GST making you anxious? Here is a fact-check on how new tax will impact you

The shelf prices of most commodities are likely to see a change over the next few weeks

 

GST is finally here! It has caught the nation’s fancy, which is somewhat unprecedented for a change in the tax regime.

Income Tax Efiling - However, despite all the efforts made by the government to demystify GST, people continue to be anxious (and confused) about whether GST will be a game-changer for every household in India. My aim is to give a thumbnail sketch of the potential after-effects of GST, and hopefully alleviate this anxiety or confusion a bit!

From consumers’ perspective, pricing will probably be the most important parameter for evaluating the success (or otherwise!) of this mega reform. On this front, GST could turn out to be a mixed bag in the short run. The shelf prices of most commodities (and not necessarily their MRP) is likely to see a change over the next few weeks. Income Tax. And while some products such as soap, toothpaste and hair oil are likely to be cheaper, others, including aerated beverages and some consumer durables, could be more expensive. So if you see the same product with a different MRP tag at a store, don’t doubt the integrity of the retailer or the quality of the product – it’s the GST effect!



Retailers may have a tough time convincing consumers about prices. So some dope on GST on standees or pamphlets should come in handy.

There is also the psychological aspect of this transition for people. As consumers, we are used to seeing only Value added tax (generally between 5% to 15%) on our bills for products we buy. What we don’t see are the other hidden taxes such as Excise Duty and numerous other tax components,

which are embedded in the prices of products. Going forward, when retailers print 18% or 28% (or even 40% GST in some cases) on invoices, it may hurt consumers’ sentiments, and may even adversely affect the perceived value of the products in their minds.

Made an error? File your revised tax returns within stipulated timeline

While tax authorities permit you to revise your tax return in case of an error

 

 

Taxpayers are typically cautious and exercise due care while income tax filing  (I-T) returns. But very often, in the rush to meet deadlines, many of them end up making errors. Some of these include not claiming deductions, not reporting losses, incorrect or total lack of reporting of income.

These mistakes could occur due to lack of knowledge of the provisions of tax laws or due to lack of accurate information at the time of filing the original return. Lawmakers are mindful of such situations and, hence, have made provisions for an opportunity to file a revised income tax return, in case an omission or wrong statement is discovered after filing of the original tax return. However, this task must be completed within a specific time frame.

Timelines are crucial

The first point that the taxpayer must remember is that if he changes the income declared, the tax officer could levy additional tax and interest on it. Any additional tax liability on account of change in income reported or change in tax deducted at source (TDS) would attract penal interest on account of delay in payment of such additional taxes. A tax return can be revised any number of times, as long as there is no wilful concealment of income by the taxpayer and is filed within the prescribed time limit.

The time frame available to an individual taxpayer for filing revised tax returns is crucial. The tax law has been changed in recent times regarding the timeline for filing revised returns for assessment year (AY) 2016-17, which is, financial year 2015-16 (FY) and onwards,  read more...

PAN-Aadhaar linkages is about 7.36 crore, reveals Income Tax department

Recently, IT department made it clear that without Aadhaar, people will not be able to e-file ITRs

 

 

Nearly a quarter of 30 crore PAN holders have linked their unique alphanumeric number with Aadhaar, with over one crore such seedings happening last month.

The jump in the number came after the government made it clear that the PAN-Aadhaar linking was mandatory from July 1 for filing of income tax returns (ITRs) and for obtaining a new Permanent Account Number (PAN).

Out of the about 6.44 crore e-filers registered on the e-filing website of the income tax department, a senior official said, the Aadhaar-PAN linking had been done in about 3.06 crore cases.
"The total number of PAN-Aadhaar linkages is about 7.36 crore, as per latest figures updated till today. Seeding of over a crore Aadhaar numbers in the PAN database has come about in the last one month," the official said.

The income tax department had recently made it clear that taxpayers without the Aadhaar number or its enrollment ID would not be able to Income Tax e-filing from July 1 even as it had said that in "no case" any PAN would be invalidated.

A senior official had clarified that people who were not able to link their Aadhaar with PAN by July 1, would have the option to mention the UIDAI-provided number in the e-ITR and this would be considered a valid linking of the two unique numbers

E-filing of the ITR is mandatory for all individuals except those earning less than Rs 5 lakh per annum and those who are above 80 years of age.

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...

Twitter records over 1 mn conversations on GST between June 30 and July 2

Twitter recorded over one million conversations on the goods and services tax between June 30 and July 2 — reflecting the sentiment of the nation on what is being billed as the largest tax reform since Independence.

From #GSTIndia to #GSTForCommonMan, people took to Twitter to express their opinions about the GST.

India ushered in the 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. People have also been posting pictures on various social media platforms of receipts issued in grocery stores or eateries showing tax deductions as GST, instead of VAT/service tax earlier.

"Conversations around the launch of the GST exemplify Twitter as the best place for people to connect with what’s happening in India and around the world and express their opinions,” Twitter India Head of Public Policy and .... 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.....