GST - Discussion on all Aspects

geeth · Post by **geeth** » 02 Jul 2017 22:04

Sachin wrote:Is there any web site which explains the GST v/s the previous tax system? Perhaps with an explanation on how a simple purchase would have got taxed in the previous system v/s the new GST system? I have seen very many media reports, but honestly I cannot trust them. First of all they have an agenda, and secondly they don't have CAs as reporters.

Honestly speaking, almost...almost everything should cost less, except some/many services..If not, just simbly assume the buck is not passed onto to you!

chetak · Post by **chetak** » 02 Jul 2017 22:23

twitter

"Madam #gstrollout me jaane ki Jid kar rahaa hai... Pakad ke leya ayaa hoon. Band kardo Bathroom mei Sitaram Kesri ki tarah"

disha · Post by **disha** » 02 Jul 2017 22:41

Lot of angst is there among people on GST rates., point is - earlier they were not paying *any* tax and now they are made to pay the tax.

Take the auto parts dealer in the posts above who simply said that the party is over., yes his own suppliers will force him to move into GSTN. Or he will risk being dropped off the dealership.

kiranA · Post by **kiranA** » 03 Jul 2017 02:25

JohnTitor wrote:The toilet paper has an info graphic of items in various bands. I cant post the image here as its not an image file.

http://m.timesofindia.com/business/indi ... 396877.cms

Anyway, for the 18% band they have among other things, ATM. What is that? Are you going to be charged 18% for withdrawing your own money? If so, ack thoo on this government.

"Power will go into the hands of rascals, rogues, and freebooters. Not a bottle of water or loaf of bread shall escape taxation; only the air will be free and the blood of these hungry millions will be on the head of Attlee." - Winston Churchill, 1947.

vera_k · Post by **vera_k** » 03 Jul 2017 02:45

rahulm wrote:
Is KitKat chocolate or biscuit?’, because chocolates and biscuits suffer different rates.
From the rate schedule, 'biscuits and waffles without chocolate'. The attention to detail and the granularity in slicing and dicing 'waffles without chocolates' is frankly incredulous and seems to be a vestige of socialist thinking.

KitKat is a particularly interesting one. In the USA, KitKat is classified as food, since it is made out of wheat flour, and is therefore free from sales tax in states where food is not taxed. The underlying classification relies on the amount of wheat flour involved.

Point being that at some point there will be the exception to every rule. Good part about the GST setup is that the classifications are not directly in the politicians hands, so they can updated relatively easily without it becoming a political issue.

Rishirishi · Post by **Rishirishi** » 03 Jul 2017 03:07

They really could have made it simpler. Implimented a falt 15% tax on everyting,including electricity, food etc. Each Adhar card holder could have been given a credit of say RS 8 000 in the bank to compensate for the tax on essential items.

Besides this all transactions above RS 25 000 should be based on E-invoicing together with payment. It would have been the final end of black money.

disha · Post by **disha** » 03 Jul 2017 05:01

I am actually glad that confectionaries are taxed. Things like kit-kat, soda etc being taxed - even though harkens back to socialist thinking., it is important that it remains to be taxed. From the perspective of health.

Personally I do have hatred for sodas and the way it is sold in India. I do wish Kareena Kapoor when she looks back lustily in to the camera after just finishing her oh-so-cool lemony limca drink actually has written in contract that she consume 4 250 ml of limca everyday. In absence of that, a high tax rate is just fine on it.

%/%/%

Looking at the fotos of the entry nakas post-GST., it appears that the dog-biscuit industry will be in severe decline!

disha · Post by **disha** » 03 Jul 2017 05:03

Taking a leaf out of #mediapimps:

Automobile companies raise prices on vehicles pre-GST

Also #Blow2Modi from the above article. People who hoarded on essential items like Maggie ketchup or cerelac infant milk powders prior to GST are unhappy with Modi.

rahulm · Post by **rahulm** » 03 Jul 2017 05:45

States remove barriers at borders, issue advisory for smooth truck movement

Several states including Karnataka, Andhra Pradesh and Tamil Nadu have dismantled border check posts with the advent of goods and services tax (GST), reducing some hassles for trucks that often queued up for hours to clear the biggest hurdle in the movement of goods within the country.

