Posts Tagged ‘GST’

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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Be the first to comment - What do you think?  Posted by admin - July 18, 2017 at 5:34 pm

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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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No GST on Annual subscription/fees charged as lodging/boarding charges by educational institutions from its students for hostel accommodation

No GST on Annual subscription/fees charged as lodging/boarding charges by educational institutions from its students for hostel accommodation;
Services provided by an educational institution to students, faculty and staff are fully exempt from GST.

There are some reports that GST@18% will be levied on annual subscription/fees charged for lodging in hostels. This is not true. There is no change in tax liability relating to education and related services in the GST era, except reduction in tax rate on certain items of education.

It may be mentioned that services provided by an educational institution to students, faculty and staff are fully exempt. Educational institution has been defined as an institution imparting

(i) pre-school education and education up to higher secondary school or equivalent;

(ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force;

(iii) education as a part of an approved vocational education course.

Thus, services of lodging/boarding in hostels provided by such educational institutions which are providing pre-school education and education up to higher secondary school or equivalent or education leading to a qualification recognised by law, are fully exempt from GST. Annual subscription/fees charged as lodging/boarding charges by such educational institutions from its students for hostel accommodation shall not attract GST.

PIB

Be the first to comment - What do you think?  Posted by admin - July 13, 2017 at 6:09 pm

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No GST is applicable on free food supplied in anna kshetras run by religious institutions

No GST is applicable on free food supplied in anna kshetras run by religious institutions

Prasadam supplied by religious places like temples, mosques, churches, gurudwaras, dargahs, etc. attracts Nil CGST and SGST or IGST, as the case may be.

There are media reports suggesting that GST applies on free food supplied in anna kshetras run by religious institutions. This is completely untrue. No GST is applicable on such food supplied free.

Further, prasadam supplied by religious places like temples, mosques, churches, gurudwaras, dargahs, etc. attracts Nil CGST and SGST or IGST, as the case may be.

However, some of the inputs and input services required for making prasadam would be subject to GST. These include sugar, vegetable edible oils, ghee, butter, service for transportation of these goods etc. Most of these inputs or input services have multiple uses. Under GST regime, it is difficult to prescribe a separate rate of tax for sugar, etc. when supplied for a particular purpose.

Further, GST being a multi-stage tax, end use based exemptions or concessions are difficult to administer. Therefore, GST does not envisage end use based exemptions. It would, therefore, not be desirable to provide end use based exemption for inputs or input services for making prasadam or food for free distribution by religious institutions.

PIB

Be the first to comment - What do you think?  Posted by admin - July 11, 2017 at 5:31 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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Cabinet Secretary reviews GST, asks departments to keep a lid on price rise

Cabinet Secretary reviews GST, asks departments to keep a lid on price rise

New Delhi: Three days into GST regime, Cabinet Secretary P K Sinha today asked all ministries and departments to ensure that their is no shortage of goods and prices of essential items are kept under check.
Sinha held a review meeting to take stock of situation post implementation of the new tax regime, and departments have been asked to ensure that retailers, dealers/shopkeepers should display a price list under GST of items sold by them.

“Government has asked all the departments to ensure that their is no shortage of products and consumer items in order to keep a check on prices. Special emphasis was laid on to keep prices of essential commodities under check,” a finance ministry statement said.

Sinha stressed that benefits of GST should be passed on to consumers, which would in turn also keep inflation under control.

“Various machines used by dealers, retailers for computerised billing should be calibrated at the earliest as per the new GST rates,” he added.

A four tier Goods and Services Tax (GST) – 5, 12, 18 and 28 per cent – has been rolled out from July 1. Essential items like salt, unpacked food grains, cereals have been kept a zero rated to ensure that there is no price rise.

Sinha also asked departments to be ready to deal with queries of their stakeholders.

“In order to do so, officers of every ministry should equip themselves and have full knowledge of the details relating to GST concerning their respective Ministry,” he said.

A similar review meeting will be held every week to keep a close watch on GST rollout.

Sinha has also asked all the departments/ministry to provide all the relevant information relating to GST concerning their ministry/department, including GST rates on their respective websites.

