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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.
The first day of the GST Council meeting in Srinagar concluded with significant progress on tax rate fitment. Discussions focused on categorizing goods and services into five distinct tax slabs for the upcoming GST implementation. A key outcome revealed that a vast majority of items, approximately 81%, would fall under GST rates below 18%, aligning with industry expectations to ensure economic stability.
A GST Council subpanel convened for three days starting May 4th to categorize goods and services into specific tax slabs, with the goal of finalizing rate alignment by the week's end. Comprising central and state authorities, the committee aimed to closely match new GST rates with existing effective tax rates. The recommendations were slated for approval at a subsequent GST Council meeting on May 18th in Srinagar.
An industry report highlights the beneficial impact of GST on India's organized retail sector. The tax regime is expected to provide structured retailers with consistent input tax credit flows. Furthermore, it is projected to reduce competition from the unorganized sector over the medium term, fostering a more equitable market environment. This analysis underscores how GST promotes a level playing field for larger retail enterprises.
E-commerce platforms and online sellers in India must adhere to specific GST registration rules, including provisions for Tax Collection at Source (TCS). This guide explains who is responsible for collecting TCS, the mandatory GST registration process for e-commerce entities, and procedures for registration cancellation. It also clarifies GST registration for overseas providers of Online Information and Database Access or Retrieval (OIDAR) services, detailing what constitutes OIDAR and related compliance penalties.
The Goods and Services Tax Network (GSTN) has initiated a two-week pilot program involving 4,000 taxpayers to test its return filing process. This aims to ensure the system's readiness for approximately 80 lakh monthly filings once GST goes live. The test addresses concerns regarding the portal's capacity to handle the significant data volume from the mandatory 37 annual returns per company.
The civil aviation sector has undergone tax changes with the introduction of GST, impacting airfares for both economy and business class travel. While economy class tickets see a reduction in tax from 5.6% (Service Tax) to 5% (GST), business class fares have increased from 8.4% to 12%. This adjustment is expected to boost domestic budget travel, though it remains to be seen if airlines will pass on the full benefits to consumers. Airlines can also claim Input Tax Credit on various inputs, which varies between economy and business class services.
Before the final Goods and Services Tax (GST) rates were confirmed, manufacturers assessed potential impacts on product pricing, particularly for items like home appliances. The expectation was that goods falling between tax slabs might incur higher rates, even as the government aimed to protect essential commodities. Experts noted that mechanisms like the anti-profiteering clause and efficient Input Tax Credit (ITC) flow were crucial for price reduction, though their full effects would take time to materialize.
This article explores the effects of Goods and Services Tax (GST) on India's rail transportation for both passengers and goods. It details how GST replaced the pre-existing service tax regime, leading to a slight increase in passenger fares for end consumers while offering Input Tax Credit benefits for business travelers. The piece also highlights GST exemptions for specific goods and explains how the new tax system aims to boost rail freight competitiveness and streamline logistics for businesses.
This article outlines the crucial details required for Goods and Services Tax (GST) invoices in India, as per Rule 46 of the CGST Rules. It covers 16 mandatory fields, including supplier and recipient information, HSN/SAC codes, tax rates, and reverse charge applicability. Additionally, the article explains specific endorsement requirements for export and SEZ supplies, outlines conditions for not issuing a tax invoice, and details the number of copies required for goods and services invoices.
Non-resident individuals establishing a business in India must undergo Goods and Services Tax (GST) registration. This article outlines the provisional and final registration procedures, including form submissions like FORM GST REG-09 and FORM GST REG-26, and the necessity of an advance tax deposit. Recent CBIC updates aim to simplify the process, ensuring timely approvals and clarifying document requirements for non-resident taxable persons.
The GST Council has enacted a vital anti-profiteering law to prevent businesses from unfairly increasing prices under the new Goods and Services Tax regime. This legislation mandates that all tax benefits, such as lower rates and Input Tax Credit, must be passed on to consumers. Businesses failing to comply face severe penalties, including registration cancellation. The measure aims to protect end-users from exploitation as GST is launched.
The Revenue Department has announced that the Goods and Services Tax (GST) enrollment period will soon reopen, following a temporary suspension on April 30th. This provides another critical opportunity for taxpayers who missed the initial registration deadline. The government is actively conducting awareness campaigns to ensure all eligible taxpayers complete their enrollment once the process resumes.