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GOODS AND SERVICES TAX

On August 3, 2016 the upper house of India’s parliament passed a nationwide Goods and Services Tax (GST) constitutional amendment which marks one of India’s most significant economic reforms since Indian independence.

GST is abbreviation for Goods and Service Tax. GST is also known as Value Added Tax (VAT) in few countries.

GST / VAT is a consumption based tax wherein the basic principle is to tax the value addition at the each business stage. To achieve this, tax paid on purchases is allowed as a set off/ credit against liability on output/income.

In GST regime, all “supply” such as sale, transfer, barter, lease, import of services etc. of goods and/ or services made for a consideration will attract CGST (to be levied by Centre) and SGST (to be levied by State). As GST will be applicable on “supply” the erstwhile taxable events such as “manufacture”, “sale”, provision of “services” etc. will lose their relevance.

The taxes that will be subsumed under GST are as follows:

 
 
  • Central GST (CGST): This will be levied by Centre.
  • State GST (SGST): This will be levied by State.
  • Integrated GST (IGST): This will be levied by Central Government on inter-State supply of goods and services.

However, certain items / sectors would be outside the GST regime. Products such as alcohol, petroleum products would remain outside GST regime. Further, Land and properties may remain outside since they are neither goods nor services.

Commerce Graduates with minimum 2 years experience and / or C.A. Final appeared candidates are welcome to be a part of team for following services:

The Dual GST is expected to be a simple and transparent tax with one or two CGST and SGST rates. The dual GST is expected to result in:-

  • Reduction in the number of taxes at the Central and State level.
  • Decrease in effective tax rate for many goods.
  • Removal of the current cascading effect of taxes.
  • Reduction of transaction costs of the taxpayers through simplified tax compliance.
  • Increased tax collections due to wider tax base and better compliance.

Following is the Input Tax Credit Mechanism under GST:>

Refund under GST:

Following are the situations which give rise to refund:

  • Export (Excluding deemed export) - Section 38(2).
  • Unadjusted input tax credit where output rate of tax is less than input rate of tax - Section 38(2).
  • Refund of pre deposit in case of Appeal or Investigation.
  • Excess payment due to mistake and inadvertence.
  • Refund for tax payment on transactions by UN bodies.

In order to meet upcoming changes and challenges that introduction of GST is set to bring, we have a dedicated team of experienced professionals and staff well versed in this aspect.

Our services in this area include:

  • Transitional support while shifting to different tax regimes.
  • Network support and infrastructure.
  • Accounting and taxation services.
  • Return filing and other compliances.
  • Training and education of staff & officials.
  • Audit & Assurance services.
 
     
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