Goods and Services Tax

FEMA – 13/2015-16 – Dated:- 1-7-2015 – RBI/2015-16/82 Master Circular No. 13/2015-16 July 01, 2015 To, All Category – I Authorised Dealer Banks Madam / Sir, Master Circular on Import of Goods and Services Import of Goods and Services into India is being allowed in terms of Section 5 of the Foreign Exchange Management Act 1999 (42 of 1999), read with Notification No. G.S.R. 381(E) dated May 3, 2000 viz. Foreign Exchange Management (Current Account Transaction) Rules, 2000 as amended from time to time. 2. This Master Circular consolidates the existing instructions on the subject of "Import of Goods and Services" at one place. The list of underlying circulars consolidated in this Master Circular is furnished in Appendix. 3. This Master Circular is being updated from time to time as and when the fresh instructions are issued. The date up to which the Master Circular has been updated is suitably indicated. 4. This Master Circular may be referred to for general guidance. The Autho

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and Preservation C.10. Follow up for Import Evidence C.11. Issue of Bank Guarantee C.12. Import of Gold C.13. Import of Other Precious Metals C.14. Import Factoring C.15. Merchanting Trade C.16. Import Payments through Online Payment Gateway Service Providers Annex-1 Annex-2 Annex -3 Appendix Consolidated List of Circulars in the Master Circular Section I – Introduction (i) Import trade is regulated by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce & Industry, Department of Commerce, Government of India. Authorised Dealer Category – I (AD Category – I) banks should ensure that the imports into India are in conformity with the Foreign Trade Policy in force and Foreign Exchange Management (Current Account Transactions) Rules, 2000 framed by the Government of India vide Notification No. G.S.R.381 (E) dated May 3, 2000 and the Directions issued by Reserve Bank under Foreign Exchange Management Act, 1999 from time to time. (ii) AD Category – I banks shoul

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nd regulations to be followed by the AD Category – I banks from the foreign exchange angle while undertaking import payment transactions on behalf of their clients are set out in the following paragraphs. Where specific regulations do not exist, AD Category – I banks may be governed by normal trade practices. AD Category – I banks may particularly note to adhere to "Know Your Customer" (KYC) guidelines issued by Reserve Bank (Department of Banking Regulation) in all their dealings. B.2. Remittances for Import Payments AD Category I Banks may allow remittance for making payments for imports into India, the after ensuring that all the requisite details are made available by the importer and the remittance is for bona fide trade transactions as per applicable laws in force. B.3. Import Licences Except for goods included in the negative list which require licence under the Foreign Trade Policy in force, AD Category – I banks may freely open letters of credit and allow remittances

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importer furnishes evidence of import viz., Exchange Control Copy of the Bill of Entry, Postal Appraisal Form or Customs Assessment Certificate, etc., and satisfy himself that goods equivalent to the value of remittance have been imported. (iii) In addition to the permitted methods of payment for imports laid down in Notification No.FEMA14/2000-RB dated 3rd May 2000, payment for import can also be made by way of credit to non-resident account of the overseas exporter maintained with a bank in India. In such cases also AD Category – I banks should ensure compliance with the instructions contained in sub-paragraphs (i) and (ii) above. B.5. Time Limit for Settlement of Import Payments B.5.1. Time limit for Normal Imports (i) In terms of the extant regulations, remittances against imports should be completed not later than six months from the date of shipment, except in cases where amounts are withheld towards guarantee of performance, etc. (ii) AD Category – I banks may permit settlement

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special permission of the Reserve Bank, import or bring into India, any foreign currency. Import of foreign currency, including cheques, is governed by clause (g) of sub-section (3) of Section 6 of the Foreign Exchange Management Act, 1999, and the Foreign Exchange Management (Export and Import of Currency) Regulations 2000, issued by Reserve Bank vide Notification No.FEMA 6/2000-RB dated May 3, 2000, as amended from time to time. (ii) Reserve Bank may allow a person to bring into India currency notes of Government of India and / or of Reserve Bank subject to such terms and conditions as the Reserve Bank may stipulate. B.6.1. Import of Foreign Exchange into India A person may- (i) Send into India, without limit, foreign exchange in any form other than currency notes, bank notes and travellers cheques; (ii) Bring into India from any place outside India, without limit, foreign exchange (other than unissued notes), subject to the condition that such person makes, on arrival in India, a d

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ly). (ii) A person may bring into India from Nepal or Bhutan, currency notes of Government of India and Reserve Bank of India for any amount in denominations up to ₹ 100/-. B.7. Third Party Payment for Import Transactions AD category I banks are allowed to make payments to a third party for import of goods, subject to conditions as under: Firm irrevocable purchase order / tripartite agreement should be in place. However this requirement may not be insisted upon in case where documentary evidence for circumstances leading to third party payments / name of the third party being mentioned in the irrevocable order / invoice has been produced. AD bank should be satisfied with the bonafides of the transactions and should consider the Financial Action Task Force (FATF) Statement before handling the transactions; The Invoice should contain a narration that the related payment has to be made to the (named) third party; Bill of Entry should mention the name of the shipper as also the narra

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nt/s) is unable to obtain bank guarantee from overseas suppliers and the AD Category – I bank is satisfied about the track record and bonafides of the importer, the requirement of the bank guarantee / standby Letter of Credit may not be insisted upon for advance remittances up to USD 5,000,000 (US Dollar five million). AD Category – I banks may frame their own internal guidelines to deal with such cases as per a suitable policy framed by the bank's Board of Directors. (c) A Public Sector Company or a Department/Undertaking of the Government of India / State Government/s which is not in a position to obtain a guarantee from an international bank of repute against an advance payment, is required to obtain a specific waiver for the bank guarantee from the Ministry of Finance, Government of India before making advance remittance exceeding USD 100,000. (ii) All payments towards advance remittance for imports shall be subject to the specified conditions. C.1.2. Advance Remittance for Imp

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not permitted for import of conflict diamonds (Kimberly Certification). vi. KYC and due diligence exercise should be done by the AD Category – I banks as per the existing guidelines. vii. AD Category – I banks should follow-up submission of the Bill of Entry / documents evidencing import of rough diamonds into the country by the importer, in terms of the Act / Rules / Regulations / Directions issued in this regard. b) In case of an importer entity in the Public Sector or a Department / Undertaking of the Government of India / State Government/s, AD Category – I banks may permit the advance remittance subject to the above conditions and a specific waiver of bank guarantee from the Ministry of Finance, Government of India, where the advance payments is equivalent to or exceeds USD 100,000/- (USD one hundred thousand only). C.1.3. Advance Remittance for Import of Aircrafts/Helicopters and other Aviation Related Purchases 1. As a sector specific measure, airline companies which have been

