Saturday, July 8, 2017

A concise study on GST

GST is an indirect tax that subsums Central and state taxes  and it will make India a unified market. GST is a single tax on supply of goods and services to replace the multiple taxes at various points.

After the implementation of GST you don't have to pay central excise duty, additional excise duty, service tax, additional customs duty, special additional duty of customs, state value added tax, entertainment tax, purchase tax luxury tax, taxes on lottery betting and gambling etc.

The main purpose of GST is to curb tax evadion in a country where small traders businesses routinely evade tax by not creating invoice for goods sold.

GST is expected to be as disruptive as the recent demonetization move, which was touted as a drive against black money but ended up hurting the country's growth in the final quarter (it fell from 7.1 to 6.1 percent) of financial year 2016-2017.

Friday, July 7, 2017

Freedom from maintaining too many records under GST, one record is enough

1 .compliance verification in GST will be done through examination of accounts and records maintained, only is required.
2. One tax, one type of Record -no need to maintain separate records for different types of taxes as in the era of vat  excise and service.

3. There will be freedom to choose the format of the accounts and records, and only information needed is prescribed . The records can take the form of paper based source documents including computer printouts or Digital.

4. The required records are:-

a) all records of goods and services that a person supplies receives in the course of his business.

b) All records of goods imported

c) any other supporting documents such as contracts and price quotation
to show his liability to GST.

5. Records can be maintained in electronic format as well.

6. Where are certain class of taxable persons cannot keep and maintain records as prescribed, the Commissioner may permit  them to maintain records otherwise as prescribed.

7. Taxable persons with turnover of less than 2 crores are not required to get their accounts audited or submit reconcilation statement with annual returns.

8. Simple records to be kept by agents, Transporters and warehouse keeper:-

Agents:- A person working as an agent is required to maintain records depicting the description, value and quantity of goods or services received or supplied on behalf of principle, and details of accounts furnished to every principal .

Transporters:- A person engaged in the business of transporting goods is required to maintain simple records of goods transported and delivered, and goods store in transit by him.

Warehouse keeper:- a person operating a warehouse or godown is required to keep records with respect to the dispatch, movement, receipt, disposal and period for which the goods remain in the warehouse or godown.

Employment News 8-14 2017

GST for importers and exporters

IGST, GST, compensation Cess,bill of entry shipping bill and courier forms.

1. With effect from 1st July 2017 integrated goods and service tax IGST and GST compensation act would come into force.

2. IGST and GST compensation cess wherever applicable, would be levied on cargo arriving on 1st July, 2017 it would be effective from midnight of 31st June, 2017.

3. Cargo arrived up to 30th June, 2017 would not attract a IGST and GST compensation even though the clearance may happen after 1st July, 2011.

4. Additional duty of customs would continue to be levied for imports of petroleum and tobacco products.

5. New bill of entry, shipping bill and courier import and export forum both electronic and Manual are available on cpec website.

Employment News 8-14 2017

GST Goods and service tax

Goods and service tax came into force on 1st July 2017 amid historic midnight session in the Central Hall of parliament in New Delhi. GST replaced more than a dozen state and Central levies and integrated India into one market with one tax rate.

On this occasion the Prime Minister Narendra Modi said that GST is as good and as tax that it will and harassment of traders and small business while integrating India into one market with one tax rate.
He said that it will save time cost fuel and environment.
The Prime Minister said GST would lead to s modern tax administration which is simpler more transparent and helps to control corruption.
He said that GST as an example of Cooperative federalism.

The president Pranab Mukherjee mentioned in his speech the 14 year long journey of GST which began in December 2002 When The Kelkar task force on indirect taxation suggested a comprehensive goods and service tax based on value added tax principle. He said the proposal to introduce GST was first put it in the budget speech for the financial year 2006-07.
The responsibility of preparing a design and a plan of action for the implementation of GST was assigned to the empowered committee of state finance ministers which had been formed earlier for implementation of the value added tax. The empowered committee released its first discussion paper on goods and service tax in November 2009. He said the launch of GST was a moment of satisfaction for him personally because as finance minister he had introduced the Constitutional Amendment Bill for enabling the tax Regime in 2011 later on 8 September 2016 as the President of India Mr Mukherjee had given assent to the constitution one hundred and first Amendment Act after the bill was passed by both houses of Parliament and more than 50% of state legislatures.
The union Finance Minister Mr Jaitley said the GST will create one tax one market and for one Nation.