Posted On: 16 APR 2019

The National Academy of Customs, Indirect Taxes and Narcotics (NACIN) has been authorized to conduct an examination for confirmation of enrollment of Goods and Services Tax Practitioners (GSTPs) in terms of the sub-rule (3) of Rule 83 of the Central Goods and Services Tax Rules, 2017, vide Notification No. 24/2018-Central Tax dated 28.5.2018.

The GSTPs enrolled on the GST Network under sub-rule (2) of Rule 83 and covered by clause (b) of sub-rule (1) of Rule 83, i.e. those meeting the eligibility criteria of having enrolled as sales tax practitioners or tax return preparer under the existing law for a period not less than five years, are required to pass the said examination before 31.12.2019 in terms of Notification no. 03/2019-Central Tax dated 29.01.2019. Two such examinations for such GSTPs have already been conducted on 31.10.2018 and 17.12.2018. The next examination for them shall be conducted on 14.06.2019 from 1100 hrs to 1330 hrs at designated examination centers across India.

It will be a Computer Based Examination. The Registration for the exam can be done by the eligible GSTPs on a Registration Portal, link of which will be provided on NACIN and CBIC websites. The Registration Portal for exam scheduled on 14.06.2019 will be activated on 21st May, 2019 and will remain open up to 4th June, 2019. For convenience of candidates, a help desk will also be set up, details of which will be made available on the registration portal. The applicants are required to make online payment of examination fee of Rs. 500/- at the time of registration for this exam.

Pattern and Syllabus of the Examination

PAPER: GST Law & Procedures:

Time allowed: 2 hours and 30 minutes

Number of Multiple Choice Questions: 100

Language of Questions: English and Hindi

Maximum marks: 200

Qualifying marks: 100

No negative marking

Syllabus:

1. Central Goods and Services Tax Act, 2017
2. Integrated Goods and Services Tax Act, 2017
3. State Goods and Services Tax Acts, 2017
4. Union Territory Goods and Services Tax Act, 2017
5. Goods and Services Tax (Compensation to States) Act, 2017
6. Central Goods and Services Tax Rules, 2017
7. Integrated Goods and Services Tax Rules, 2017
8. All State Goods and Services Tax Rules, 2017
9. Notifications, Circulars and orders issued from time to time

Note: As GST Law and Procedures are still evolving, the various items of the above syllabus will be considered as on 1.4.2019 for the purpose of this Examination.

PIB

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GST Council met 30 times, took 918 decisions since its Constitution;

96% of decisions already been implemented through 294 Notifications

28 OCT 2018

Till date, the Goods and Services Tax ( GST ) Council  has taken 918 decisions related to GST laws, rules, rates, compensation and taxation threshold etc. More than 96% of the decisions have already been implemented through 294 Notifications issued by the Central Government and the remaining are under various stages of implementation. Almost equal number of corresponding SGST Notifications have been issued by each State.

The GST Council Members under the Chairpersonship of  the Union Finance Minister have spent long hours discussing the broad contours as well as the nitty gritty of the new GST regime in a harmonious and collaborative spirit. Till now, 30 GST Council Meetings have taken place. Detailed Agenda Notes were prepared before every GST Council Meeting and discussed in the preparatory Officer’s Meeting to enable the Council Members to fully appreciate the issues under consideration. The Detailed Agenda Notes for the 30 GST Council Meetings ran into 4730 pages. The discussions in the GST Council were very detailed, reflecting the collective wisdom of the Council and this has been captured exhaustively in the Minutes of the 30 Council Meetings running into 1394 pages.

The GST Council was constituted on 15th September 2016 under Article 279A of the Constitution. It consists of the Union Finance Minister (Chairperson), Union Minister of State in charge of the Revenue or Finance and the Minister in charge of Finance or Taxation or any other Minister nominated by each State Government. Union Revenue Secretary is the ex-officio Secretary to the GST Council. The working of GST Council has ushered in a New Phase of Cooperative Federalism where the Central and the State Governments work together to take collective decisions on all issues relating to Indirect Tax regime of the country.

PIB

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Retirement age?

