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Excise duty was imposed on article of jewellery in the Union Budget 2016-17. There were many apprehensions of the trade and industry regarding taxability, valuation, exemption, removal procedures, documentation and interventions by departmental officials. The government had constituted high level committee to make suggestions on critical aspects. The committee had made its suggestion last month and accepting the suggestions made by committee, government has come out with necessary...

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...

Background:

The textiles and apparel industry in India accounts for about 10% of manufacture or production and 2% of India's Gross Domestic Product (GDP) and constitutes about 13% of country's export earnings. The industry is currently estimated at around $ 108 billion and is expected to reach $ 223 billion by 2021. Textile industry has been enjoying various tax exemptions, benefits and concessions under indirect taxes. Introduction of GST could have a considerable impact on textile...

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...

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...

GST would become a reality and the nation could witness changes in the traditional ways of doing business. Businesses right now have the option to proactively embrace this reform, understand its intricacies and take a business advantage out of this change by acting immediately.    

Since the tax system is in the transitional phase, hence, this is the right time for businesses to understand the immediate action points for smooth implementation of the GST. This article provides a broad...

The Indian auto industry is one of the largest in the world. The industry accounts for 7.1 per cent of the country's Gross Domestic Product (GDP). Almost 13% of the revenue from central excise is from this sector and claims a size of 4.3% of total exports from India. Despite its contribution to the economy and growth potential, this sector has been combating the hardship of high tax rates for substantially a long period of time now with central excise duty ranging between 12.5% to 30%...

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...

Background  

GST is a destination based consumption tax where in the levy of tax moves along with goods and /or services. Destination of export of goods/and services would be outside India and hence there would be no GST liability on such transactions.  

Export of Service:  

Sec 2(6) of the revised model IGST law provides the definition for export of services.   

?Export of services? means the supply of any service when;  

1. the supplier of service is located in...

Service tax levy on ocean freight charges even when the services are provided outside India  has attracted lot of criticism from trade within the country. This would also effect countries like Nepal as the levy would affect the transit treaty between the countries. Service tax levy from 22nd January 2017 has created few confusions with respect to aspects like liability, point of taxation and Cenvat credit etc. Importers who hitherto were not liable for service tax on ocean...