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GST Related News and Details

Discussion in 'World Economy' started by defc0n, Jun 30, 2017.

  1. Flyboy!

    Flyboy! Lieutenant FULL MEMBER

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    Dude. These people are apparently scholars in commerce and administration. How can you goof up on stuff that a school kid could put together. ?
     
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  2. Blackjay

    Blackjay Developers Guild Developers -IT and R&D

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    Apparently they can screw up anything ...
    :big_boss:
     
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  3. Blackjay

    Blackjay Developers Guild Developers -IT and R&D

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    Border commercial tax checkposts in 22 states abolished after GST rollout
    By Deepshikha Sikarwar , ET Bureau & Agencies | Updated: Jul 04, 2017, 12.19 AM IST

    tax checkposts after the rollout of goods and services tax ( GST) on July 1, marking a big step towards ‘One nation, one tax’ goal of this reform.

    These states include both NDA-ruled ones and those by the opposition, indicating a broad-based intent to implement the GST.

    The states include Gujarat, Bihar, Karnataka, West Bengal, Tamil Nadu, Haryana, Kerala, Madhya Pradesh, Uttarakhand. Eight states including Assam, Himachal Pradesh, Manipur, Meghalaya, Nagaland, Punjab, Mizoram and Tripura are in the process of abolishing their checkposts, an official statement said on Monday.

    “The Goods and Services Tax (GST) was rolled out on 1st of July 2017. With the rollout of the GST, 22 states in India have abolished their checkposts,” the statement said.

    Many states have also issued advisories to field to not stop trucks. The abolition of checkposts will allow seamless movement of goods across the border, ending hours of waiting commercial vehicles had to endure at state boundaries.

    Seamless transport is expected to cut transport costs, which will help make goods cheaper. In India, goods are largely transported by the most costly mode, roads, and the state boundaries escalated that costs.

    Border checking is primarily for tax compliance issues and also scrutiny of materials. This causes delay and also has been identified as major source of pollution as trucks idle for hours.

    According to a PhillipCapital study, logistics account for 14% of GDP in India compared to 8.5% for US. In the GST regime, Electronic Way Bills, also called E-way Bills will be the primary document for transportation of the goods. Any movement of goods worth over `50,000 can be done only after online registration of the consignment to secure an 'e-way bill' that tax officials can inspect anytime during the transit to check tax evasion.

    NO RELIGION-BASED DISTINCTION


    “There are some messages going around in the social media stating that the temple trusts have to pay the GST while the churches and mosques are exempt,” a finance ministry statement said.
    This is completely untrue because no distinction is made in the GST Law on any provision based on religion, it said.

    Link-
    http://m.economictimes.com/news/eco...-22-states-abolished/articleshow/59427724.cms
     
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  4. randomradio

    randomradio Mod Staff Member MODERATOR

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    No, all goods, even local kirana, have to be registered through GST.

    So goods will be tracked. And whatever the kirana store returns as unsold goods is tallied against the goods that were sold.

    For example, if the kirana ordered 30L worth of goods, sold 25L worth of goods, returned 5L, and they show only 15L as their total business, the system will register the missing 10L. And since all goods are traced, the system will pinpoint who is cheating.

    So even if they are not part of the GST, their goods are within the system. The entire wholesale system is under GST.

    Anyway GST is added to the cost price, not the selling price.
     
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  5. Blackjay

    Blackjay Developers Guild Developers -IT and R&D

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    Only Kirana stores having turnover more than 75 lakh need to file GST.Yes goods will be tracked from beginning,but if the distributor sells it to a non GST entity (<75 lakh) then the tracking ends there.The govt get GST from distributor in this case.

    Only if tax officer wants to track the good further will it be tracked.The distributor will have record of name and address of the kirana shop on his invoice but since the kirana shop doesn't have a GSTIN,they need to be tracked down manually and auditors will have to check their offline books against invoices of distributors.This needs to be done manually.There is no online record for what kirana shop bought or sold or returned since they are not needed to register on GST network.The goods will be tracked only till they reach a person who doesn't need to register,hence doesn't need to file returns.


    The above was said by an expert on DD while reassuring some small sellers.So I am quite sure.


    GST is always added to transaction value not cost price.
    Link-
    http://profit.ndtv.com/news/economy...transaction-value-not-mrp-say-experts-1718066

     
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  6. randomradio

    randomradio Mod Staff Member MODERATOR

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    The taxman will have the information from the distributor when he does an audit, meaning they won't let tax evaders go simply because they are outside GST.

    It's simple calculation really. They can figure out if an area is paying less taxes or not looking at the sales records of the distributor. The distributor itself has to submit records of where their goods are going. So the small traders are indirectly within the system.

    http://timesofindia.indiatimes.com/...d-to-evade-taxes-now/articleshow/59361873.cms

    (I forgot to add the profit to the cost price earlier, my bad about that.)

    Yesterday: MRP = Cost price + profit + whatever taxes apply
    Today: MRP = Cost price + profit + GST

    Nothing's really changed for the consumer.

    The old packaging with MRP has older taxes added into it, so if any trader is adding GST over that then it's illegal. The new packaging will come with an adjusted price, so you only have to pay that.
     
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  7. GuardianRED

    GuardianRED Lieutenant FULL MEMBER

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    IMG_20170705_002610.jpg

    Want to clarify this (from twitter) ..... Isn't the service charge included in the GST?? or can the restaurant charge this?
     
  8. randomradio

    randomradio Mod Staff Member MODERATOR

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  9. Sathya

    Sathya Lieutenant FULL MEMBER

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    Now everyone tmkes this as a chance to jack up price...

    Or use threatening of price rise to seal the deal..

    Basically in my medical field , most of them say 5% tax got increased to 18% .

    So my consumables get price rise of about 13% !
     
  10. randomradio

    randomradio Mod Staff Member MODERATOR

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  11. Sathya

    Sathya Lieutenant FULL MEMBER

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    Thanks for the links ..
    I guess hospitals doesn't qualify for input tax credit. Since they use goods to patients instead of reselling them.
    Few expensive items like stents can come under input tax credit, I am not sure.


    Basically what we were doing all along is ..paid tax for net profit.

    Now since material cost increases, profit margin reduces.
    Hospitals might increase their fares, especially those doing low profit margin service .
     
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