Drafts GST, IGST and the Compensation law

Despite the demonetization drive going on in the country, the government is pushing for the passage of the GST laws in the winter session of the Parliament which is currently on. The opposition is up in arms against demonetization and is creating scenes on the floor of the Parliament leading to the adjournment of the[…]

GST return filing: GSTR-3

People filing the tax returns are normally used to quarterly returns. The GSTR-3 aims to modify the habit to monthly returns. The monthly return format gets auto-populated from the sale register (GSTR-1) and purchase registers (GSTR-2) and indicates the gross sales and purchase information. The monthly return does not carry the invoice details. The purpose[…]

GST Council – Decisions taken till now

With the President’s seal of approval on the 122nd Constitutional amendment bill, the GST council was promulgated. It comprised of the union finance minister as its head, the union minister of state for finance, and state finance ministers as the prominent members. The GST council is expected to take decisions on a number of critical[…]

GST Council : Setting of the turnover threshold limit of 20 lakhs

After we have ridden a bullock cart to reach the GST destination we suddenly found the bullet train on the way. So far we have been used to the slow pace where we could get down, go back, relax and get back to the GST vehicle. We find ourselves entrapped in the superfast machine that[…]

GST Council – to thrash out the GST rate

GST Council in place: After the President of India Mr Pranab Mukherjee approved the 122nd constitutional amendment bill on the 8th of September; the 101st Constitution Act 2016 was notified. The Article 279A of the amended constitution required the GST council to be formulated by the President within 60 days. The Article 279A was made[…]

Assam takes the lead in ratifying the GST bill

After the recent state elections in which BJP came into power in the state of Assam, the new Assam Chief Minister Sarbananda Sonwal made sure that Assam becomes the first state in the country to pass the GST bill. As we are aware, the 122nd constitutional amendment bill was recently passed by both the houses[…]

Moving towards GST – constitutional amendment a vital step

The Modi government had got a thumping majority and came into power in May 2014. Since then it has been on a relentless pursuit to bring reforms and take India on course to growth and development. One of the major reforms that it tabled in the parliament was the 122nd constitutional amendment bill or the[…]

GST implementation: moving one step at a time

Implementation of GST regime and ensuring a smooth transition from the current regime is indeed a mammoth task for the Indian government. Nonetheless, the government is leaving no stone unturned. Instead of taking one giant leap and imposing everything at one go, the government is trying to take small steps towards their ultimate goal. In[…]

Ecosystem workshop to connect startups with GST

As the GST era is approaching, the government has started its preparations to help the country adapt to new policies. The training and transition are two of the major concerns with GST regime. To overcome them and to help businesses adapt to new regime, the government has taken an initiative to link the start-ups to[…]

GST Registration – All you wanted to know

Registration of a business with the tax authorities implies obtaining a unique identification code from the concerned tax authorities so that all the operations of and data relating to the business can be agglomerated and correlated. In any tax system this is the most fundamental requirement for identification of the business for tax purposes or[…]

New Tax Credit Policy to give a boost to “Make in India” initiative

In order to encourage foreign as well as domestic companies to manufacture their goods in India, the Indian government had launched the “Make in India’ initiative in 2015. The programme is expected to create more job opportunities and give a boost to Indian economy by attracting foreign investments. Moving a step ahead to strengthen this[…]

Implementation of GST in India

The BJP government at the centre had targeted the implementation of GST from April 2016. However, there has been a delay in the passing of the GST bill in the Parliament. The chances of getting the bill passed in the Winter-session of the Parliament are also looking bleak. This delay will cause the GST implementation[…]

Subramanian panel report recommends RNR for GST at 15~15.5%

Contrary to the rumours of a high GST revenue neutral rate, the recommendations from the committee headed by Chief Economic Advisor Arvind Subramanian are very reasonable. The 15~15.5 % revenue neutral rate recommendation means that at this level the tax revenue would be in line with what the government is earning at present.  The government[…]

Primary and preferred mode of GST Payment

With the spread of the online internet and electronic communication, payment of Goods and Service Tax (GST) by using internet banking, credit and debit cards has emerged as the primary and preferred method of payment in the recommendations of the Joint Committee. The Committee had finalized the report on payment process under GST in the[…]

NEFT/RTGS option under GST

Another payment option for GST Payment will be NEFT (National Electronic Funds Transfer) /RTGS (Real Time Gross Settlement) from the taxpayer’s bank account, which may or may not be the authorized bank under the GST regime. All the provisions are same as the second option, which is Over the Counter Payment (OTC) with the additional[…]

Payment Option for Small Tax Payer under GST

In order to facilitate the small tax payers, who do not have access to internet banking facilities, the option of Over the Counter (OTC) payment has also been proposed under the GST regime. However, a limit of maximum tax payment of Rupees 10,000 has been fixed on the challan. This has been done to limit[…]

