It’s illegal: Shops can’t ask you to pay more tax on discounted items

The District Consumer Disputes Redressal Forum in Chandigarh has once again ruled that shops cannot charge extra value added tax (VAT) on items sold on discounted price, saying that by doing so they are “indulging in unfair trade practice”.

Penalising Benetton India Private Ltd, the forum, presided by Rajan Dewan, observed: “The act of Benetton in charging VAT on discounted product clearly proves deficiency in service, having indulged into unfair trade practice on their part, which certainly had caused immense mental and physical harassment.”

The four-page order, signed on September 25, clearly mentioned that a similar question arose earlier for the determination of VAT before this commission twice — first in 2015 and later in the read more


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

Gold Flakes pack of 10 costs Rs 150: ITC raises cigarette price due to GST

ITC has raised prices of select cigarette brands to pass on the 6-7 per cent hike in the additional cess on cigarettes.
Sameer Deshmukh, a research analyst with Reliance Securities, said the price hikes were 6-15 per cent across brands with the average hike coinciding with the 6-7 per cent rise in effective taxes under the goods and services tax.
An ITC statement said prices of its Classic and Gold Flake brands had been increased to Rs 150 for a pack of 10. The price of Wills has been raised to Rs 94 for a pack of 10. Wills Flake is now priced at Rs 66.
The GST Council at its meeting on July 17 increased the compensation cess by Rs 485-792 per thousand cigarettes. A 31 per cent increase in the ad valorem component of the cess was levied under the ‘others’ category.
“Prices of select brands have been revised. There is adequate availability of stocks in the market,” an ITC spokesperson said.
The company clarified the price hike would be immediate. “In respect of cigarettes manufactured or packed prior to July 18 and are yet to be sold to consumers, the maximum retail price stands revised,” the notice 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

A step-by-step guide for obtaining your GSTIN

Under the VAT and Service Tax regime, TIN number and Service Tax Registration Number were issued by the state and the Centre. However, under the Goods and Services Tax (GST) regime, all taxation will get consolidated into a single platform and taxpayers will be registered under a single authority.
All the taxpayers who migrate and register under GST will receive a GSTIN — Goods and Service Tax Identification Number. Here is what the GSTIN format looks like-
Under the GST regime, every business providing goods and services with a turnover exceeding Rs 20 lakh is required to register as a normal taxpayer. This registration is important because only a registered business can avail benefits like the seamless flow of Input Tax Credit (ITC) on their raw material purchases.
The GST registration process has been reopened from June 25 and will continue for the next 3 months
How to get a GSTIN
1. Log on to that GST online portal
2. Go to ‘Register Now’ and fill in Part A of the application with your name, e-mail ID and mobile number
3. The portal will verify your details by sending an OTP to your mobile and email
4. Once the verification process is completed, you will receive the Application Reference Number (ARN) via mobile or email
5. Now you can fill Part B of the application using the ARN. The documents you will require 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