearing shipments of capital goods under the Export Promotion Capital Goods (EPCG) scheme. “The incidence of a very high IGST without any corresponding relaxation for export obligation has rendered the EPCG scheme unattractive,” AEPC said in a statement. In the letter written to GK Pillai, Chairman ...

By Ranjeet Mahtani & Stella Joseph As companies gear up for the final stages of implementing GST, a crucial exercise which is being carried out is a re-look at the existing contracts and negotiation with vendors from the perspective of alignment of contracts with the GST regulations. A crucial point of negotiation is for the vendor to pass on all benefits accruing or arising under GST to the recipient. In this context, the legislative backing comes in the form of Section 171 of the Central Goods and Services Tax Act, 2017 (“CGST Act”) which embodies the Anti-Profiteering provisions and the Anti-Profiteering Rules which have been finalised by the GST Council in its 17th meeting held on 18th June 2017. In terms of Section ...

Ranjeet Mahtani & Stella Joseph  The nation awaits the outcome of the GST Council’s 15th meeting. The agenda is loaded with the finalisation of rates for certain commodities, certain rules & regulations and issues raised by trade & industry.  Yet, as industry and Governments rush to meet the stated (01st July, 2017) deadline for embracing and implementing GST, various nuances of the GST legislations are slowly coming to the fore. The devil lies in the detail.  One provision which is likely to have serious implications for businesses is Section 7(5) of the Integrated Goods and Services Tax Act, 2017 (“ÏGST Act”). When the supplier is located in India and the place of supply is outside India (as determined by an application of the ...

By Ranjeet Mahtani and Sweta Rajan During its meetings on May 18 and 19, 2017, the GST Council declared the placement of goods and services across the fixed GST rate slabs. The GST Council further released the list of goods liable for GST Compensation Cess along with the applicable rate of cess and released a list of services which would be liable to GST under the reverse charge mechanism. While the GST law empowers the Government to specify goods and services on which GST is payable by the recipient, the Council has approved only services that are likely to attract GST on reverse charge basis.  Rate specific issues The release of the GST rates has, as expected, triggered varying responses across industries. Some ...

By Ranjeet Mahtani and Stella Joseph Rates The slab rates for goods has been formulated by the GST Council in November of 2016, as a five-tier rate structure – of 0%, 5%, 12%, 18% and 28% - besides which some products will attract cesses. Rates for services have till date not been officially announced, even while there was wide-spread belief that a two-tier rate structure – 12% and 18% - will be adopted. The Revenue Secretary earlier this week indicated that there would be two slab rates for services, since not all services can be classified within the standard rate of 18%. He also indicated that industries such as transportation may face a lower tax rate since presently they enjoy abatement under ...

The Dollar Business Bureau  In a move aligned with the Government’s Digital India programme and to ensure that the taxpayers remain well-informed about the Goods and Services Tax (GST) updates on their mobile phones, the Central Board of Excise and Customs (CBEC) has launched an App on Thursday. Through this application, the taxpayers can access a lot of information related to GST. The app includes: Migration to GST: Approach and guidelines for migration; Draft Law: Model GST Law, IGST Law and GST Compensation Law; Draft Rules: Rules related to registration, returns, payment, refund and invoice Frequently Asked Questions (FAQs) on GST Resources on GST such as videos, articles etc; Related website links; Helpdesk/email contact “The App will enable the taxpayers to be well-informed on the latest updates on GST. ...

Ranjeet Mahtani and Sweta Rajan The Goods and Service Tax Council met on 18th February, 2017. The agenda primarily was to finalise the draft GST laws. Some of the key points which were expected to be discussed and finalised were: (1) the critical anti-profiteering clause in the draft GST legislations which ensures that the benefit of lower taxes gets shared with consumers (2) the constitution of a 'national goods and services tax appellate tribunal' to adjudicate on disputes (3) the powers of the Comptroller and Auditor General (CAG) for GST audit – for which the CAG had raised a requirement (4) draft GST Compensation Bill – to compensate States for the losses which may arise as a result of transition to GST. However, since some States ...

Ranjeet Mahtani & Stella Joseph  This week saw the GST Council make great strides in gathering consensus on unresolved issues. Three key decisions emerging from the meeting held on January 16, 2017 were as under: Consensus was achieved on the aspect of dual control between the Centre and the States. It was also agreed that States would have the power to tax activities carried out within 12 nautical miles. It was felt by the GST Council that July 1, 2017 seems to be the likely date when GST will be implemented in the country. As regards the aspect of dual control, it was decided that for assessees with an annual threshold of Rs. 1.5 crores or less, the States would have power to administer i.e. power ...