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entity and the overseas manufacturer company as well. ii. Advance payments should be made strictly as per the terms of the sale contract and directly to the account of the manufacturer (supplier) concerned. iii. AD Category – I banks may frame their own internal guidelines to deal with such cases, with the approval of their Board of Directors. iv. In the case of a Public Sector Company or a Department / Undertaking of Central /State Governments, the AD Category – I bank shall ensure that the requirement of bank guarantee has been specifically waived by the Ministry of Finance, Government of India for advance remittances exceeding USD 100,000. v. Physical import of goods into India is made within six months (three years in case of capital goods) from the date of remittance and the importer gives an undertaking to furnish documentary evidence of import within fifteen days from the close of the relevant period. It is clarified that where advance is paid as milestone payments, the date of

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itions: (a) Where the amount of advance exceeds USD 500,000 or its equivalent, a guarantee from a bank of international repute situated outside India, or a guarantee from an AD Category – I bank in India, if such a guarantee is issued against the counter-guarantee of a bank of international repute situated outside India, should be obtained from the overseas beneficiary. (b) In the case of a Public Sector Company or a Department/ Undertaking of the Government of India/ State Governments, approval from the Ministry of Finance, Government of India for advance remittance for import of services without bank guarantee for an amount exceeding USD 100,000 (USD One hundred thousand) or its equivalent would be required. (c) AD Category – I banks should also follow-up to ensure that the beneficiary of the advance remittance fulfils his obligation under the contract or agreement with the remitter in India, failing which, the amount should be repatriated to India. C.2. Interest on Import Bills (i)

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riginal goods which have been lost, the original endorsement to the extent of the value of the lost goods may be cancelled by the AD Category – I bank and fresh remittance for replacement imports may be permitted without reference to Reserve Bank, provided, the insurance claim relating to the lost goods has been settled in favour of the importer. It may be ensured that the consignment being replaced is shipped within the validity period of the license. C.4. Guarantee for Replacement Import In case replacement goods for defective import are being sent by the overseas supplier before the defective goods imported earlier are reshipped out of India, AD Category-I banks may issue guarantees at the request of importer client for dispatch/return of the defective goods, according to their commercial judgment. C.5. Import of Equipment by Business Process Outsourcing (BPO) Companies for their Overseas Sites AD Category – I bank may allow BPO companies in India to make remittances towards the cos

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m overseas suppliers Import bills and documents should be received from the banker of the supplier by the banker of the importer in India. AD Category – I bank should not, therefore, make remittances where import bills have been received directly by the importers from the overseas supplier, except in the following cases: (i) Where the value of import bill does not exceed USD 300,000. (ii) Import bills received by wholly-owned Indian subsidiaries of foreign companies from their principals. (iii) Import bills received by Status Holder Exporters as defined in the Foreign Trade Policy, 100% Export Oriented Units / Units in Special Economic Zones, Public Sector Undertakings and Limited Companies. (iv) Import bills received by all limited companies viz. public limited, deemed public limited and private limited companies. C.6.1.2. Receipt of import documents by the importer directly from overseas suppliers in case of specified sectors As a sector specific measure, AD Category – I banks are pe

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cord of the importer customer. Before extending the facility, they should also obtain a report on each individual overseas supplier from the overseas banker or reputed overseas credit rating agency. C.6.1.3. Receipt of import documents by the AD Category – I bank directly from overseas suppliers (i) At the request of importer clients, AD Category – I bank may receive bills directly from the overseas supplier as above, provided the AD Category – I bank is fully satisfied about the financial standing/status and track record of the importer customer. (ii) Before extending the facility, the AD Category – I bank should obtain a report on each individual overseas supplier from the overseas banker or a reputed overseas credit agency. However, such credit report on the overseas supplier need not be obtained in cases where the invoice value does not exceed USD 300,000 provided the AD Category – I bank is satisfied about the bonafides of the transaction and track record of the importer constitue

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entary evidence due to genuine reasons such as non- arrival of consignment, delay in delivery/ customs clearance of consignment, etc., AD bank may, if satisfied with the genuineness of request, allow reasonable time, not exceeding three months from the date of remittance, to the importer to submit the evidence of import. C.7.2. Evidence of Import in Lieu of Bill of Entry (i) AD Category – I bank may accept, in lieu of Exchange Control Copy of Bill of Entry for home consumption, a certificate from the Chief Executive Officer (CEO) or auditor of the company that the goods for which remittance was made have actually been imported into India provided :- (a) The amount of foreign exchange remitted is less than USD 1,000,000 or its equivalent and (b) The importer is a company listed on a stock exchange in India and whose net worth is not less than ₹ 100 crore as on the date of its last audited balance sheet, or, the importer is a public sector company or an undertaking of the Governmen

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ange Control Copy of the Bill of Entry, Postal Appraisal Form, or Customs Assessment Certificate, etc., from importers by issuing acknowledgement slips containing all relevant particulars relating to the import transactions. C.9. Verification and Preservation (i) Internal inspectors or auditors (including external auditors appointed by AD Category – I bank) should carry out verification of the documents evidencing import, e.g. Exchange Control copies of Bills of Entry or Postal Appraisal Forms, or Customs Assessment Certificates, etc. (ii) Documents evidencing import into India should be preserved by AD Category – I bank for a period of one year from the date of their verification. However, in respect of cases which are under investigation by investigating agencies, the documents may be destroyed only after obtaining clearance from the investigating agency concerned. C.10. Follow-up for Import Evidence (i) In case an importer does not furnish any documentary evidence of import, as requ

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e of import involving amount of USD 100,000 or less provided they are satisfied about the genuineness of the transaction and the bonafides of the remitter. A suitable policy may be framed by the bank's Board of Directors and AD Category – I bank may set their own internal guidelines to deal with such cases. C.11. Issue of Bank Guarantee AD Category – I banks are permitted to issue guarantee on behalf of their importer customers in terms of Notification No. FEMA 8/2000-RB dated May 3, 2000, as amended from time to time. C.12 Import of Gold C.12.1 Import of Gold. The 20:80 scheme of import of gold was withdrawn on November 28, 2014. However, the obligation to export under the 20:80 scheme would apply to the unutilised gold imported before November 28, 2014. Nominated banks and nominated agencies, as notified by DGFT, are permitted to import gold on consignment basis. All sale of gold domestically will, however, be against upfront payment. Nominated banks are free to grant gold metal

