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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 explores the Goods and Services Tax (GST) implications on liquidated damages in India, clarifying their definition and the conditions under which they attract GST. It details insights from Ministry of Finance Circular No. 178/10/2022-GST, distinguishing between taxable and non-taxable scenarios. Additionally, it outlines applicable GST rates, invoicing responsibilities, and the availability of Input Tax Credit for such payments.
The Indian government has increased the GST on chit funds from 12% to 18%, a move that is expected to significantly impact both chit fund companies and their investors. This article delves into the implications of this rate hike, illustrating how it could lead to higher commissions, reduced returns for participants, and potentially disrupt the stability of the chit fund industry. It also covers the applicability of GST on foreman commissions, relevant HSN codes, and input tax credit eligibility, while citing advance rulings pertinent to chit fund operations.
The GST registration process in India includes mandatory post-registration field visits to taxpayer premises, aimed at validating business operations. These visits, conducted by designated officers, verify premises and documentation, particularly for new registrants and those with irregular filing histories. The article details the purpose, authorized personnel, and typical timings for these crucial inspections, ensuring compliance and authenticity within the GST framework.
The 44th GST Council Meeting, held on June 12, 2021, primarily focused on reducing GST rates for essential COVID-19 medications and medical supplies. Chaired by the Union Finance Minister, the council's decisions followed a report from a Group of Ministers formed to assess these reductions. These temporary rate changes aimed to ease the burden during the pandemic and were applicable to newly manufactured stock until September 30, 2021.
India has progressively expanded its e-invoicing mandate to include businesses with increasingly lower annual turnovers, now applying to those exceeding Rs.5 crore. This system, introduced to counter GST tax evasion, necessitates significant operational and software adjustments for compliance. Businesses must understand the implementation phases, API access methods, and the severe penalties for non-compliance, ensuring seamless integration and data security.
This article explores the Goods and Services Tax (GST) implications on labour services and contracts in India. It differentiates between pure labour contracts and works contracts, detailing their tax treatment before and after GST implementation. Readers will learn about GST applicability, how to calculate the value of supply for labour charges, and the specific HSN codes and rates for various manpower services. The content also covers GST on imported labour and outlines key exemptions available for certain labour-related construction services.
This article explores the ongoing debate surrounding the inclusion of petrol and diesel under India's Goods and Services Tax (GST) framework. It outlines the current taxation structure, the potential benefits for consumers if fuel were brought under GST, and the government's plans and challenges in achieving this. While some petroleum products are already subject to GST, the final decision for petrol, diesel, and natural gas awaits unanimous state approval.
In September 2022, India's GST collections surpassed Rs. 1.4 lakh crore, showing a 26% increase compared to the previous year. This robust growth, detailed in a Ministry of Finance press release, highlights consistent revenue buoyancy. Factors like improved compliance measures, the onset of the festive season, and economic recovery contributed to the strong performance. State-wise data revealed Maharashtra as the top contributor, with many states also reporting significant year-on-year growth.
This article examines the common challenges businesses and tax consultants face during Goods and Services Tax (GST) assessments in India. It highlights issues such as strict deadlines, difficulties in submitting extensive information, problems with auto-generated notices, and disruptions caused by changes in tax officials. The post also offers practical solutions and strategies to effectively navigate these assessment hurdles.
This article explores the Goods and Services Tax (GST) implications for electric vehicles (EVs) and their charging infrastructure in India. It details the reduced GST rates for EVs and charging stations, alongside specific exemptions like those for electric buses. The discussion clarifies the contentious issue of whether EV charging constitutes a sale of electricity or a service, and how this impacts Input Tax Credit (ITC) availability for businesses and charging station operators, highlighting the current disparities and the need for further clarification from tax authorities.
This article outlines essential Goods and Services Tax (GST) compliance requirements for e-commerce sellers in India. It clarifies who qualifies as an online merchant and details the specific GST registration thresholds based on whether they supply goods or services. The piece also explains the various GST returns (GSTR-1, GSTR-3B, GSTR-9, GSTR-9C) that e-commerce sellers must file and their respective due dates. Furthermore, it covers the applicability of Tax Collected at Source (TCS) and Tax Deducted at Source (TDS) provisions for online transactions, including deduction rates and exemption criteria.
This article clarifies the application of Goods and Services Tax (GST) on land and developed property sales in India. It distinguishes between bare land transactions, which are GST-exempt but attract stamp duty, and developed plots, which incur GST due to included services. The content also delves into pre-GST laws, Input Tax Credit (ITC) provisions for construction, and the taxability of renting and leasing land under the GST framework, outlining applicable rates and exemptions.