^^What are all the IT-Vity colleges doing in India? And all the It-vity companies like infosys/tcs/wipro - sucking thumbs?Manish_Sharma wrote:https://swarajyamag.com/economy/the-nig ... tax-reform
The Nightmare Called GSTN: Implementation Issues Can Derail India’s Biggest Tax Reform
Aashish Chandorkar
- Sep 12, 2017, 3:00 pm
“Bunker sales have dropped by as much as 90% with the introduction of GST,” said an industry official. “Sales are happening only on account of emergency situations where ships are stuck due to wrong calculations on bunker requirements,” he added.
Sales in Mumbai dropped from 8,000-10,000 tonnes a month to about 500-1,000 tonnes post-GST, said industry officials.
In Kochi, monthly bunker sales have tanked to 3,000-4,000 tonnes from about 25,000-30,000 tonnes.
Assuming an MOPS of 300, the VAT was $1.5 a tonne in Kochi at a VAT rate of 0.5 per cent. With GST at 18 per cent, the VAT on bunker has jumped by $54-60 per tonne in Kochi.
No idea on how the Works contracts that we were doing business as are going to be handledJayS wrote:Contract done in June. Partial payment in June. Rest in July. So the quandary. I am not sure how it works for "work contract".Schmidt wrote:
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Would the billing ( based on the work contract ) be done in stages depending on completion of the work ?
If any billing is done after 1st July , then GST would be applicable for that portion ( as the work contract would only specify a basic rate on top of which appropriate taxes would be applicable )
As a comparison , when we quote for any product , we always quote Basic Rate and specify taxes would be charged as applicable ( be it ED / VAT or GST now ).
As many as 70,000 co-operative housing societies (CHS) in the state, including 50,000 in the Mumbai Metropolitan Region (MMR), will have to register under the Goods and Services Tax (GST) regime as their annual collections (turnover) are likely to exceed the threshold of Rs 20 lakh.
Once a society is registered under GST, it has to meet various filing obligations. It also has to comply with the provisions of the reverse charge mechanism. Under this mechanism, if it makes payments to unregistered service providers such as cleaners, electricians and plumbers, it will have to bear the GST of 18% on such payments and also have to file relevant forms on the GSTN portal.
Maintenance charges are typically collected by a CHS for various purposes like providing security, lift maintenance, maintenance of common areas like a lobby or a garden and are typically a reimbursement for expenses incurred. As explained by TOI earlier, taxes like property, water, or electricity charges collected by the CHS from its members on behalf of local authorities or power entities will not be subject to GST.
According to a government circular, co-operative housing societies under GST are entitled to input tax credit (ITC) in respect of taxes paid by them on capital goods (such as generators, water pumps, lawn furniture), goods (such as taps, pipes, other sanitary/hardware fillings) and against input services such as repair and maintenance services.
Prasad wrote:On exporters finding things difficult under GST -
http://economictimes.indiatimes.com/new ... s?from=mdr
From what is reported, it appears that as usual our systems are not up to scratch from the get-go. Lots of dekha jayega, we'll figure it out when we go live type nonsense. Jetli's "please don't all of y'll file at the last minute" nonsense on top of it. Why would anyone have any confidence in govt function if they do such a shoddy job.
Something as simple as obamacare insurance website couldn't handle a few million transaction when it came out. It was a major embarrassment for US govt. They had to fly in engineers from Google and facebook to sort it out. With GST, apparently they hadn't done _any_ scale testing. It is pretty much the same mediocrity that average software engineers are happy with everywhere in the world.Prasad wrote:Prasad wrote:On exporters finding things difficult under GST -
http://economictimes.indiatimes.com/new ... s?from=mdr
From what is reported, it appears that as usual our systems are not up to scratch from the get-go. Lots of dekha jayega, we'll figure it out when we go live type nonsense. Jetli's "please don't all of y'll file at the last minute" nonsense on top of it. Why would anyone have any confidence in govt function if they do such a shoddy job.