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nancial YearBoth the statements shall be submitted, even if there is 'Nil' position, by the 10th of the following month / half year, to which it relates. C.12.2. Import of Gold Jewellery Including Jewellery Made of Precious Metals or/and Studded With Diamonds / Precious Stones /Semi-precious. Suppliers and Buyers credit (trade credit) including the usance period of Letters of Credit opened for import of gold in any form, including jewellery made of gold/precious metals or/and studded with diamonds/semi- precious/precious stones, should not exceed 90 days from the date of shipment. C.13. Import of Other Precious Metals C.13.1. Import of Platinum /Palladium/Rhodium/ Silver/Rough, Cut & Polished Diamonds / Precious and Semi-precious Stones. (a) Suppliers and Buyers Credit, including the usance period of Letters of Credit opened for import of Platinum, Palladium, Rhodium and Silver and rough, cut and polished Diamonds, Precious and semi-precious stones; should not exceed 90 day

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import of platinum and silver, on outright purchase basis subject to the condition that although ownership of the same shall be passed on to the importers at the time of import itself, the price shall be fixed later as and when the importer sells to the user. C.14. Import Factoring (i) AD Category – I bank may enter into arrangements with international factoring companies of repute, preferably members of Factors Chain International, without the approval of Reserve Bank. (ii) They will have to ensure compliance with the extant foreign exchange directions relating to imports, Foreign Trade Policy in force and any other guidelines/directives issued by Reserve Bank in this regard. C.15. Merchanting Trade C.15.1. For a trade to be classified as Merchanting Trade following conditions should be satisfied: a. Goods acquired should not enter the Domestic Tariff Area and b. The state of the goods should not undergo any transformation. C.15.2. AD Category – I bank may handle bonafide Merchanting

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he date of shipment / export leg receipt or import leg payment, whichever is first. The completion date would be the date of shipment / export leg receipt or import leg payment, whichever is the last; (e) Short-term credit either by way of suppliers' credit or buyers' credit will be available for Merchanting Trade Transactions, to the extent not backed by advance remittance for the export leg, including the discounting of export leg LC by an AD bank, as in the case of import transactions ; (f) In case advance against the export leg is received by the Merchanting Trader, AD bank should ensure that the same is earmarked for making payment for the respective import leg. However, AD bank may allow short-term deployment of such funds for the intervening period in an interest bearing account; (g) Merchanting Traders may be allowed to make advance payment for the import leg on demand made by the overseas seller. In case where inward remittance from the overseas buyer is not received b

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from the close of each half year, i.e. June and December. (k) Defaulting Merchanting Traders, whose outstandings reach 5% of their annual export earnings, would be caution-listed. (l) The KYC and AML guidelines should be observed by the AD bank while handling such transactions. Merchanting Traders have to be genuine traders of goods and not mere financial intermediaries. Confirmed orders have to be received by them from the overseas buyers. AD banks should satisfy themselves about the capabilities of the Merchanting Trader to perform the obligations under the order. The overall Merchanting Trade should result in reasonable profits to the Merchanting Trader. C.15.3. Merchanting trade to Nepal and Bhutan As Nepal and Bhutan are landlocked countries, there is a facility of transit trade whereby goods are imported from third countries by Nepal and Bhutan through India under the cover of Customs Transit Declarations in terms of the Government of India Treaty of Transit with these two countr

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e and airway bill from the OPGSP containing the name and address of the beneficiary as evidence of import and report the transaction in R-Return under the foreign currency payment head. (c) The permitted credits in the OPGSP Import Collection account will be: collection from Indian importers for online purchases from overseas exporters electronically through credit card, debit card and net banking and charge back from the overseas exporters. (d) The permitted debits in the OPGSP Import Collection account will be: payment to overseas exporters in permitted foreign currency; payment to Indian importers for returns and refunds; payment of commission at rates/frequencies as defined under the contract to the current account of the OPGSP; and bank charges Appendix Consolidated List of Circulars on Import of Goods and Services Sr. No Circular No Subject Date of Circular 1 AP(DIR Series) Circular No. 106 Import of goods and services into India. June 19, 2003 2 AP(DIR Series) Circular No. 4 Mer

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12, 2005 11 AP(DIR Series) Circular No. 33 Liberalisation of Export and Import procedures February 28, 2007 12 AP(DIR Series) Circular No. 34 Import of Goods of Value USD 100,000 and Less -Clarification on Follow up for Evidence of Import March 2, 2007 13 AP(DIR Series) Circular No. 63 Import of Equipments by BPO Companies in India for International Call Centre May 25, 2007 14 AP(DIR Series) Circular No. 77 Advance Remittance for Import of aircrafts / helicopters / other aviation related purchases June 29, 2007 15 AP(DIR Series) Circular No. 18 Direct Receipt of Import Bills / Documents – Liberalisation November 7, 2007 16 AP(DIR Series) Circular No. 37 Direct Receipt of Import Bills / Documents for Import of Rough Precious & Semi-Precious Stones April 16, 2008 17 AP(DIR Series) Circular No. 03 Advance Remittance for Import of Rough Diamonds August 4, 2008 18 AP(DIR Series) Circular No. 08 Advance Remittance for Import of Rough Diamonds August 21, 2008 19 AP(DIR Series) Circular No

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ing of Stand – By Letter of Credit February 27, 2012 28 AP(DIR Series) Circular No. 103 Data on import of Gold – Statements – Modification April 03, 2012 29 AP(DIR Series) Circular No.83 Import of precious and semi precious stones- Clarification February 20, 2013 30 AP(DIR Series) Circular No.103 Import of Gold by Nominated Banks/Agencies May 13, 2013 31 AP(DIR Series) Circular No.107 Import of Gold by Nominated Banks/Agencies June 4, 2013 32 AP(DIR Series) Circular No. 122 Import of Gold by Nominated Banks/Agencies June 27, 2013 33 AP(DIR Series) Circular No.15 Import of Gold by Nominated Banks /Agencies/Entities July 22, 2013 34 AP(DIR Series) Circular No.39 Export import of Currency September 6, 2013 35 AP(DIR Series) Circular No.70 Third party payments for export / import transactions November 8 , 2013 36 AP(DIR Series) Circular No.71 Advance Remittance for Import of Rough Diamonds November 8, 2013 37 AP(DIR Series) Circular No.73 Import of Gold by Nominated Banks /Agencies/Entitie

