goods and services tax news : The Goods and Services Tax (GST) is a uniform indirect tax levied on goods and services across the country. GST, as an umbrella tax, replaced central taxes like central excise, service tax, additional duties of excise & customs, special additional duty of customs, besides cesses and surcharges, on supply of goods and services.
Central GST and State GST | goods and services tax news
CGST is levied on intrastate supplies by the central government and SGST is levied on intrastate supplies by respective state governments.
IGST is levied on interstate supplies by the Centre (equal to CGST + SGST combined on supplies made within the state).
Any supply of goods or services or both on interstate basis typically attracts IGST on the consideration thereof.
Key features of GST
* GST envisages all transactions and processes to be done only through the electronic mode, to achieve a non-intrusive administration. This minimises the taxpayer’s physical interaction with tax officials.
* GST provides for the facility of auto-populated monthly returns and annual return.
* It also facilitates taxpayers by prescribing grant of refund within 60 days, and provisional release of 90 per cent refund to exporters within 7 days.
* Further facilitation measures include interest payment if refund is not sanctioned in time, and refund to be directly credited to bank accounts.
* Comprehensive transitional provisions for ensuring smooth transition of existing taxpayers to GST regime, credit for available stocks, etc.
* Other provisions include system of GST compliance rating, etc.
* Anti-profiteering provisions for protection of consumer rights: Any benefit by way of reduction in rate of tax or increase in input tax credit arising due to introduction of GST are passed on to customers (through reduction in sale price) by way of commensurate reduction in prices.
* Under the GST regime, exports are zero-rated in entirety, unlike the earlier system where refund of some of the taxes did not take place due to fragmented nature of indirect taxes between the Centre and states.
* GST is largely technology-driven and reduces the human interface to a great extent
* GST is believed to have improved ease of doing business in India.
goods and services tax news
CBIC: Coaching centres must pay 18% GST on composite supply
Coaching Institutes are liable to pay 18% goods and services tax (GST) on their composite supply, or bundled services and supplies to students, the Central Board of Indirect Taxes and Customs (CBIC) has said.
GST: Imposition of new ITC restrictions every year is diluting ease of doing business
At the inception of GST, the availment of ITC was envisaged as a two-way communication whereby the supplier would upload the supply invoice details on the common portal and the recipient, on a real-time basis, would accept/reject the same.
GST input tax credit: Why tasking the recipient with the responsibility of ensuring supplier compliance may be draconian
The views of the industry and trade should be sought to understand the challenges of day-to-day business operations.
Will focus on scrutiny, audit of GST returns in coming year: Vivek Johri, CBIC chairman
Johri says the rationalisation exercise would involve restructuring of the rates. It may involve a review of exemptions. And in the bargain, correction of inversions, whatever is left.
Companies, exporters cry foul as taxman raise fresh GST demands on ocean freight even as issue is pending in SC
The government and many companies, mainly importers, are fighting a battle in the Supreme Court over the imposition of integrated GST (IGST) on ocean freight. Several companies have received notices in the last month or so in this regard.
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GST: Is recovery proceeding justified for differences in outward supply in GSTR-1 vs. GSTR 3B
From January 2022 the difference between outward supply shown in GSTR-1 vs. GSTR-3B of the relevant period would be considered as self-assessment tax and the department may initiate recovery proceedings under Section 79 of the CGST Act.
Taxmen to give ‘reasonable time’ to business to explain reasons for mismatch in GSTR-1, 3B before recovery action
As per the changes in the GST law effective January 1, GST officers were allowed to directly initiate recovery action against those errant businesses which showed higher sales in monthly return GSTR-1 but under-report it while tax payment in GSTR-3B.
GST: From rate rationalisation to reduction in compliance burden, what to expect from indirect taxes in 2022
The Government has made many changes with respect to self-certification of audit reports, creating a compliance driven process through interplay of GST returns, e-way bills and the e-invoicing system.
Extension of FY21 GST annual return to help resource crunched MSMEs, say experts
With various states now putting in place Omicron curbs, the MSME sector’s working capital cycle is set to be severely hit again.
Changes in GST: Here’s what to expect from Jan 1
The government must combat bogus invoicing but while doing so it is pertinent to take care of taxpayers and compliance burden of the businesses.