Traders may get IGST exemption on imported inputs that currently don’t face basic customs duty
Read more at:
http://economictimes.indiatimes.com/art ... aign=cppst
https://m.economictimes.com/news/econom ... 114051.cmsjpremnath wrote:Is this so called "gaming" possible? Or is the scribe getting too excited?
https://www.bloombergquint.com/gst/2017 ... orts-surge
Earlier in the day, Jaitley said the government has decided to waive late fee on the filing of GSTR-3B for August and September. “To facilitate taxpayers, late fee on filing of GSTR-3B for August and September has been waived,” Jaitley tweeted. He added that the late fee which has been already paid will be credited back to the taxpayers’ accounts.
The Ministry of Finance also released GST-related data through its Twitter handle. It said that the total revenue of GST paid under different heads upto October 23, 2017 for the month of September 2017 is Rs 92,150 crore. While the total CGST revenue stands at Rs 14,042 crore, the SGST and IGST revenue are Rs 21,172 crore and Rs 48,948 crore respectively.
The GST Council may consider lowering tax rates on a host of goods such as handmade furniture, plastic products, and daily use items like shampoo, and simplify return filing rules in its meeting this week.
The Council, headed by Finance Minister Arun Jaitley, is scheduled to meet on November 10 to consider lowering of the 28 per cent GST rate on certain common use items, government officials said.
In further relief to small and medium enterprises, the panel is likely to rationalise tax rate in sectors where the total incidence of taxation has gone up because the goods were earlier either exempt from excise or attracted lower VAT rates in the previous indirect tax regime.
"A rationalisation of items in the 28 per cent tax bracket is expected. Most of the daily use items could be lowered to 18 per cent. Also tax rate on items like furniture, electric switches, plastic pipes could be relooked," an official said.
The Telangana Legal Metrology Department which has taken up a special drive across the state following complaints of levy of GST on packed goods having MRP, has registered over 1,000 cases and imposed fines to the tune of over Rs 10 lakh, said a senior official. The department found that small traders to big shopping malls and even multiplexes and prominent MNC food chains were allegedly indulging in this fraud, he said.
Commissioner for Civil Supplies, Legal and Metrology Controller C V Anand, had last month warned manufacturers, packers, importers against collecting GST in addition to the MRP on packaged goods. On receiving several complaints from people, special teams with Legal and Metrology Department officials were formed to make checks statewide and cases were booked against those indulged in malpractice or deceptive act.
Over 1.5 crore GSTR-3B returns filed till SeptemberRevenue collection under the goods and services tax (GST) remained robust with ₹ 92,150 crore collected for the month of September. This is marginally higher than the mop-up in August which was estimated at ₹ 90,669 crore.
Data released by the Finance Ministry on Tuesday showed that the total Central GST revenue is ₹ 14,042 crore in September while the mop up from State GST is ₹ 21,172 crore.
The government also collected ₹ 48,948 crore from Integrated GST last month of which the tax from imports is ₹ 23,951 crore. Receipts from compensation cess in September amounted to ₹ 7,988 crore of which ₹ 722 crore is from imports. “The total number of GSTR 3B returns filed for the month of September is 42.91 lakhs by October 23,” said the Ministry.
With taxpayers still facing difficulties in filing returns, the government has also decided to waive the late fee on filing of GSTR-3B for the months of August and September.
As many as 1.5 crore GSTR-3B returns have been filed between July and September, a notification from the Central Board of Excise & Customs, Ministry of Finance said.
While 56.8 lakh returns were filed in July and 54 lakh in August, the number came down to 47.4 lakh in September.
The decline could be attributed to the extension of the last date for filing GSTR-2 and GSTR-3 by the Ministry of Finance.
Hiccups in GSTN portal's one yearBihar Deputy Chief Minister Sushil Kumar Modi, who is also a member of the GST council, today said tax rates on 80 per cent items of top 28 per cent slab are likely to be slashed at the council's meeting starting tomorrow.