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rt of Gold by Nominated Banks / Agencies / Entities May 21, 2014 47 AP(DIR Series) Circular No.146 Export & Import of Currency- Enhanced Facilities June 19, 2014 48 AP(DIR Series) Circular No. 2 Import of Rough, Cut and Polished Diamonds – credit relaxation July 07, 2014 49 A. P. (DIR Series) Circular No.42 Import of Gold by Nominated Banks/Agencies November 28, 2014 50 AP(DIR Series) Circular No 76 Form A1- Payments for Imports – Discontinuance thereof February 12, 2015 51 AP(DIR Series) Circular No 79 Guidelines on Import of Gold by Nominated Banks / Agencies February 18, 2015 52 AP(DIR Series) Circular No 96 Merchanting Trade to Nepal and Bhutan April 30, 2015 53 AP(DIR Series) Circular No .16 Processing and settlement of import and export related payments facilitated by Online Payment Gateway Service Providers September 24, 2015 54 AP(DIR Series) Circular No .29 Import of Goods into India – Evidence of Import November 26, 2015 55 AP(DIR Series) Circular No .30 Advance Remittanc

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Goods and Services Tax – Started By: – SANDESH SHINDE – Dated:- 29-6-2015 Last Replied Date:- 29-6-2015 – Dear Sir, Please give us some advantges of GST for busines entities that will be different and very important from general advantages.Thanks & regards – Reply By Mahir S – The Reply = Advantages of GST :1. GST is a transparent Tax and also reduce numbers of indirect taxes. With GST implemented a business premises can show the tax applied in the sales invoice. Customer will know exactly how much tax they are paying on the product they bought or services they consumed.2. GST will not be a cost to registered retailers therefore there will be no hidden taxes and the cost of doing business will be lower. This in turn will help Export be

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GOODS AND SERVICE TAX AS PROPOSED – Goods and Service Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 24-6-2015 – We are going to have a dual GST model. The Center and the States both, will levy GST on supply of goods and services. On Supply of goods and services in the course of Inter-state only Center will levy and collect taxes (IGST) which will be apportioned between Centre and States based on the recommendation of GST Council. The Center will have power to make place of supply rules in this regard. On supply of goods and services in the course of or International trade or commerce, states will not have any power to levy and collect taxes. For the first two years under GST (or as GST Council would recommend), 1% additional tax apart from GST will be levied on inter-state sale of goods which will be assigned to the state of origin of supply of goods. The rules regarding the place of origin will be formed by the Parliament. The Central Government would also have power to grant exempti

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ernment may appoint by way of notification, after enactment. For enactment, it has to be passed by two-third majority by both houses of the Parliament of those present and simple majority of total membership of both houses. It has to be then approved by one-half of the state Governments, i.e. atleast 15 states. The said Bill has been passed Lok Sabha on 06.05.2015 but could not be passed by Rajya Sabha. The same has now been referred to the Select Committee of the Rajya Sabha. For GST network, a special purpose company has been incorporated to implement IT back bone of proposed GST. It will provide IT infrastructure and services to various stakeholders including the Union and State Government. It has been set as an as section 25 (not for profit) company under the Companies Act, 1956, non-government private limited company in which Government will retain strategic control. The Government seems to Committed to ushering in GST w.e.f. April 2016. GST network planned as back-bone in terms o

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ts, etc. A very strong infrastructure network would be required to administer GST which would include facility for online payment of tax and e-filing of returns. The GST as a new levy could be a very effective tool and break-through in indirect tax reforms, provided it is made simple and assessee-friendly – not like the present tax system. Not only GST is expected to change the complexion of indirect taxation in India, it will also bring down the prices of goods and services across the board. The consensus among the states (29) and between the Centre and states hold the key. Once consensus is reached, GST may see the light of the day in a year s time, even during any time of the year, it being a transaction based tax. While there is no doubt that GST will come, the sooner the better, it should also address the problems in present day taxation i.e., it should seek to achieve rationalization, boost transparency, offer flexibility to Union and states and broaden the much needed tax base.

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Dated:- 17-6-2015 – Finance Minister has approved the formation of 2 Committees for facilitating implementation of Goods and Services Tax from 1.4.2016. A Steering Committee been formed under the Co-Chairmanship of Additional Secretary, Department of Revenue and Member Secretary, Empowered Committee of State Finance Ministers. This Committee has Members from Department of Revenue, Central Board of Excise & Customs, Goods and Services Tax Network (GSTN) and representatives of State Governments. This Committee shall monitor the progress of IT preparedness of GSTN/CBEC/Tax authorities, finalisation of reports of all the Sub-Committees constituted on different aspects relating to the mechanics of GST and drafting of CGST, IGST and SGST law

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erway to finalise various aspects of GST design like business processes, payment systems, matters relating to dual control, threshold, exemptions, place of supply rules and also making of model GST, SGST and IGST laws and rules. This task is being undertaken through various Sub-Committees formed by the Empowered Committee which has officers from Government of India as well as State Governments as Members. Goods and Services Tax Network (GSTN) is taking steps for preparing the IT infrastructure for roll out of GST. The IT infrastructure shall enable online registration, filing of returns and getting refunds. Various State Governments are also preparing the necessary back end IT infrastructure for implementation of GST which shall relate to a

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Dated:- 15-6-2015 – As per the official sources: Traders with a turnover of less than ₹ 10 lakh a year are neither required to pay GST nor to take registration for it. Those with annual sales between ₹ 10 lakh and ₹ 50 lakh will need to pay tax at a rate lower than standard GST rate. However, the concessional tax rate would not be available for traders making inter-State transactions irrespective of their turnover. The quantum of concession will be decided by proposed GST Coun

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Dated:- 15-6-2015 – A Constitution Amendment Bill providing for roll out of the GST was on 12/05/2015 referred to a select committee after the opposition insisted on its legislative scrutiny of the proposed legislation in Rajya Sabha where the government faces the numbers crunch. The 21 member panel will give its report by the last day of the first week of the Monsoon session. FM moved the motion for referring the Bill to the Select Committee. The GST Bill was approved by Lok Sabha on 6/5/2015

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Dated:- 15-6-2015 – Finance Minister Arun Jaitely on 14/5/2015 stuck to the April deadline for rolling out GST. I would have been much happier if the Rajya Sabha (had) also approved the GST. In that sense I would not have been cutting it too fine with regard to the April 1, 2006 deadline. I would only hope that the principal opposition party had realised the significance of this timeline at this moment, the Minister told reporters. The Bill to amend the constitution had to be referred to a select committee of the Rajya Sabha as the Congress blocked its passage, arguing that it needed further consultation. Once the panel s report is received, the Upper House will have to clear the bill, which will then need to be ratified by at least half t

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Goods and Service Tax – GST – By: – CA Akash Phophalia – Dated:- 29-5-2015 – Goods and service tax Issues Solutions Meaning GST is a comprehensive VAT on the supply of goods or services or both. All goods and services will be subject to GST unless specifically exempted i.e. operating on negative concept. Defined as any tax on supply of goods or services or both except taxes on supply of the alcoholic liquor for human consumption . Central & State taxes subsumed Central Tax – Central Excise Duty, Service Tax, Additional Custom Duty, Central Surcharge, State Tax – Sales Tax, Entertainment Tax, Octroi Tax, Entry Tax, Purchase Tax, Luxury Tax, Lottery Tax,

