From chocolates to cutlery: 200 items cheaper as GST cuts notified

The government formally notified the lower rates, including on chocolates, waffles, furniture, wristwatches, cutlery, suitcases, ceramic tiles and articles of cement.

GST News : Eating out and a little over 200 products of mass consumption, including detergents and ceiling fans, became cheaper from Wednesday with the lower goods and services tax (GST) rates taking effect.

The finance ministry has told citizens to remember this while purchasing these. The government formally notified the lower rates, including on chocolates, waffles, furniture, wristwatches, cutlery, suitcases, ceramic tiles and articles of cement.

The GST Council, chaired by Finance Minister Arun Jaitley, had on Friday in Guwahati decided to cut rates on these items to provide relief to consumers and businesses, amid an economic slowdown. The Council pruned the list of items in the top 28 per cent GST slab to 50, from the earlier 228.

Another 176 had the rate cut from 28 per cent to 18 per cent — chewing gum, chocolates, coffee, custard powder, marble and granite, dental hygiene products, polishes and creams, sanitary ware, leather clothing, artificial fur, wigs, cookers, stoves, after-shave deodorant, detergent and washing power, razors and blades, cutlery, water heaters, batteries, goggles, wristwatches and mattresses, among others.

The tax on wet grinders, tanks and armoured vehicles was reduced to 12 per cent from the peak rate. And, a uniform five per cent tax prescribed for all restaurants, both air-conditioned and not.

Broadly, in the highest tax slab are what are termed luxury goods and ‘sin’ goods — pan masala, aerated water, beverages, cigars and cigarettes, tobacco products, cement, paints, perfumes, air conditioners, dish washing machines, washing machines, refrigerators, vacuum cleaners, cars, two-wheelers, aircraft and yachts.

Rate on six items were reduced from 18 per cent to five per cent, on eight items from 12 per cent to five per cent, and on six items from five per cent to nil.

Click here to Know → Full List of GST rate

5% GST at restaurants from today: Why your food bill may still not change

AC restaurants and non-AC restaurants will charge 5% GST, down from 18% and 12% respectively

GST News :  Eating out at restaurants will get cheaper as GST council, which lowered the tax rate to a uniform five per cent from 12 per cent on non-AC restaurants and 18 per cent on air-conditioned ones comes into effect from Wednesday.

Currently, air-conditioned restaurants levy a charge of 18 per cent on food bill and non-AC restaurants levy 12 per cent tax.

As the new rate comes into effect today, here’s how it will impact you:

The Downside

• Menu prices: According to a report by Scroll, restaurant owners have been mulling a price rise on their menu. This is because of the high rent they have to pay at expensive locations, loss of input tax credit and competition from big eateries. Several restaurant owners are not convinced that a lower tax will make up for the loss of input tax.
• Input tax credit: Many restaurant owners have indicated that the move may drive prices up, courtesy withdrawall of input tax credit. Under input tax credit, businesses can claim an offset on the tax paid on inputs against the tax paid to the government. But, now the Council has done away with the tax credit on food items used as raw material.
• According to Federation of Hotels and Restaurants Association of India President Garish Oberoi the input tax credit accounts for three to four per cent of a restaurant’s profit, the report added.

The Upside

• You won’t need to burn a hole in your pocket in order to dine at fancy AC restaurants. From 18 per cent tax to five per cent, you will be saving 13 percentage points tax on your food bill.
• Similarly, at non-AC restaurants, you will be saving 7 percentage points tax on your bill as the same has been slashed from 12 per cent to five per cent.
• Want to just chill and order food at home instead? No worries as delivery apps such as Zomato and Swiggy will be delivering food from restaurants that will charge you the revised tax rates i.e five per cent.

Click here to Know → GST on Restaurant Bills

Last date for filing GSTR-2, 3 extended by a month

GSTR-2 is the most important return for GST compliance since the availability of input tax credit depends on it

The government on Monday once again extended the deadline for filing the goods and services tax (GST) returns for purchases and input-output transactions for July.

The last date for filing purchase return, or GSTR-2, was extended to November 30, from October 31. That of input-output transactions, or GSTR-3, was put off to December 11, from November 10.

“To facilitate trade, the last date for filing GSTR-2 and GSTR-3 for July 2017 has been extended to November 30 and December 11, respectively,” a government tweet said.

Archit Gupta, chief executive officer, ClearTax, said, “The earlier last date for filing GSTR-2 coincided with the deadline for submission of audited income tax returns and as such was putting a strain on some taxpayers.”.

GSTR-2 is the most important return for GST compliance since the availability of input tax credit depends on it.

M S Mani of Deloitte said that the extension will enable many more taxpayers to file returns. “The challenges faced by some of the taxpayers in dealing with mismatches in GSTR-2 would hopefully get resolved in November,” he added.