He asked the secretaries to get more detailed feedback and in-depth details of the field from their respective stakeholders, officers and consumers at large after GST implementation.

The officers should be fully ready to deal with it so that there is quick response to any situation, the statement said.

Sinha asked them to launch campaigns to make their stakeholders and consumers fully aware about GST related matters concerning their respective ministry/department.

Apart from Revenue Secretary Hasmukh Adhia, the 20 secretaries, including from textile, consumer affairs, food processing, railways, MSME, rural development, tourism, fertiliser, pharma, and financial services attended the meeting. CBEC officials were present in the meeting.

On June 20, Sinha had taken GST preparedness meeting with 30 ministries and departments and had asked the secretaries to organise outreach meetings and publicity campaigns through their departments and PSUs for explaining the provisions of new law and rules to their stakeholders.

The finance ministry had yesterday said that the two days of GST rollout has passed “without any major problems being reported” from the field offices.

“The Revenue Department has got encouraging reports from the roadside dhabas and big restaurants as well as from kirana shops to departmental stores which, in turn, have started getting acclimatised to the new tax system,” it had said.

The biggest indirect tax since Independence, GST removes at least 17 different taxes and transforms India into a single market for seamless movement of goods and services.

PTI

Be the first to comment - What do you think?  Posted by admin - July 4, 2017 at 11:49 am

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All States/UTs except the State of Jammu & Kashmir, approves the State GST Act and are ready for the smooth roll-out of GST with effect from 1st July, 2017

All States/UTs except the State of Jammu & Kashmir, approves the State GST Act and are ready for the smooth roll-out of GST with effect from 1st July, 2017

As of today, all the States and Union Territories (having assemblies), except the State of Jammu & Kashmir, have approved the State Goods and Services Tax (SGST) Act. The State of Kerala issued an Ordinance today approving State GST Act while the State of West Bengal had issued an Ordinance in this regard on 15th June, 2017. Now only one State is left i.e. the State of J&K which is yet to pass the State GST Act. Thus, almost the entire country including all the 30 States/UTs are now on board and ready for the smooth roll-out of GST with effect from 1st July, 2017.

The details of the States which have passed the State GST Act till today are as follows:

Sl. No. Name of the State Date on which SGST Act passed in the Assembly
1. Telangana Act Passed on 9th April 2017
2. Bihar Act Passed on 24th April, 2017
3. Rajasthan Act Passed on 26th April 2017
4. Jharkhand Act Passed on 27th April, 2017
5. Chhattisgarh Act Passed on 28th April, 2017
6. Uttarakhand Act Passed on 2nd May, 2017
7. Madhya Pradesh Act Passed on 3rd May, 2017
8. Haryana Act Passed on 4th May, 2017
9. Goa Act Passed on 9th May, 2017
10. Gujarat Act Passed on 9th May, 2017
11. Assam Act Passed on 11th May, 2017
12. Arunachal Pradesh Act Passed on 12th May, 2017
13. Andhra Pradesh Act Passed on 16th May, 2017
14. Uttar Pradesh Act Passed on 16th May, 2017 (in both the Houses)
15. Puducherry Act Passed on 17th May, 2017
16. Odisha Act Passed on 19th May, 2017
17. Maharashtra Act Passed on 22nd May, 2017
18. Tripura Act Passed on 25th May, 2017
19. Sikkim Act Passed on 25th May, 2017
20. Mizoram Act Passed on 25th May, 2017
21. Nagaland Act Passed on 27th May, 2017
22. Himachal Pradesh Act Passed on 27th May, 2017
23. Delhi Act Passed on 31st May, 2017
24. Manipur Act Passed on 5th June, 2017
25. Meghalaya Act Passed on 12th June, 2017
26. Karnataka Act Passed on 15th June, 2017
27. West Bengal Ordinance Passed on 15th June, 2017
28. Punjab Act Passed on 19th June, 2017
29. Tamil Nadu Act Passed on 19th June, 2017
30. Kerala Ordinance Passed on 21st June, 2017

STATE YET TO PASS THE SGST ACT

Sl. No. Name of the State
1. Jammu & Kashmir

PIB

Be the first to comment - What do you think?  Posted by admin - June 21, 2017 at 4:59 pm

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CSD: Implementation of GST at URCs

ADVISORY 10/ 2017: IMPLEMENTATION OF GST AT URCs

GST-CSD

1. The Govt has declared 50% exemption of GST to CSD (copy of relevant extract att as Annx).

2. URCs’ sales to end customers are exempted levy of GST. As a consequence, URCs are exempted from registration for GST and filing of monthly returns etc.

