Posts Tagged ‘Goods and Service Tax’

GST: Clarification about Transition Credit

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Clarification about Transition Credit

There are lot of speculations in the media about the credit of Rs. 65,000 crore claimed by taxpayers in respect of Central Excise and Service Tax in the pre-GST period. Some people are under the impression that because of Rs. 65,000 crore claimed as transition credit, the income of Government this month has plummeted.

Firstly, Rs. 65,000 crore is the credit claimed by the taxpayers in the TRANS 1 form as their balance of credit. It does not mean that they would have used all of this credit for payment of their output tax liability for the month of July 2017.

It may be clarified that this is far from the truth. Secondly, it may be clarified that an amount of Rs. 95,000 crore, which was received in the month of August 2017 for GST, is the amount actually paid in cash other than availing credit.

Thirdly, this figure of transition credit claimed is also not incredibly high, since Rs.1.27 lakh crore of credit of Central Excise and Service Tax was lying as closing balance as on 30th June, 2017 as per department’s record. This includes credit in Central Excise as well as Service Tax. Of course, some of these credits may not be admissible under GST regime, for example the credits, which are blocked under Section 17 (5) of CGST Act or which are not covered under the definition of GST. Also, some of the credits, which are claimed in TRANS 1 form may be under litigation and, therefore, it may not be available to the assesse to carry forward or utilisation. It is from this angle that CBEC is examining the transition credits, which are claimed by the assessees in TRANS I form in certain cases.

It is possible that some assessees would have committed mistake in filing TRANS 1 form of admissible credit. It has, therefore, been decided to provide facility for revision of TRANS 1 by the GST Council. This facility would be available by middle of October 2017 and assessees are requested to revise their TRANS 1 form before 31st October, 2017, so that they themselves can remove the error.

PIB

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Be the first to comment - What do you think?  Posted by admin - September 22, 2017 at 4:41 pm

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Implementation of GST in Defence Sector

Implementation of GST in Defence Sector

Controller General of Defence Accounts
Ulan Batar Road, Palam
Delhi Cantt

No. GST Cell/9504/GST/Query                                           

16th August 2017

To,
Commodore Sanjay Vatsayan
PDNP, IHQ MoD (Navy)
New Delhi

Sub: Implementation of GST in Defence Sector

This has reference to letter No.PL/3109/FP5 dated 9th Aug 2017 regarding clarification on GST registration number.

2. In this regard, it is intimated that Section 51 & 52 of GST Act, 2017 (uploaded on CGDA website) has been kept in abeyance by the Ministry of Finance, GoI. Hence, DDOs registration number i.e, GSTIN of PCsDA/CsDA is not required for processing of third party bills, as an interim arrangement, till Section 51 & 52 of GST Act is notified.

3. This issues with the approval of Addl. CGDA (US).

ACGDA (GST)

Be the first to comment - What do you think?  Posted by admin - August 19, 2017 at 1:32 pm

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GST Impact on Automobile Sale to CSD Customers

GST Impact on Automobile Sale to CSD Customers

Sale Automobiles at CSD

Consequent to implementation of GST the impact on sale of vehicles to CSD customers is as follows :

  • Rates of Four Wheelers to CSD eligible customers will be CONSISTENT across the country. A slight variation may occur on account of varying freight and transit insurance charges of the companies.
  • Across India the customers will benefit in terms of price differential.
    Eligible CSD Customers shall only be levied 50% of GST and will NOT be involved in claiming refunds
  • The dealership across the country for all auto manufacturers have been expanded. All rates will be finalized by 31 Aug 2017

Be the first to comment - What do you think?  Posted by admin - August 8, 2017 at 1:52 pm

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GST Council Recommends Increase in Maximum Ceiling of Cess Leviable on Motor Vehicles Falling Under Headings 8702 and 8703 to 25% Instead of Present 15%

GST Council Recommends Increase in Maximum Ceiling of Cess Leviable on Motor Vehicles Falling Under Headings 8702 and 8703 to 25% Instead of Present 15%

The GST Council considered the issue of cess leviable on motor vehicles in its 20th meeting held on the 5th of August 2017 and recommended that Central Government may move legislative amendments required for increase the maximum ceiling of cess leviable on motor vehicles falling under headings 8702 and 8703 including SUVs, to 25% instead of present 15% . However, the decision on when to raise the actual cess leviable on the same will be taken by the GST Council in due course.

It was noted that after introduction of GST, the total tax incidence on motor vehicles [GST + Compensation Cess] has come down vis-a-vis the total tax incidence in pre-GST regime. The Schedule to the Goods and Service Tax (GST) (Compensation to State) Act 2017, specifies the maximum rate at which Goods and Service Tax Compensation Cess may be collected. In respect of motor vehicles, the maximum rate at which Goods and Service Tax Compensation Cess may be collected is 15%.

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Government clarifies that accommodation in any hotel, including 5-star hotels, having a declared tariff of a unit of accommodation of less than INR 7500 per unit per day, will attract GST @ 18%

Government clarifies that accommodation in any hotel, including 5-star hotels, having a declared tariff of a unit of accommodation of less than INR 7500 per unit per day, will attract GST @ 18% ; Star rating of hotels is, therefore, irrelevant for determining the applicable rate of GST.

Reports have been received expressing doubts whether 5-star Hotels are liable to pay GST @ 28% irrespective of the declared tariff of a unit of accommodation.

In this context, it is hereby clarified that accommodation in any hotel, including 5-star hotels, having a declared tariff of a unit of accommodation of less than INR 7500 per unit per day, will attract GST @ 18%. Star rating of hotels is, therefore, irrelevant for determining the applicable rate of GST.

PIB

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Applicability of Goods and Service Tax (GST) on Catering Services

IRCTC News : GST on Catering Services

Applicability of Goods and Service Tax (GST) on Catering Services

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

No.2012/TG.III/631/2

New Delhi dated 29.06.2017

The General Managers
All Indian Railways

The CMD/IRCTC
New Delhi

CMD/KRCL,
Navi Mumbai

(Commercial Circular No.44 of 2017)

Sub: Applicability of Goods and Service Tax (GST) on Catering Services

The issue of implementation of Goods and Service Tax (GST) on Catering Services on Indian Railways has been examined in consultation of Finance Commercial Dte. of Railway Board. Accordingly, following are advised:-

1. The chargeable GST on catering services on railways is as under:-

(i) For static units not having facility of air conditioning or central heating at any time during the year- 12% with full Input Tax Credit (ITC)

(ii) For static units having facility of air conditioning or central heating at any time during the year-18% with full Input Tax Credit (ITC)

(iii) For Rajdhani/Shatabdi/Duronto and other Mail/Express trains -18% with full Input Tax Credit (ITC)

2. The above GST on catering charges is applicable w.e.f 01.07.2017.

3. The revised catering apportionment charges for Rajdhani/Shatabdi/Duronto trains and other similar type of Rajdhani trains where catering charges are inbuilt in ticket fare are as under:-

GST-RAILWAY-CATERING-SERVICE

4. In case of Rajdhani/Shatabdi/Duronto type trains where catering charges are part of the ticket fare, amount of GST is to be reimbursed to the service providers on submission of proof of deposit of the same with the appropriate Government Authority. However, in case of Mail/Express trains and other static units where catering services are provided on payment basis and the above taxes are collected directly from the passengers through cash memo, money receipts etc., Zonal railways /IRCTC shall ensure that the GST collect from the passenger are deposited with the concerned Authorities as per the guidelines /procedures laid down by the M/o Finance. To ensure the same zonal railways shall also obtain monthly proof of compliance of tax deposit by the service provides as per laid down procedures.

5. In case of other mail/express trains and static unit, the GST amount shall not be rounded off. In case of showing separate GST amount for CGST and SGST/UTGST in that case also GST amount shall be separately mentioned upto two decimal place. As regard rounding off of chargeable amount, after levy of GST on the total amount it shall be rounded off to the nearest rupee.

