The Real Estate Board (REB) will be launching a series of hands-on sessions to train real estate dealers to use the new web-based reporting portal known as
GST Updates Wiki
Why and how GST was accepted by States :
Nandan Nilekani is assisting Govt, GST council, business bodies and tax experts to simplify the online tax filing procedures :
using fake bills)(claiming 60 Crores Income tax credit while trading only Rs 400
Not necessary to pay compensation for tax loss if tax collection growth were less than 14%. This was a gamble that paid off for most states. It was a big but will calculated gamble because states were growing at 9% in tax collection on average (TN at 4% while Bihar at 16%). So GST has actually grown beyond the 14% mark for most states.
- A report released recently by the economists at State Bank of India (SBI) research centre analysed revenues of 24 states and that 16 out of them have increased their revenues over and above of 14 per cent mutually accepted minimum tax growth rate. On aggregate, the report finds, states gained Rs 18,698 crore in revenue in eight months of last fiscal.
- Haryana (tax growth rate 31 per cent), Jharkhand (27 per cent), Punjab (23 per cent), Telangana (23 per cent), Chhattisgarh (21 per cent) and Maharashtra (19 per cent) were some of the biggest gainers under the new regime and earned an additional revenue of Rs 8,818 crore, Rs 5,233 crore, Rs 4,361 crore, Rs 6,939 crore, Rs 3,343 crore and Rs 9,501 crore respectively.
- Nine states that couldn’t achieve the 14 per cent baseline tax growth rate are: Karnataka (loss of Rs 10,521 crore), Uttar Pradesh (Rs 7,069 crore), Madhya Pradesh (Rs 6,141 crore), Assam (Rs 4,687 crore), Himachal Pradesh (Rs 3,159 crore), West Bengal (Rs 1,940 crore), Tamil Nadu (Rs 175 crore), Odisha (Rs 617 crore) and Goa (Rs 98 crore).
- As one can see, except Karnataka, Uttar Pradesh, Madhya Pradesh, Assam and Himachal Pradesh, loss accrued due to lower growth for other states isn’t substantial. We must also take into account the fact that these figures are only for eight months, from July to February (March figures are excluded).
- compensation cess which amounted to Rs 62,000 crore and this is expected to soar to Rs 90,000 crore in the current fiscal. For last fiscal, out of Rs 62,000 crore, only Rs 41,000 crore has been given by the centre to states as compensation. Going by figures on revenue loss, the centre may end up saving some of the amount from the compensation kitty, leaving room for relaxation in cess levied on luxury and sin products.
May 2018 :
Dec 2017 :
(88K Crores dip from 93K Crores)
(retailers get 10–15% cheaper prices by importing from B’desh)
Nov 2017 :
(due to payouts from IGST for ITC at consumer SGST end and export refunds of 50K Cr)
(flat 5% tax without Input Tax Credit for hotels, restaurants,)
Image Source :
(state RTOs and flying squads keep trucks waiting)
(5% without ITC for all restaurants below 5 star, VAT on liquor, outdoor and 5 star at 18% GST with ITC)
(5% flat tax without GST)
Oct 2017 :
IMG Source :
September 2017 :
August 2017 :
(26K Crores IGST on imports in July vs 16K Crores customs duty in July last year, scrapping of customs duty exemptions)
July 2017 :
(National Anti-Profiteering Authority to be setup soon, GST Implementation Committees to be setup at states and centre)
(expert in checking goods in India and at UN)
(MRP till stocks replaced by around August, 5% for critical and 12% for NLEM medicines with 2.29% increase in NLEM medicines most probably to offset loss of revenue from critical medicines. 78% medicines to be unaffected)
June 2017 :
- Removal of Cascading Tax effect of VAT-on-VAT with each step in value addition chain. This reduces prices for end consumer as tax component of MRP doesn’t compound at each step of value chain (as it did under VAT+other taxes)
- Reduces money tied up in taxes paid to govt for components by businesses.
- Makes tax evasion too costly at any point in the value-chain, so a buyer will insist on legal taxed sale to avail input tax credit from govt.
- Ease of doing business with single GST tax replacing all kinds of taxes and related paperwork for sales tax, excise, VAT, customs etc. Especially useful in creating one single indian market instead of fiefdoms inside and outside state and national boundaries.