States have, in the meantime, sent out fresh advisories to the field officers to ensure that goods are not held up and the new rules are implemented. Assam and Uttar Pradesh have asked its officials to check the GST Identification Number, along with the invoice number, consignment notes (or bilti), tax invoice and registration of the logistic firm.

Assam, which will soon come out with an "inward permit" system........

Good grief ! What is this inward permit ?

If I am an Excice Inspector monetising my authority to save for my 'daughters marriage' what am I supposed to do now ?Centre banned red beacons, babus etc are now using flags, states will come up with some other device to try and maintain corruption.

rahulm · Post by **rahulm** » 03 Jul 2017 05:56

Whe. It's all murky and hazy, always follow the money. The market likes the GST

GST launch sends FMCG shares soaring; stocks see up to 300% rise in 6 months

Analysts say that post GST implementation, most FMCG companies will be able to generate substantial savings in logistics and distribution costs as the need for multiple sales depots will be eliminated. At the moment, FMCG companies end up paying nearly 24-25% taxes including excise duty, VAT and entry tax. With a tax rate of 18% under GST, there could be a significant reduction of 6-7% in taxes.

GST impact on cars and two-wheelers: These cars and motorcycles just got cheaper

GST Impact on cars: Change in price of Maruti, Hyundai, Tata and Mahindra Cars

SBI to offer GST-ready solutions starting today
The largest lender State Bank of India (SBI) on Saturday announced its Goods and Services Tax (GST) ready solutions, including the introduction of online payment through internet banking and debit card.

GST impact: New tax regime to boost GDP; positive for rating, says Moody’s VP William Foster I know it's Moodys. Since, Moody likes it, then, by definition The GST is a conspiracy and not good for,India

Even if I am a trader/service provider with a < 20 lakh turnover and therefore, exempt from GST registration and compliance, I. May have no choice in the matter if I supply to a larger company who mandates all suppliers must be GST registered or I decide not to be a supplier to this company . Correct ? [PS Pls excuse the terrible grammar in this sentence ]

Karthik S · Post by **Karthik S** » 03 Jul 2017 08:21

Is GST exempt for Churches and Mosques but is applicable to temples that exceed 20L in donations?

rahulm · Post by **rahulm** » 03 Jul 2017 10:17

I have eaten out everyday since the 1st. No change in anything

Yagnasri · Post by **Yagnasri** » 03 Jul 2017 13:35

http://www.business-standard.com/articl ... 286_1.html

The poor movie threaters in TN are going to be closed. Daily serials are the only way out.

Aditya_V · Post by **Aditya_V** » 03 Jul 2017 15:09

Real Paki of TN Govt to ask Municipalities to levy Entertainment Tax since GST subsumed TN Govt Entertainment Tax. Seems a deliberate ploy against the Cinema industry.

chetak · Post by **chetak** » 03 Jul 2017 15:49

Aditya_V wrote:Real Paki of TN Govt to ask Municipalities to levy Entertainment Tax since GST subsumed TN Govt Entertainment Tax. Seems a deliberate ploy against the Cinema industry.

a temperory ploy to squeeze money out of exhibitors and distributors.

other sources like liquor and check post hafta has been reduced to a mere trickle.

chetak · Post by **chetak** » 03 Jul 2017 15:53

rahulm wrote:States remove barriers at borders, issue advisory for smooth truck movement

Several states including Karnataka, Andhra Pradesh and Tamil Nadu have dismantled border check posts with the advent of goods and services tax (GST), reducing some hassles for trucks that often queued up for hours to clear the biggest hurdle in the movement of goods within the country.

