Rajakumari's blog

The Government is making all efforts to stick to the timeline of 1st July for GST implementation. In the 15th GST Council meeting on 3rd June, 2017, the rates of 6 items were decided, including gold, footwear and textiles. All the states, except West Bengal, have also agreed to roll out GST from 1st July, 2017. Following is the status update on the GST Act and rules:

The 22nd GST Council in its meeting held at New Delhi on 6th October 2017, discussed about key changes required to ease the burden of compliance on small and medium businesses. The difficulties in filing the return, inconveniences faced on account of paying tax on RCM and advance receipts and proposals received from various trade associations to lower the rate of GST on certain products/services, were few important issues which were discussed and accordingly the recommendations are made by GST council meeting.
The following are the GST Council’s decisions:

In the GST Council meeting on 10th November, ’17, various decisions were taken with the view to make compliance easier for small tax payers, make composition scheme more attractive for tax payers and reduce the household expenditure for consumers. Let us understand the GST Council’s recommendations in detail:
 

Return filing

August 3rd, 2016 will be recorded as a red letter day in the history of Indian taxation due to the near unanimous passage of 122ndConstitutional Bill in Rajya Sabha, paving the way for roll-out of GST (Goods and Services Tax) in India from 1st of April 2017. Goods and Service Tax Bill has significantly evolved over the past decade and is touted as the single largest tax reform in India since independence. It is estimated to boost GDP by 1.5 to 2%. ‘One India, One Tax’ will be the new reality with GST subsuming over ten indirect taxes and making India a common market.

This blog post has been updated on 6th June 2017.
GST (Goods & Services Tax), a single unified tax system aims at uniting India’s complex taxation structure to a ‘One Nation- One Tax’ regime. It is the biggest tax reform since India’s independence.
What does this mean? What will be its impact? What is the difference between GST and current tax structure?
GST proposes to remove the geographical barriers for trading, and transform the entire nation to ‘One Common Market Place’.

The value of all the goods and services consumed in an economy is arrived at based on certain metrics. In the current tax regime in India, this value is calculated in different ways. An overview is provided in the table below:

Tax

Value of goods/services

Excise

Based on transaction value or quantity of goods or MRP

VAT

Based on sale value

Service Tax

Based on taxable value of service rendered

Valuation of goods and services

This post has been updated on 24 April 2017 to incorporate latest changes.
The current state indirect tax regime has provided a simpler compliance for small dealers known as the Composition Scheme. Under this scheme you,

Under the current indirect tax structure, the taxable event differs for each type of tax. The taxable events under the current indirect tax structure are captured below:

Type of Tax

Taxable Event

Central Excise

Removal of excisable goods

VAT

On sale of goods

Service Tax

Provision of taxable services

In our earlier blog Supply of Goods and Services: What does it Mean we discussed about supply with consideration which is mostly about business operational activities like sales, transfers, and so on.
In this blog post, we will discuss exceptional scenarios, which form a part of supply, and are taxable:

• Supplies made without consideration
• Supplies made for a consideration, whether or not in the course or for furtherance of business

If you look at the market today, you will notice very often, two or more goods, or a combination of goods and services, are supplied together. This could be due to either of the following reasons: