GST impact: Yogi govt breached ‘One Nation, One Tax’ theme, say SMEs

The small and medium enterprises in Uttar Pradesh have pilloried the Yogi Aditya nath government for purportedly breaching the spirit of ‘One Nation, One Tax’ theme of the Goods and Services Tax (GST) by mandating e-Way Bill for goods of smaller value.
E-Way Bill is an electronic bill required for the movement of goods above the value of Rs 50,000 under GST. However, the Yogi government has mandated it even for transporting goods of the value of Rs 5,000 and above, which the entrepreneurs claim violated the GST rules, since the threshold is 10 times less than as provided under relevant rules.
Claiming that the e-Way Bill decision had been taken in haste, Micro, Small and Medium Enterprises (MSME) chamber, Indian Industries Association (IIA) has asserted it would hit the state’s small and medium businesses hard, while impairing their competiveness as well.
IIA has submitted its representations to the GST Council chairman, Centre, UP finance ministers, UP Tax department etc seeking the rollback of the decision for providing succour to the sector.
The MSME space in UP is estimated at over 4 million units and the sector contributes almost READ MORE

GST’s e-way Bill is logistical nightmare for India’s air express players

India sits at number 35 on the World Bank Logistics Index, which takes into account multiple variables such as customs, infrastructure, international shipments,logistics quality and competence, tracking and tracing, and timeliness.
As Prime Minister Narendra Modi pushes for better standards in ease of doing business, bolstering the economy by way of the ‘Make-in-India’ initiative and looking to bring in increasing amount of foreign investment, it is important for us to analyse India’s logistics backbone accordingly.
While GST is expected to boost India’s ease of doing business rankings, it is still unclear if the big bang tax reform will yield similar results for the logistics sector in general and the air express industry in particular.
The Rs 20,350 crore Indian air express industry – which creates six indirect jobs for one direct job and handles roughly 30 million shipments on a daily business – has voiced concerns on the ‘e-Way bill’, which comes as part of the GST reform. shipments.
As per the CBEC guidelines, any movement of goods exceeding the value of Rs 50,000 cannot be made by a registered entity without an e-way bill. This bill can be generated at the read more

GST will make India corruption free, end shadow economy: Union minister

Implementation of the GST is a step towards corruption free nation and will end the shadow economy, Union minister Arjun Ram Meghwal said today.

Meghwal was addressing representatives of various business organisations, central and state officials in an event on the Goods and Services Tax.
The Union government is committed to tax reforms and to speed up the economic growth, Meghwal said while assuring that the GST will benefit people from all sectors.

The central government has directed officials and ministers to tour to different parts of the country to educate people about GST and address problems post its implementation, the minister of state for finance said.

Change is the sign of development and the technical transformation is heading the country towards progress, Meghwal said, adding that India would soon be the country with strong economy in the world.

The minister also said that five petroleum products that are out of GST would also be put up in the GST Council to gradually bring those under the new tax regime, read more

Relief! No GST on sale of old gold jewellery, cars by individuals

The Revenue Department on Thursday clarified that sale of old jewellery as well as old vehicles by individuals will not attract any GST as the sale is not for furthering any business.

Clarifying on Revenue Secretary Hasmukh Adhia’s comments yesterday, the department issued a press statement saying it was informed at GST Master Class yesterday that “purchase of old gold jewellery by a jeweller from a consumer will be subject to GST at the rate of 3 per cent under reverse charge mechanism in terms of the provisions contained in Section 9(4) of the Central GST Act, 2017.”
It then went on to state that the said section has to be read in conjunction with another section and “even though the sale of old gold by an individual is for a consideration, it cannot be said to be in the course or furtherance of his business (as selling old gold jewellery is not the business of the said individual), and hence does not qualify to be a supply per se.”

“Accordingly, the sale of old jewellery by an individual to a jeweller will not attract the provisions of Section 9(4) and jeweller will not be liable to pay tax under reverse charge mechanism (RCM) on such purchases,” it said.
Revenue department officials said the same principal will apply on read more

Gifts up to Rs 50,000 by employer, free club membership exempt under GST

The government on Monday clarified that gifts worth up to Rs 50,000 by an employer to its employees as also free membership of clubs, health and fitness centres will not attract the Goods and Services Tax (GST).
Also, the services by an employee to the employer in the course of or in relation to his employment is outside the scope of the new indirect tax regime, it said.
Any club, health and fitness centre membership provided by an employer to its all employees free of charge will not be subject to the GST.
The same would hold true for free housing as part of cost-to-company (C2C) package.
Commenting on reports of gifts and perquisites supplied by companies to their employees being taxed under GST, the finance ministry in a statement said gifts up to a value of Rs 50,000 in a year by an employer to his employee are outside the ambit of GST.
“However, gifts of value more than Rs 50,000 made without consideration are subject to the GST, when made in the course or

furtherance of business,” the statement said.
While the GST law does not define gifts, the ministry said for tax purposes gift is something that is made without consideration, is voluntary in nature and is made occasionally.
“It cannot be demanded as a matter of right by the employee and the employee cannot move a court of law for obtaining a gift,” it said.
On the issue of taxation of perquisites, the ministry said

read more

Now, pay GST if you earn over Rs 20 lakh per year as rent

Rental income from residential property has been exempt from GST but any earning over Rs 20 lakh annually from renting or leasing for commercial purposes would attract the levy.

Revenue Secretary Hasmukh Adhia said that if the house property is rent out for shop or office purpose, no Goods and Service Tax (GST) will be levied up to Rs 20 lakh.
“Rental income received from residential house is exempt. But if you have given your unit to commercial enterprise, then it is taxable if you are getting more than Rs 20 lakh as rent,” Adhia said at the GST Master Class.

The taxpayer earning more than the exempted threshold will have to register with the GST Network and pay taxes.
GSTN Chief Executive Prakash Kumar said that as many as 69.32 lakh registered excise, service tax and VAT payers have migrated to the GSTN portal. There are over 80 lakh such assessees in the earlier indirect taxation regime.

Out of the 69.32 lakh, as many as 38.51 lakh have completed the entire registration process and registration certicate is being issued to them.
The remaining 30.8 lakh taxpayers are being sent SMS and emails by GSTN so that they READ MORE