States have, in the meantime, sent out fresh advisories to the field officers to ensure that goods are not held up and the new rules are implemented. Assam and Uttar Pradesh have asked its officials to check the GST Identification Number, along with the invoice number, consignment notes (or bilti), tax invoice and registration of the logistic firm.

Assam, which will soon come out with an "inward permit" system........
Good grief ! What is this inward permit ?

If I am an Excice Inspector monetising my authority to save for my 'daughters marriage' what am I supposed to do now ?Centre banned red beacons, babus etc are now using flags, states will come up with some other device to try and maintain corruption.

KAR it seems has started PV posts ie physical verification posts in lieu of check posts to ensure that the e declaration actually corresponds to the goods being carried in the truck. Same shit, different name, same moolah.

congis just cannot afford to let go any money from KAR under any circumstances.

rahulm · Post by **rahulm** » 03 Jul 2017 18:29

GST may help Indian economy save up to Rs 2300 crore at check posts

disha · Post by **disha** » 03 Jul 2017 19:49

^Isn't that 2300 crores figure per day?

Atmavik · Post by **Atmavik** » 03 Jul 2017 20:36

Sunil Jain‏Verified account @thesuniljain

The truck no longer stops here!!!! See the empty octroi post at Dahisar in Mumbai

disha · Post by **disha** » 03 Jul 2017 23:54

^^ #Blow2Modi., economy collapse due to roll out of GST and prior to that Demonetization.

disha · Post by **disha** » 04 Jul 2017 00:15

chetak wrote:KAR it seems has started PV posts ie physical verification posts in lieu of check posts to ensure that the e declaration actually corresponds to the goods being carried in the truck. Same shit, different name, same moolah.

Chetak'ji., will this not make life difficult for the residents for that state? Think about it., the truckers and companies will prefer to send their goods to Mah or TN or AP or Telangana but not to Karnataka at the same rate since all this hassles to add up if Karnataka starts throwing tantrums.

In fact cost of shipping to some states will increase! So now it is in state's interest to dismantle their Octroi Nakas.

I am just pleasantly surprised that the lines on Nakas have disappeared within a day! This was predicted., that on GST rollout all the dog-biscuits at nakas will vanish - and now we see it.

Atmavik · Post by **Atmavik** » 04 Jul 2017 00:31

looks like chai pani has been dealt a Uge blow. shiv sena crying here ..

Hari Seldon · Post by **Hari Seldon** » 04 Jul 2017 07:30

jayasimha · Post by **jayasimha** » 04 Jul 2017 10:01

http://pib.nic.in/newsite/PrintRelease. ... lid=167107
Press Information Bureau
Government of India
Ministry of Finance
03-July-2017 20:51 IST
Appeal to people not to start circulating wrong messages on social media as no distinction is made in the GST Law on any provision based on religion.

There are some messages going around in the social media stating that the temple trusts have to pay the GST while the churches and mosques are exempt. This is completely untrue because no distinction is made in the GST Law on any provision based on religion.

We request to people not to start circulating such wrong messages on social media.

*****
DSM

jayasimha · Post by **jayasimha** » 04 Jul 2017 10:07

Press Information Bureau,Government of India,Ministry of Finance
03-July-2017 20:15 IST
With The Roll-Out of GST,
The Goods and Services Tax (GST) was rolled out on 1st of July 2017. With the roll-out of the GST, 22 States in India have abolished their check posts. The details are as under -
1. Andhra Pradesh
2. Arunachal Pradesh
3. Bihar
4. Gujarat
5. Karnataka
6. Kerala
7. Madhya Pradesh
8. Maharashtra
9. Sikkim
10. Tamil Nadu
11. West Bengal
12. Chhattisgarh
13. Delhi
14. Goa
15. Haryana
16. Jharkhand
17. Odisha
18. Puducherry
19. Rajasthan
20. Telangana
21. Uttar Pradesh
22. Uttarakhand

States where check posts are in the process of being abolished

1. Assam
2. Himachal Pradesh
3. Manipur
4. Meghalaya
5. Nagaland
6. Punjab
7. Mizoram
8. Tripura
******************
DSM/SS/KA

rahulm · Post by **rahulm** » 04 Jul 2017 10:25

22 states scrap checkposts for smooth GST rollout

A session of the assembly of J&K, which is yet to enact the law+ for the implementation of GST, has been convened on Tuesday to consider approving the legislation.

