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Goods and Service Tax – GST – By: – Mr. CS SANJAY MALHOTRA – Dated:- 18-5-2015 Last Replied Date:- 24-5-2015 – Download Power Point Presentation on: Reply By CS RAHUL AGARWAL – The Reply = WONDERFUL PRESENTATION SIR. HATS OFF!!REALLY VERY HAPPY TO KNOW ABOUT YOUR PROFILE AND MAKES ME FEEL THAT ATLEST I AM NOT THE ALONE CS IN IDT. THANKS FOR SHARING & YOUR EFFORTS.Regards, – Reply By kailash singhal – The Reply = dear sir , it is a very nice presentation and concerned gst authority should t

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FEMA – 101 – Dated:- 14-5-2015 – RBI//2014-15/599 A.P. (DIR Series) Circular No. 101 May 14, 2015 To All Authorised Dealers in Foreign Exchange Madam / Sir, Export of Goods and Services- Declaration of Exports of Goods/Software Attention of the Authorised Dealers is invited to Regulation 6 of the Notification No.FEMA 23/2000-RB dated May 3, 2000 viz. Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, as amended from time to time, in terms of which every exporter of go

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Goods and Services Tax – Started By: – Deepak Agrawal – Dated:- 12-5-2015 Last Replied Date:- 13-5-2015 – 1.I wanted to know what is Uniformity in Tax. 2.Do people require to pay State sales tax even after VAT is in force. 3.How Tax evasion can be avoided using VAT? 4.Other than reduction in multiple indirect taxes what are other benefits of GST? – Reply By Deepak Aggarwal – The Reply = GM,as my understanding, uniformity means there will be no difference in rates across country, only SGST or CGST rate will be in picture.In GST, people need to pay SGSTand CGST on same transaction of supply of goods or services.Tax evasion, as already explained, no diff.in rates, so no tax evasion.Major benefit of GST is to remove cascading effect of taxes,

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Dated:- 12-5-2015 – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 A BILL further to amend the Constitution of India. BE it enacted by Parliament in the Sixty-sixth Year of the Republic of India as follows:- Short title and commencement. 1. (1) This Act may be called the Constitution (One Hundredth Amendment) Act, 2015. (2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the commencement of that provision. Insertion of new article 246A. 2. After article 246 of the Constitution, the following article shall be inserted, namely:- Special provision with respect to goods and services tax. 246A. (1) Notwithstanding anything contained in articles 246 and 254, Parliament, and, subject to clause (2), the Legislature of ev

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n clause (1), after the words with respect to , the words, figures and letter goods and services tax provided under article 246A or shall be inserted. Amendment of article 268. 6. In article 268 of the Constitution, in clause (1), the words and such duties of excise on medicinal and toilet preparations shall be omitted. Omission of article 268A. 7. Article 268A of the Constitution, as inserted by section 2 of the Constitution (Eighty-eighth Amendment) Act, 2003 shall be omitted. Amendment of article 269. 8. In article 269 of the Constitution, in clause (1), after the words consignment of goods , the words, figures and letter except as provided in article 269A shall be inserted. Insertion of new article 269A. 9. After article 269 of the Constitution, the following article shall be inserted, namely:- Levy and collection of goods and services tax in course of inter-State trade or commerce. 269A. (1) Goods and services tax on supplies in the course of inter-State trade or commerce shall be

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and services tax levied and collected by the Government of India, except the tax apportioned with the States under clause (1) of article 269A, shall also be distributed between the Union and the States in the manner provided in clause (2). . Amendment of article 271. 11. In article 271 of the Constitution, after the words in those articles , the words, figures and letter except the goods and services tax under article 246A, shall be inserted. Insertion of new article 279A. 12. After article 279 of the Constitution, the following article shall be inserted, namely:- Goods and Services Tax Council. 279A. (1)The President shall, within sixty days from the date of commencement of the Constitution (One Hundred and Twenty-second Amendment) Act, 2014, by order, constitute a Council to be called the Goods and Services Tax Council. (2) The Goods and Services Tax Council shall consist of the following members, namely:- (a) the Union Finance Minister…………………… Chairperson; (b) the Un

