Government treats GST as bilateral issue with Congress: Sitaram Yechury
The Communist Party of India (Marxist) (CPI-M) General Secretary Sitaram Yechury said that the Narendra Modi government has treated the GST Bill as a ‘bilateral’ issue between it and the Congress instead of taking all parties on board. "We had asked the government to convene an all-party meeting on the GST Bill and build a consensus. But the government has treated it as a bilateral issue between them and the Congress," Mr Yechury told the media.
Source: NDTV dated 20 June 2016
'Buy-one-get-one-free' deals to come under GST
Free samples and gifts offered with purchases as well as popular 'buy-one-get-one-free' deals may attract the proposed GST levy which the government plans to roll out from April next year. The Model GST Law, unveiled by the government last week for stakeholder comments, says that any supply sans any consideration will attract tax. This would cover free gifts and samples as well as buy-one-get-one-free deals, tax experts said.
Source: Business Standard dated 19 June 2016
Model GST draft puts onus on buyer
Shifting the onus on the buyer to check whether the seller has paid GST is being considered as one of the most onerous provisions in the draft Model GST Law. The draft also contains restrictions on items for which input tax credit can be availed. While the draft has been largely lauded, some additional difficulties could arise owing to provisions relating to 'time of supply' as GST is a destination-based tax.
Source: The Economic Times dated 18 June 2016
Draft GST Law envisages harsher penalties for tax evaders
Tax evaders could be exposed to harsher penalties, including a lower threshold for arrest provisions, according to the draft Model GST Law. A tax evasion of INR 2.5 million could attract a prison sentence of up to one year and a fine. The sentence could go up to three years if the evasion exceeds INR 5 million. Non-bailable arrest with imprisonment of up to five years could follow if the evasion value exceeds INR 25 million, apart from fines.
Source: Business Standard dated 17 June 2016
GST may make restaurants, movies, malls cheaper
The Revenue Neutral Rate Report (RNR Report) has specified the standard rate of tax to be 18%. For products – a likely rate of 18% as against the current effective rate of around 23%-24% on the supply of goods, coupled with the availability of input tax credit (which was not available earlier) should be beneficial to traders. For services - services like banking, insurance, telecommunications used by the common man is likely to prove expensive under the GST regime owing to the escalation of GST on the supply of services from the current rate of 15% to 18%.
Source: The Economic Times dated 17 June 2016
Model GST Law put out for stakeholders’ view
Pressing the pedal on GST, the government put out for debate a draft law to introduce this much-delayed reform on 14 June 2016, a day when Finance Minister Arun Jaitley claimed no support among states for the Congress' demand for a constitutional cap on this levy. "We request all stakeholders to give their suggestions/comments to the Secretariat of Empowered Committee of Finance Ministers and/or to the Finance Ministry," Revenue Secretary Hasmukh Adhia tweeted.
Source: The Economic Times dated 14 June 2016
Did you know?
The Model GST Law has been divided into two major parts (Acts), Central/State Goods and Services Tax Act, 2016 and The Integrated Goods and Services Tax Act, 2016
- The Goods and Services Tax Act, 2016 consists of 25 chapters, 4 schedules and GST valuation rules, that explain the various aspects of the GST Act.
- The Integrated Goods and Services Tax Act, 2016 consists of 11 chapters that explain the various aspects of the Integrated GST Act meant to regulate inter-state supplies.