Our country has replaced its numerous Union and state taxes with the Goods and Services Tax (GST), designed to unify the country into a single market. In other words, we may call, the GST brought ‘one nation one tax‘ regime in India.

Prime Minister Narendra Modi wants simultaneous elections to Lok Sabha and all state assemblies, under the banner of ‘one nation one election’ citing reasons of massive expenditure; diversion of security and civil staff from primary duties; impact on governance due to the model code of conduct and disruption to normal public life.

Prime Minister Narendra Modi’s pitch for ‘one nation one election’ has been backed by the opposition parties especially Samajwadi Party Chief Akhilesh Yadav.

However, The Election Commission (EC) has suggested “one year one election” as an alternative to Modi’s pitch for “one nation one election”.

So,’one nation one retirement age’: Why not government employees? Why not now?

The retirement age is different for different states. The retirement age of government employees of Telangana, Tamil Nadu, Goa, Arunachal pradesh, Maharastra, Jammu and Kashmir, Mizoram, Manipur, Punjab, Himachal Pradesh, Haryana and Jharkhand is 58 years.

About the rest of states except Madhya Pradesh and Chhattisgarh- government employees retire at 60, but existing Kerala government employees who have to retire on completion of 56 years, as the increase in the superannuation age 60, is cover only new comers, who joined service from the fiscal 2014-15.

The Central government had already raised the retirement age to 60 years in 1998.

However, Madhya Pradesh government has recently been increased the retirement age to 62 years from 60 for its employees and Chhattisgarh government already increased the retirement age to 62 years from 60 for its employees in 2013.

The World Economic Forum said that retirement age must rise as lifespans increase.

The Forum also said that employees should continue working until 70 in nations such as Australia, Canada, China, India, Japan, Netherlands, United Kingdom and United States.

A parliamentary committee of India in 2014 also recommended that retirement age should be increased from 60 years to 65 years, citing the increase in ageing population and their productivity.

While aging populations and longer lifespans have forced to raise retirement ages but the retirement comes India quite early, when government employees are required to hang up their boots.

According to ‘one nation one tax’ and ‘one nation one election’, the central and state governments will require to implement ‘one nation one retirement age’ for central and state government employees.

“So, the central government is seriously thinking of enhancing the retirement age of the its employees to 62 to cover the cost of ageing population and existing employees productivity,” a government official told

“Keeping in mind the national balance if the central government increases retirement age to 62 years, then states should also do the same,” he added.

TST

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Work on India’s first post-GST Union Budget 2018-19 will start next week with the finance ministry issuing timelines for different processes that will culminate with its presentation in February.
Finance Minister Arun Jaitley arrived at the parliament on Wednesday for Budget.

It may also be the current government’s last full-fledged Budget as general elections are due in 2019.

Even though independent India’s biggest tax reform of GST was implemented from July 1, the Budget for 2017-18 (April- March), had followed the practice of tax revenue projections under the heads of customs duty, central excise and service tax alongside direct tax numbers.

With excise duty and service tax being subsumed in the Goods and Services Tax (GST), the classifications will undergo change, an official said.

While a new classification for revenues to be accrued from GST will be included in the Budget for next fiscal, for the current year two sets of accounting may be presented – one for actual accruals during April-June for excise, customs and service tax, and the other for July-March period for GST and customs duty.

The official said that since the GST rates are decided by a GST Council, headed by Union Finance Minister and comprising of representatives of all states, the Budget for 2018-19 will not have any tax proposals concerning excise and service tax levies.

Only proposals for changes in direct taxes – both personal income tax and corporate tax, besides customs duty – are likely to be presented in the Budget along with new schemes and programmes of the government.

This will be Finance Minister Arun Jaitley’s 5th Budget in a row.

It would also be the last full Budget of the BJP-led NDA government before the 2019 General Elections. As per practice a vote-on-account or approval for essential government spending for a limited period is taken in the election year and a full-fledged budget presented by the new government.

While P Chidambaram had presented the previous UPA government’s vote-on-account in February 2014, Jaitley had presented a full budget in July that year.

The official said the finance ministry will next week issue the Budget circular and start consultations with other ministries from October for Revised Estimates (RE) of expenditure for the current fiscal.

The Budget Circular contains the timelines for submission of information of budget requirements to the Ministry of Finance along with prescribed formats.

