Goods and Services Tax

GST Simplified for your Business

1
Budget 2017- Pro Micro, Small and Medium Enterprises (MSME)
2
How to Determine Supply of Goods vs Supply of Services in GST
3
Supply of Goods or Services between Related and Distinct Persons
4
Who is a Tax Return Preparer under GST
5
Understanding Mixed and Composite Supply in GST
6
GST Impact on Supply without Consideration & Importation of Services
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Scenarios where you cannot Avail Input Tax Credit
8
Is GST on Track? What we can Infer from the Budget Speech
9
Supply of Goods and Services: What does it Mean?
10
Your Checklist for Availing GST Input Tax Credit

Budget 2017- Pro Micro, Small and Medium Enterprises (MSME)

In light of the recent shock of demonetisation, the Indian government’s push to move India into a more digital, a more compliant, and subsequently a more vibrant economy was clear from the budget. With MSMEs being hit the hardest with demonetisation – the budget announced on Feb 1st laid out some good incentives to encourage growth across the MSME sector with an explicit remark that the largest employment opportunities in India lie within this sector. Read More

How to Determine Supply of Goods vs Supply of Services in GST

Schedule-II of the model GST law provides clarity on determining the type of supply as supply of goods or supply of services. This aims at eliminating the dilemma that exists in the current indirect tax system, for example, Service Tax Vs. VAT on works contract, AC Restaurant Service, Software, etc.

It is, therefore, important for businesses to know whether supply amounts to supply of goods or supply of services, and treat supply accordingly. Read More

Who is a Tax Return Preparer under GST

In the current indirect tax regime, there are accounting and tax professionals who are authorized to file returns on behalf of taxable persons. Currently, this role is performed by Chartered Accountants (CAs), Sales Tax Practitioners (STPs) and advocates. The Draft Model GST Law seeks to formalize this association between a tax payer and the return preparer and make the three-way association between a tax payer, a tax return preparer and GSTN transparent. Read More

Understanding Mixed and Composite Supply in GST

If you look at the market today, you will notice very often, two or more goods, or a combination of goods and services, are supplied together. This could be due to either of the following reasons:

  • A sales strategy – to attract more customers
  • The nature or type of goods or services, which requires them to be bundled or supplied together

Under Service Tax, this mechanism is called Bundled Service – which is the rendering of a service or services with another element of service of services.

Under the revised model draft GST law, supplies which are bundled with two or more supplies of goods or services or combination of goods and services are classified, with distinct characteristics, as:

  • Mixed Supply
  • Composite Supply

Read More

GST Impact on Supply without Consideration & Importation of Services

In our earlier blog Supply of Goods and Services: What does it Mean we discussed about supply with consideration which is mostly about business operational activities like sales, transfers, and so on.

In this blog post, we will discuss exceptional scenarios, which form a part of supply, and are taxable:

  • Supplies made without consideration
  • Supplies made for a consideration, whether or not in the course or for furtherance of business

Read More

Is GST on Track? What we can Infer from the Budget Speech

Our Finance Minister, Mr. Arun Jaitley, in his Budget Speech, did not elaborately discuss the road map of GST. However, he did indicate that the passage of the Constitutional amendment bill for GST and progress of its implementation is a “Tectonic Policy Initiative”. Read More

Supply of Goods and Services: What does it Mean?

Under the current indirect tax structure, the taxable event differs for each type of tax. The taxable events under the current indirect tax structure are captured below:

Type of Tax Taxable Event
Central Excise Removal of excisable goods
VAT On sale of goods
Service Tax Provision of taxable services

Read More

Your Checklist for Availing GST Input Tax Credit

In the current tax regime, various conditions are applicable for availing input tax credit. A brief overview is given below:

Type of Input Tax Credit Conditions for availing Input Tax Credit (ITC)
VAT As a VAT dealer, you can avail credit of the VAT paid on goods purchased in the course of business, for re-sale or for manufacture of goods, subject to conditions. Only purchases from registered dealers within the state are eligible for ITC
CENVAT/Service Tax As a manufacturer, you can avail CENVAT credit on all inputs used directly or indirectly in relation to the manufacture of final products. You can also avail ITC on the service tax paid on any input service.
If you are a service provider providing taxable service, you can avail ITC on the service tax paid on input services used for provision of the taxable services.

Under the GST regime, input tax credit can be availed by every registered taxable person on all inputs used or intended to be used in the course of or for furtherance of business. Read More

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