3. URCs need not make any extra efforts in implementation of GST wef 01 Jul 2017, except the following activities:-

(a) Ensure proper accounting of closing stock as on 30 Jun 2017 since, they have to be sold at old selling prices wef 01 Jul 2017.

(b) CSD Depots will be selling the balance stocks as on 30 Jun 2017 at the old rates to URCs. All the stocks received from CSD Depots with old selling prices during July 2017 and the closing stocks at URCs as on 30 Jun 2017 should be sold at old prices as on 30 Jun 2017 to end customer.

(c) No URC should refuse the stocks already demanded by them in the month of Jun 2017, as these stocks have been purchased and supplied to Depots.

(d) Goods purchased by CSD Depots from the companies in GST Regime (wef 01 Jul 2017) will be sold at revised wholesale price. URCs will sell these goods at revised retail price to end customers, which will be communicated by CSD HO in due course of time through their respective depots.

(e) It is advisable to liquidate old stocks at URCs as on 30 Jun 2017 first and then only start selling new stocks.

(f) Dual billing system may be followed, if all the stocks as on 30 Jun 2017 cannot be liquidated and sale of new stocks to be carried out with new rates, if situation warrants.

(g) CS Dte has directed CIMS management to prepare and forward revised software to all URCs, in order to switchover the billing process in GST environment. This is dependent on companies disclosing post GST prices to CSD HO in an early timeframe.

(h) All URCs should maintain the record of purchases and sales meticulously in electronic mode,

(j) The Government is yet to finalise e way bill procedure in GST

environment for collection vehicles that will be used to collect stores from CSD Depots by URCs. Once e way bill is made mandatory for URCs, the same will be intimated.

4. However, as liquor is outside the purview of GST, URCs will continue with the existing system for sale of liquor.

5. This letter supersedes all earlier instrs on the subject and be disseminated to all URCs under respective comd.

Signed copy 

Be the first to comment - What do you think?  Posted by admin - June 20, 2017 at 6:58 pm

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The Central Government abolished various Cesses in the last three years for smooth roll-out of GST

The Central Government abolished various Cesses in the last three years for smooth roll-out of GST 

The Central Government in the last three General Budgets viz 2015-16, 2016-17 and 2017-18 has gradually abolished various cesses on goods and services in order to prepare the ground for smooth roll- out of Goods and Service Tax (GST) from 1st July, 2017. The Central Government has taken this step in stages by abolishing various cesses so that it is easier to fit in various goods and services in different tax slabs for GST.

The Central Government in its General Budget 2015-16 had abolished Education Cess, including Secondary and Higher Education Cess on taxable services, and exempted Education Cess on excisable goods as well as Secondary and Higher Education Cess on excisable goods.

In its General Budget 2016-17, the Central Government abolished cess on cement, strawboard, three cesses including cess on Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines by amending Labour Welfare Cess Act, 1976, Tobacco cess by amending the Tobacco Cess Act 1975, and Cine Workers Welfare Cess by amending the Cine Workers’ Welfare Cess Act 1981 among others.

In its General Budget 2017-18, the Central Government abolished Research and Development cess by amending the Research and Development Cess Act.

 Through Taxation Laws Amendment Act 2017, the following cesses are abolished. However, the date of the implementation will coincide with the date of the GST roll-out:

