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…
The GST Council today decided to keep only 50 items, mostly demerit, sin and luxury goods in top 28 per cent tax bracket. “Lower 18 per cent GST will be levied on chewing gums, chocolates, after shave, deodorant, washing power, detergent, marble,” Bihar Deputy Chief Minister Sushil Modi said. The all-powerful council pruned the list of items attracting the top 28 per cent tax rate to just 50 from 227 previously, Modi told reporters here. In effect, the council cut rates on 177 goods.
“There were 227 items in the 28 per cent slab. The fitment committee had recommended that it should be pruned to 62 items. But the GST Council has further pruned 12 more items,” Modi said. He said all types of chewing gum, chocolates, preparation for facial make-up, shaving and after-shave items, shampoo, deodorants, washing powder detergent and granite and marble will attract lower 18 per cent tax rate.
“There was unanimity that in 28 per cent category there should be only sin and demerit goods. So, tod…
Press Information Bureau Government of India Ministry of Statistics & Programme Implementation 12-September-2017 17:28 IST
Consumer Price Index Numbers on Base 2012=100 for Rural, Urban and Combined for the Month of August 2017 The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation has revised the Base Year of the Consumer Price Index (CPI) from 2010=100 to 2012=100 with effect from the release of indices for the month of January 2015. 2. In this press note, the CPI (Rural, Urban, Combined) on Base 2012=100 is being released for the month of August 2017. In addition to this, Consumer Food Price Index (CFPI) for all India Rural, Urban and Combined are also being released for August 2017. All India Inflation rates (on point to point basis i.e. current month over same month of last year, i.e., August 2017overAugust 2016),based on General Indices and CFPIs are given as follows: All India Inflation rates (%) based on CPI (General) and CFPIIndicesAug…