The ministries will have to provide the actual money spent in 2016-17 along with the budget estimates and Revised Estimates for current fiscal.

Along with this, they have to give the Budget they are expecting for 2018-19 as well, the official added.

Scrapping a colonial-era tradition of presenting the Budget at the end of February, Jaitley had for the first time presented the annual accounts on February 1, 2017.

With the preponement of Budget, ministries are now allocated their budgeted funds from the start of the financial year beginning April.

This gives government departments more leeway to spend as well as allow companies time to adapt to business and taxation plans.

Previously, when the Budget was presented at the end of February, the three-stage Parliament approval process used to get completed some time in mid-May, weeks ahead of onset of monsoon rains.

This meant government departments would start spending on projects only from August-end or September, after the monsoon season ended.

Besides advancing the presentation date, the Budget scrapped the Plan and non-Plan distinction and merged the Railway Budget with it, ending a nearly century-long practice.
PTI

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The Union Cabinet chaired by Prime Minister Shri Narendra Modi has given its approval to the proposal of the Finance Ministry to promulgate an ordinance to suitably amend the Goods and Services Tax (Compensation to States) Act, 2017.

The approval would allow to increase the maximum rate at which the Compensation Cess can be levied from 15% to 25% on:

a) motor vehicles for transport of not more than thirteen persons, including the driver [falling under sub-headings 870210, 8702 20, 8702 30 or 8702 90]; and

b) motor vehicles falling under headings 8703.

The GST Council, in its meeting held in August 2017, taking into consideration the fact that post introduction of GST, the total incidence on motor vehicles [GST+ Compensation Cess] has come down vis-a-vis pre-GST total tax, incidence, and had recommended increase in the maximum rate at which Compensation Cess can be levied on motor vehicles falling under headings 8702 and 8703 from 15% to 25%.

The issue regarding the increase in effective rate of Compensation Cess on motor vehicles will be examined by the GST Council in due course.

PIB

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FREQUENTLY ASKED QUESTIONS IMPLEMENTATION OF GST

ISSUES CONCERNING DEPOTS

Q. What will be the format of Purchase Orders in GST Regime?

A. Purchase orders in the existing VAT regime will continue after removing the columns such as VAT columns VAT, CST etc and by adding the following fields :-

(a) GSTN of respective depot

(b) GST rate applicable for the index.

(c) HSN Code for each index etc.,

Q. To whom to approach for obtaining GSTIN of suppliers, HSN Code & GST rate for each index?

A. Stores Branches have been collecting the GSTIN details of each Company and their Distribution Centres, HSN Code and GST rate for each index of all the Companies. The data will be shared in

due course of time.

Q. What is going to be the Unique Identification Number (UIN) of CSD for refund mechanism?

A. The clarification in this regard is awaited from Ministry of Finance. Applicability of UIN for obtaining 50% GST refund will be clarified at the earliest.

Q. Will 50% exemption of GST rates apply on sale of non CSD items at URC?

A. Ministry of Finance vide Notification No 06/2017 & 07/2017 both dated 28 June 2017 has exempted sale / supply of goods by URCs to end customers. No URC is entitled to sell non CSD items in the same premises including INCS. Hence, non CSD items sold by any URCs to end customers are not eligible for exemption of GST rates extended by Govt of India.

Q. What will be the format of Form 2 and Return Form 2?

A. These formats under the VAT regime should continue in the GST regime after removing fields such as VAT, CST Octroi etc and by adding the following fields :-

(a) HSN code by each index

(b) GST rate of each index

(c) GSTN of supplier as well as CSD depot and etc.

Q. Are Debit Note and Credit Note raised on companies required to be uploaded on GST network?

A. The depots will raise the debit notes and credit notes against the Companies towards short supply of goods, damaged goods and life expired goods which will be further uploaded to GST network clearly quoting the corresponding purchase invoice details. However, the debit notes and credit notes for non-supply, late supply, part supply, non-extension on CPS etc are not to be uploaded to GST network since these are raised towards the penalties and not related to the quantum of goods supplied.