Behind the GST scenes, a team of 10, countless questions

[a team of about 10 central government officers stationed at the GST Feedback and Action Room of the Finance Ministry is putting in about 14 hours daily, starting from 8 am, to monitor real-time feedback on the transition from across the country./quote]

Officials from the states are also sending their feedback to the team, which is being monitored, alongside external feedback channels such as Twitter. “Twitter handles are being handled by Directorate General of Taxpayer Services. There are two Twitter handles and there is a group designated to handle this. They are mostly from the GST policy wing of the CBEC, they are divided among officers section-wise — registration, returns, refunds, migration,” said Sarna.

rahulm · Post by **rahulm** » 04 Jul 2017 10:26

disha wrote:^Isn't that 2300 crores figure per day?

Could be. I don't think the article specifies. 2300 per year sounds too low.

State corruption thrived in naked. I would wait and watch. The lootmar shock is going to hurt the state governments. I won't be surprised if they are hatching alternate plans - eg door to door extortion of businesses. Seriously

I mean what would an excise inspector who paid 30 lakhs or so for a posting say a year ago do? He had every expectation that he would recover and then grow his investment. There would be thousands upon thousands of such people across the country who will be smarting financially and frothing at the mouth.

Since these bribes would have been paid with the tacit understanding and connivance of the state government, the government now has to look after these people. Honour and code among thieves etc.

sanjayc · Post by **sanjayc** » 04 Jul 2017 10:29

disha wrote:Lot of angst is there among people on GST rates., point is - earlier they were not paying *any* tax and now they are made to pay the tax.

Take the auto parts dealer in the posts above who simply said that the party is over., yes his own suppliers will force him to move into GSTN. Or he will risk being dropped off the dealership.

Well, there is a lot of angst too among thieves whenever a new police check post is set up.

Manish_P · Post by **Manish_P** » 04 Jul 2017 10:48

rahulm wrote:I have eaten out everyday since the 1st. No change in anything

Sir, Udupi restaurants (non AC) in mumbai now putting '18% GST will be added' sticker on the menu card and on the bill (but asking if you want to retain the bill). So their prices have directly gone up 18%. People grumbling to the waiters but paying up.

putnanja · Post by **putnanja** » 04 Jul 2017 11:11

Manish_P wrote:
rahulm wrote:I have eaten out everyday since the 1st. No change in anything
Sir, Udupi restaurants (non AC) in mumbai now putting '18% GST will be added' sticker on the menu card and on the bill (but asking if you want to retain the bill). So their prices have directly gone up 18%. People grumbling to the waiters but paying up.

Actually, they should be paying only 3.5% extra, as earlier VAT was 14% + Krishi Cess + Swatchh Bharat cess. Someone has to question these restaurants. Either they were not paying VAT earlier, or are making money by using GST as its straight profit of 14.5%

Viv S · Post by **Viv S** » 04 Jul 2017 11:21

Manish_P wrote:Sir, Udupi restaurants (non AC) in mumbai now putting '18% GST will be added' sticker on the menu card and on the bill (but asking if you want to retain the bill). So their prices have directly gone up 18%. People grumbling to the waiters but paying up.

GST at non-AC restaurants should be 12% (18% is for AC restaurants). Less than VAT. Next time you visit one, retain the bill. Report them if it says 18%.

Manish_P · Post by **Manish_P** » 04 Jul 2017 11:32

Viv S wrote:
Manish_P wrote:Sir, Udupi restaurants (non AC) in mumbai now putting '18% GST will be added' sticker on the menu card and on the bill (but asking if you want to retain the bill). So their prices have directly gone up 18%. People grumbling to the waiters but paying up.
GST at non-AC restaurants should be 12% (18% is for AC restaurants). Less than VAT. Next time you visit one, retain the bill. Report them if it says 18%.