"Tax rates on 80 per cent of 227 items falling in top slab is likely to be reduced from 28 per cent to 18 per cent in the next GST council meeting. The GST fitment committee has also recommended reducing tax rates from 18 per cent to 12 per cent on a number of goods", Sushil Modi said at a function at the Bihar Chamber of Commerce here.
"So far, tax rates have been slashed on more than 100 items", he added.
The GST Council will meet on November 9 and 10 in Assam's capital Guwahati.
Now a year old, the Goods and Services Tax Network (GSTN) portal has drawn both praise and criticism.
Made operational on November 8 last year, it had covered all the states by March 2017 in terms of registration and given out provisional identifications to taxpayers, much before the GST rollout in July, say officials.
However, tax filers had to face a number of issues with the portal. The system crashed a couple of times in September, which led to the setting up of a group of ministers (GoM) to examine why and what to do, led by Bihar finance minister Sushil Modi.
"The journey has been both exciting and challenging," says Prakash Kumar, chief executive of GSTN, the information technology network for the new levy. Many blame continuous change in the GST laws for gaps on the portal, not GSTN itself. The GoM had identified 27 technical glitches on the portal, which it wanted Infosys, which had won a contract to maintain GSTN for five years, to fix by end-October.
However, only 18 of these had been operationalised by the deadline. Kumar refuses to call these glitches. He tells Business Standard, "First of all, these are not glitches. There were lots of functionalities they (GoM) asked us to incorporate or make available. They wanted certain new things to be added or certain others to be expedited on the portal."
He terms these as priority items the GoM had identified. "Of that, two-thirds were completed by that date. Most of the remaining ones will be completed by the time the GoM meets next," says Kumar.
Others say GSTN should be given more time to prepare itself. Bipin Sapra of consultancy EY says GSTN has had to provide a compliance portal for an evolving and complex law; more time is required to get the system right. "It makes sense to give GSTN the due time by maximising the compliances for the next six months and allowing the portal to reach its true potential," he adds.
Rshmi Khetrapal, founder of Countmagic, a GST software company, says though the creation of the portal and implementation
of the taxation system created initial hiccups, the move has over time been accepted and appreciated by accountants and businesses, across sectors.
GSTN had crashed in September when the initial deadline for the July returns was approaching. GSTN officials explained that a tax filer had submitted around 2.5 million invoices; in each, he gave the receivers' numbers. The GSTN system had a mechanism whereby filers have to first put the tax identification number (TIN) and then details of all invoices relating to that number. For instance, if you have 5,000 invoices relating to a particular buyer, you put the TIN of that buyer and then those invoices.
GSTN had fixed this issue by September 8 night but by that time, all the damage had been done, they say. The government has had to postpone the filing of returns for July a number of times. Even last month, the last day for filing of input returns, GSTR-2, was put off to November 30, from October 31. Also, the deadline for filing input-output returns, GSTR-3, was postponed to December 11, from November 10.
Many rapacious states and many greedy political parties had wantonly jacked up the GST rates to pressurise the Modi govt and blackmail them by giving it a bad name apart from having high hopes of collecting tonnes of money to spend on local bodies and frittering it away in the name of welfare by giving away free gas stoves, cookers and other high value articles to bribe voters and create vote banks for themselves.Supratik wrote:GST rates on restaurant cut to 5%.
GST on restaurants was never 28%. The highest rate was 18%.chetak wrote: This 28% GST on restaurants was a particularly unkind cut and it actually felt like both the state and central govts were your uninvited guests everytime you paid the bill at some decent hotel.
Sorry for the mistyping. I meant 18%hanumadu wrote:GST on restaurants was never 28%. The highest rate was 18%.chetak wrote: This 28% GST on restaurants was a particularly unkind cut and it actually felt like both the state and central govts were your uninvited guests everytime you paid the bill at some decent hotel.