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s and services may be exempted from goods and services tax; (e) the rates including floor rates with bands of goods and services tax; (f) any special rate or rates for a specified period, to raise additional resources during any natural calamity or disaster; (g) special provision with respect to the States of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand; and (h) any other matter relating to the goods and services tax, as the Council may decide. (5) The Goods and Services Tax Council shall recommend the date on which the goods and services tax be levied on petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel. (6) While discharging the functions conferred by this article, the Goods and Services Tax Council shall be guided by the need for a harmonised structure of goods and services tax and for the development of a harmonised national marke

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ny procedural irregularity of the Council not affecting the merits of the case. (11) The Goods and Services Tax Council may decide about the modalities to resolve disputes arising out of its recommendation. . Amendment of article 286. 13. In article 286 of the Constitution,- (i) in clause (1),- (A) for the words the sale or purchase of goods where such sale or purchase takes place , the words the supply of goods or of services or both, where such supply takes place shall be substituted; (B) in sub-clause (b), for the word goods , at both the places where it occurs the words goods or services or both shall be substituted; (ii) in clause (2), for the words sale or purchase of goods takes place , the words supply of goods or of services or both shall be substituted; (iii) clause (3) shall be omitted. Amendment of article 366. 14. In article 366 of the Constitution,- (i) after clause (12), the following clause shall be inserted, namely:- (12A) goods and services tax means any tax on supply

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. 17. In the Seventh Schedule to the Constitution,- (a) in List I – Union List,- (i) for entry 84, the following entry shall be substituted, namely:- 84. Duties of excise on the following goods manufactured or produced in India, namely:- (a) petroleum crude; (b) high speed diesel; (c) motor spirit (commonly known as petrol); (d) natural gas; (e) aviation turbine fuel; and (f) tobacco and tobacco products. ; (ii) entries 92 and 92C shall be omitted; (b) in List II – State List,- (i) entry 52 shall be omitted; (ii) for entry 54, the following entry shall be substituted, namely:- 54. Taxes on the sale of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas, aviation turbine fuel and alcoholic liquor for human consumption, but not including sale in the course of inter-State trade or commerce or sale in the course of international trade or commerce of such goods. ; (iii) entry 55 shall be omitted; (iv) for entry 62, the following entry shall be substitute

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upply originates. (3) The Government of India may, where it considers necessary in the public interest, exempt such goods from the levy of tax under sub-section (1). (4) Parliament may, by law, formulate the principles for determining the place of origin from where supply of goods take place in the course of inter-State trade or commerce. (5) For the purpose of this section, State shall have the meaning assigned to it in clause (26B) of article 366 of the Constitution. Compensation to States for loss of revenue on account of introduction of goods and services tax. 19. Parliament may, by law, on the recommendation of the Goods and Services Tax Council, provide for compensation to the States for loss of revenue arising on account of implementation of the goods and services tax for such period which may extend to five years. Transitional provisions. 20. Notwithstanding anything in this Act, any provision of any law relating to tax on goods or services or on both in force in any State imme

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shall be made after the expiry of three years from the date of such assent. (2) Every order made under sub-section (1) shall, as soon as may be after it is made, be laid before each House of Parliament. STATEMENT OF OBJECTS AND REASONS The Constitution is proposed to be amended to introduce the goods and services tax for conferring concurrent taxing powers on the Union as well as the States including Union territory with Legislature to make laws for levying goods and services tax on every transaction of supply of goods or services or both. The goods and services tax shall replace a number of indirect taxes being levied by the Union and the State Governments and is intended to remove cascading effect of taxes and provide for a common national market for goods and services. The proposed Central and State goods and services tax will be levied on all transactions involving supply of goods and services, except those which are kept out of the purview of the goods and services tax. 2. The pr

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x on inter-State transactions of goods and services; (e) levy of an additional tax on supply of goods, not exceeding one per cent. In the course of inter-State trade or commerce to be collected by the Government of India for a period of two years, and assigned to the States from where the supply originates; (f) conferring concurrent power upon Parliament and the State Legislatures to make laws governing goods and services tax; (g) coverage of all goods and services, except alcoholic liquor for human consumption, for the levy of goods and services tax. In case of petroleum and petroleum products, it has been provided that these goods shall not be subject to the levy of Goods and Services Tax till a date notified on the recommendation of the Goods and Services Tax Council. (h) compensation to the States for loss of revenue arising on account of implementation of the Goods and Services Tax for a period which may extend to five years; (i) creation of Goods and Services Tax Council to exami