Q. Change of HSN Code and GST rate?

A. HSN Code and GST rate is being mentioned in all circulars sent to suppliers with copy to all depots. For any changes/revision from time to time depots should maintain proper record and update regularly on receipt of circulars from HO.

Q. What is to be done in case of difference between GSTIN of firm circulated by HO and as annotated on invoice?

A. Though HO is complying data for GSTIN of each firm and will be shared later on, the correct GSTIN data will be available on bills received from firms and same data be complied by each depot depending upon its source of supply and regular checked/updated for each bill so received so that there is no mismatch in returns.

Q. Is sale of stores to URC located outside State will attract CST in GST Regime?

A. CST charged in VAT regime is subsumed in GST. Hence, interstate sale made by CSD Depots to URCs or any inter Depot transfer will not attract CST. The sales to URCs by CSD Depots are outside the scopes of GST. Hence, CSD Depots have to sale URCs situated within the state or outside the State at whole sale rates issued by F&A Branch. However, liquor is outside the purview of GST, hence sale of liquor made to interstate URCs will be loaded with CST.

Q. Is separate Notifications by State Govt towards SGST is required?

A. A letter duly signed by GM (CSD) addressed to State Govt. will be forwarded for passing of Notification by State Govt. for extending exemption of 50% SGST. Depots are to liaise with concerned authorities for issue of notification in this regard.

Q. What is the mechanism for filing of GST returns?

A. GST returns to be filed by depots can be uploaded to GST network through excel files. Hence, all the depots to record their purchases and sales meticulously in the existing automated environment viz ICSDS Phase-I, Fox Pro etc., and to prepare excel files at the end of each month and file the following returns through their respective Chartered Accountants (CAs).

GSTR-I

GSTR-3

Q. Is filing of GST returns through Chartered Accountants mandatory?

A. Filing of GST Returns through Chartered Accountants is not mandatory. Depots can file all the GST Returns after preparing the same in Excel File. However, due to limitation of expertise at Depots and new system related to GST, it is advisable to file GST Returns through Chartered Accountants. This procedure will be akin to the procedure followed in the VAT regime. The Competent Authority has stopped hiring of Tax Consultants/Advocates who are not a qualified Chartered Accountant, as defined in Companies Act & CA Act.

Q. Is 50% exemption of GST applicable to CSD Staff at Depots?

A. 50% of GST rates exemption is extended to all the supplies by CSD to its authorized customers and to the URCs as per the Notification No. 07/2017 dated 28 June 2017 issued by Ministry of Finance. CSD Staff are authorized customers to purchase goods at CSD Depots as per existing procedure. Hence, there should not be any doubt on eligibility of 50% exemption of GST rates to the sales made to CSD Staff at depots.

Q. Is 50% exemption of GST applicable for Defence Civilians for purchase of AFD-I items like TV, Refrigerator, Two Wheelers and Four Wheelers?

A. 50% GST rate exemption has been extended to all the authorized customers vide Notification No. 07/2017 dated 28 June 2017. Hence all the authorized customers who purchase AFD-I items like TV, Refrigerator, Two Wheelers and Four Wheelers etc. including Defence Civilians will be authorized for 50% exemption in GST rates. Hence, rates applicable to Armed Forces Personnel will be equally applicable to all eligible authorized customers.

Q. Is QD to be calculated without 50% of GST rates inclusive in selling prices?

A. 50% of GST will be the cost to CSD after filing/accounting the exemption operation of 50% GST rate. Hence, it becomes cost for CSD and not any tax element. Hence, it should be considered for computation of QD. However, the same is being sent for clarification to CDA (CSD). After receipt of clarification, a separate instruction will be issued to all the Depots.

Q. What is billing mechanism for AFD-I items in GST regime?

A. AFD-I suppliers are to bill to the respective Depots by adding corresponding GST rate (100%). CSD Depot will make payment towards AFD-I items supplied by the companies including 100% GST amount. Further, Depots have to claim refund of 50% of GST rate by filing necessary GST Returns.