  1. The Rubber Act 1947 – Cess on Rubber
  2. The Industries (Development and Regulation) Act 1951 – Cess on Automobile
  3. The Tea Act 1953 – Cess on Tea
  4. The Coal Mines (Conservation and Development) Act, 1974 – Cess on Coal
  5. The Beedi Workers’ Welfare Cess Act 1971 – Cess on Beedis
  6. The Water (Prevention and Control of Pollution) Cess Act 1977 – Cess levied on Water consumed by certain industries and by local authorities.
  7. The Sugar Cess Act 1982, the Sugar Development Fund Act 1982 – Cess on Sugar
  8. The Jute Manufacturers Cess Act 1983 – Cess on Jute Goods manufactured or produced or in part of Jute.
  9. The Finance (2) Act 2004 – Education Cess on Excisable Goods
  10. The Finance Act, 2007 – Secondary and Higher Education Cess on Excisable Goods
  11. The Finance Act 2010 – Clean Energy Cess
  12. The Finance Act 2015 – Swachh Bharat Cess
  13. The Finance Act 2016 – Infrastructure Cess and Krishi Kalyan Cess

 However, the following cesses will continue to be levied under the GST regime since they pertain to customs or goods which are not covered under the GST regime:

  1. The Finance (2) Act 2004 – Education Cess on Imported Goods
  2. The Finance Act, 2007 – Secondary and Higher Education Cess on Imported Goods
  3. Cess on Crude Petroleum Oil under the Oil Industry Development Act, 1974
  4. Additional Duty of Excise on Motor Spirit (Road Cess)
  5. Additional Duty of Excise on High Speed Diesel Oil (Road Cess)
  6. Special Additional Duty of Excise on Motor Spirit
  7. NCCD on Tobacco and Tobacco Products and Crude Petroleum Oil.

PIB

Be the first to comment - What do you think?  Posted by admin - June 7, 2017 at 3:32 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

Be the first to comment - What do you think?  Posted by admin - June 5, 2017 at 6:19 pm

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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

Be the first to comment - What do you think?  Posted by admin - June 2, 2017 at 6:56 pm

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The Union Finance Minister, Shri Arun Jaitley: Goods and Services Tax (GST) is an efficient tax system which not only checks tax evasion but also helps evolving India to become very strong society

The Union Finance Minister, Shri Arun Jaitley: Goods and Services Tax (GST) is an efficient tax system which not only checks tax evasion but also helps evolving India to become very strong society

FM inaugurates the National Academy of Customs, Indirect Taxes and Narcotics (NACIN) Campus in Bengaluru today

Inaugurating the National Academy of Customs, Indirect Taxes and Narcotics (NACIN) Campus in the Bengaluru today, the Union Finance Minister Shri Arun Jaitley said that Indirect Taxation regime in the country will play a key role and is undergoing a vital change.  He said that the present multiple taxation system is transformed into the Goods and Services Tax (GST) and all the taxes are amalgamated. Speaking further, the Finance Minister said that the new GST regime will come into effect from July 1, 2017. GST is an efficient tax system which not only checks tax evasion but it also help evolving India to become very strong society.

Speaking further on the occasion, the Finance Minister Shri Jaitley said that the new Indirect Tax is a product of federal India. He added that the Centre and the States will jointly administer and decide the taxes.  Coordination between taxation authority of Centre and States is also important. He said that the tax training academy NACIN, which has come-up in Bengaluru to impart training to officers of Central and State Governments and PSUs has to play a vital role.

Participating on the occasion, Smt.Vanaja N. Sarna, Chairperson, CBEC highlighted the contributions of NACIN.  Shri D.P.Nagendra Kumar, Principal Director General, NACIN, gave an overview of the new NACIN Complex.  Shri S.Ramesh, Member (Admn.), CBIC welcomed the dignitaries on this occasion while Shri P. K. Dash, Pr. Additonal Director General, NACIN, proposed vote of thanks.

PIB

Be the first to comment - What do you think?  Posted by admin - May 29, 2017 at 5:41 pm

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Proposed GST Tax rates would be lesser than the prevailing taxes in case of Sugar, Tea and Coffee

Proposed GST Tax rates would be lesser than the prevailing taxes in case of Sugar, Tea and Coffee (other than instant coffee) and Milk Powder; Present incidence of taxes on sugar is 8% while proposed GST rate on Sugar is only 5% i.e. 3% less;

Similarly, present incidence of taxes on Milk Powder, Tea and Coffee (other than instant coffee) is 7% while proposed GST rate on these items is only 5%.