GST Refund Process

The joint committee on business processes for GST which was formulated in early 2014 finalized the reports on the various processes under GST, including the refund process. The sub-committee had held discussions on the refund process report and was concluded with changes on 22nd& 23rd July, 2015 by the Joint committee. To establish an efficient[…]

GST Registration Process

A joint committee under the co-conveners hip of the Additional Secretary (Revenue) and member Secretary, empowered committee of state Finance Ministers was formulated in April 2014 to make suitable recommendations for the registration process under the GST. A number of meetings were held during the year and the report of the Joint committee on business[…]

GST Payment Process

A joint committee was formulated to study and submit its report on the business process for GST payment in early 2014. Almost one year later the empowered committee under the co-ownership of the Additional Secretary (Revenue) submitted its report, highlighting the key objectives of the report. The report brings out the key issues in tax[…]

Indian GST and OECD guidelines

The Organization for Economic Co-operation and Development (OECD) was founded in the year 1961 to help stimulate world trade and spur economic progress. It has 34 countries in its fold, with many more seeking accessions. The prominent among the member countries are the US, UK, Germany, Canada, France, Italy, Spain, Australia and New Zealand. In[…]

Changing stance of Congress on GST

There is a strong feeling emerging in the political arena that the Congress is softening its stand on the GST issue. There seems to a change from the outright violation of proceedings of the house in the Parliament to a stance of a proper discussion on the issue. The Congress is now coming out with[…]

GST Network and IT infrastructure

It was in March 2013 that the GSTN was incorporated as a no-profit, non-government, private limited entity. The major chunk or 51% of the equity holding is with the non-government financial institutions. The central government together with the states and including Puducherry and Delhi hold 24.5% stake. The remaining 24.5% share is with the empowered[…]

Implement GST at the Centre followed by States

GST was thought up and conceived for the Indian economy by the NDA regime. The UPA was only working on the drafting on the legislation. The work was so lethargic that the bill was introduced in the LokSabha in 2011, a full seven years after the UPA assumed power. It was referred to the standing[…]

The path ahead with the GST bill

GST – initiatives by CBEC and GSTN

Despite the political setback to the GST bill and likelihood of delay has not caused much concern to the Central Board of Excise and Customs (CBEC). The government body continues in its endeavour to gear up for the implementation of GST. It has taken up an initiative to set up an exclusive directorate for the[…]

Way Forward for GST implementation

The deadline for GST implementation has been set for April 2016 by the Government. It is a good leadership aspect to keep the target in sight. However achieving the target requires the government to run and win the GST hurdle race. The roadblocks are becoming clearer by the day. To sail over them smoothly there[…]

Who should take GST responsibility – Centre or States?

The states of the Indian economy have a legacy of being hand held by the Centre. They look to the centre for financial support whenever a calamity strikes or there is a drought in the state. The thought is no different in case of the GST reform. The states are of the view that GST[…]

The path ahead with the GST bill

The path ahead with the GST bill

Given the present circumstances the constitutional amendment for the introduction of GST is likely to take time. The government has set a deadline for launching it by April 2016 and is making every effort to get the activities closed in time. However, with a bill of this magnitude and wide ranging impact on the Indian[…]

GST can be implemented from April 2016 ?

Is the GST bill is coming or not, is not the discussion point any more. Today, most of the parties are in support of the amendment. Since it has wide ranging implications there are definitely some issues relating to its formulation. With the benefits that are likely to accrue for the economy, a few compromises[…]

GST in the political veil

Rahul Gandhi is supposedly learning from the practical experience that being decent in the Parliament does not help in any way. The Congress party had supported the Insurance bill in the budget session of the parliament earlier this year. They were following the path of least resistance and found that they were not in any[…]

Challenges for GST implementation

The Goods and Services Tax (GST) will subsume all indirect taxes and would ensure seamless flow of goods and services across the country. As the name suggest, GST will be levied on both Goods (Manufacturing and Trading) and Services. GST will replace more than a dozen type of taxes including service tax, central excise duty,[…]

Goods and Services Tax Network (GSTN)

Introduction of Goods and Services Tax (GST) in India is perceived to be the most ambitious initiative in the arena of indirect tax reform. It would change the Indian tax structure and pave the way for modernization of tax administration. For reason of simplicity for the taxpayer and ease of administration, it becomes necessary to[…]

GST Counsel

The Modi Government has introduced the 122nd Constitutional Amendment Bill to the Table of the Parliament in last winter session held December 2014. This bill will paved the way for implementation of national level GST. Union Finance Minister Arun Jaitley had earlier expressed the hope that the 122nd Constitutional Amendment Bill on the Goods and[…]