GEMS & JEWELLERY INDUSTRY UNDER GST REGIME (PART-2)
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 23-1-2017
Place of Registration
In the present indirect tax regime, there is a concept of Centralized registration under Central tax laws.
Under GST regime, registration may be required in each State from where supplies are being made. Hence, manufacture/dealer may need to obtain registration in each State where there is a premises (including site office) from where services are being provided. Centralized registration will no longer be available.
Returns
Under existing indirect tax laws, assessee has to submit 2 half yearly returns under Service Tax, monthly /quarterly return under Central Excise and quarterly returns under VAT laws in a year. Model GST Act provides following returns which are required to be submitted by the registered person :
S.no.
Return
Periodic return to be filed for
To Be Filed By
1.
GSTR-1
Outward supplies made by taxpaye
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bsequent month. This provision places the liability for non-compliance on the recipients, i.e., the companies, as against their vendors.
Similar provisions have been prescribed wherein details of credit notes issued by a supplier have to match with the corresponding reduction of input tax credit claimed by the recipient. Accordingly, if the recipient does not adjust the input tax credit, the tax and interest would be recovered from the supplier. This provision places liability on companies for non-compliance by vendors.
Rate of GST
While rates of GST on are likely to be in the range of 5-28 percent, what rate of GST shall be applicable to gems and jewellery is not yet decided. The lowest rate as per slabs agreed upon in GST Council is 5 percent. However, lower rate is not ruled out. The industry is demanding for a tax slab of 1-2 percent.
Payment
Any tax, interest, penalty, fee, etc., shall be paid via internet banking or by using credit/debit cards or NEFT or RTGS. This amount s
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has been liberally defined for being eligible to claim input tax credit in respect of capital goods. “Capital goods” means goods, the value of which is capitalized in the books of accounts of the person claiming the credit and which are used or intended to be used in the course or furtherance of business. Accordingly, input tax credit will be eligible for capital goods only on those goods, the value of which is capitalized in the books of accounts. This will enable many taxable persons to claim cenvat credit.
A taxable person (exporter) may claim refund of any unutilized input tax credit at the end of any tax period. In other words, exporter of services shall be eligible to get refund on eligible inputs, capital goods and input services.
Input Service Distributor Concept (ISD)
As in the present Cenvat Credit Rules, ISD concept is proposed for transfer of credit of input services between two or more locations. ISD can transfer credit of all types of GST (CSGT, SGST or IGST). Consid
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