- Reduced chances of corruption as less laws to comply with and only a single tax to pay. No more long waits at border checkpoints by unscrupulous officials misusing myriad tax laws to seek bribes. GST overrides/subsumes all of them.
(investments in debt funds due to high interest rates in India vs US)
Also, the refund mechanism has been fast-tracked with the assurance that amounts will be refunded within seven days of the receipt of complete application in most cases, and that all cases of exporters will be addressed within three days.
- Many GST Service Providers (GSP) like Tally are integrated into GST already. One of my friends said this will help in uploading required info to GSTN frontend.
- Uploading of excel spread sheet is also a simple way to upload data that was anyway required previously.
- Smartphone GST app to use mobile connectivity to link to GSTN.
- The Front end or taxpayer centric UI is one thing and backend data storage another. Then there’s the data being shared with individual tax at department, state or central level.
- GSTN had undertaken a “train the trainer” 2–3 days workshop for 2000 master-trainers where these people would go ahead and train nearly 60–65,000 people in their organisations.
- Any given assessee will only be answerable to either state or centre. This lottery will be done by computer.
- There’s an anti-profiteering clause which the govt can use to check fake bikes in prices.
- GST software has been in the making for a long time now. Most of the code had been beta tested with real data by volunteering companies and accountants etc. The module with final tax slabs would be parameterized with exact slab percentage everything else being constant. At least that’s what I’ve gathered from the interview(s) of the GSTN head.
A GST for India will in effect create one of the world’s biggest free trade areas. Its population of 1.3 billion is more than that of U.S., Europe, Canada and Australia combined and more states than the European Union’s 28 members.
The tax will replace at least 17 state and federal levies on everything from electricity to Gucci handbags to border crossings. From the powerful Uttar Pradesh with a population the size of Brazil to the tiny seaside region of Goa, India’s states currently set their own taxes and charge duties. The GST will sweep those away and harmonise the indirect tax system across the nation.
Other mass consumption items like spices are likely to attract a 5 percent rate while processed foods will be charged 12 percent. Household goods like soaps, toothpaste, and smartphones are likely to be in the 18 percent bracket while other durable goods such as air conditioners will attract 28 percent duties. Luxury goods such as tobacco will be taxed at a higher rate.
(servicing rural India MSMEs with 2.5L eSeva-like service centers for GST)
GST E-way bill :
Image Source :
April 2018 :
E-way bill agnipariksha :
What is E-way bill :
(intra-state E-way bills from 15 states in addition to inter state E-way bills crashes GST E-way bill site. E-way process deferred till technical glitch is fixed)
(eway bill tries to track every package, so trans shipment where bulk consignment is broken up into smaller consignments will add 3 times processing to logistics)
under the e-way bills framework, a new document is to be generated at every level of trans- shipment of an article and said the Rs 20,000-crore industry will end up doing 10 crore e-way bills per day for their 3 crore parcels.
“We operate on a hub and spoke model and there are at least 3-4 trans-shipments for every article that we deliver. This is an extremely impractical provision,”
using e-way bill to track imports and check smuggling)(
GST will give all states a lot more money esp since the central govt had already increased state’s share of central funds and also the services tax part. Not to mention the easy flow of business that’s almost blasphemy in any good mind controlling socialist state.
But it is the power to stop, deny, delay, favour, destroy someone and their business that is given up in exchange by ALL states and centre. The power to choke someone’s life breath and life work. At every step and level from municipality to customs.
This is the ultimate corruption – to make people bow and scrape, to make them beg for their very breath, to hold court with pimps, touts and bhadvas and sneer at the very people and their lives they prey on like vultures. This is the ultimate wet dream of every License Raj controller.
All those magnificent corrupters in their miniscule fiefdoms and armed to the eyebrows with reptile brains. Reminds me of Jabba the Hutt and his slimy drool-drips. From the chaprasi to the very top. With govts like these who needs life sucking vampires.
What businesses get in return to paying GST is dignity and freedom from this corruption of the soul. The States get loads of lovely loot!! Win-Win!!
How GST can be passed through with all that territorial ferocity :