A decision on contentious issues like exemption and threshold taken with consensus without voting in the first meeting of GST Council signals that the April 2017 rollout deadline is achievable, experts said.
Pawan Goenka ED of M&M said it appears GST transition will be complex for the auto industry due to the lead time from manufacturing to final consumption and there is need to plan out the transition very carefully so there is fair clarity.
The Bill will also mention that dispute resolution will be decided by the GST council. The government has also included five years compensation clause for state governments for any loss that they may incur.
While a large percentage of business leaders polled seemed to be happy with steps taken to improve business climate in the country, continuing tax uncertainties was identified as a pain point.
Government scored well on rationalization of tax regime with focus on strengthening the dispute resolution mechanism, silence on roadmap to GST is a manifestation of continued political gridlock on the subject
What is to be determined to arrive at excisable value of goods is the point of time when sale is effected. This would be determined as per the principles of Sale of Goods Act i.e. based on when the ownership of goods is transferred from seller to buyer.
While taking a note of the possible benefits that may unfold under GST, it is too ambitious to expect that GST would turn out to be a one-step solution for all issues currently being faced by the sector.
Concept of oral SCN envisaged in the Circular does not seem to work much in favour of the tax payer. Clause regarding conclusion of proceedings, on settlement of dispute, in a way adds credibility to the government‘s new initiative to settle tax disputes. The same is also likely to encourage statutory compliance by the tax payer.
Government through Union Budget 2015 amendment introduced enabling provision under the governing statute for levy of service tax on expense reimbursements.
While ‘dominant intent‘ is being repeatedly discarded as a relevant factor for taxation of works contracts, it needs to be clearly understood that this proposition does not entail characterization of every composite contact as works contract.
Corporate entities are often deemed to be related in terms of excise law if (a) they are interconnected undertakings and / or (b) they have mutuality of interest in the business of each other.
The Bill, which will enable the Government to replace the currently applicable indirect taxes with GST, was approved in Lok Sabha, after much deliberation and heated discussions.
Rajeev Dimri, leader - indirect tax, BMR & Associates says multiple agencies can interpret the Bill in different ways. It is necessary to empower the GST council, he adds.
CNBC-TV18 along with BMR advisors has put these and several other Budget related questions to tax experts and the general public and the poll clearly indicates India wants FM to deliver a Budget that puts talk into motion and delivers on the many promises made so far.
On the Swachh Bharat cess, Rajeev Dimri BMR and Associates says it will be a great positive if it is put to use for the right purpose over 3-5 years of time.
GST: Well Begun OR Half Undone?
Past precedences show that changes to indirect taxes have been declared even in an interim Budget. Though no Vote-on-Account has ever seen the introduction of any new direct tax proposals.
Rajeev Dimri, leader-indirect tax, BMR Advisors, Gokul Chaudhri, leader-direct tax, BMR Advisors, Rajya Vardhan Kanoria, CMD, Kanoria Chemicals and Industries and Vinod Verma, president, European Business Group concur that the FM must make the tax regime simple, clear and certain to boost the economy and lure FIIs.
By Rajeev Dimri, BMR Advisors