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s present and voting in favour of a proposal in the Goods and Services Tax Council shall be determined as under:- WT = WC+WS Where, WT = WC+WS × SF Wherein- WT = Total weighted votes of all members in favour of a proposal. WC = Weighted vote of the Union = i.e., 33.33% if the Union is in favour of the proposal and be taken as 0 if, Union is not in favour of a proposal. WS = Weighted votes of the States in favour of a proposal. SP = Number of States present and voting. WST = Weighted votes of all States present and voting i.e. i.e., 66.67% SF = Number of States voting in favour of a proposal. (j) Clause 20 of the proposed Bill makes transitional provisions to take care of any inconsistency which may arise with respect to any law relating to tax on goods or services or on both in force in any State on the commencement of the provisions of the Constitution as amended by this Act within a period of one year. 3. the Bill seeks to achieve the above objects. NEW DELHI; ARUN JAITLEY The

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ted by each State Government. 2. The creation of Goods and Services Tax Council will involve expenditure on office expenses, salaries and allowances of the officers and staff. The objective that the introduction of goods and services tax will make the Indian trade and industry more competitive, domestically as well as internationally and contribute significantly to the growth of the economy, such additional expenditure on the Council will not be significant. 3. At this stage, it will be difficult to make an estimate of the expenditure, both recurring and non-recurring on account of the Constitution of the Council. 4. Further, it is provided for compensation to the States for loss of revenue arising on account of implementation of the Goods and Services Tax for such period which may extend to five years. The exact compensation can be worked out only when the provisions of the Bill are implemented. MEMORANDUM REGARDING DELEGATED LEGISLATION Clause 12 of the Bill seeks to insert a new art

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Goods and Service Tax – GST – By: – Bimal jain – Dated:- 8-5-2015 – Dear Professional Colleague, Lok Sabha passes the GST Constitutional Amendment Bill with 2/3 majority Amid stiff resistance followed by walk out by the Congress Members, the Lok Sabha today, on May 6, 2015 has passed the much awaited Constitutional (122nd Amendment) Bill, 2014 on Goods and Services Tax ( GST ) with 2/3rd majority. The Hon ble Finance Minister, Mr Arun Jaitley, has indeed been working hard for the smooth passage of the GST Constitutional Amendment Bill tabled in the last session of the Parliament in December, 2014 [calling it the Single biggest tax reform since Independence ], but he was taken aback by the sudden vociferous stand coupled with aggressive and brisk walk-out from the House by the main Opposition Party. As the Lok Sabha took up discussion on the GST Constitutional Amendment Bill on Tuesday, Finance Minister Mr. Arun Jaitley requested the Opposition to help clear the Bill and not to insist

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where the ruling BJP is in a minority, the Congress has said it will insist on sending the Bill to a Parliamentary committee for review. Thus, the GST Constitutional Amendment Bill is likely to face stiff opposition at the Rajya Sabha and may be routed to the Standing Committee. Following are the salient features of the GST Constitutional Amendment Bill: Insertion of new Article 246A conferring simultaneous power to the Union and the State legislatures to legislate on GST. Insertion of new Article 279A for the creation of a Goods and Services Tax Council, which will be a joint forum of the Centre and the States. This Council would function under the Chairmanship of the Union Finance Minister. To do away with the concept of declared goods of special importance under the Constitutional. Central Taxes like Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (CVD) and Special Additional Duty of Customs (SAD), etc. will be subsumed in GST. At the State l

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levy and collect Central Goods and Services Tax (CGST), and States would levy and collect the State Goods and Services Tax (SGST) on all transactions within a State. The Centre would levy and collect the Integrated Goods and Services Tax (IGST) on all inter-State supply of Goods and Services. There will be seamless flow of input tax credit from one State to another. Proceeds of IGST will be apportioned among the States. GST is a destination-based tax. All SGST on the final product will ordinarily accrue to the consuming State. GST rates will be uniform across the Country. However, to give some fiscal autonomy to the Centre and States, there will a provision of a narrow tax band over and above the floor rates of CGST and SGST. It is proposed to levy a non-vatable Additional Tax of not more than 1% on supply of goods in the course of inter-State trade or commerce for a period not exceeding 2 years, or further such period as recommended by the GST Council. This Additional Tax on suppl

