Tax rates under GST will not be revised unless there is an anomaly: CBEC chief

index.jpgSource: The Hindu Business Line, July 19, 2017

New Delhi: The government on Wednesday said that tax rates under the Goods and Services Tax (GST) will not be revised unless there is an anomaly, but promised to go slow on enforcement actions in the first six months on genuine mistakes.

“The issue has snowballed…The textile sector is taxed for the first time. So anybody who comes into the net would feel the pinch,” said Vanaja N Sarna, Chairperson, Central Board of Excise and Customs, at a CII event. She said the CBEC has received representations from textile traders and is looking into their demands.

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E-way bill system in GST to come from October

download (4).jpgSource: The Economic Times, July 09, 2017

NEW DELHI: The GST provision, requiring any good more than Rs 50,000 in value to be pre-registered online before it can be moved, is likely to kick in from October after a centralised software platform is ready, a top official said.

The provision, called the e-way bill, would be implemented after infrastructure for smooth generation of registration and its verification through hand-held devices with tax officials is ready.

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GST: Consumer goods firms in a fix over MRP sticker rules

Source: LiveMint.com, July 06, 2017

Mumbai: Packaged consumer goods makers such as Dabur India Ltd, Marico Ltd and Godrej Consumer Products Ltd are worried about the impact of new guidelines issued by the government on displaying the maximum retail price (MRP) of products under the new Goods and Services Tax (GST) regime.

Aimed at ensuring that companies and retailers have a way of dealing with older (so-called pre-GST) stock, and preventing profiteering, the guidelines, announced on Tuesday, allow companies to print, stamp, or use stickers to show the new MRP on a product package. They also insist that companies issue ads in at least two newspapers if they are raising the prices of any products—and that they feature both the new (post-GST) and old (pre-GST) MRPs on the new packaging.

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GST impact on e-commerce: Marketplaces put an embargo on non-compliant merchants

Source: ETRetail.com, Jul 04, 2017

BENGALURU: Thousands of online merchants not yet compliant with the new sales tax have been barred temporarily by marketplaces from selling on their platforms. But several are also opting out because of a seeming lack of commercial viability under the new rules.

Online marketplaces such as Flipkart and Amazon India have made it mandatory for their merchants to register on their platforms with their new Goods and Services Tax Identification Numbers (GSTIN) by July 1, as the new tax became effective. But several vendors haven’t been able to obtain GSTINs yet for various reasons. While this could reduce availability of products in certain categories, online marketplaces insist overall sales would not be affected. Read the rest of this entry »

GST shines on renewable energy sector

Source: The Economic Times, Jul 04, 2017

NEW DELHI: The renewable energy sector is quite content with GST provisions. Contrary to earlier fears of sale of solar equipment – panels, modules and inverters – being taxed at high rates, the GST on such sales has been set at 5 per cent.

“The net effect on solar projects will be 3.5-4.5 per cent,” said Raj Prabhu, co-founder and CEO of Mercom Capital Group, which tracks the segment. “There will be issues with power purchase agreements as they will vary from state to state but 5 per cent GST is much more palatable than the expected 18 per cent.” Read the rest of this entry »

Initial reports say GST rollout has been hassle-free

Source: The Economic Times, Jul 03, 2017

NEW DELHI: The rollout of the country’s most comprehensive indirect tax reform — the goods and services tax — has been positive and largely hassle-free, with no checks on state borders, smooth customs operations and no major problems reported, the government said.

Government officials are keeping a close watch on implementation and not taking any chances.

“Initial reports are positive… There have not been any hassles,” revenue secretary Hasmukh Adhia told ET. Read the rest of this entry »

Centre, states will pay GST Network costs

Source: Business Standard, June 27, 2017

New Delhi: Filing a tax return on the Goods and Services TaxNetwork (GSTN) portal by an entity will cost Rs 55 a month but the state will bear this burden. The user charge for all eight million taxpayers will be borne by the Union and the state governments, to keep revenue flowing for GSTN, the company charged with providing the information technology (IT) backbone for the reform, without burdening the assessees.

GST is set to be rolled out from Friday and will absorb a slew of indirect taxes — including service tax, central excise, value added tax, central sales tax and octroi. Read the rest of this entry »