In GST regime, the number of exemptions / concessions have been brought down. A lot of effort has been put in drafting GST law and lot of litigated aspects are put to rest. However, there are still aspects like compensatory damages, employee notice period recovery which needs clarity as to taxation. In many private organisations, employees would be legally bound to serve for specified period which could vary from 1 month to 3 months depending on designation or role of a particular employee...Read more
Introduction of GST has definitely changed the way in which business is being done due to change in indirect tax structure and law. Levy of tax has been changed from the act of sale or manufacture to act of supply. GST is levied on supply of goods or services for consideration. There are few activities which would be treated as supply even in absence of consideration. For example, stock transfer of goods to branches in other states are treated as supply to levy GST. There are doubts among...Read more
"Merchant Exporter" means a person engaged in trading activity and exporting or intending to export goods. Merchant exporters are instrumental to boost exports which contribute to growth of Indian economy. To support the same, special benefit of procurement of goods without payment of duty is provided under earlier indirect tax laws (Central Excise/ VAT etc.) on following the procedure prescribed. Under GST, the said benefit was discontinued till 23.10.2017....Read more
GST for goods has provided schedules in line with VAT but the principles are based on the customs classification ( also adopted in central excise) The need to classify properly is understood by all as it may lead to payment of differential tax with credit in case of self correction and maybe without credit otherwise. Also no credit beyond limitation period for ITC post the annual returns. We have made an attempt to share the possible steps to be followed to arrive at appropriate...Read more
GST is expected to be implemented from July 2017 as of now. Postponement if any would only be announced in last week of June. GST was supposed to reduce the disputes. In Central Excise classification disputes which were numerous in 1990s disappeared when majority of products in one category were taxed equally and rates were reduced. Now with some categories having nil, 5, 12,18 & 28 it is expected that the parallel economy would find many reasons to continue and not...Read more
The manufacturing sector has been given prime importance by the present Central Government and ‘Make in India’ program is one such initiative. It is hoped that such schemes along with GST could bring India on the world map as hub for manufacturing. India is among the top ten manufacturing countries in the world and presently this sector contributes 10% of GDP. The new proposed GST law which could replace the present indirect tax laws from 1st April 2017 would have huge positive impact on...Read more
In the first article we discussed briefly on term ‘business’ and its scope in current tax regime vs proposed GST.
The Goods and Service Tax is a levy on supply. All intra-states supplies attract Central and State GST whereas all the inter states supplies attract IGST. Hence, Supply is at the root of GST. This is our second article in the series wherein we discuss on the term supply and its relevance in current tax structure.
The term ‘Supply’
In common parlance...Read more
In the previous article, we had briefed on the term supply and its scope in GST. As discussed, the definition of supply is inclusive in nature. That means, in addition to what we normally understand as supply, it shall include those activities specified or deemed as supply in the definition of supply.
Once an activity is considered as supply, the next question would be whether such supply is of goods or services to decide on the place and time of supply. Though in most of the cases...Read more
The liability to pay CGST / SGST or IGST on the goods or service shall arise at the time of supply as determined in terms of the Model GST Act. The point of time of supply refers to the point of time when an activity attracts the levy of GST in terms of the provisions of section 12.
In the absence of specific provisions to determine time of supply, there could be lot of ambiguity in determining the exact time of supply as the event of supply could contain many sub events. For...Read more