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Dated:- 5-5-2015 – As tax rates during Goods and Services Tax (GST) regime will be closely aligned to the Revenue Neutral Rates (RNR) of the Centre and the States, the revenues of the Central and State Governments will not be impacted in the long run. To help States in the transition phase, the Constitution (122nd Amendment) Bill, 2014, which was introduced in the Lok Sabha on 19.12.2014 for amending the Constitution to facilitate introduction of GST in the country provides for; Levy of an add

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FEMA – 342/RB-2014 – Dated:- 23-4-2015 – RESERVE BANK OF INDIA (Foreign Exchange Department) (CENTRAL OFFICE) NOTIFICATION NO. FEMA 342/RB-2014 Mumbai, the 23rd April, 2015 Foreign Exchange Management (Export of Goods & Services) (Amendment) Regulations, 2015 G.S.R. 326(E).-In exercise of the powers conferred by clause (a) of sub-section (1), sub-section (3) of Section 7 and sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999) and in partial modification of its Notification No.FEMA.23/2000-RB dated May 3, 2000 as amended from time to time, Reserve Bank of India makes the following amendment in the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, as amended from time to tim

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y other form, either directly or indirectly, to any place outside India, other than Nepal and Bhutan, shall furnish to the specified authority, a declaration in one of the forms set out in the Schedule and supported by such evidence as may be specified, containing true and correct material particulars including the amount representing – (ii) In Regulation 6, the word SDF , wherever appear, shall be deleted (iii) In the Schedule, the following shall be deleted, Form SDF: To be completed in duplicate and appended to the shipping bill, for exports declared to Customs Offices notified by the Central Government which have introduced Electronic Data Interchange (EDI) system for processing shipping bills notified by the Central Government. B. P. K

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LIST OF AGENCIES AUTHORISED TO ISSUE CERTIFICATION FOR GLOBAL SYSTEM OF TRADE PREFERENCES (GSTP), INDIA SRI LANKA FREE TRADE AGREEMENT (ISLFTA), CERTIFICATES OF ORIGIN UNDER ASEAN-INDIA FREE TRADE AGREEMENT INDIA – KOREA COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT (CEPA) INDIA-MALAYSIA COMPREHENSIVE ECONOMIC COOPERATION AGREEMENT (IMCECA) AND INDIA-JAPAN COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT (IJCEPA) – APPENDIX 04D – Old_Provisions – Appendix – Foreign Trade Procedure (RE – 2012) / 2009-

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Dated:- 3-4-2015 – GST – FTP Statement – Foreign Trade Policy 2015-20 The deadline fixed for Goods and Services tax as announced in Budget 2015 is 1st April, 2016. The same was noted in FTP statement issued for Foreign Trade policy 2015-20. The relevant extract is as below: 1) One of Domestic Challenges – Goods and Services Tax (GST) In the absence of a uniform system of indirect taxation in India, exporters are often unable to get a rebate or drawback on all indirect taxes paid on the exported

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FEMA – 93 – Dated:- 1-4-2015 – RBI/2014-15/534 A.P. (DIR Series) Circular No. 93 April 1, 2015 To All Category – I Authorised Dealer Banks Madam/ Sir, Export of Goods and Services – Project Exports Attention of Authorised Dealers is invited to A. P. (DIR Series) Circular No. 11 dated July 22, 2014 in terms of which AD banks / Exim Bank have been permitted to consider according post-award approvals without any monetary limit and permit subsequent changes in the terms of post award approval within the relevant FEMA guidelines / regulations. Further, in terms of para B. 11 (i) of the revised Memorandum of instructions on Project and Service exports, Exim Bank in participation with commercial banks in India may extend Buyer s credit upto the l

