Registered taxpayers to file monthly GST return to tally input tax credit claim with output liability
Moving at a fast pace, the tax department came up with two more draft rules and their formats on GST returns and refunds requiring assessees to file monthly returns and specifying the procedure for claiming refunds of taxes, interest and fees. The stakeholders have been given time till 28 September 2016 to give their comments on the two draft rules which, along with other rules, will be finalised at the second meeting of the GST Council on September 30.
Source: The Economic Times dated 27 September 2016
Govt releases draft GST rules for payment, invoice and registration
The government released draft rules for registration, payment and invoices under the GST regime with the objective of minimising the physical interface between the taxpayer and the tax authorities that will check corruption and harassment. The rules are expected to be finalised in the second meeting of the GST Council to be held in New Delhi. Once finalised, they will help companies make changes to their information technology systems ahead of the GST rollout. The government plans to implement GST from 1 April 2017.
Source: Live Mint dated 26 September 2016
Tripura Assembly ratifies GST Bill
The Tripura Assembly unanimously ratified the Constitutional Amendment Bill on GST. State Finance Minister Bhanulal Saha moved a resolution to ratify the 122nd Constitutional Amendment Bill, 2014, which was passed without any opposition.
Source: The Times of India dated 26 September 2016
GSTN launch: Ground level implementation of GST begins with the launch of broadband-driven all-India network
With the launch of the GST Network (GSTN) all over India in a fully functional form, the nation is ready to enjoy the benefits of a truly common level playing field in terms of taxation with less paperwork and fewer nodes leading to a negligible logjam. The Indian market is going to look easier in terms of doing business in the days to come.
Source: The Economic Times dated 23 September 2016
GST threshold fixed at INR 2 million, the rate to be decided in October
Moving on the fast track to roll-out the new indirect tax regime from 1 April 2016, the GST Council fixed an annual turnover limit for exemption at INR 2 million and resolved that all cesses will be subsumed in the GST. While the next meeting of the Council on 30 September will finalise draft rules on granting exemptions, the GST rate and tax slabs would be decided at its three-day meeting beginning on 17 October. At the end of the first meeting, the Council headed by Finance Minister Arun Jaitley decided that the state authorities will have jurisdiction over assessees with an annual turnover of less than INR 15 million. For those with a turnover of over INR 15 million, Jaitley said there would be cross-examination either by officers from the centre or state to avoid dual control.
Source: The Indian Express dated 23 September 2016
268-page GST FAQs out; e-tailers, aggregators to register
Gearing up for the likely rollout of GST from April next year, the Central Board of Excise and Customs (CBEC) came out with extensive FAQs detailing the taxability of e-commerce players and taxi aggregators under the new set-up. The 268-page FAQ booklet, released by Finance Minister Arun Jaitley, answered over 500 questions on 24 topics, including registration, valuation and payment, scope and time of supply, refunds, seizure and arrest. It has also clarified that taxi aggregators will have to register under GST and also, there will be no threshold exemption for them.
Source: The Economic Times dated 21 September 2016
Did you know?
The GST Council conducted its first meet on the 22 and 23 of September 2016. The following were the decisions taken in the first GST Council Meet.
- Revision of threshold limit from INR 1 million (as given in the Model GST law) to INR 2 million per annum.
- Additional cess’s such as Swach Bharat Cess (SBC), Krishi Kalyan Cess (KKC), etc. would now get subsumed under GST.
- Traders with a gross turnover of up to INR 5 million would have the option to pay 1-2% GST under compounding or composition schemes under GST regime.
- Assessees having a turnover below INR 15 million to be assessed by state officials and those above INR 15 million to be assessed by officials of state as well as the centre. 1.1 million service tax assessees continued to be assessed by the officials of the Centre.
- FY 2015-16 selected as the base year for calculating compensation for States under GST.