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Deep dives and practical guides written by the WFYI team.
Comprehensive explanations, FAQs, and updates about GST regulations, returns, and compliance.
This article explains the GST Composition Scheme and its transition provisions for Input Tax Credit. It covers the rationale for the scheme, its key features for small businesses, and the rules governing ITC adjustments when taxpayers switch between the normal GST regime and the Composition Scheme. Specific conditions for both shifting from and transitioning to the Composition Scheme are detailed.
The Goods and Services Tax (GST) regime is anticipated to significantly enhance income tax collection by introducing greater transparency and data reconciliation. By mandating the upload and reconciliation of all sales and purchase invoices on the GST portal, the system makes it harder for businesses to manipulate financial records for tax evasion. Furthermore, data-sharing agreements between GSTN and other government bodies, like the Ministry of Commerce and Industry and potentially the CBDT, will provide a clearer picture of businesses' financial activities, thereby curbing misrepresentation and promoting a more formal economy.
The GST Council has approved key regulations and bills for India's indirect tax reform, paving the way for its implementation by July 1. This includes the UTGST and SGST bills, which now await legislative clearance. While most rules are set, minor adjustments are pending, and businesses are advised to begin preparations. The government considers GST a priority reform aimed at streamlining India's tax structure and boosting economic appeal.
This article outlines the essential forms and electronic ledgers taxpayers must maintain for GST compliance. It details the electronic tax liability register (Form GST PMT-01) for recording all tax dues, the electronic credit ledger (Form GST PMT-02) for managing input tax credit, and the electronic cash ledger (Form GST PMT-05) for monetary deposits. Additionally, it clarifies the conditions for Over-the-Counter payments and exemptions to these rules for specific entities.
The GST Council is considering implementing a single, uniform tax rate for each product group to simplify the tax system and reduce complexity. Experts believe this approach will prevent variable tax rates within the same product category, addressing issues like differing VAT rates across states. This move aims to minimize classification disputes and other litigations, with hopes that tax will be based on HSN codes rather than MRP.
The Goods and Services Tax (GST) framework includes various assessment types vital for determining taxpayer liabilities. This guide details key assessment procedures such as self-assessment, provisional assessment, and scrutiny by tax authorities. It also covers best judgment assessments for non-compliant taxpayers and outlines the timelines and interest implications for provisional assessments. Understanding these processes is crucial for maintaining GST compliance in India.
This article outlines the process for filing Goods and Services Tax (GST) appeals with the First Appellate Authority in India. It details eligibility criteria for taxpayers and commissioners, specifies timelines for filing and decision issuance, and explains rules for adjournments and introducing new appeal grounds. Additionally, the role and limitations of the Revisional Authority in reviewing subordinate officers' decisions are clarified.
The advance ruling mechanism under GST provides clarity on tax matters for businesses and individuals, addressing uncertainties before commencing activities. It helps prevent disputes, attracts investment, and ensures timely, transparent decisions from tax authorities. Rulings are binding on the applicant and jurisdictional tax authorities for specific issues, with an appeal process available.
This article details key discussions held by the GST Council regarding the implementation of major GST laws. It highlights clarifications on tax evasion penalties, including provisions for bailable and non-bailable arrests based on evasion amounts. The West Bengal government's objections to the arrest clause and its recommendations for changes are also noted. Additionally, the article covers the government's adherence to the July 1 GST deadline and the consistent maintenance of the four established tax slabs, encouraging businesses to commence their transition to the new tax regime.
This article explains the appeal procedure for advance rulings under GST, detailing who can appeal, the required forms, and the strict timelines involved. It clarifies the Appellate Authority's role in confirming or modifying rulings and the circumstances under which an advance ruling can be rectified or even declared void. Furthermore, it outlines the powers of these authorities, emphasizing their judicial standing and the available avenues for taxpayers dissatisfied with a final decision.
Delhi's Deputy Chief Minister, Manish Sisodia, has called for a reconsideration of the GST framework to better address traders' concerns, emphasizing that tax ambiguity can lead to corruption. He also proposed including real estate and consumer durables under GST with lower tax slabs. Sisodia criticized the dual control of GST and urged for thorough deliberations before implementation, while the CBEC Chairman advised against seeking continuous exemptions under the new user-friendly tax regime.
The All India Tax Associates Federation (AITAF) has called for the elimination of E-way Bills under GST, expressing concerns to Finance Minister Arun Jaitley. AITAF argues that the short acceptance period for bills creates a digital compliance burden for small businesses. They believe physical verification and vehicle detention contradict GST's goal of simplifying goods transportation and will increase compliance issues for traders.