Q. Which account is to be used for GST refund purpose?

A. “Main Account” of Depot will be used for the purpose of GST Refund.

Q. Can HSN Code be same for two or more than two items?

A. HSN Code can be same for similar category of items.

Q. How to resolve different HSN Code intimated by Store Branch Circulars and HSN Code mentioned in the suppliers bill?

A. Different HSN Code as intimated by circulars issued by Store Branches and as mentioned in suppliers Bill can be resolved by referring to concerned Store Branch directly. However, HSN Code with dot in between as happened in case of HUL (3401.11.90) should be accepted since it is different way of presentation of HSN Code.

Q. Should HSN Code with 4 digit to be accepted?

A. As per notification No. 12/2017 dated 28 June 2017 issued by Ministry of Finance, a company with annual turnover in the preceding Financial Year of more than one crore fifty lakhs and up to 5 crores shall mention first 2 digits of HSN Code and annual turnover of more than 05 crores shall mention first 4 digits of HSN Code. Thus, HSN code with first 4 digits can also be accepted though the Store Branch circulars convey 8 digits.

Q. Can firm raise Debit/Credit Notes on CSD?

A. Yes. The firms can raise Debit/Credit Notes on CSD. Debit/Credit Notes raised by the firm will be on account of correcting errors in invoice amount due to factors such as short/excess supply, wrong pricing etc. Such Debit/Credit Notes will be part of GST returns filing in GSTR-I uploaded by firms.

Q. Can one Invoice contain items having different GST rates?

A. An invoice can contain items having different GST rates say 5%, 12%, 18% and 28%. An invoice should not be rejected on the grounds that items falling under different GST rates have been included in one invoice. However, companies have been advised to segregate the supplies to feature each category of GST rate at one place for easy accounting at Depots vide letter No. 6/F&A/C&C/GST/6335 dated 27 July 2017.

Q. Rejection of supplies from companies due to mismatch of invoice formats from the format issued by F&A Branch vide letter No.6/F&A/C&C/419 dated 16 June 2017

A. Complaints have been received from many companies stating that Depots are refusing delivery of goods against the orders on the pretext that invoice format are not matching with format circulated by F&A Branch vide above quoted letter. In this regard it is once again clarified that invoice format circulated by this office was “PURELY ADVISORY IN NATURE” covering small scale sole proprietorship to HUL. Hence, if the invoice is meeting basic requirements of GST law such as GSTIN, GST rate, CGST, SGST, IGST, and etc., all the depots are to accept the goods.

ISSUES CONCERNING SUPPLIERS

Q. What is going to be the Unique Identification Number (UIN) of CSD for refund mechanism?

A. The clarification in this regard is awaited from Ministry of Finance. Applicability of UIN for obtaining 50% GST refund will be clarified at the earliest.

Q. Are Debit Note and Credit Note raised on companies required to be uploaded on GST network?

A. The depots will raise the debit notes and credit notes against the Companies towards short supply of goods, damaged goods and life expired goods which will be further uploaded to GST network clearly quoting the corresponding purchase invoice details. However, the debit notes and credit notes for non-supply, late supply, part supply, non-extension on CPS etc are not to be uploaded to GST network since these are raised towards the penalties and not related to the quantum of goods supplied.

Q. What is to be done in case of difference between GSTIN of firm circulated by HO and as annotated on invoice?

A. Though HO is complying data for GSTIN of each firm and will be shared later on, the correct GSTIN data will be available on bills received from firms and same data be complied by each depot depending upon its source of supply and regular checked/updated for each bill so received so that there is no mismatch in returns.

Q. What is billing mechanism for AFD-I items in GST regime?

A. AFD-I suppliers are to bill to the respective Depots by adding corresponding GST rate (100%). CSD Depot will make payment towards AFD-I items supplied by the companies including 100% GST amount. Further, Depots have to claim refund of 50% of GST rate by filing necessary GST Returns.

Q. Should HSN Code with 4 digit to be accepted?

A. As per notification No. 12/2017 dated 28 June 2017 issued by Ministry of Finance, a company with annual turnover in the preceding Financial Year of more than one crore fifty lakhs and up to 5 crores shall mention first 2 digits of HSN Code and annual turnover of more than 05 crores shall mention first 4 digits of HSN Code. Thus, HSN code with first 4 digits can also be accepted though the Store Branch circulars convey 8 digits.

