Free GST Updates – 10th Feb 2017

  1. Manish Sisodia from AAP says that Real Estate and Land should also be brought under GST
    1. Currently they both are outside the purview of GST, if they both are included then it would change the prices altogether as there will be transparency and reduction of rates.
    2. Further Consumer Goods should be bifurcated between Luxury & other Goods, such that the Luxury goods should be charged higher tax whereas GST on other goods  should be reduced which will help in reduction of prices.
  2. E-Commerce companies (Amazon, Flipkart, Snapdeal) raises concern about deducting 2% tax while paying to the sellers selling goods through their website.
    1. At the same time it would be challenging for the E-Commerce operators who then will need to obtain Pan numbers of all the sellers registered on their website and deduct TCS while paying them the amount and deposit with the GST department.
    2. Also the sellers believe that since their margins are low, TCS of 2% would impact their working capital requirement
    3. FCCI commented that 90 percent of the suppliers on e-commerce marketplaces are small and medium enterprises hence it would be challenging for them to comply with these reporting requirements. It added that these requirements go against the Government’s objective of providing ease of doing business. This may also result in smaller sellers avoiding the e-commerce marketplace.
  3. Government is hopeful of getting the supporting legislations of Goods and Services Tax (GST) passed by Parliament in the second phase of the Budget session for rolling out the new indirect tax regime by July – Ananth Kumar – Parliamentary Affairs Minister
  4. Lot of companies await clarity on GST benefits in J&K. GST bills suggests that there will be benefits provided in J&K regions, but whether the benefits will be given by State government or the Centre and what will be the benefits are still not clarified. There is a huge investment in pipeline which awaits clarification from the government.
  5. It would be tough to meet Apple’s demands – Hasmukh Adhia, Revenue Secretary
    1. One of their demand is 15 year exemption from CVD, which seems unlikely as the government want to promote Make in India Initiative. Prime Minister had met the senior officials of Apple and discussed about setting up plant in India for manufacturing their products, the officials have shown interest in localisation but also said that it would be difficult to immediately shift to India and they are actually do it in a phased manner.
  6. FCCI commented that 90 percent of the suppliers on e-commerce marketplaces are small and medium enterprises hence it would be challenging for them to comply with these reporting requirements. It added that these requirements go against the Government’s objective of providing ease of doing business. This may also result in smaller sellers avoiding the e-commerce marketplace.
  7. Recent GST decisions taken in January’17 were under pressure from State Governments and should be reversed- IRS officers Boby:
    1. The Council had in its recent meeting agreed to give states the powers to levy tax on economic activity within 12 nautical miles of territorial waters and to administer 90 percent of the tax payers under Rs 1.5 crore annual turnover besides certain provisions of Integrated GST
    2. Around 80 percent of the taxpayers will have no interface with the central government as per these decisions and that will severely limit the capacity of the Centre to make any impact in smooth roll out of GST in the country,”

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