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Additional Taxes Additional Tax not exceeding 1% will be levied by States on inter-State supply of goods for two years or such other period as recommended by GST council. Procedural Compliance Likely to increase as it provides that every branch of the manufacturer/ service provider located in different states will have to obtain registration separately. Common threshold exemption limit for manufacturer/ Service provider As per the information, there will be common threshold limit for manufacturer/ service provider. This will trouble manufacturer as the limit will be heavily reduced. Carry forward of CENVAT credit It has been experienced t

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Goods and Service Tax – GST – By: – Mr. CS SANJAY MALHOTRA – Dated:- 18-5-2015 Last Replied Date:- 24-5-2015 – Download Power Point Presentation on: Reply By CS RAHUL AGARWAL – The Reply = WONDERFUL PRESENTATION SIR. HATS OFF!!REALLY VERY HAPPY TO KNOW ABOUT YOUR PROFILE AND MAKES ME FEEL THAT ATLEST I AM NOT THE ALONE CS IN IDT. THANKS FOR SHARING & YOUR EFFORTS.Regards, – Reply By kailash singhal – The Reply = dear sir , it is a very nice presentation and concerned gst authority should t

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FEMA – 101 – Dated:- 14-5-2015 – RBI//2014-15/599 A.P. (DIR Series) Circular No. 101 May 14, 2015 To All Authorised Dealers in Foreign Exchange Madam / Sir, Export of Goods and Services- Declaration of Exports of Goods/Software Attention of the Authorised Dealers is invited to Regulation 6 of the Notification No.FEMA 23/2000-RB dated May 3, 2000 viz. Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, as amended from time to time, in terms of which every exporter of go

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Goods and Services Tax – Started By: – Deepak Agrawal – Dated:- 12-5-2015 Last Replied Date:- 13-5-2015 – 1.I wanted to know what is Uniformity in Tax. 2.Do people require to pay State sales tax even after VAT is in force. 3.How Tax evasion can be avoided using VAT? 4.Other than reduction in multiple indirect taxes what are other benefits of GST? – Reply By Deepak Aggarwal – The Reply = GM,as my understanding, uniformity means there will be no difference in rates across country, only SGST or CGST rate will be in picture.In GST, people need to pay SGSTand CGST on same transaction of supply of goods or services.Tax evasion, as already explained, no diff.in rates, so no tax evasion.Major benefit of GST is to remove cascading effect of taxes,

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Dated:- 12-5-2015 – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 A BILL further to amend the Constitution of India. BE it enacted by Parliament in the Sixty-sixth Year of the Republic of India as follows:- Short title and commencement. 1. (1) This Act may be called the Constitution (One Hundredth Amendment) Act, 2015. (2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the commencement of that provision. Insertion of new article 246A. 2. After article 246 of the Constitution, the following article shall be inserted, namely:- Special provision with respect to goods and services tax. 246A. (1) Notwithstanding anything contained in articles 246 and 254, Parliament, and, subject to clause (2), the Legislature of ev

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n clause (1), after the words with respect to , the words, figures and letter goods and services tax provided under article 246A or shall be inserted. Amendment of article 268. 6. In article 268 of the Constitution, in clause (1), the words and such duties of excise on medicinal and toilet preparations shall be omitted. Omission of article 268A. 7. Article 268A of the Constitution, as inserted by section 2 of the Constitution (Eighty-eighth Amendment) Act, 2003 shall be omitted. Amendment of article 269. 8. In article 269 of the Constitution, in clause (1), after the words consignment of goods , the words, figures and letter except as provided in article 269A shall be inserted. Insertion of new article 269A. 9. After article 269 of the Constitution, the following article shall be inserted, namely:- Levy and collection of goods and services tax in course of inter-State trade or commerce. 269A. (1) Goods and services tax on supplies in the course of inter-State trade or commerce shall be

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and services tax levied and collected by the Government of India, except the tax apportioned with the States under clause (1) of article 269A, shall also be distributed between the Union and the States in the manner provided in clause (2). . Amendment of article 271. 11. In article 271 of the Constitution, after the words in those articles , the words, figures and letter except the goods and services tax under article 246A, shall be inserted. Insertion of new article 279A. 12. After article 279 of the Constitution, the following article shall be inserted, namely:- Goods and Services Tax Council. 279A. (1)The President shall, within sixty days from the date of commencement of the Constitution (One Hundred and Twenty-second Amendment) Act, 2014, by order, constitute a Council to be called the Goods and Services Tax Council. (2) The Goods and Services Tax Council shall consist of the following members, namely:- (a) the Union Finance Minister…………………… Chairperson; (b) the Un

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s and services may be exempted from goods and services tax; (e) the rates including floor rates with bands of goods and services tax; (f) any special rate or rates for a specified period, to raise additional resources during any natural calamity or disaster; (g) special provision with respect to the States of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand; and (h) any other matter relating to the goods and services tax, as the Council may decide. (5) The Goods and Services Tax Council shall recommend the date on which the goods and services tax be levied on petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel. (6) While discharging the functions conferred by this article, the Goods and Services Tax Council shall be guided by the need for a harmonised structure of goods and services tax and for the development of a harmonised national marke

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ny procedural irregularity of the Council not affecting the merits of the case. (11) The Goods and Services Tax Council may decide about the modalities to resolve disputes arising out of its recommendation. . Amendment of article 286. 13. In article 286 of the Constitution,- (i) in clause (1),- (A) for the words the sale or purchase of goods where such sale or purchase takes place , the words the supply of goods or of services or both, where such supply takes place shall be substituted; (B) in sub-clause (b), for the word goods , at both the places where it occurs the words goods or services or both shall be substituted; (ii) in clause (2), for the words sale or purchase of goods takes place , the words supply of goods or of services or both shall be substituted; (iii) clause (3) shall be omitted. Amendment of article 366. 14. In article 366 of the Constitution,- (i) after clause (12), the following clause shall be inserted, namely:- (12A) goods and services tax means any tax on supply

