Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 2-8-2017 Last Replied Date:- 3-8-2017 – GST is now one month old and Government as well as other stakeholders face a testing and challenging timings ahead. While implementation issues will be there which are bound to be, and will also be sorted out at last, the Government including the all powered GST Council, Ministry of Corporate Affairs (MCA), Central Board of Direct Taxes (CBDT) and the Institute of Chartered Accountants of India (ICAI) ought to address the following issues, sooner the better: Scope of turnover in laws / enactments, viz, Companies Act, Income Tax Act and GST legislations. While up till now turnover comprised of sales turnover, GST now talk about turnover
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xcise duty as a tax on production or manufacture of goods will be no longer be there and it would no longer be a tax on sale or supply. This would make the figures non-comparable and result in reduction of top line of companies dealing in goods. The questions thus emerge for providing a solution are: Will the ICAI / MCA make necessary amends in the Standards / Companies Act to recognize 'supply' as revenue. How will companies account for and disclose supplies in books of accounts and financial statements? Will 'supplies' be considered as sales? How 'supplies not being sale' will be disclosed in financial statements Returns under Income Tax will be based on 'sales' where as returns under GST will be based on &
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ded to capture supply and to bring out clearly distinction between 'sale' and 'supply' Schedule III of the Companies Act, 2013 be amended to prescribe appropriate disclosure of 'supply which is not a sale', such supplies being an off balance sheet item Converge the definitions of turnover in all enactments GST may be levied only on 'sales' and not 'supplies'. The law of GST is already too complex to comprehend for all stakeholders including professionals and if this is not sorted out, it will create further complications for all including investors and breed litigation arising out of different interpretation by different tax collectors and regulators. – Reply By N Balachandran – The Reply = Sir, Is th
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