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Dated:- 25-3-2015 – Minister of Urban Development Shri M.Venkaiah Naidu has favoured a share of GST(Goods and Services Tax) revenue for the municipalities across the country to ensure predictable and guaranteed flow of funds to enable them take up urban reconstruction initiatives. He expressed concern over the huge urban fiscal gap while addressing a National Workshop on Governance, Administrative Reforms and Capacity Building here today. The Workshop was organized by the Indian Council for Research in International Economic Relations (ICRIER) with the support of the Ministry of Urban Development. Shri Venkaiah Naidu said that the country s municipalities are the weakest in the world in terms of access to resources, financial autonomy and

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oing towards payment of salaries leaving only a little for mandated functions and development activities. The Minister emphasized that Public-Private-Partnership model is a crucial vehicle for mobilizing huge order of resources required for building smart cities and bridging the huge infrastructure deficit in other urban areas. Shri Naidu observed that the success of PPP in India is associated with projects that are technically simple, have small gestation periods and allow easy estimation of costs but PPP is needed more in the more complex infrastructure projects and this shall be made a success through good governance and institutional framework. Expressing concern over inadequate capacities of urban local bodies, Shri Naidu informed that

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VAT and Sales Tax – Classification of Cord wire – Electronic good or Electrical good – the cord wire connecting the main switch with the instrument would not fall under the category of electrical good

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Centre includes compensation in GST Constitutional Amendment Bill – Dated:- 19-3-2015 – The Centre has included in the GST Constitutional Amendment Bill the compensation which will be paid to states for revenue loss on account of rolling out the new indirect tax regime, Parliament was informed. To a written question on whether the compensation in GST has been incorporated in the Constitutional Amendment Bill, Minister of State for Finance Jayant Sinha said: Yes . Elaborating further, he said that as per the provisions of the Bill, Parliament may on the recommendation of the GST Council, provide for compensation to the states for loss of revenue arising on account of implementation of the GST for such period which may extend to five years .

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Tax in General + Budget + Finance Acts – By: – CA DEV KUMAR KOTHARI – Dated:- 4-3-2015 – The budget 2015 has given benefit for poor people by way of common pools and not directly. Any person whether poor or rich has to pay taxes similarly for many essential items for consumption or services. This is not justified. Taxes must be according to capacity to pay: The well-known cannon of taxation is that tax must be according to capacity to pay. Therefore, there must be some regard and relaxation for essential goods and services. Some common items becoming costlier or cheaper for common and other people. Bhojan and essentials for living -commonly known Roti, kapra aur makan: Essential goods and services are equally important for poor and rich. Therefore, there must be some regard for poor people. The quantity and quality are important factors. A poor man consumes many items in lesser quantity and of lower price. However some items of consumption and services are priced similarly for poor an

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tobacco items will be more expensive, Good for society as a whole – for better health and environment. Less use of tobacco for smoking will reduce carbon emission also. However, considering that tobacco is an essential item for many poor people also,- they must get some concession. All services becoming costlier For poor people there must be some exemption on essential services. For example telephone , mobile phone, internet bill up to ₹ 300/- per month can be exempted. Similar concessions must be be given for other items of essential nature. Completely built imported commercial vehicles. Cement For affordable housing some concession must be given – area wise or for first time small house at least. Aerated, flavoured drinks and packaged water Packaged water must be exempted, it is essential. On many railway stations, bus stops we do not find good quality

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e ₹ 1,000 per pair The exemption must be restricted up to MRP of ₹ 1500/- or 2000/- per pair. Above that, must bear more taxes as they are more for brands and fashion and not as essential item. Locally made mobile phones, LED/LCD panels, LED lights and LED Lamps The government authorities must also take care to see that quality of such goods improves and one has to be satisfied with made in India product, of top class quality good . Solar Water heater Pacemakers Mal practices in medical services to implant pacemakers even when not necessary msut be curbed. Ambulance Not only chassis, other parts of ambulance must also be made cheaper. Ambulance services It is an essential services – must get full exemption. Computer tablets Agarbattis Agarbattis are made o