Proposed GST Tax rates would be much lesser than the prevailing incidence of taxes in case of Sugar, Tea and Coffee (other than instant coffee) and Milk Powder. Details in this regard are as follows:

1. Sugar: Sugar attracts specific central excise duty of Rs.71 per quintal plus Sugar Cess of Rs.124 per quintal, which translates to ad valorem rate of more than 6%. Including incidence on account of account of CST, octroi, and entry tax etc., the present total tax incidence would work out to more than 8%. As against this, the proposed GST rate on sugar is only 5% i.e. 3% less than present incidence of taxes.

2. Tea and coffee (other than instant coffee): Tea and coffee attract Nil central excise duty and VAT rate of 5%. Considering embedded taxes in production of tea and coffee and the incidence on account of CST, octroi and entry tax etc., the present total tax incidence works out to more than 7%. As against this, the proposed GST rate for tea and coffee (other than instant coffee) is only 5%.

3. Milk powder: Milk powder attracts Nil central excise duty and 5% VAT. Considering embedded taxes in production of milk powder and the incidence on account of CST, octroi, and entry tax etc., the present total tax incidence works out to more than 7%. As against this, the proposed GST rate on milk powder is only 5%.

PIB

Be the first to comment - What do you think?  Posted by admin - May 25, 2017 at 7:04 pm

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Lower Tax Incidence on Entertainment Services under Goods and Services (GST) Tax

Lower Tax Incidence on Entertainment Services under Goods and Services (GST) Tax

Service providers shall be eligible for full Input Tax Credits (ITC) of GST paid in respect of inputs and input services

Taxes on entertainments and amusements (covered by the erstwhile entry 62 of State List of the Constitution) have been subsumed under Goods and Services Tax (GST) except to the extent of taxes on entertainments and amusements levied by a Panchayat or a Municipality.

The rate of GST approved by GST Council on services by way of admission to entertainment events or cinematography films in cinema theatres is 28%. However, the entertainment tax rates in respect of exhibition of cinematography films in theaters/cinema halls, currently levied by States are as high as 100% in some of the States.

The rate of entertainment tax on cable TV and Direct-To-Home (DTH) levied by States is in the range of 10%-30% in many States. Apart from this, Service tax is also leviable at the rate of 15%. As against this, the rate of GST approved by GST Council on these services is 18%.

The rate of GST approved by GST Council on access to circus, theatre, Indian classical dance including folk dance and drama is 18% ad valorem. Further, the GST Council has approved an exemption upto a consideration for admission of Rs 250 per person. These services currently attract entertainment tax levied by the States.

Thus, entertainment services shall suffer a lower tax incidence under GST. In addition to the benefit of lower headline rates of GST, the service providers shall be eligible for full input tax credits (ITC) of GST paid in respect of inputs and input services. Presently, such service providers are not eligible to avail of input credits in respect of VAT paid on domestically procured capital goods & inputs or of Special Additional Duty (SAD) paid on imported capital goods and inputs. Thus, while GST is a value added tax, entertainment tax, presently levied by the States is like a turnover tax.

PIB

Be the first to comment - What do you think?  Posted by admin - May 23, 2017 at 7:00 pm

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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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Filling up of the various posts of CSSS required to be filled up in the Office of GST Council Secretariat of Department of Revenue under Department of Expenditure

Filling up of the various posts of CSSS required to be filled up in the Office of GST Council Secretariat of Department of Revenue under Department of Expenditure

No.25/32/2014-CS-II(A)
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel & Training

3rd Floor, LokNayakBhawan,
New Delhi-110 003.
Dated the 21st April, 2017

Office Memorandum

Subject: Filling up of the various posts of CSSS required to be filled up in the Office of GST Council Secretariat of Department of Revenue under Department of Expenditure-reg

The undersigned is directed to refer to GST Council D.O. letter No. D.O.F
No.50/Encadrement/GST Council/2017 dated 24.03.2017 on the subject mentioned above and to say that following posts of CSSS are required to be filled up after encadrement of these posts in the Department of Expenditure for further posting in the Goods and Service Tax Council, Department of Revenue:-

S.No Grade No. of post Office
1. Principal (PPS) 02 GST Council, New Delhi
2. Private Secretary (PS) 06
3. Personal Assistant (PA) 01

2. All the Cadre units of CSSS are requested to give publicity of the vacancy circular and applications of willing officers for filling up the said posts of PPS, PS and PA may be forwarded along with personal particulars in the enclosed proforma immediately but not later than 28.04.2017.
3. Before forwarding the application(s), the vigilance status of the officer(s) concerned may also be ascertained and a certificate to that effect may also be forwarded along with. It should also be ensured that the data in respect of officer applying for the post is completed/updated in all respects in the web based cadre management system i.e. cscms.nic.in.

