Festivals are near and like always you all must be planning for it with empty shopping carts to 'bag' the discounts. But in the era of Goods and Services Tax (GST), festivities may not appear as lucrative as they did before. Hefty discounts and big-banner sales may be low-scale in the new tax regime. With the introduction of GST, manufacturers and retailers grapple to work out the best deals to ensure their customer base and profit-margins match the previous years. But before you curse the GST for killing your festive shopping goals, be ready to witness a more realistic discount on your purchases this festive season.
Let us take a look at how GST is likely to impact your festive season shopping.
GST has been introduced to replace the multiple direct and indirect tax structure with a single tax structure, applicable on supply of all goods and services with a few exceptions (like alcohol). It not only allows for a single tax structure across India replacing the different taxes of state excise, central excise, VAT along with service tax, but also offers a full tax credit from procurement of inputs and capital goods.
The GST implementation has introduced four tax slabs - 5%, 12%, 18% and 28%, besides exempt and additional cesses category.
Festive Shopping Hits And Misses
Sweets and traditional 'Mithai': Sweets and chocolates could cost you more this festive season with 5% GST on sugar.
Apparels: With a 5% GST on apparels below Rs. 1,000 and 12% above Rs. 1,000, you would only see straight product discounts this festive season. You may not see 'buy one get one free' offers or freebies as it won't allow retailers to claim input tax credit facility on zero value products.
Electronic Gadgets And Home Appliances: If you are planning to buy a high-end phone or a home appliance, it may not come with a hefty discount this festive season. However, after the implementation of GST, electronic items saw a 2-3% increase in tax in comparison to previous tax system. This may see softening with the benefit of input tax credit reaching to the downstream.
Cars and bikes: GST brought down car prices in the luxury segment and SUVs. The government has recently proposed to introduce cess at 25% rate, which may increase the prices of high-end cars.
Gold and jewellery: Buying gold during festive season is a popular practice. You need to pay 3% tax on gold jewellery and a 3% tax on the making charge after GST. Gold coin and biscuits will invite GST at 3% and 18 % rate respectively.
The onset of GST has meant that this festive season be ready for genuine discounts rather than over the top freebies.
Consequences of incorrect invoice details uploaded while filing GSTR 1 What will be the consequences if incorrect invoice details are uploaded on GSTN Portal while filing GSTR 1? How any one canamend these details?
It is a very common question of every GST taxpayer that what would be the consequences if one encounters following mistake while filing his GSTR 1
• Mention the wrong GSTIN (For example the invoice is on the name of M/s A but mistakenly shown it as sale made to M/s B) • Mention wrong Invoice No. or Invoice date • Punched wrong Invoice value (Mistake is due to wrong data Punching)
As we all aware of the fact that GST Law doesn't provide any option to amend the GST Return. Therefore the taxpayers (especially small traders) are very much concern regarding consequences of clerical mistake committed while filling GST Returns specially GSTR 1.
However, Section No. 34 of CGST Act, 2017 provides that the person can issue a debit or credit note as the case may being fol…
Borewell rig owners in the small town of Tiruchengode in Tamil Nadu, who operate their machines across the country, are worried over the applicability of Goods and Services Tax (GST).Out of nearly 10,000 rig vehicles in the country, nearly half belong to residents of Tiruchengode, nearly 400 km west of Chennai. Providing service to agriculture sector, the industry was earlier exempt from Service Tax and are hoping for exemption under GST Act. However, there is no clarity on the GST as yet.The rigs criss cross the country. Each vehicle costs over ₹1 crore and carries 5-6 workers, sources said.“Since the introduction of GST, our members are not clear how it will impact us. The government should exempt services provided by us to agriculture from GST Act as was done under Service Tax,” said Paari Ganeshan, President, Tiruchengode Lorry Owners Association, and former president of Tiruchengode Rig Owners Association.Supply of water for production of any agricultural produce was excluded fro…
GST ON TOUR OPERATORS AND AIR TRAVEL AGENTS GST ON TOUR OPERATORSGST @ 5% has been applied on services of tour operator without benefit of Input Tax Credit (ITC) on goods and services. 5% GST will be payable on the gross amount charged by the tour operator from the customer. This GST is uniform for all services – package tours, hotel accommodation only etc. The expression “tour operator” is defined in entry No. 23 of notification No. 11/2017-Central Tax (Rate) dated 28.6.2017 as under:-“Tour operator” means any person engaged in the business of planning, scheduling, organizing, arranging tours (which may include arrangements for accommodation, sight-seeing or other similar services) by any mode of transport and includes any person engaged in the business of operating tours”. In the case of Intra-State supply of tour operator’s services, CGST @2.5% and SGST @ 2.5% will be levied making the total tax as 5%. On the contrary, in the case of Inter-State supply of services, 5% IGST will apply …