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. 17. In the Seventh Schedule to the Constitution,- (a) in List I – Union List,- (i) for entry 84, the following entry shall be substituted, namely:- 84. Duties of excise on the following goods manufactured or produced in India, namely:- (a) petroleum crude; (b) high speed diesel; (c) motor spirit (commonly known as petrol); (d) natural gas; (e) aviation turbine fuel; and (f) tobacco and tobacco products. ; (ii) entries 92 and 92C shall be omitted; (b) in List II – State List,- (i) entry 52 shall be omitted; (ii) for entry 54, the following entry shall be substituted, namely:- 54. Taxes on the sale of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas, aviation turbine fuel and alcoholic liquor for human consumption, but not including sale in the course of inter-State trade or commerce or sale in the course of international trade or commerce of such goods. ; (iii) entry 55 shall be omitted; (iv) for entry 62, the following entry shall be substitute

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upply originates. (3) The Government of India may, where it considers necessary in the public interest, exempt such goods from the levy of tax under sub-section (1). (4) Parliament may, by law, formulate the principles for determining the place of origin from where supply of goods take place in the course of inter-State trade or commerce. (5) For the purpose of this section, State shall have the meaning assigned to it in clause (26B) of article 366 of the Constitution. Compensation to States for loss of revenue on account of introduction of goods and services tax. 19. Parliament may, by law, on the recommendation of the Goods and Services Tax Council, provide for compensation to the States for loss of revenue arising on account of implementation of the goods and services tax for such period which may extend to five years. Transitional provisions. 20. Notwithstanding anything in this Act, any provision of any law relating to tax on goods or services or on both in force in any State imme

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shall be made after the expiry of three years from the date of such assent. (2) Every order made under sub-section (1) shall, as soon as may be after it is made, be laid before each House of Parliament. STATEMENT OF OBJECTS AND REASONS The Constitution is proposed to be amended to introduce the goods and services tax for conferring concurrent taxing powers on the Union as well as the States including Union territory with Legislature to make laws for levying goods and services tax on every transaction of supply of goods or services or both. The goods and services tax shall replace a number of indirect taxes being levied by the Union and the State Governments and is intended to remove cascading effect of taxes and provide for a common national market for goods and services. The proposed Central and State goods and services tax will be levied on all transactions involving supply of goods and services, except those which are kept out of the purview of the goods and services tax. 2. The pr

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x on inter-State transactions of goods and services; (e) levy of an additional tax on supply of goods, not exceeding one per cent. In the course of inter-State trade or commerce to be collected by the Government of India for a period of two years, and assigned to the States from where the supply originates; (f) conferring concurrent power upon Parliament and the State Legislatures to make laws governing goods and services tax; (g) coverage of all goods and services, except alcoholic liquor for human consumption, for the levy of goods and services tax. In case of petroleum and petroleum products, it has been provided that these goods shall not be subject to the levy of Goods and Services Tax till a date notified on the recommendation of the Goods and Services Tax Council. (h) compensation to the States for loss of revenue arising on account of implementation of the Goods and Services Tax for a period which may extend to five years; (i) creation of Goods and Services Tax Council to exami

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s present and voting in favour of a proposal in the Goods and Services Tax Council shall be determined as under:- WT = WC+WS Where, WT = WC+WS × SF Wherein- WT = Total weighted votes of all members in favour of a proposal. WC = Weighted vote of the Union = i.e., 33.33% if the Union is in favour of the proposal and be taken as 0 if, Union is not in favour of a proposal. WS = Weighted votes of the States in favour of a proposal. SP = Number of States present and voting. WST = Weighted votes of all States present and voting i.e. i.e., 66.67% SF = Number of States voting in favour of a proposal. (j) Clause 20 of the proposed Bill makes transitional provisions to take care of any inconsistency which may arise with respect to any law relating to tax on goods or services or on both in force in any State on the commencement of the provisions of the Constitution as amended by this Act within a period of one year. 3. the Bill seeks to achieve the above objects. NEW DELHI; ARUN JAITLEY The

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ted by each State Government. 2. The creation of Goods and Services Tax Council will involve expenditure on office expenses, salaries and allowances of the officers and staff. The objective that the introduction of goods and services tax will make the Indian trade and industry more competitive, domestically as well as internationally and contribute significantly to the growth of the economy, such additional expenditure on the Council will not be significant. 3. At this stage, it will be difficult to make an estimate of the expenditure, both recurring and non-recurring on account of the Constitution of the Council. 4. Further, it is provided for compensation to the States for loss of revenue arising on account of implementation of the Goods and Services Tax for such period which may extend to five years. The exact compensation can be worked out only when the provisions of the Bill are implemented. MEMORANDUM REGARDING DELEGATED LEGISLATION Clause 12 of the Bill seeks to insert a new art

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Goods and Service Tax – GST – By: – Bimal jain – Dated:- 8-5-2015 – Dear Professional Colleague, Lok Sabha passes the GST Constitutional Amendment Bill with 2/3 majority Amid stiff resistance followed by walk out by the Congress Members, the Lok Sabha today, on May 6, 2015 has passed the much awaited Constitutional (122nd Amendment) Bill, 2014 on Goods and Services Tax ( GST ) with 2/3rd majority. The Hon ble Finance Minister, Mr Arun Jaitley, has indeed been working hard for the smooth passage of the GST Constitutional Amendment Bill tabled in the last session of the Parliament in December, 2014 [calling it the Single biggest tax reform since Independence ], but he was taken aback by the sudden vociferous stand coupled with aggressive and brisk walk-out from the House by the main Opposition Party. As the Lok Sabha took up discussion on the GST Constitutional Amendment Bill on Tuesday, Finance Minister Mr. Arun Jaitley requested the Opposition to help clear the Bill and not to insist

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where the ruling BJP is in a minority, the Congress has said it will insist on sending the Bill to a Parliamentary committee for review. Thus, the GST Constitutional Amendment Bill is likely to face stiff opposition at the Rajya Sabha and may be routed to the Standing Committee. Following are the salient features of the GST Constitutional Amendment Bill: Insertion of new Article 246A conferring simultaneous power to the Union and the State legislatures to legislate on GST. Insertion of new Article 279A for the creation of a Goods and Services Tax Council, which will be a joint forum of the Centre and the States. This Council would function under the Chairmanship of the Union Finance Minister. To do away with the concept of declared goods of special importance under the Constitutional. Central Taxes like Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (CVD) and Special Additional Duty of Customs (SAD), etc. will be subsumed in GST. At the State l

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levy and collect Central Goods and Services Tax (CGST), and States would levy and collect the State Goods and Services Tax (SGST) on all transactions within a State. The Centre would levy and collect the Integrated Goods and Services Tax (IGST) on all inter-State supply of Goods and Services. There will be seamless flow of input tax credit from one State to another. Proceeds of IGST will be apportioned among the States. GST is a destination-based tax. All SGST on the final product will ordinarily accrue to the consuming State. GST rates will be uniform across the Country. However, to give some fiscal autonomy to the Centre and States, there will a provision of a narrow tax band over and above the floor rates of CGST and SGST. It is proposed to levy a non-vatable Additional Tax of not more than 1% on supply of goods in the course of inter-State trade or commerce for a period not exceeding 2 years, or further such period as recommended by the GST Council. This Additional Tax on suppl

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Dated:- 5-5-2015 – As tax rates during Goods and Services Tax (GST) regime will be closely aligned to the Revenue Neutral Rates (RNR) of the Centre and the States, the revenues of the Central and State Governments will not be impacted in the long run. To help States in the transition phase, the Constitution (122nd Amendment) Bill, 2014, which was introduced in the Lok Sabha on 19.12.2014 for amending the Constitution to facilitate introduction of GST in the country provides for; Levy of an add

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FEMA – 342/RB-2014 – Dated:- 23-4-2015 – RESERVE BANK OF INDIA (Foreign Exchange Department) (CENTRAL OFFICE) NOTIFICATION NO. FEMA 342/RB-2014 Mumbai, the 23rd April, 2015 Foreign Exchange Management (Export of Goods & Services) (Amendment) Regulations, 2015 G.S.R. 326(E).-In exercise of the powers conferred by clause (a) of sub-section (1), sub-section (3) of Section 7 and sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999) and in partial modification of its Notification No.FEMA.23/2000-RB dated May 3, 2000 as amended from time to time, Reserve Bank of India makes the following amendment in the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, as amended from time to tim

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y other form, either directly or indirectly, to any place outside India, other than Nepal and Bhutan, shall furnish to the specified authority, a declaration in one of the forms set out in the Schedule and supported by such evidence as may be specified, containing true and correct material particulars including the amount representing – (ii) In Regulation 6, the word SDF , wherever appear, shall be deleted (iii) In the Schedule, the following shall be deleted, Form SDF: To be completed in duplicate and appended to the shipping bill, for exports declared to Customs Offices notified by the Central Government which have introduced Electronic Data Interchange (EDI) system for processing shipping bills notified by the Central Government. B. P. K

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LIST OF AGENCIES AUTHORISED TO ISSUE CERTIFICATION FOR GLOBAL SYSTEM OF TRADE PREFERENCES (GSTP), INDIA SRI LANKA FREE TRADE AGREEMENT (ISLFTA), CERTIFICATES OF ORIGIN UNDER ASEAN-INDIA FREE TRADE AGREEMENT INDIA – KOREA COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT (CEPA) INDIA-MALAYSIA COMPREHENSIVE ECONOMIC COOPERATION AGREEMENT (IMCECA) AND INDIA-JAPAN COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT (IJCEPA) – APPENDIX 04D – Old_Provisions – Appendix – Foreign Trade Procedure (RE – 2012) / 2009-

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Dated:- 3-4-2015 – GST – FTP Statement – Foreign Trade Policy 2015-20 The deadline fixed for Goods and Services tax as announced in Budget 2015 is 1st April, 2016. The same was noted in FTP statement issued for Foreign Trade policy 2015-20. The relevant extract is as below: 1) One of Domestic Challenges – Goods and Services Tax (GST) In the absence of a uniform system of indirect taxation in India, exporters are often unable to get a rebate or drawback on all indirect taxes paid on the exported

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FEMA – 93 – Dated:- 1-4-2015 – RBI/2014-15/534 A.P. (DIR Series) Circular No. 93 April 1, 2015 To All Category – I Authorised Dealer Banks Madam/ Sir, Export of Goods and Services – Project Exports Attention of Authorised Dealers is invited to A. P. (DIR Series) Circular No. 11 dated July 22, 2014 in terms of which AD banks / Exim Bank have been permitted to consider according post-award approvals without any monetary limit and permit subsequent changes in the terms of post award approval within the relevant FEMA guidelines / regulations. Further, in terms of para B. 11 (i) of the revised Memorandum of instructions on Project and Service exports, Exim Bank in participation with commercial banks in India may extend Buyer s credit upto the l

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Dated:- 25-3-2015 – Minister of Urban Development Shri M.Venkaiah Naidu has favoured a share of GST(Goods and Services Tax) revenue for the municipalities across the country to ensure predictable and guaranteed flow of funds to enable them take up urban reconstruction initiatives. He expressed concern over the huge urban fiscal gap while addressing a National Workshop on Governance, Administrative Reforms and Capacity Building here today. The Workshop was organized by the Indian Council for Research in International Economic Relations (ICRIER) with the support of the Ministry of Urban Development. Shri Venkaiah Naidu said that the country s municipalities are the weakest in the world in terms of access to resources, financial autonomy and

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oing towards payment of salaries leaving only a little for mandated functions and development activities. The Minister emphasized that Public-Private-Partnership model is a crucial vehicle for mobilizing huge order of resources required for building smart cities and bridging the huge infrastructure deficit in other urban areas. Shri Naidu observed that the success of PPP in India is associated with projects that are technically simple, have small gestation periods and allow easy estimation of costs but PPP is needed more in the more complex infrastructure projects and this shall be made a success through good governance and institutional framework. Expressing concern over inadequate capacities of urban local bodies, Shri Naidu informed that

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VAT and Sales Tax – Classification of Cord wire – Electronic good or Electrical good – the cord wire connecting the main switch with the instrument would not fall under the category of electrical good

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Centre includes compensation in GST Constitutional Amendment Bill – Dated:- 19-3-2015 – The Centre has included in the GST Constitutional Amendment Bill the compensation which will be paid to states for revenue loss on account of rolling out the new indirect tax regime, Parliament was informed. To a written question on whether the compensation in GST has been incorporated in the Constitutional Amendment Bill, Minister of State for Finance Jayant Sinha said: Yes . Elaborating further, he said that as per the provisions of the Bill, Parliament may on the recommendation of the GST Council, provide for compensation to the states for loss of revenue arising on account of implementation of the GST for such period which may extend to five years .

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Tax in General + Budget + Finance Acts – By: – CA DEV KUMAR KOTHARI – Dated:- 4-3-2015 – The budget 2015 has given benefit for poor people by way of common pools and not directly. Any person whether poor or rich has to pay taxes similarly for many essential items for consumption or services. This is not justified. Taxes must be according to capacity to pay: The well-known cannon of taxation is that tax must be according to capacity to pay. Therefore, there must be some regard and relaxation for essential goods and services. Some common items becoming costlier or cheaper for common and other people. Bhojan and essentials for living -commonly known Roti, kapra aur makan: Essential goods and services are equally important for poor and rich. Therefore, there must be some regard for poor people. The quantity and quality are important factors. A poor man consumes many items in lesser quantity and of lower price. However some items of consumption and services are priced similarly for poor an

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tobacco items will be more expensive, Good for society as a whole – for better health and environment. Less use of tobacco for smoking will reduce carbon emission also. However, considering that tobacco is an essential item for many poor people also,- they must get some concession. All services becoming costlier For poor people there must be some exemption on essential services. For example telephone , mobile phone, internet bill up to ₹ 300/- per month can be exempted. Similar concessions must be be given for other items of essential nature. Completely built imported commercial vehicles. Cement For affordable housing some concession must be given – area wise or for first time small house at least. Aerated, flavoured drinks and packaged water Packaged water must be exempted, it is essential. On many railway stations, bus stops we do not find good quality

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e ₹ 1,000 per pair The exemption must be restricted up to MRP of ₹ 1500/- or 2000/- per pair. Above that, must bear more taxes as they are more for brands and fashion and not as essential item. Locally made mobile phones, LED/LCD panels, LED lights and LED Lamps The government authorities must also take care to see that quality of such goods improves and one has to be satisfied with made in India product, of top class quality good . Solar Water heater Pacemakers Mal practices in medical services to implant pacemakers even when not necessary msut be curbed. Ambulance Not only chassis, other parts of ambulance must also be made cheaper. Ambulance services It is an essential services – must get full exemption. Computer tablets Agarbattis Agarbattis are made o

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panded with a view to increasing the number of beneficiaries from the present 1 crore to 10.3 crore. Similarly, ₹ 6,335 crore have so far been transferred directly, as LPG subsidy to 11.5 crore LPG consumers. I am sure, persons who are better-off, such as those in the top tax bracket, and those genuinely concerned for the welfare of the poor, such as members of this House, will give up their LPG subsidy voluntarily. In my two articles webhosted on this website I had already mentioned for such voluntary disclaimer of subsidy on LPG cylinders. As soon as I became aware of disclaimer option for subsidy I requested , my wife CA Uma Kothari and my daughter Dr. Shweta Kothari -Singla, (both are subscribers for LPG cylinder in their names) and both have disclaimed subsidy in their subscribers accounts. In my articles, I have appealed to readers who are professionals and well to do and can forgo subsidy. I spoke to some other professionals and executive, but I found response not very enc

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Goods and Service Tax – GST – By: – Deepak Aggarwal – Dated:- 2-3-2015 Last Replied Date:- 30-12-1899 – Goods and Services Tax (GST) Here are the relevant extract of GST reference in Budget speech 2015 and other budget documents – We are now embarked on two more game changing reforms. GST and what the Economic Survey has called the JAM Trinity – Jan Dhan, Aadhar and Mobile – to implement direct transfer of benefits. GST will put in place a stateof-the-art indirect tax system by 1st April, 2016. The JAM Trinity will allow us to transfer benefits in a leakage-proof, well-targetted and cashless manner. We need to revive growth and investment to ensure that more jobs are created for our youth and benefits of development reach millions of our poor. We need an enabling tax policy for this. I have already introduced the Bill to amend the Constitution of India for Goods and Services Tax (GST) in the last Session of this august House. GST is expected to play a transformative role in the way

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to excise levy on cigarettes and the compounded levy scheme applicable to pan masala, gutkha and certain other tobacco products. Introduction of GST is eagerly awaited by Trade and Industry. To facilitate a smooth transition to levy of tax on services by both the Centre and the States, it is proposed to increase the present rate of service tax plus education cesses from 12.36% to a consolidated rate of 14%. Hassle Free Business Environment: Created a non-adversarial tax regime, ending tax terrorism; Secured the political agreement on the goods and services tax (GST), that will allow legislative passage of the constitutional amendment bill. The debate whether to introduce a Goods and Services Tax (GST) must now come to an end. We have discussed the issue for the past many years. Some States have been apprehensive about surrendering their taxation jurisdiction; others want to be adequately compensated. I have discussed the matter with the States both individually and collectively. I d

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or achieving the budget targets in FY 2015-16 14. In the medium term, the most significant step from the point of view of broadening the tax base and improving revenue efficiency through better compliance is the introduction of Goods and Services Tax (GST). As far as Central taxes viz. Central Excise duties and Service Tax are concerned, a fair amount of integration has already been achieved, especially through the cross-flow of credits across the two taxes. It would be possible to realize full integration of the taxation of goods and services only when the State VAT is also subsumed and a full-fledged GST is launched. As a preparation for introduction of Goods and Service Tax (GST), Government has been taking consistent policy steps to expand the scope of service tax. To broaden the tax base, negative list approach to taxation of services was introduced with effect from 1st July, 2012. Negative List of Services and service tax exemptions were reviewed for broadening the tax base and a

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Corporate Tax to be Reduced and GST to be Implemented – Dated:- 28-2-2015 – The Finance Minister Shri Arun Jaitley has said that the Corporate Tax Rate is proposed to be reduced from the current 30% to 25% over the next 4 years. In his Budget Speech in the Lok Sabha here today, Shri Jaitley said this is expected to lead to higher level of investment, higher growth and more jobs. The Minister however said that the reduction has to be accompanied by rationalization and removal of various kinds of exemptions and incentives which is leading to a large number of tax disputes. He pointed out that the effective collection of Corporate Tax today is about 23%. The Finance Minister said he did not start the process of reduction right away as he wante

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GST TRADE NOTICE NO. 52/2017 Dated:- 27-2-2015 Trade Notice – Circulars – GST – OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE, PUDUCHERRY COMMISSIONERATE GOUBERT AVENUE, (BEACH ROAD) PUDUCHERRY 605001 Dated: 27-02-2015 GST TRADE NOTICE NO. 03/2015 Subject: Reg. Central Board of Excise Customs (CBEC) is committed to encourage, facilitate and assist its existing assessees to voluntarily discharge their tax obligation and to provide them service necessary in meeting these obligations. CBEC is also committed to discharge all its functions in a fair, impartial, transparent and consistent manner. The Government of India has authorized CBEC to implement Service Delivery Excell

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munications within 7 working days, ii. Convey decision on matters within 15 days, iii. Release of seized documents within 60 working days if they are not required by the department, iv. Acknowledge complaints within 48 hours and attempt to provide final replies within 30 working days. 3 Citizens / Clients / Trade are advised to submit all written communications including intimations, applications, declarations, etc pertaining to Head Quarters Office, Puducherry Commissionerate in Centralized receipt section(Common Facility Centre) at the O/o the Commissioner of Central Excise Service Tax, Beach Road, Goubert Avenue, Puducherry – 605001 and obtain dated spot acknowledgement Additionall

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