Dear Frndz, Here are some key GST updates from yesterday:
- Today GST Council would be meeting for crucial discussions, the council has already cleared three crucial bills namely, Integrated GST (IGST), Central GST (CGST) and Compensation bill. Today the council is expected to clear remaining two bills namely, State GST (SGST) and Union Territory GST (UTGST).
- A Committee of the Council is finalising the SGST bill and the draft is being circulated to the state assemblies for the final nod. Once it is done, all the five draft laws will be sent to the Cabinet for approval and subsequently to Parliament which is in session for final nod.
- Once the laws are passed, another key meeting to present the slabs for various goods and services before the Council will take place.
- Goods and Services Tax Network (GSTN) CEO Prakash Kumar commented that GSTN is preparing to handle 3 billion invoices a month:
- Timely uploading of the invoices would ensure the assessee in matching returns, enabling to claim input tax credit
- Mr. Kumar said that “We are prepared that 50% of the invoices are likely to be uploaded on the last date of filing and that too in the last four hours,”
- Mr. Kumar also quoted that “If taxpayers who generate a large amount of invoices upload their invoices daily, then the reconciliation can happen daily and the input tax credit can be claimed,”
- Cess seems to be continued in GST Era as well, which seems to be a negative signal for the industry.
- The cess on demerit goods like luxury cars and tobacco products is aimed at creating a corpus for compensating states for any loss of revenue from GST implementation
- CBEC Chairman Najib Shah told in one of the interview “That is our belief that the current level of taxation will not lessen at least for first five years. It will be the same, that’s our belief, and it will increase a bit,” here.
- He also quoted that with the implementation of GST, tax evasion should come down as all filings will be IT driven and evasion will get difficult.
- All India Gems and Jewelry Traders Federation (GJF) and the India Billion & Jewellers association (IBJA), both these associations are meeting Centre and State finance ministers to discuss the current issues and their expectation from the GST.
- GJF wants the GST to be kept at 1.25%
- IBJA wants to reduce the import duty from existing 10% to 6% and also fix the GST rate at 6%
- Both the associations mentioned that reduction in tax rates would result in increase in compliance else, the smuggling would continue.
These were some of the crucial updates on GST from yesterday. Hope you all found them interesting. Do visit our newest introduction of quiz contest page, its fun with learning. Enjoy!!