6. In addition to the above, GST on catering services of other premium trains like Tejas, Gatiman, Shivalik etc. shall be levied @ 18%. Accordingly, necessary changes in the catering apportionment charges shall be advised by the Zonal Railways to CRIS.

This issue with the concurrence of Finance Dte. of Railway Board.

Please acknowledge receipt of this letter.

sd/-
(Smita Rawat)
Exe. Director (T&C)
Railway Board

Click Here to view the original order

Authority : www.indianrailways.gov.in

Be the first to comment - What do you think?  Posted by admin - July 16, 2017 at 6:01 pm

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Dr Jitendra Singh congratulates North Eastern States for successful implementation of GST

Dr Jitendra Singh congratulates North Eastern States for successful implementation of GST

The Union Minister of State (Independent Charge) for Development of North Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances, Pensions, Atomic Energy and Space, Dr Jitendra Singh today, congratulated all the eight North-Eastern States for successful implementation of GST and said, the North-Eastern States have set an example by being highly supportive right from the beginning of the GST exercise, in spite of several diversities, contradictions and constraints of the region. He commended the unassuming approach of the eight State Governments of different political parties as well as the various trade bodies and their representatives from the region, who, from time to time, came forward with their apprehensions and sought responses with an open mind, which paved the way for amicable solution to each of the issues related to GST roll-out in the region.

Speaking to Nagaland Minister for Roads & Bridges, designate in GST Council, Shri Y. Vikheho Swu, who called on him to discuss the arrangements post-roll-out of GST in the State, Dr Jitendra Singh had a word of praise for Nagaland, which happens to be one of the most peripheral Indian States with its immediate borders with foreign countries and with constant hassles emanating from topography, inadequate connectivity, transport limitations etc.

Shri Vikheho Swu gave a detailed resume of the manner in which everything was being managed smoothly following the GST roll-out on the midnight of June 30th and July 1st. He also wanted Dr Jitendra Singh to ensure that the All India Services officers engaged in implementation and management of GST should not be transferred or posted elsewhere for the time being.

Dr Jitendra Singh also had a word of praise for the literate approach and sagacious wisdom of the traders as well as consumers of North-Eastern region who were always open to reason. Citing an example, he said, when it was pointed out that some of the local handloom / handicraft products had come under the gambit of GST, even though these were tax-free earlier, the grievance got instantly resolved when it was explained that earlier, several of the taxes on raw material, etc., were embedded and hence not visible, whereas now it is only one tax, the GST, which is visible with no other invisible taxes, and hence the ultimate cost could remain the same or even less.

In the long run, Dr Jitendra Singh said that the GST will prove to be a blessing for the Northeast as it will offer the peripheral States an opportunity to grow side by side along with the more developed States of India.

PIB

Be the first to comment - What do you think?  Posted by admin - July 5, 2017 at 6:38 pm

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PM reviews progress towards beginning of GST on July 1

PM reviews progress towards beginning of GST on July 1

gst-goods-and-service-tax

The Prime Minister, Shri Narendra Modi, today reviewed the status of GST, which is to be implemented from July 1.

The meeting, which lasted for over two and a half hours, was attended by Finance Minister Arun Jaitley, and top-most officials from the Ministry of Finance, PMO and the Cabinet Secretary.

In the course of the meeting, the Prime Minister specifically reviewed aspects of implementation such as IT readiness, HR readiness, training and sensitization of officers, query handling mechanism, and monitoring. The Prime Minister was informed that GST systems such as IT infrastructure, training of officials, integration with banks, and enrolment of existing taxpayers will be in readiness well in time for the July 1 implementation date. Information security systems were discussed in detail.

A Twitter handle – @askGst_GOI has been started for real time answering of queries. An All India toll-free phone 1800-1200-232 has also been activated for this purpose.

The Prime Minister asserted that the implementation of GST from July 1st, is the culmination of the concerted efforts of all stakeholders, including political parties, trade and industry bodies. He described GST as a turning point for the economy, unprecedented in history. He directed officials that the creation of One Nation; One Market; One Tax would greatly benefit the common man. The Prime Minister also directed that maximum attention be paid to cyber-security in IT systems concerned with GST.