Click to know more → GST Deadline

Over 20 lakh biz due to file final GST returns in 6 days

The final GSTR-3, matching GSTR-1 and 2, is to be filed by November 10

 

 

As the deadline for filing the final GST returns for the first month of GST nears, the Sushil Modi-led Group of Ministers has asked the IT backbone provider GSTN to send reminder text messages to 20 lakh businesses which are yet to submit the tax forms.

In its second meeting, the Group of Ministers (GoM) asked the GST-Network to brace for the rush of last-minute filers.

The last date for filing of final sales returns for July in GSTR-1 form is October 10, while the date for uploading of purchase returns in GSTR-2 is October 31.

The final GSTR-3, matching GSTR-1 and 2, is to be GST filing by November 10.

"So far 33 lakh businesses have filed GSTR-1 for July, while 53 lakh had filed the initial GSTR-3B returns.
So 20 lakh more businesses have to file in the next six days," GoM Chairman and Bihar Deputy Chief Minister Sushil Modi said.

"We appeal to people to file the returns on time. Infosys has prepared a list of businesses who are yet to file returns. GSTN will be sending out mobile messages to these 20 lakh businesses reminding them to file returns," he said.

Besides, the GoM has also asked Infosys, which has prepared the back-end of the GST Network portal, to be prepared to handle the load that would come for GSTR-2 filing between October 11 to 31.

The GST Council in its meeting on October 6would be apprised of the deliberations of the GoM and the improvement in... Read Full Article

A step-by-step guide for obtaining your GSTIN

The GST registration process has been reopened from June 25 and will continue for the next 3 months

 

Under the VAT and Service Tax regime, TIN number and Service Tax Registration Number were issued by the state and the Centre. However, under the Goods and Services Tax (GST) regime, all taxation will get consolidated into a single platform and taxpayers will be registered under a single authority. All the taxpayers who migrate and register under GST will receive a GSTIN — Goods and Service Tax Identification Number. Here is what the GSTIN format looks like-

→ Income Tax Filing ←  → Tax Filing ←  → IT Return ←

Under the GST regime, every business providing goods and services with a turnover exceeding Rs 20 lakh is required to register as a normal taxpayer. This registration is important because only a registered business can avail benefits like the seamless flow of Input Tax Credit (ITC) on their raw material purchases.

The GST registration process has been reopened from June 25 and will continue for the next 3 months.

How to get a GSTIN
1. Log on to that GST online portal www.gst.gov.in
2. Go to 'Register Now' and fill in Part A of the application with your name, e-mail ID and mobile number
3. The portal will verify your details by sending an OTP to your mobile and email
4. Once the verification process is completed, you will receive the Application Reference Number (ARN) via mobile or email
5. Now you can fill Part B of the application using the ARN. The documents you will require in this step include:
→ Photographs
→ Constitution of taxpayer
→ Proof(s) of place of business
→ Bank account details
→ Authorisation form
6. Fill in all the information and upload all the documents that are required in the application and submit the application using DSC or Aadhaar OTP

Penalties for not registering under GST → Read Full Story

GST regime: New MRP rules released, defaulting manufacturers to be fined

Govt has given 3 months time to reprint revised MRPs under the Packaged Commodities: Paswan tweeted

 

 

The government on Tuesday warned that legal action will be initiated against manufacturers for not printing the revised MRP post rollout of the GST.

Food and Consumer Affairs Minister Ram Vilas Paswan said the government has given three months time till September to reprint the revised maximum retail price (MRP) with the implementation of the landmark Goods and Services Tax (GST).

In a series of tweets, Paswan said that prices of some commodities have fallen, while some have increased with the implementation of GST.

Get all the query on →  Income Tax Efiling  ←

"Fall in prices due to lower GST should be passed on to consumers. ...The government will take legal action against vendors not declaring revised MRP after GST," he said.

The revised rates should be displayed on commodities so that consumers are aware what is the MRP of each item after GST, he added.

"The government has given time till September to reprint the revised MRP under the Packaged Commodities Rule," he said.

GST, launched at midnight of June 30, has subsumed all value added tax (VAT) and Octroi. Read More...

GST in Kashmir: Traders march against new regime with black flags; detained

A special session of the state legislature began today to discuss GST implementation

Police on Tuesday detained several traders after they tried to march towards the Jammu and Kashmir Legislative Assembly to protest the implementation of GST in the state in its present form.

The traders were detained near the gate of the Civil Secretariat complex, which also houses the assembly, after they took out a protest march, police said.

The traders were scheduled to hold a sit-in near the assembly to protest the implementation of the new tax regime in the state in its present form, claiming that it would lead to the erosion of the state's special position and its fiscal autonomy.

Holding black flags and shouting slogans against the GST, several traders reached Jehangir Chowk here to protest.

They tried to march towards the civil secretariat complex, but police swung into action and detained several of them outside the Civil Secretariat,the police said.

A special session of the state legislature began today to discuss the issue of implementation of GST in the state... read more...

Want us to carry your goods? Show GST number first: Transporters to traders

This is being done to avoid collecting taxes from sender and depositing with the govt

 

 

Transport companies are now insisting traders furnish their GST numbers before accepting goods for transportation anywhere. Traders who have not acquired GST numbers will not be entertained, some transporters told Business Standard.