(Pradeep A)
Under Secretary to the Govt. of India
Tel: 24623157

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Be the first to comment - What do you think?  Posted by admin - April 22, 2017 at 3:15 pm

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GST rollout from July 1 to make goods cheaper: Jaitley

GST rollout from July 1 to make goods cheaper: Jaitley

New Delhi: Hopeful of the GST rollout from July 1, Finance Minister Arun Jaitley today said it will create one of the world’s biggest single markets and make commodities cheaper and tax evasion difficult.

Speaking at the 23rd Conference of the Commonwealth Auditor General, Jaitley said India has hugely a non-tax compliant society and the government banned higher denomination notes to curb the tendency of people to deal in cash that lead to tax evasion as well as terror financing.

He said the reform measures undertaken by the government will help India clock 7-8 % growth and retain the tag of fastest growing major economy in the world, but challenges remain in volatile global oil prices, reviving private sector investment and health of state-owned banks.

With regard to GST, he said the new indirect tax regime will ensure seamless transfer of goods and services, while stronger information technology backbone will make evasion difficult.

Despite being one political entity, India currently is not a single economic entity as there are multiple layers of taxation that make goods costlier. GST – first proposed in 2006 – will replace at last 17 state and central levies.

The biggest taxation reform what we are trying to implement from July 1 is Goods and Services Tax … It will increase the volume of taxation, there is no tax on tax and therefore makes goods, commodities and services little cheaper and far more convenient, Jaitley said.

The Union Cabinet this week cleared four supplementary GST legislations which will be introduced in Parliament in the ongoing budget session.

The laws which enable this (GST) are now before Parliament which hopefully should get cleared and once they do get cleared then by the middle of this year we hope to see the implementation as far as this law is concerned, Jaitley said.

In terms of tax compliances, he said India ranks fairly high as a non-compliant state.

Therefore, one of the efforts of the state has been how to bring non-compliance to an end. Once the GST is introduced it will be a great check as far as evasion is concerned, he said, adding that the government has amended direct taxation law by bringing in curbs on cash currency.

Jaitley, yesterday, in Parliament introduced an amendment to Finance Bill 2017 proposing to ban cash dealings above Rs 2 lakh.

Cash component of Indian economy was exorbitantly high about 12.2 per cent of GDP and of this, 86 per cent was high denominational currency and therefore the tendency to deal excessively in cash did exist and this created its own challenges for economy, he said.

Cash facilitated crime, corruption, incentivised tax non-compliance and was facilitator for funding terrorism and insurgency, he said, as he defended November 8 decision of the government to demonetise 500 and 1,000 rupee notes.

(With demonetisation) Anonymity which was attached to this high level of cash operating in market that anonymity disappeared as it had to be deposited in bank.

This has also increased the trend towards digitisation of economy, (will) act as disincentive to continuing to deal in a shadow or parallel economy and lead to a further integration of informal with formal economy, Jaitley said.

He said the size of India’s GDP in the near future will be bigger, size of formal economy will increase and will be cleaner.

As regards growth, Jaitley said India would continue to remain amongst the fastest growing economies of the world.

For the last three years we have been the fastest growing major economy, we will continue to be in that phase. I think for India to achieve the growth rate of 7-8 per cent is reasonably logically plausible. If big growth returns to the world we probably can push upwards, he said.

Outlining the challenges for Indian economy, Jaitley said the government is now trying to address the problems plaguing the public sector banks and also increasing private investment.

We are hopeful that in the next few quarters, will probably see a better result as far as those areas are concerned, he said, adding oil prices remain an uncertainty for India.

The gross NPAs of public sector banks have risen from Rs 5.02 lakh crore at the end of March 2016 to Rs 6.06 lakh crore in December 2016.

