Importance of GST
GST is the biggest improvement after independence. This will pave the way for a nation - a tax - a goal of a market. GST will benefit all the parties, such as the industry, government and consumers. This will reduce the cost of goods and services, the economy will be strengthened and the product and services can be made competitive in the global form and the 'Make in India' program will be mainly strengthened. Under the GST system, the rate of tax on exports will be zero, which will be different from the current system, as there is no refund of some taxes at present because the nature of the indirect taxes is split between the centre and the states. GST will make India a common market, in which tax rates and procedures will be the same and financial problems will end. GST will be mostly driven by technology and will have very few human connections. The process of doing business in India from GST is likely to be easy. The tax rate approved by the GST Council in the vast supply of commodities is currently taxed jointly by the Central and the States (such as Central Excise Duty / Containing Central Excise Rate / Clearance-Later Assured Service Tax, VAT rates or weighted average VAT rates, the impact of VAT on excise duties, Central Sales Tax, Taxation Tax, Enrolment With etc. incurred due tax) will be significantly lower than the rates.
Constitution Amendment Act , 2016
101st Constitution Amendment Act, 2016 came into being after the acceptance of the Honourable President on September 8, 2016. GST Council was established on 15.09.2016.
Since its inception in September, 2016, 18 meetings of GST Council have been held. In the wider meetings, the Finance Ministers of all the states or their representatives and officials of the Central and State Governments participated and prepared the method and procedure to implement this historic tax reform. It was a huge task, in which 27,000 + hours worked. To accelerate the implementation of GST, the officials of the Center and the States participated in more than 200 meetings in various parts of the country.
On March 29, 2017, Hon'ble Finance Minister presented the four bill related to the object and service tax (GST) in the Lok Sabha for consideration and passing of the Lok Sabha. These were: Central Object and Service Tax (CGST) Bill, 2017, Integrated Commodity and Service Tax (IGST) Bill, 2017, Union Territories and Services Tax (UTGST) Bill, 2017 and GST (Indemnity for States) Bill, 2017 . These entire Bill passed by the Lok Sabha on March 29, 2017, and the Rajya Sabha on 6th April, 2017.
GST Council has approved the final structure of GST in the following form:
- The exemption ceiling will be Rs 20 lakhs for all the States excluding the special category states, this limit will be 10 lakh rupees for special category states.
- Four slab tax rate structures of 5 percent, 12 percent, 18 percent and 28 percent have been approved for GST.
- A cess will be levied on some items, which include luxury cars, aerated drinks, pan masala and tobacco products, which will be levied at the rate of 28 percent of GST so that compensatory payments can be made to the states.
- Except for special category states, the limit for availing the composition scheme for all states will be Rs. 75 lakhs, whereas special category states will have Rs. 50 lakhs and they will have to file only quarterly returns, except for certain categories of service providers (except restaurant) have been excluded from the composition scheme.
- All transactions and procedures in GST will be done only through electronic mode so that the goal of the intervention-free administration can be achieved. This will allow taxpayers to have at least physical contact with tax officials.
- GST has the provision of monthly returns and auto-creation facility of annual returns.
- In this, the taxpayers will be given the refund of the prescribed grant within 60 days and the facility of temporarily issuing 90 percent refunds to the exporters within seven days will also be provided. In the event of non-refund on time, measures like interest payment and refunds have been done directly in the bank accounts.
GSTN has been created in the form of a section of 25 private limited companies, whose strategic control will be with the government. This network will serve as a shared portal for taxpayers. On this shared portal, the taxpayer will file his registration application, return the returns, pay tax, claim refund etc. A strong IT platform has been provided for GSTN, which will provide an interface to 80 million taxpayers and thousands of tax officials. All types of filing will be done electronically under GST.
Registration of all the existing taxpayers of the Central Board of Excise and Customs was started on November 8, 2016 in GST system on State Tax Administration. More than 66 lakh taxpayers have activated their accounts on GST portal.
GST applications related to payment have been started. 25 banks have been linked to GST sharing portal, which will facilitate transactions through NEFT / RTGS and credit/debit cards.
GST Contact Program
The government has prepared a contact program with the mass community through various activities, workshops, media, and television. CBEC's regional organizations have been activated at all levels so that trade and industry can be helped and their doubts disappeared during GST changes. A total of 4700 workshops were organized across the country.
A comprehensive multi-media campaign was launched through print and electronic media, outdoor billboards etc. so that information, education, and support can be provided to taxpayers and other affiliated parties for a smooth conversion to GST.
CBEC reorganized
The reorganization of Central Board of Excise and Customs (CBEC) for the implementation and operation of GST had become mandatory. In view of this, structural changes were made to the board and the capable personnel were deployed. Directorates expanded and strengthened to ensure access to the far corners of the country.
Regarding restructuring of field organizations, 21 CGST and CX Zone, 107 CGST and CX Commissioner's Office, 12 Deputy Commissioner's Office, 768 CGST and CX Division, 3969 CGST and CX Range and 48 Audit Commissioner's offices and 49 Appellate Commissioner offices have been formed.
Training :
Enhanced capacity building and awareness is necessary for GST to operate smoothly. For this, the National Academy of Customs Indirect Taxes and Narcotics (NACIN) has conducted extensive training courses. During the first phase, about 52 thousand officers of the entire country were trained. A refresher training program was also organized to give information on updated laws, rules and procedures, in which 17,213 officers were trained till 23 June 2017.
For more information, contact us at:
Compliance Chambers
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Abhimanyu Rajpurohit: +91 93100 48341, +91 7838060605
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