Goods and Services Tax – GST – By: – SKP IDT – Dated:- 25-12-2015 Last Replied Date:- 26-12-2015 – Introduction After decades of positive deliberation, India has finally accepted the idea of a common indirect tax regime- Goods and Services Tax (GST). Battered with multiplicity of Indirect taxes in the current regime, India Inc has more than welcomed the GST as it brings within its ambit the flavor of ease of doing business in India, seamless credit flow and a vision of common market across India. The draft Indian Model GST Law[1] ( Model GST Law ) which was made public on 3rd December 2015, underlines an overview of the Final GST Act. In this article, we have outlined the key compliance proposed in the Model GST Law and ascertain the ground reality of GST s claim on considerable ease in doing business in India. Returns in GST regime Every registered assessee will be required to file returns (including NIL returns). It is pertinent to note that there could be as many as 8 returns as un
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
e Tax legislation, is currently required to file half yearly return and within the GST regime, same Service Tax assessee might be required to file as many as 61 returns (5 returns per month i.e. GSTR 1, 2,3,6,7 and GSTR 8 annual return). Rectification of Errors in return Rectification of errors for any omission or incorrect particulars (other than as a result of audit, inspection or enforcement activity by the tax authorities) would be allowed in the return period in which such omission/incorrect particulars to specific restriction such as rectification / omission may not be allowed after filing of the return for the month of November following the end of the FY etc. Given the aforesaid restrictions, it would be advisable that the taxpayers would need to have a robust mechanism to capture correctly the details of invoices, revenue, input invoices and other data in the original return itself. Thus, the taxpayers will have to strengthen their reporting processes and controls. Registratio
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
voluntarily for GST registration. However, in case of person engaged in inter-state supplies, casual taxable persons or a person liable to GST under reverse charge, irrespective of turnover, registration would be compulsory. Payments in GST regime GST law provides that the taxable person will be required to make payment of tax (i.e. CGST, SGST, IGST and Additional Tax) including interest, penalty or fee through electronic cash/credit ledger. It is worthwhile to know that cross utilisation of electronic cash/credit under IGST for CGST and SGST payment, electronic cash/credit under CGST for IGST payment and electronic cash/credit under SGST for IGST payment will be allowed. However, cross utilisation of cash/credit under CGST for payment of SGST and vice versa will not be allowed. Further, as per section 47(6) of the Model GST law, where the amount available in the electronic cash or the credit ledger falls short of aggregate of tax, interest, penalty fee or any other amount due the sai
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
5 days from crediting such tax at source to the appropriate government and default in furnishing of such certificate would be liable to late fee as prescribed under the Act. Every deductor would be liable to take registration within specified period as prescribed and furnish the return in the form within due date as prescribed, failing which he would be liable to pay late fee of as prescribed under the Act. Conclusion Although the compliances under multiple indirect tax levies such as Excise, VAT etc would cease and grant a relief to the taxpayer (especially manufacturer), the main pain point of reduction in compliances and achieving the objective of Ease of doing business in India does not appear to fully achieved given the manifold increase in compliances. Thus given the drastic change and increase in number of compliances, it is advisable to work towards analysing the impact of the GST on business operations to ascertain the impact on tax, finance, working capital, contracts, operat
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =