https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=6284
Goods and service tax
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Issues |
Solutions |
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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”. |
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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, Betting and Gambling Tax, State Surcharges, State Cesses |
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Ingredients |
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Mode of implementation |
Central Government will make laws for levy of CGST and IGST. State Government will also make law for levy of SGST. |
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Likely Tax Rates |
It is stated by FM that the rates will be Revenue Neutral. Expected to be anything between 16% to 20%. |
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Not necessary that all states must implement |
If a State does not implement then it may continue to charge VAT. |
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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. |
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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. |
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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. |
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Carry forward of CENVAT credit |
It has been experienced that in transition phase, the credit is allowed to be carried forward. |
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Restriction in utilisation of credit |
Since, CGST and SGST are to be treated separately, taxes paid against the CGST shall be allowed to be taken as ITC for CGST only and the same is applicable for SGST. |
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Cross utilization of credits between goods and services allowed? |
Yes it would be allowed in both cases of CGST and SGST. |
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Cascading effect of taxes |
It will be nullified in two ways:
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Elimination of Double Taxation |
Certain industries like Copyright, out of precaution collected both the taxes (S.T. and VAT). In GST there will not be such ambiguity. |
This is just for your reference. It does not constitute our professional advice or recommendation.
CA Akash Phophalia
9799569294
Office No 3, Second Floor
Amrit Kalash, Residency Road
Near Bombay Motor Circle
Jodhpur – 342001
Rajasthan
if exporter in usa and importer in china but china agent in mumbai(india) than gst is applicable or not give reason
1) Goods will be sold to a company who”s gstn no start with 97, company said charged igst, but material will be delivered at Mumbai. then which tax should charged, igst or sgst/cgst.
2) Goods will be delivered at Andhra Pradesh, companies gstn no start with 97 and company told us charge igst and bill to Mumbai. Then which tax should charged igst or sgst/cgst.
one person give service to me rs.14000000 but his is unregistered so payment made 14000000 less TDS, what problem issue in gst
sir ,
actually some invoice not uploaded in GSTR1 For the month of july & Aug 2017.
what we can do ?
please help.
if a unregistered person provide services to a registered entity then reserve charged apply,
in that case GST Rs. 252000 it will be deposit by service receiver.
I WANT TO CHANGE THE GSTR 1 MONTHLY FILING TO QUATERLY .