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panded with a view to increasing the number of beneficiaries from the present 1 crore to 10.3 crore. Similarly, ₹ 6,335 crore have so far been transferred directly, as LPG subsidy to 11.5 crore LPG consumers. I am sure, persons who are better-off, such as those in the top tax bracket, and those genuinely concerned for the welfare of the poor, such as members of this House, will give up their LPG subsidy voluntarily. In my two articles webhosted on this website I had already mentioned for such voluntary disclaimer of subsidy on LPG cylinders. As soon as I became aware of disclaimer option for subsidy I requested , my wife CA Uma Kothari and my daughter Dr. Shweta Kothari -Singla, (both are subscribers for LPG cylinder in their names) and both have disclaimed subsidy in their subscribers accounts. In my articles, I have appealed to readers who are professionals and well to do and can forgo subsidy. I spoke to some other professionals and executive, but I found response not very enc

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Goods and Service Tax – GST – By: – Deepak Aggarwal – Dated:- 2-3-2015 Last Replied Date:- 30-12-1899 – Goods and Services Tax (GST) Here are the relevant extract of GST reference in Budget speech 2015 and other budget documents – We are now embarked on two more game changing reforms. GST and what the Economic Survey has called the JAM Trinity – Jan Dhan, Aadhar and Mobile – to implement direct transfer of benefits. GST will put in place a stateof-the-art indirect tax system by 1st April, 2016. The JAM Trinity will allow us to transfer benefits in a leakage-proof, well-targetted and cashless manner. We need to revive growth and investment to ensure that more jobs are created for our youth and benefits of development reach millions of our poor. We need an enabling tax policy for this. I have already introduced the Bill to amend the Constitution of India for Goods and Services Tax (GST) in the last Session of this august House. GST is expected to play a transformative role in the way

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to excise levy on cigarettes and the compounded levy scheme applicable to pan masala, gutkha and certain other tobacco products. Introduction of GST is eagerly awaited by Trade and Industry. To facilitate a smooth transition to levy of tax on services by both the Centre and the States, it is proposed to increase the present rate of service tax plus education cesses from 12.36% to a consolidated rate of 14%. Hassle Free Business Environment: Created a non-adversarial tax regime, ending tax terrorism; Secured the political agreement on the goods and services tax (GST), that will allow legislative passage of the constitutional amendment bill. The debate whether to introduce a Goods and Services Tax (GST) must now come to an end. We have discussed the issue for the past many years. Some States have been apprehensive about surrendering their taxation jurisdiction; others want to be adequately compensated. I have discussed the matter with the States both individually and collectively. I d

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or achieving the budget targets in FY 2015-16 14. In the medium term, the most significant step from the point of view of broadening the tax base and improving revenue efficiency through better compliance is the introduction of Goods and Services Tax (GST). As far as Central taxes viz. Central Excise duties and Service Tax are concerned, a fair amount of integration has already been achieved, especially through the cross-flow of credits across the two taxes. It would be possible to realize full integration of the taxation of goods and services only when the State VAT is also subsumed and a full-fledged GST is launched. As a preparation for introduction of Goods and Service Tax (GST), Government has been taking consistent policy steps to expand the scope of service tax. To broaden the tax base, negative list approach to taxation of services was introduced with effect from 1st July, 2012. Negative List of Services and service tax exemptions were reviewed for broadening the tax base and a

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Corporate Tax to be Reduced and GST to be Implemented – Dated:- 28-2-2015 – The Finance Minister Shri Arun Jaitley has said that the Corporate Tax Rate is proposed to be reduced from the current 30% to 25% over the next 4 years. In his Budget Speech in the Lok Sabha here today, Shri Jaitley said this is expected to lead to higher level of investment, higher growth and more jobs. The Minister however said that the reduction has to be accompanied by rationalization and removal of various kinds of exemptions and incentives which is leading to a large number of tax disputes. He pointed out that the effective collection of Corporate Tax today is about 23%. The Finance Minister said he did not start the process of reduction right away as he wante

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GST TRADE NOTICE NO. 52/2017 Dated:- 27-2-2015 Trade Notice – Circulars – GST – OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE, PUDUCHERRY COMMISSIONERATE GOUBERT AVENUE, (BEACH ROAD) PUDUCHERRY 605001 Dated: 27-02-2015 GST TRADE NOTICE NO. 03/2015 Subject: Reg. Central Board of Excise Customs (CBEC) is committed to encourage, facilitate and assist its existing assessees to voluntarily discharge their tax obligation and to provide them service necessary in meeting these obligations. CBEC is also committed to discharge all its functions in a fair, impartial, transparent and consistent manner. The Government of India has authorized CBEC to implement Service Delivery Excell