Ashok Shah, chairman of V- Trans, a large Mumbai-headquartered logistics company and past chairman of Bombay Goods Transport Association confirmed the development. He said, "Octroi being subsumed in GST is a big relief and will save both, time in transit and fuel.

However, for transporting goods, the sender's GST number is required, because given the way tax provisions for transporters have been structured, that becomes necessary".

Under the old tax regime, transport services suffered 5 per cent service tax. That rate has been retained under GST. However in their business, transporters did not have to be registered, collect taxes from the sender on rent or transport charges and deposit them with the government.

This responsibility vested with the sender who paid transport charges. He was responsible for depositing the tax with the service tax department... read more...

Looking to buy a home? Ready-to-move-in apartments to cost more despite GST

Normally, ready properties are priced 20-30 per cent higher than those under construction

 

 

Though ready-to-move-in apartments have been kept out of the Goods and Services Tax's (GST's) ambit, they will continue to cost more than those under construction.

Normally, ready properties are priced 20-30 per cent higher than those under construction.
"Ready properties always cost more. Earlier, too, there was no service tax on ready properties but developers always charged more premium on them," said Sandeep Runwal, director at Runwal group, a Mumbai-based developer.

Amit Bhagat, chief executive officer at ASK Property Investment Advisors, said that since buyers have to pay GST they have to take a call whether they will make their contribution upfront and buy ready apartments or buy an under-construction apartment and make a staggered payment over the next five years.

Under-construction properties carry a tax rate of 12 per cent under GST.

"Ready apartments are not affordable for first-time buyers and they always prefer to go for staggered payments given their rising income levels, age and so on," Bhagat said.

He said that depending on the price of the product, the GST burden will increase on the end-consumer if the property is priced above Rs 6,000 per sq ft... read more...

GST impact: Manufacturing key winner, telecom likely to be worse off

The realisation of a common indirect tax is critical for the semblance of a common Indian market

 

 

The implementation of GST could very well be a step in this direction, in untangling the complicated web of the indirect tax base in India. However, one may add here that, the imposition of the GST (from July) is a minor step in the direction of reducing the incidence of indirect taxes in relation to the overall tax burden.

 

The probable impact of GST?

It may be difficult to realistically depict a quantifiable impact of GST across various sectors unless a specific GST tax rate is known from the government’s end, which analysts earlier estimated to be somewhere around 17% or 18%.

Considering that the discussion across the board on the GST tax rate started with rate discussions of 12% and 18%; the four slab rates of 5%, 12%, 18% and 28%, with identified de-merit goods subject to levy of cess over and above peak rate of 28% was a dampener for the industry, as argued here.

The newly designed multiple rate structure is derived from the fact that current effective indirect taxes (both centre and state) over certain bands are maintained for revenue neutrality and linked to above rate slabs.

The likely winners from the imposition of the GST as a centralised indirect valued added tax, will be from the manufacturing segment, including the automobile manufacturers, the FMCG (Fast Moving Consumer Goods) segment, the retail sector (provided consumer demand picks up) and the cement sector. Income Tax.

One of the key losers could be the telecom sector, with the rise in GST tax rate, unless the VAT and CENVAT simultaneously see a marginal drop in their rates too. The sector is already plagued with serious problems pertaining to data volumes and slow bandwidth penetration across the country.

Tax reforms like the GST is history in the making and the final passing of the GST bill (now in its final stages) will be termed as one of India’s biggest legislative success...  read more...

GST not being charged twice over on credit card payments: Govt busts 7 myths

Please do not recirculate such message without checking it with authority," Adhia said.

 

 

Two days into the GST regime, Revenue Secretary Hasmukh Adhia today took to Twitter to bust "seven myths" that were doing the rounds about the new tax regime.

Adhia, the architect behind the country's largest tax reform, sought to dispel concerns that if a person makes payment of utility bills by credit cards, the he/she will be paying GST twice.

"This is completely untrue. Please do not recirculate such message without checking it with authority," Adhia said.

India ushered in the Goods and Services Tax (GST) regime on the intervening night of June 30 and July 1.

A four-tier tax slab -- 5, 12, 18 and 28 per cent -- has been decided with essential items like salt, unpacked food grains, healthcare services being kept zero rated.



People have been posting in social media pictures of receipts issued in grocery stores or eateries showing tax deductions as GST, instead of VAT/Service tax earlier.

Busting the myth that GST rates are higher than VAT, Adhia said, "It appears higher because excise duty and other taxes which were invisible earlier are now subsumed in GST and so visible now." Income Tax

He reiterated that businesses can continue to do business under GST with provisional ID number and need not wait for Goods and Services Taxpayer identification number (GSTIN).

"Provisional ID will be your final GSTIN number. Start business," Adhia said.

He said that businesses need not generate all invoices on computer or internet alone. "Invoices can be generated manually also."..... read more.....