Q. Can firm raise Debit/Credit Notes on CSD?

A. Yes. The firms can raise Debit/Credit Notes on CSD. Debit/Credit Notes raised by the firm will be on account of correcting errors in invoice amount due to factors such as short/excess supply,

wrong pricing etc. Such Debit/Credit Notes will be part of GST returns filing in GSTR-I uploaded by firms.

Q. Can one Invoice contain items having different GST rates?

A. An invoice can contain items having different GST rates say 5%, 12%, 18% and 28%. An invoice should not be rejected on the grounds that items falling under different GST rates have been included in one invoice. However, companies have been advised to segregate the supplies to feature each category of GST rate at one place for easy accounting at Depots vide letter No. 6/F&A/C&C/GST/dated 27 July 2017.

Q. Rejection of supplies from companies due to mismatch of invoice formats from the format issued by F&A Branch vide letter No.6/F&A/C&C/419 dated 16 June 2017

A. Complaints have been received from many companies stating that Depots are refusing delivery of goods against the orders on the pretext that invoice format are not matching with format circulated by F&A Branch vide above quoted letter. In this regard it is once again clarified that invoice format circulated by this office was “PURELY ADVISORY IN NATURE” covering small scale sole proprietorship to HUL. Hence, if the invoice is meeting basic requirements of GST law such as GSTIN, GST rate, CGST, SGST, IGST, and etc., all the depots are to accept the goods.

ISSUES CONCERNING URCs

Q. Will 50% exemption of GST rates apply on sale of non CSD items at URC?

A. Ministry of Finance vide Notification No 06/2017 & 07/2017 both dated 28 June 2017 has exempted sale / supply of goods by URCs to end customers. No URC is entitled to sell non CSD items in the same premises including INCS. Hence, non CSD items sold by any URCs to end customers are not eligible for exemption of GST rates extended by Govt of India.

Q. Is sale of stores to URC located outside State will attract CST in GST Regime?

A. CST charged in VAT regime is subsumed in GST. Hence, interstate sale made by CSD Depots to URCs or any inter Depot transfer will not attract CST. The sales to URCs by CSD Depots are outside the scopes of GST. Hence, CSD Depots have to sale URCs situated within the state or outside the State at whole sale rates issued by F&A Branch. However, liquor is outside the purview of GST, hence sale of liquor made to interstate URCs will be loaded with CST.

Q. Is QD to be calculated without 50% of GST rates inclusive in selling prices?

A. 50% of GST will be the cost to CSD after filing/accounting the exemption operation of 50% GST rate. Hence, it becomes cost for CSD and not any tax element. Hence, it should be considered for computation of QD. However, the same is being sent for clarification to CDA (CSD). After receipt of clarification, a separate instruction will be issued to all the Depots.

Authority: www.csdindia.gov.in

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New Delhi: Three days into GST regime, Cabinet Secretary P K Sinha today asked all ministries and departments to ensure that their is no shortage of goods and prices of essential items are kept under check.
Sinha held a review meeting to take stock of situation post implementation of the new tax regime, and departments have been asked to ensure that retailers, dealers/shopkeepers should display a price list under GST of items sold by them.

“Government has asked all the departments to ensure that their is no shortage of products and consumer items in order to keep a check on prices. Special emphasis was laid on to keep prices of essential commodities under check,” a finance ministry statement said.

Sinha stressed that benefits of GST should be passed on to consumers, which would in turn also keep inflation under control.

“Various machines used by dealers, retailers for computerised billing should be calibrated at the earliest as per the new GST rates,” he added.

A four tier Goods and Services Tax (GST) – 5, 12, 18 and 28 per cent – has been rolled out from July 1. Essential items like salt, unpacked food grains, cereals have been kept a zero rated to ensure that there is no price rise.

Sinha also asked departments to be ready to deal with queries of their stakeholders.

“In order to do so, officers of every ministry should equip themselves and have full knowledge of the details relating to GST concerning their respective Ministry,” he said.

A similar review meeting will be held every week to keep a close watch on GST rollout.

Sinha has also asked all the departments/ministry to provide all the relevant information relating to GST concerning their ministry/department, including GST rates on their respective websites.

He asked the secretaries to get more detailed feedback and in-depth details of the field from their respective stakeholders, officers and consumers at large after GST implementation.

