Goods and Services Tax – GST – By: – esha agrawal – Dated:- 20-8-2016 Last Replied Date:- 22-8-2016 – Hello everyone coming with another article on GST, a very hot topic in discussion now a days , here is a gist of GST with meaning of some important terms which will help readers to understand the definitions properly and help practising chartered accountants to deal their clients efficiently in the matter of GST You all must have heard so many information on the Goods and Services Tax. Some are saying GST will take away the cascading impact of taxes and some are saying GST is one nation, one rate . Firstly GST will not reduce the amount of tax you pay, but it will make it less tiresome to pay and collect. GST is about fewer taxes, at unified rate, as we all know that the taxes are levied both by central and state government in indirect taxes in different level like vat , service tax, excise duty etc, what GST will do is to sweep ( subsume ) many indirect taxes into a single label. As
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d from taxes due on final product, but this exists in name only because so many taxes like central sales tax, additional excise and customs duty, luxury tax, to name a few – are not eligible for such set-offs, As a result, both producers and sellers end up paying taxes on the same inputs over and over again. It should be thanks that in case of GST there is no concept of input tax credit all taxes are summed up and GST is you pay just once for. Now here is the meaning of some basic terms in GST like What does the word GOODS means in GST Goods means all kinds of movable properties (which can be moved as such without any dismantling) (only tangible) eg:- visualize, marker, exercise machine, fan etc INCLUDING securities, growing crops & grass, things attached to or forming art of the land e.g. electricity pole etc EXCLUDING money, Actionable claim What does the word SERVICES means in GST ANYTHING OTHER THAN GOODS i.e. Do something or not to do something (like non competence contract, c
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ansferred then it is called supply of service In case of business assets if it is permanent transfer then it is called supply of goods, but if temporary transfer then it is called supply of services, if sold by third party (bank) then supply of goods by the person In case of Immovable Property If there is Renting/ Leasing of immovable property then it issupply of service If sale of under construction property then also it is supply of service In case of Intangible Property (IPR) Intangible property is either temporary or permanent transfer in both the cases it is supply of service In case of software If the software is customised then it is supply of service But if the software is readymade then it is supply of goods Goods on which 100% Exemption is there in GST ROTI :- flour, pulse, rice, milk, cereals, poultry etc KAPDA:- textile MAKAN:- renting for residential/ construction for one family SHIKSHA:- playway to XII- approved degree, diploma SWASTHYA:- health care- diagnose, treatment
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n act. Thanks. – Reply By esha agrawal – The Reply = There is no such notification this I have written just to make understand readers easily – Reply By KASTURI SETHI – The Reply = Nicely explained by both experts i.e. Sh.Ganeshan Kalyani Ji and the author. – Reply By swaminathan venkataraman – The Reply = Wprt : In case of Immovable Property If sale of under construction property then also it is supply of – GOODS AND service – ( envisaged to be rolled into one, though). To note the words in FONT; see : SCHEDULE II MATTERS TO BE TREATED AS SUPPLY OF GOODS OR SERVICES …….. If so care and interested, for individual's own and the common good, look up and give further thoughts to the canvassed viewpoints against the constitutionality /propriety of the proposed levy as shared, with reasoning, on Facebook /Linkedin, also elsewhere in public domain. – Reply By KASTURI SETHI – The Reply = Respected Madam,Will it be compulsory for all i.e. manufacturer, wholesale dealer and retailer to
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