GST Connect

Lack of clarity still prevails over GST


Although the State Government has warned that it would act tough against business persons not passing on the recently announced concessions in goods and services tax (GST) rates to the people, lack of clarity is still prevailing in billing in hotels and restaurants. Although the hotel and restaurant owners welcomed the slashing of the rate to 5 per cent effective from Wednesday, many customers said they were yet to see the full benefit in the billing even after a day.

Minister for Food and Civil Supplies P. Thilothaman told a meeting in Kozhikode on Thursday that the Consumer Affairs and Legal metrology departments would act tough on those people cheating consumers in the name of GST. “Our restaurant suffered a loss of nearly 50 per cent with the introduction of the GST. We expect to see a visible reduction in the prices of food items following the cut in the rates. We may not be getting the input tax credit, but from the customer side, once the …

Chandigarh: A delegation of the Chandigarh Beopar Mandal (CBM) today called on RK Choudhary, the newly appointed Assistant Excise and Taxation Commissioner, and submitted a memorandum of city traders’ demands.

Ram Karan Gupta, chairman of GST committee of CBM, said a GST advisory committee should be constituted at the earliest with representatives of the CBM as its members so as to forward demands of traders to the GST Council.

Source- The Tribune.

New Delhi, Nov 17 (KNN) In an attempt to ease the complications and fast-track the process, the government announced approval of manual filing of the refund claims under the Goods and Services tax regime.

Central Board of Excise and Customs informed about the latest decision in a circular.

The Circular said that due that due to the non-availability of the refund module on the common portal, the applications, forms and documents pertaining to the refunds of claims on account of zero-rated supplies can be filed and processed manually.

Exporters of services who have paid the IGST and those who are making the zero rated supplies to the SEZ units can approach the jurisdictional commissioner and ask for the refund form.

Also the merchant exporters can claim for the same at the tax office, the notice informed

The move comes in the aftermath of the concerns raised by different stakeholders over the liquidity crisis due to the delay in refunds.

Source- knn India.

Lower rates will lead to higher rate of compliance, says Delhi Finance Minister Manish Sisodia, a day after GST cuts were made effective. He tells Dilasha Seth that the rate of 5 per cent on restaurants should have been extended to restaurants in five-star hotels, as the higher rate could encourage evasion and even lead to inspector raj in some cases. Edited excerpts:

Several big decisions were taken by the GST Council last week, which came into effect on Wednesday. What impact do you foresee?

I am not completely satisfied with the decisions taken by the Council. The benefit of reducing rates on restaurants to 5 per cent will benefit consumers across the country. But, this should have been extended to restaurants in five-star hotels as well. There should be one tax on all restaurants.

Could you explain it further?

The 18 per cent tax is on restaurants in hotels, which charge Rs 7,500 per night or more. The price changes with season and peak days. Some days of the month, the price will be …

New Delhi: With news reports surfacing over the drop in the volume of exports of the ready-made garments that involves a major chunk of the Micro, Small and Medium Enterprises (MSMEs), in the month of October by over 41 per cent, there is mixed opinion among exporters over the possible reasons of the slowdown.

Talking to KNN, Dharmendra Joshi, Secretary General of the Gujarat Chamber of Commerce and Industry (GCCI) explained the situation.

Joshi opined that there is visible slowdown in the overall volume of exports across sectors including the textile sector. Joshi added that the reasons behind the slow figure can be because of a steep international demand.

Commenting over the impact of the Goods and Services tax (GST) with regard to the slowed exports, Joshi said that the new taxation is complicated and it is likely to take time for the traders and exporters to get along the new regime.

He however maintained that the GST could factor as one of the reasons behind the fall in exports, but …

Exporters have said their failure to receive goods and services tax (GST) refunds is dragging down the sector. “After paying the GST four months in a row and without receiving any refunds, small and medium enterprises are at a breaking point.

There is an immediate need for remedial measures to prevent a further decline in exports,” said Ganesh Kumar Gupta, president of the Federation of Indian Export Organisations. In the GST regime, exporters have to pay taxes on realised profits upfront and then apply for refunds.

Source- Business Standard.

The Cabinet on Thursday set the ball rolling for establishment of a national anti-profiteering authority amid reports that restaurants were not passing on the benefits of reduced goods and services tax (GST) rates to consumers.

The Cabinet cleared the creation of the posts of chairman and members of the authority, which will ensure consumers receive the benefits of reduced prices in the new indirect tax regime.
“This paves the way for immediate establishment of this apex body,” said Union law minister Ravi Shankar Prasad.

“The National Anti-Profiteering Authority is an assurance to consumers. If any consumer feels the benefit of tax rate cuts is not being passed on, he can complain to the authority,” the minister added.

The GST Council had last week decided to lower rates on about 200 items. It had also reduced the rate on restaurants to five per cent. There have been complaints that some restaurants are not passing on the benefits because input tax credit is not available to them no…

Supply has been defined as an inclusive definition under GST laws which includes –– 1. All forms of supply of goods or services or both for a consideration include sale, transfer, exchange, rental, lease or disposal made or agreed to be made by a person in the course or furtherance of business; 2. Import of services for a consideration whether or not in the course or furtherance of business; 3. All activities as specified in Schedule I, for without consideration, for e.g. transfer of goods from principal to agent etc. 4. All activities as specified in Schedule II to be treated as a supply of goods or supply of services. 5. All activities or transactions as specified in Schedule III, for e.g. services from employee to employer etc. 6. Such other activities or transactions are undertaken by the Central Government, a State Government in which they are engaged as public authorities shall be treated as a supply of goods or services. 7. The Central Government may, on the recommendations of…

Union Finance Minister Arun Jaitley has hinted that reform measures such as the introduction of the goods and services tax (GST) could possibly lead to a deviation from the fiscal road map.

“No pause but challenges arising from structural reforms (which) could change the glide path,” a research report from Morgan Stanley quoted the Finance Minister as saying at an event in Singapore.

The Centre’s fiscal deficit target for 2017-18 is 3.2 per cent of GDP. According to the recommendations of the Fiscal Responsibility and Budget Management (FRBM) panel, the Centre should aim for a fiscal deficit of 2.5 per cent by FY23. For FY19, it has suggested a fiscal deficit target of 3 per cent. The recommendations are yet to be accepted by the government.

The panel has provided flexibility to the government of the day by framing escape clauses to deviate from the fiscal road map by 0.5 per cent for any year under strictly defined circumstances, which include “far-reaching structural reforms in the…