Loading…
Loading…
Deep dives and practical guides written by the WFYI team.
Comprehensive explanations, FAQs, and updates about GST regulations, returns, and compliance.
GSTR-10 is a crucial final return for taxpayers whose GST registration has been canceled or surrendered, requiring submission within three months of the cancellation. This guide details its applicability, due dates, and the specific information needed, particularly regarding closing stock and input tax credit reversal. It also outlines the penalties for non-compliance and differentiates GSTR-10 from the regular annual GST return (GSTR-9).
India is advancing towards the implementation of the Goods and Services Tax (GST) by July, with the model law projected for finalization by the end of this month. The finance ministry is currently reviewing the drafts for both the model GST and State GST (SGST), anticipating a crucial decision from the GST Council on February 18. This could lead to its presentation in Parliament during the Budget Session starting March 9. The new tax structure, incorporating SGST, CGST, and IGST, aims to streamline business operations by centralizing tax interactions with the Union government. States will be required to pass their own SGST laws and will be supported by a compensation act to mitigate initial revenue losses.
The Goods and Services Tax Network (GSTN), responsible for India's GST IT infrastructure, faced scrutiny from the CBEC's service tax department over its tax liability. Initially, a summons was issued to the CEO, requesting financial documents and details of government grants and payments to Infosys. However, GSTN refuted receiving a formal summons, and CBEC clarified it was a routine inquiry, likely issued in error, focusing on whether government grants to GSTN are taxable.
Nomura, a Japanese financial research firm, projected that India's Goods and Services Tax (GST) implementation would lead to a minimal increase in inflation, specifically less than 20 basis points. While expecting a slight negative impact on economic growth in the short term, the company believes GST will be fiscally neutral initially. Ultimately, Nomura echoed the government's view that GST will boost productivity, reduce costs, aid economic formalization, and generate significant government revenue by eliminating cascading taxes.
Under GST, exchange offers will become less attractive due to a change in tax calculation, as GST will apply to the total value of the goods rather than just the cash amount paid. This new valuation approach, outlined in draft rules, primarily impacts the consumer electronics and durables industries, which previously paid VAT only on the cash portion of transactions. Businesses might need to adjust their strategies.
The Goods and Services Tax (GST) is set to bring significant changes to India's textile industry, a major employer and export contributor. While some natural fibers may face new taxation, the overall sector is expected to benefit from a streamlined input tax credit system, reduced manufacturing costs by subsuming various peripheral taxes, and the availability of input tax credit on capital goods. These reforms are anticipated to enhance the industry's competitiveness in both domestic and international markets, ultimately fostering sustainable growth and encouraging formalization.
The Indian government planned to table the Goods and Services Tax (GST) Bills in the Rajya Sabha on April 5, 2017. This move was part of a larger effort to enact the country's most significant tax reform. Although lengthy debates were expected, the bills, being money bills, were anticipated to pass with minimal changes. This marked a crucial step towards implementing GST across the nation.
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 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.
Kerala has demonstrated significant progress in migrating businesses to the Goods and Services Tax (GST) system, outperforming the national average in 2017. Approximately 10% of its businesses completed the transition, with an additional 14% actively in the process. The state's services sector also showed strong participation, and the government proactively introduced amnesty schemes for VAT assessments. This highlights Kerala's commitment to the new tax regime.
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.
This article details the Goods and Services Tax (GST) demand and recovery procedures initiated by tax authorities for unpaid tax, short payments, or incorrect input tax credit utilization. It differentiates between demands raised without fraudulent intent (Section 73) and those involving fraud (Section 74), outlining their respective time limits, penalties, and voluntary payment options. Recent legislative updates regarding waiver conditions and amendments to demand applicability are also discussed, alongside general provisions for tax determination and interest rates on GST shortfalls.