PIB

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15th Meeting of the GST Council to be held tomorrow, 3rd June, 2017

15th Meeting of the GST Council to be held tomorrow, 3rd June, 2017

Approval of amendments to the draft GST Rules and related forms and Finalisation of the rates of tax and cess on the remaining commodities are on the Agenda among others for tomorrow’s meeting.

The Union Minister for Finance, Defence and Corporate Affairs, Shri Arun Jaitley will chair the 15th Meeting of the GST Council scheduled to be held tomorrow, i.e., Saturday, 3rd June, 2017 at Vigyan Bhavan in the national capital. This meeting is important because it is likely to finalize the rates of tax and cess to be levied on the commodities remaining after the fitment exercise in the 14th GST Council Meeting. Besides it, approval of amendments to the draft GST Rules and related Forms are also on the agenda among others of the aforesaid one day meeting. The meeting is likely to be attended by the Finance Ministers of different States/UTs being the member of the GST Council along with the senior officers.

PIB

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GST council finalises tax on services; exempts education, healthcare

GST council finalises tax on services; exempts education, healthcare

The all-powerful GST Council today finalised tax rates for services under the Goods and Service Tax (GST) regime, scheduled to kick-infrom July 1.

Healthcare and education would be exempt from GST.

Kerala Finance Minister Thomas Isaac said there will be four rates for services at 5, 12, 18 and 28 per cent, similar to tax slabs for goods.

The tax rate on gold has not been finalised yet, he said, adding that the Council will meet again on June 3.

PTI

Be the first to comment - What do you think?  Posted by admin - May 19, 2017 at 9:47 pm

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Government to strengthen agency under GST to check tax evasion

Government to strengthen agency under GST to check tax evasion

New Delhi: Ahead of the planned GST rollout from July 1, the government is strengthening the body responsible for detecting tax evasion and will set up two new agencies, including one for business intelligence and analytics.

With the goods and service tax (GST) subsuming central levies like excise duty, service tax and state VAT, the Central Board of Excise and Customs (CBEC) has reorganised its existing central excise and service tax field formations to suit the requirements of the new regime.

The CBEC will itself be rechristened as the Central Board of Indirect Taxes and Customs (CBIC) and will supervise GST and Customs activities and provide the government policy inputs.

The CBIC will be headed by a chairman and will have six members – for GST; IT, legal and compliance verification; investigation; tax policy; Customs and administration and vigilance.

In a letter to the zonal heads, the human resource arm of the CBEC said the Directorate General of GST Intelligence (DGGSTI) will be the new name of the existing Directorate General of Central Excise Intelligence (DGCEI), but with more powers.

The DGSTI will have its task cut out, keeping in view the steep increase in the GST taxpayer base, the letter said.

The organisation will be headed by a principal director general in Delhi who will be assisted by four sub-national directors general.

Also, two new directorates are being created. The Directorate General of Analytics and Risk Management (DGARM) will have two verticals for business intelligence and analytics and risk management centre to provide perspectives for policy formulation.

The Directorate of International Customs will be created to deal with WTO related matters, including tariff, as well as the Kyoto Convention, multilateral and bi-lateral agreements with other countries.

“It will also assist the board in functions related to the National Trade Facilitation Committee for implementation of the trade facilitation agreement (TEA) and Customs procedures for international Trade. All matters of cross- border trade through Land Customs Stations shall also be handled by this directorate,” the letter said.

Further, the National Academy of Customs, Indirect Taxes and Narcotics (NACIN), will be the new form of the existing National Academy of Customs, Excise and Narcotics (NACEN). In the GST regime, it will be the only academy of its kind in India that will provide regular training to officers.

It is also envisaged that the NACIN will provide training to representatives of trade bodies and tax professionals. Thus, it will be catering to the training needs of around 70,000 persons every year.