What if the restaurant is both.. i mean it has an AC section, but you were seated in the Non-Ac section ?

JayS · Post by **JayS** » 04 Jul 2017 12:02

rahulm wrote: State corruption thrived in naked. I would wait and watch. The lootmar shock is going to hurt the state governments. I won't be surprised if they are hatching alternate plans - eg door to door extortion of businesses. Seriously

You mean like this >> In BLR Police vans come daily to collect hafta from all the shops in my area. Like 50 buck per small shop. May be more from bigger restaurants, shops.

I am pretty sure the corrupt system will find its ways to suck juice out of people. Making laws and systems is OK, but the implementation should be ruthless. It would bode well if GOI squashes all the malpractices arising under new GST in initial days with ultra-high prejudice to set precedence of intolerance (e.g. cancelling license for those who are caught for malpractices with steep penalties, officers in connivance fired etc). But we know better what will happen. Of coarse expect state governments to meddle there as well. And many of the bizmen to also help for whom older system was a matter of convenience.

ashthor · Post by **ashthor** » 04 Jul 2017 13:58

Karthik S wrote:Is GST exempt for Churches and Mosques but is applicable to temples that exceed 20L in donations?

Not true

https://twitter.com/FinMinIndia

https://twitter.com/FinMinIndia/status/ ... 2286922753

https://twitter.com/FinMinIndia/status/ ... 6482022400

https://twitter.com/FinMinIndia/status/ ... 2416779265

Singha · Post by **Singha** » 04 Jul 2017 14:00

were the office catering business tax free earlier?

they have raised prices in our office from 20 to 25%

Rs 40 chole-rice has become Rs50 (now they show base price as Rs42 and GST of around Rs8)

Rs 100 roomali roti-salad-dal-paneer bhuji Rs 100->Rs120 (20% hike)

Karthik S · Post by **Karthik S** » 04 Jul 2017 14:08

Perhaps case wherein these caterers were not paying taxes before.

rahulm · Post by **rahulm** » 04 Jul 2017 14:19

This was expected to happen. Saving grace is it's a one time gouge to 'adjust madi' with being a part of the tax net. Doesn't justify it though.

The price before GST was probabky the 'tax evasion' price. Or, maybe, some are seeing this a a wonderful one in a long while opportunity to rake it in.

Either way, competitive pressures should even things out.

inflation fugues over the next few quarters should tell us the story.

JayS · Post by **JayS** » 04 Jul 2017 14:20

Singha wrote:were the office catering business tax free earlier?

they have raised prices in our office from 20 to 25%

Rs 40 chole-rice has become Rs50 (now they show base price as Rs42 and GST of around Rs8)

Rs 100 roomali roti-salad-dal-paneer bhuji Rs 100->Rs120 (20% hike)

Not the first case I heard where food price was increased under the pretext of GST. Like this example some have hiked base price as well. Either they were not paying taxes or they are simply increasing their margin now. Even if its the former case, and they are now paying 18% tax as addition, it should not be 18% net hike in total price as they are suppose to pass on benefits of ITC that they would be getting (and there would surely be some). For example, most of the branded packaged food items such as flour, edible oil etc has 5% tax which can be claimed as ITC. The seller should adjust his base price such that the base price + 18% GST would reflect this ITC as passed on to the customer. If seller is not doing it, you should report him to government under anti-profiteering law. Ideally speaking.

I don't know how big is your office canteen. But generally if its of decent size he must have been paying taxes already. In any case, your company HR should be able to get the things cleared out and make sure he is not overcharging you under the GST pretext.

Prasad · Post by **Prasad** » 04 Jul 2017 14:22

Restaurant bills are seeing a marginal reduction. This increase might be due to earlier evasion.

Karthik S · Post by **Karthik S** » 04 Jul 2017 14:23

Even mineral water cans prices have increased from Rs 30 to Rs 35.