GST ISSUES FOR GST COUNCIL
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 18-11-2017
With 23rd meeting of GST Council just over, to consider various implementation issues and rationalize rates etc in next meeting, here are few suggestions which ought to be decided by the Council.
* It is high time that petroleum products presently kept out of GST net be brought under GST at the earliest. April 2018 / Budget 2018 could be a good opportunity. If that is not possible now, it should atleast be done for Railways / Metros / Airlines / Transportation and Industrial use meant for production of goods.
* In income tax Act, 1961, transfer pricing (TP) provisions provide for computation of Arms Length Price (ALP) as per TP methods i.e., comparable uncontrolled price, cost plus, resale price, profit split and transactional net margin methods. In GST, valuation in governed by section 15 of the CGST Act, 2017 read with rule 28-31 of CGST Rules, i.e., open market, l
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h input credit facility. In most of the cases, this is an investment or that planning exercise.
* Exemption to Resident Welfare Association (RWA) for maintenance of residential units deserves to be extended to units / offices in malls / commercial complexes which will be a great respite to professionals / small businesses. There could be a limit of ₹ 5000 p.m. Assuming there is a charge @ ₹ 2 per sq. ft. for upto 2500 sq. ft. per months would, it will be a great help to small offices.
* Hotel / travelling expenses meant for business / professional being business expenses, should be allowed for input credit and CGST / SGST paid thereon shall be allowed input tax credit.
* Registration of any immovable property located in India is taxed as per location of such property. Owner / land lord should be allowed to take single registration at his place of residence and tax may be charged accordingly. In such cases, input tax credit should be specifically allowed. Similar provi
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be made more effective and committees be formed at block / panchyat level with people drawn from Government service / education / profession who can receive and forward the grievances for timely and effective redressal.
* Summary return form 3B may be continued and infact be made mandatory. Also monthly returns GSTR 1, 2 and 3 be made quarterly for all types of tax payers as a permanent feature.
* Exemptions to schools / pre-school ought to be extended to higher education as well. This was allowed in Service Tax.
* Late fee for all filings may be waived till 31st March, 2018 or be halved.
* Monetary threshold limit of composition scheme be extended to ₹ 1.50 crore to bring it at par with pre-GST period in Central Excise.
* Looking at the margins involved, restaurants (outside composition scheme) be asked to reduce their prices for customers in line with anti profiteering law.
Reply By Ganeshan Kalyani as =
Nice article Sir. The suggestions noted down are all valid.
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