The role of the Directorate General of Taxpayer Services under the GST set-up will be to provide assistance to the taxpayers at their doorsteps, in addition to handling publicity and public relations, holding seminars and workshops, attending to queries of taxpayers and coordinating the resolution of taxpayers’ grievances.

PTI

Be the first to comment - What do you think?  Posted by admin - May 16, 2017 at 5:38 pm

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FM: Government is working on a target date of 1st April, 2017 for the roll out of the Goods and Service Tax (GST) in the country.

FM: Government is working on a target date of 1st April, 2017 for the roll out of the Goods and Service Tax (GST) in the country.

The Union Finance Minister Shri Arun Jaitley said that the Government is working on a target date of 1st April, 2017 for the roll out of the Goods and Services Tax (GST) in the country. He said that till 16th September, 2017, that is one year after the provisions of the Constitution (101st Amendment) Act, 2016 being brought into force, the Constitution empowers the Central Government to levy excise duty on manufacturing; and service tax on the supply of services. The Finance Minister said that similarly the Constitution Amendment Act empowers the State Governments to levy sales tax or Value Added Tax (VAT) on the sale of goods till that time i.e. 16th September, 2016. The Finance Minister Shri Jaitley said that so far the Government is following the road map for implementation of GST as per the schedule. The Finance Minister Shri Jaitley was making his Opening Remarks at the Fourth Meeting of the Parliamentary Consultative Committee attached to the Ministry of Finance held here today. The subject of today’s Meeting was the Goods and Services Tax (GST)

The Finance Minister Shri Jaitley further said that the First Meeting of the GST Council was held in a very cordial and constructive environment earlier this month and today, he will hold the Second Meeting of the GST Council. In the GST regime, the GST Council has been created under Article 279A of the Constitution. The GST Council is a joint forum of the Centre and the States. The Council will take decisions on important issues like tax rates, exemption list and threshold limits etc.

Thereafter, the Members of Consultative Committee who participated in today’s Meeting sought various clarifications with regard to GST Law and gave suggestions for its better implementation. Some of the major suggestions include need for absolute clarity and transparency with regard to where taxes will be collected, assessed and where the appeal will be filed in case of GST regime. The members said that it will be challenging task to tackle complex situation arising-out of implementation of GST law in a federal system. Some of the members suggested there is a need for launching a large scale Awareness Campaign especially for the small traders as most of them are still unaware about the complex procedures and processes under GST regime including for registration and filing of returns etc. Some of the members suggested that availability of IT network in all parts of the country, especially in small towns and rural areas, must be ensured as GST system will work only online. Some of the members appreciated the initiative of the Government in getting the GST law passed by both the Houses of Parliament as well as its commitment to implement it in a time bound manner. The members hoped that this law will bring relief to the common man by exempting certain essential items from GST and moderate rate of taxation on other items which in turn will bring down the prices of common man consumption items as well as cost of living at large.

Along with the Union Finance Minister, Shri Arun Jaitley, Shri Santosh Kumar Gangwar, Minister of State for Finance, the Members of the Consultative Committee who participated in the today’s Meeting include Shri Baijayanta Jai Panda, Shri Dilip Kumar Mansukhlal Gandhi, Shri Kailkesh Narayan Singh Deo, Shri Prabhatsinh Chauhan, Shri Ram Charitra Nishad, Shri Subhash Chandra Baheria and Shri Suresh Chanabassappa Angadi (all members of Lok Sabha); Shri Anil Desai, Shri Digvijaya Singh, Shri Rajkumar Doot and Shri Satish Chandra Misra (all members of Rajya Sabha) .

Among the officers who attended the Consultative Committee Meeting include Shri Ashok Lavasa, Finance Secretary, Shri Shaktikanta Das, Secretary, DEA, Dr. Hasmukh Adhia, Revenue Secretary, Ms. Anjuly Chib Dugal, Secretary, Financial Services, Shri Neeraj Kumar Gupta, Secretary, DIPAM, Dr. Arvind Subramanian, Chief Economic Adviser (CEA), Chairman, CBEC Shri Najib Shah and other senior officers of the Ministry of Finance.

PIB

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