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munications within 7 working days, ii. Convey decision on matters within 15 days, iii. Release of seized documents within 60 working days if they are not required by the department, iv. Acknowledge complaints within 48 hours and attempt to provide final replies within 30 working days. 3 Citizens / Clients / Trade are advised to submit all written communications including intimations, applications, declarations, etc pertaining to Head Quarters Office, Puducherry Commissionerate in Centralized receipt section(Common Facility Centre) at the O/o the Commissioner of Central Excise Service Tax, Beach Road, Goubert Avenue, Puducherry – 605001 and obtain dated spot acknowledgement Additionall

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VAT and Sales Tax – Classification of goods – Levy of tax on Image Runners @4% or @12% – Image Runners (Multi-function Network Printer) – Goods in question partake the character of peripheral of a com

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Goods and Service Tax – GST – By: – Deepak Aggarwal – Dated:- 7-2-2015 – GST……Goods and Services Tax Part-C First Discussion Paper on GST Second Segment explains the process of preparation for GST which is already covered in my first article- Part-A. Third Segment explains in detail the comprehensive structure of the GST model in India. India is country which have a federal system in which Centre and State both have powers in their domain and legislation in which they operate. Due to federal system, a Dual GST structure is recommended in India. In Dual GST structure, Central and State will have pre-defined functions and responsibilities. GST will have two components. One component will be Central GST (CGST) which will b

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ss all states. In case of CGST, threshold limit suggested for goods is ₹ 1.5 crore and in case of services, a higher limit is desirable. The CGST and SGST will be paid separately to accounts of Central and state government respectively. The CGST and SGST will be treated separately. In books of accounts, there will be separate accounts for the utilization or refund of credit. Cross utilization of Input tax credit (ITC) between the CGST and SGST will not be allowed. The Central government and State government would have concurrent jurisdiction in GST model. CGST will be administered by Central government and SGST will be administered by State government. A Composition / Compounding scheme is also suggested in GST model. The Scheme

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State Taxes will be subsumed in GST. Central Taxes subsumed in GST are Central Excise duty, Additional Excise duties, Excise duty levied under MTP Act, Service Tax, Additional Custom duty (CVD), Special additional duty (SAD), Surcharges and Cesses. State Taxes subsumed in GST are VAT/Sales tax, Entertainment tax, Luxury tax, Taxes on lottery, betting and gambling, State Cesses and Surcharges related to supply of goods and services and Entry tax. Regarding Purchase tax, it is not clear that whether it will be subsumed in GST or not. Some specific provisions for specific commodities are also suggested. E.g. Alcoholic beverage, Petroleum products would be kept outside ambit of GST. In case of Interstate transactions, IGST model is suggeste

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Goods and Service Tax – GST – By: – Deepak Aggarwal – Dated:- 7-2-2015 – GST……Goods and Services Tax Part-D First Discussion Paper on GST Fourth Segment (annexure) has twenty (20) Frequently Asked Questions and Answers (FAQ) on GST. 1st Question- Justification of GST- already covered in earlier articles. In net shell, GST is not simply VAT plus Service tax but a major improvement over the previous current system. 2nd Question- Meaning of GST and its working model- already covered in earlier articles. In net shell, GST is a tax on goods and services in which final consumer will be charged only GST charged by the last dealer. There will be no double taxation and tax on tax impact anywhere in supply chain. 3rd Question- Logic that GST will reduce the burden of tax, in general- already covered in earlier articles. In net shell, there will be no cascading effect of taxes on goods and services. There will be a set off from the producer s point to the retailer s point. Also

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gested in GST model. 7th Question- Benefits of GST to the common consumers- Already explained in 3rd Question. In general, burden of tax on goods would fall under GST and would benefit the consumers. 8th Question- Salient features of the proposed GST model- Already covered in earlier articles. In net shell, GST will be charged on all goods and services except exempted goods and services. There will be dual GST. One will be charged by the central in the form of CGST and second concurrently will be charged by the States in the form of SGST. For interstate sale, IGST mechanism is introduced. Cross utilization of input tax credit between the CGST and SGST will not be allowed. Each taxpayer will be allotted a PAN linked tax payer identification number with a total of 13/15 digits. 9th Question- Requirement of Dual GST- Due to constitutional requirement of fiscal federalism, dual GST model is recommended. 10th Question- Mechanism of Concurrently taxation by centre and states on a particu

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exemption for GST- Threshold exemption is provided to keep small traders out of tax net. Also Small traders get advantage over large enterprises on account of lower tax. Same time it is difficult to administer small traders and cost of administering of such traders is very high in comparison to revenue contribution by them. 14th Question- Scope of Composition and Compounding scheme- The Composition/ Compounding scheme under GST will have an upper ceiling on gross annual turnover and a floor tax rate. Limit of ₹ 50 lacs of the gross annual turnover and 0.5% floor tax rate is recommended in GST model. Also optional registration will be allowed for the dealers with turnover below the compounding cutoff. 15th Question- Mechanism of taxation of Imports under GST- A constitutional amendment is required for taxation of imports. Both CGST and SGST will be levied on imports. The incidence of tax will be destination of goods and services and the tax revenue in case of SGST will accrue th

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Goods and Service Tax – GST – By: – Deepak Aggarwal – Dated:- 6-2-2015 – GST……Goods and Services Tax Part-B First Discussion Paper on GST- 1st Segment First Segment of First Discussion Paper on GST explains a brief reference to the process of introduction of VAT in the Centre and in the States and also areas where needs further improvements i.e. justification for GST. Introduction of VAT In India, VAT was introduced at the Central level for a selected number of commodities in terms of MODVAT w.e.f March, 1986 and later it is extended to all commodities in terms of CENVAT w.e.f. 2002-03. Later on Service tax was added to CENVAT w.e.f. 2004-05. Vat was introduced at the State level beginning from April, 2005. Before introdu

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veral Central taxes e.g. additional customs duty, surcharges etc. – Non-inclusion of value added chain in the distribution trade below the manufacturing level Shortcomings- at State level -Non-inclusion of several state taxes e.g. luxury tax, entertainment tax etc. -Cascading effect on account of Cenvat element i.e. excise duty on the goods remains included in the value of goods to be taxed under state VAT – No credit of input services at state level After introduction of GST, all shortcomings at Central and State level will be removed. At Central level -GST will provide comprehensively more indirect central taxes -Integrate goods and service taxes for the purpose of set-off relief -Widening of dealer base by capturing the value addition i

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Goods and Service Tax – GST – By: – Deepak Aggarwal – Dated:- 5-2-2015 – GST……Goods and Services Tax Part-A First Discussion Paper on GST GST comes in picture when in Central Budget 2007-08, Union Finance Minister made an announcement that GST will be introduced from 1st April, 2008. The task given to Empowered Committee of State Finance Ministers to make a road map for GST in consultation with Central Government. The Empowered Committee decided to setup a Joint Working Group in May, 2007. The Joint Working Group submits its report on GST in Nov.2007. The report submitted by Joint Working Group was discussed in detail and a final version of the views on GST of Empowered Committee was sent to the Government of India in Ap

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Goods and Services Tax – Started By: – ganeshan kalyani – Dated:- 31-1-2015 Last Replied Date:- 11-2-2015 – Dear Expert, I would request to give a list of country in sequence of implementation of GST. regards, ganeshan – Reply By Pradeep Khatri – The Reply = Dear Ganeshan, Please check the following link:- http://gst.customs.gov.my/en/gst/Pages/gst_ci.aspx Regards Sameer Malhotra – Consultant YAGAY and SUN (Management, Business and Indirect Tax Consultants) – Reply By MARIAPPAN GOVINDARAJAN – T

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Goods and Service Tax (GST) – PPT by Indirect Committee of ICAI – Dated:- 17-1-2015 – Constitution Amendment Bill in the Lok Sabha today with respect to Goods and Services Tax (GST) – News – Press release

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VAT and Sales Tax – TNGST – when the invoice of the petitioner contemplates interest on delayed payment, the Tribunal was justified in including the same in the taxable turnover – HC – TMI Updates – Highlights

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