PTI

Be the first to comment - What do you think?  Posted by admin - March 22, 2017 at 6:57 pm

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Cabinet clears GST supplementary legislations

Cabinet clears GST supplementary legislations

The Cabinet today cleared four supporting GST legislations, paving the way for their introduction in Parliament as early as today.

The four supporting legislations the Compensation Law, the Central-GST (C-GST), Integrated-GST (I-GST) and Union Territory-GST (UT-GST) would be introduced as Money Bill, sources said.

The GST legislations have been cleared by the Cabinet.

These would be introduced in Parliament this week, could be even today, a source said.

The GST legislations were the only agenda in today’s meeting of the Union Cabinet, chaired by Prime Minister Narendra Modi.

Sources said the four legislations would be taken up for discussion together in Parliament. Once approved by Parliament, the states would start taking their SGST bill for discussion and passage in the respective state assemblies.

The GST Council, in its previous two meetings, had given approval to the four legislations as also the State-GST (S-GST) bill. While the S-GST has to be passed by each of the state legislative assemblies, the four other laws have to be approved by Parliament.

Passage of all the legislations would pave the way for introduction of Goods and Services Tax (GST) from July 1.

The government is hoping the C-GST, I-GST, UT-GST and the GST Compensation laws will be approved in the current session of Parliament and the S-GST by each of the state legislatures soon.

While a composite GST will be levied on sale of goods or rendering of services after the new indirect tax regime is rolled out, the revenue would be split between the Centre and the states in almost equal proportion.

This is because central taxes like excise and service tax and state levies like VAT will be subsumed in the GST.

While the C-GST will give powers to the Centre to levy GST on goods and services after Union levies like excise and service tax are subsumed, the I-GST is to be levied on inter-state supplies.

The S-GST will allow states to levy the tax after VAT and other state levies are subsumed in the GST. The UT-GST will also go to Parliament for approval.

The Council has already finalised a four-tier tax structure of 5, 12, 18 and 28 per cent, but the model GST law has kept the peak rate at 40 per cent (20 per cent to be levied by the Centre and an equal amount by the states) to obviate the need for approaching Parliament for any change in rates in future.

Similarly, the cess to be levied on top of peak rate on selected demerit goods like luxury cars for creation of a corpus that will be used for compensating states for any loss of revenue from GST implementation in the first five years, has been capped at 15 per cent.

PTI

Be the first to comment - What do you think?  Posted by admin - March 20, 2017 at 12:31 pm

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GST council clears state GST laws, likely to roll out by July 1

GST council clears state GST laws, likely to roll out by July 1

Finance-Minister-Arun-Jaitley-Revenue-Secretary-Hasmukh-Adhia-and-CBEC-Chairman-Najib-Shah-in-a-meeting-of-GST-council

 New Delhi: GST council moved yet another step closer to implement the country’s biggest tax reform possibly from July after the Centre and states agreed on a draft law that will enable states and union territories to impose the Goods and Services Tax (GST), all the five enabling draft bills stand approved to enable a likely rollout of the new indirect tax regime.

The panel, headed by Finance Minister Arun Jaitley and comprising representatives of all States, at its last meeting approved the final draft of Central GST (C-GST) and Integrated GST (I-GST) laws.

The GST council also agreeing on capping the cess on sin (tobacco products) and luxury goods has been capped at 15 per cent, Jaitley said after the meeting.

“Capping of cess has been done. These are not actual, but, ceiling is kept higher to give a marginal headspace,” he said.

“The supporting GST laws will now be taken to the Cabinet and then to Parliament for approval,” he said.

Jaitley also said the government was hopeful that GST could be “tentatively” implemented from July.

The GST Council would meet on March 31 for framing of rules for Goods and Service Tax regime, Jaitley said, adding that tax rates for various goods and services would be taken up after framing of rules.

After March 31, the Council will take up the exercise of fitment of various commodities in the GST tax slabs – 5 %, 12%, 15%  and 28%, he added.

The officials have already started the fitment process, which will be put up for discussion and approval before the Council.

Be the first to comment - What do you think?  Posted by admin - March 16, 2017 at 9:51 pm

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