Audits under Goods and Services Tax

GST, which is a “One nation one tax” is strongly following the “Digital India” drive and accordingly, lot of verifications under GST are system based. It will have inbuilt checks and balances to ensure that there are no tax leakages due to inadequate information of tax laws, negligence in maintaining records, human or technical errors and fraud. In this Blog we will discuss about the Audit and Assessment procedures under GST. Types of audit under GST Audit under GST is the [...]

Invoice Rules and Regulations under Goods and Services Tax

After a long await of almost a decade for introduction of Goods and Services Tax (GST), India has finally witnessed the implementation of GST on 1st July 2017. GST law, as it evolves, contains many new and crucial provisions on invoicing. One of the most important and unique feature in relation to invoicing in GST is that unlike the current tax regime, under GST regime all the invoices will have to be uploaded online on the common e-portal and [...]

Know what are the Goods and Services Tax Transitional Provisions as per new Tax Regime

After a long await of almost a decade for introduction of Goods and Services Tax (GST), India has finally witnessed the implementation of GST on 1st July 2017. Every business right now is worried as to how to make a smooth transition to GST from existing laws. In this blog we will give you insights on the transition provisions under the GST law. In order to understand the transition process under GST, reference will be taken from GST Transition [...]

Impact of GST on Real Estate Sector

 Introduction The real estate sector is estimated to account for about five per cent of India’s gross domestic product (GDP) and is considered to be the second-largest employer in the country. Real estate sector is one of the most vital sector of the Indian economy. It is currently impacted in dual way by two main reforms being applicable to this Sector viz the Real Estate Regulations Act (RERA) and the Goods and Services Act (GST). GST Rates on Real Estate [...]

GST impact: Zero tax on farm produce-A big deal

One of the most radical decisions taken at last week’s Srinagar meeting of the Union and state finance ministers to approve rates applicable to various commodities under the new Goods and Services Tax (GST) regime was to fix these at zero per cent for most primary farm produce. Its implications would be felt especially in states that are large agricultural producers, but aren’t leveraging this advantage adequately due to trade-distorting taxes and levies. All these levies — imposed by state [...]

Impact of GST Rate on Pharmaceutical Industry

Most of the drugs mentioned under the 5% bracket are used to cure malaria, HIV-AIDS, tuberculosis, and diabetes which were previously charged VAT around 4%. Nicotine polacrilex gum is the only pharmaceutical product to be charged at the rate of 18%. Cipla, the brand which produces nicotine gums, will probably be impacted from the rate fixed at 18%. No clarification has been provided by the government on the issue of manufacturers operating in excise-free manufacturing zones paying more tax under [...]

Effect of GST on Common Man

What kind of GST will be implemented in India? India will implement the Canadian model of Dual GST, i.e., both the Centre and State will collect GST. There will be 3 types of GST: CGST- Collected by Centre SGST- Collected by State IGST- Applicable on inter-state sales. It will help in smooth transfer between states and the Centre. What will be the GST rates? The GST rates have not yet been passed by the Lok Sabha. The proposed rates are: 5%,12%, 18%, 28% (+luxury cess). Slabs New GST [...]

Relaxation in return filing procedure for first two months of GST implementation

With the objective of ensuring smooth rollout of GST and taking into account the concerns expressed by the trade and industry regarding filing of the returns in GST regime, it has been decided that, for the first two months of GST implementation, the tax would be payable based on a simple return (Form GSTR-3B) containing summary of outward and inward supplies which will be submitted before 20th of the succeeding month. However, the invoice-wise details in regular GSTR-1 would have [...]

GST on Construction

GST Impact: Little change in net effective tax rates on Construction sector

GST Rate on Construction Sector. The much-awaited Goods and Services Tax (GST) rates have been finalised for various sectors including the Construction and Real Estate. According to an ICRA note, the impact of GST on both the key sectors of the economy is largely expected to be neutral. Construction and Infrastructure The composite supply of works contract in this sector will fall under the 18% GST rate with full input tax credit (ITC). The GST rate may seem higher than the [...]

GST in education sector hits private training groups across nation

Goods and services tax (GST) rates for Education Sector has been a mixed bag for the education sector, with the traditional courses recognised by regulatory bodies being exempt from tax and other courses and training programs being taxed at 18 per cent. Those offering non-conventional courses, certificate courses and training programmes are demanding that the government completely exempt the education sector. “Non-conventional courses of shorter duration, training programmes for working people are all taxed at 18 per cent, which will [...]