The officers should be fully ready to deal with it so that there is quick response to any situation, the statement said.

Sinha asked them to launch campaigns to make their stakeholders and consumers fully aware about GST related matters concerning their respective ministry/department.

Apart from Revenue Secretary Hasmukh Adhia, the 20 secretaries, including from textile, consumer affairs, food processing, railways, MSME, rural development, tourism, fertiliser, pharma, and financial services attended the meeting. CBEC officials were present in the meeting.

On June 20, Sinha had taken GST preparedness meeting with 30 ministries and departments and had asked the secretaries to organise outreach meetings and publicity campaigns through their departments and PSUs for explaining the provisions of new law and rules to their stakeholders.

The finance ministry had yesterday said that the two days of GST rollout has passed “without any major problems being reported” from the field offices.

“The Revenue Department has got encouraging reports from the roadside dhabas and big restaurants as well as from kirana shops to departmental stores which, in turn, have started getting acclimatised to the new tax system,” it had said.

The biggest indirect tax since Independence, GST removes at least 17 different taxes and transforms India into a single market for seamless movement of goods and services.

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FM inaugurates the National Academy of Customs, Indirect Taxes and Narcotics (NACIN) Campus in Bengaluru today

Inaugurating the National Academy of Customs, Indirect Taxes and Narcotics (NACIN) Campus in the Bengaluru today, the Union Finance Minister Shri Arun Jaitley said that Indirect Taxation regime in the country will play a key role and is undergoing a vital change.  He said that the present multiple taxation system is transformed into the Goods and Services Tax (GST) and all the taxes are amalgamated. Speaking further, the Finance Minister said that the new GST regime will come into effect from July 1, 2017. GST is an efficient tax system which not only checks tax evasion but it also help evolving India to become very strong society.

Speaking further on the occasion, the Finance Minister Shri Jaitley said that the new Indirect Tax is a product of federal India. He added that the Centre and the States will jointly administer and decide the taxes.  Coordination between taxation authority of Centre and States is also important. He said that the tax training academy NACIN, which has come-up in Bengaluru to impart training to officers of Central and State Governments and PSUs has to play a vital role.

Participating on the occasion, Smt.Vanaja N. Sarna, Chairperson, CBEC highlighted the contributions of NACIN.  Shri D.P.Nagendra Kumar, Principal Director General, NACIN, gave an overview of the new NACIN Complex.  Shri S.Ramesh, Member (Admn.), CBIC welcomed the dignitaries on this occasion while Shri P. K. Dash, Pr. Additonal Director General, NACIN, proposed vote of thanks.

PIB

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Service providers shall be eligible for full Input Tax Credits (ITC) of GST paid in respect of inputs and input services

Taxes on entertainments and amusements (covered by the erstwhile entry 62 of State List of the Constitution) have been subsumed under Goods and Services Tax (GST) except to the extent of taxes on entertainments and amusements levied by a Panchayat or a Municipality.

The rate of GST approved by GST Council on services by way of admission to entertainment events or cinematography films in cinema theatres is 28%. However, the entertainment tax rates in respect of exhibition of cinematography films in theaters/cinema halls, currently levied by States are as high as 100% in some of the States.

The rate of entertainment tax on cable TV and Direct-To-Home (DTH) levied by States is in the range of 10%-30% in many States. Apart from this, Service tax is also leviable at the rate of 15%. As against this, the rate of GST approved by GST Council on these services is 18%.

The rate of GST approved by GST Council on access to circus, theatre, Indian classical dance including folk dance and drama is 18% ad valorem. Further, the GST Council has approved an exemption upto a consideration for admission of Rs 250 per person. These services currently attract entertainment tax levied by the States.

Thus, entertainment services shall suffer a lower tax incidence under GST. In addition to the benefit of lower headline rates of GST, the service providers shall be eligible for full input tax credits (ITC) of GST paid in respect of inputs and input services. Presently, such service providers are not eligible to avail of input credits in respect of VAT paid on domestically procured capital goods & inputs or of Special Additional Duty (SAD) paid on imported capital goods and inputs. Thus, while GST is a value added tax, entertainment tax, presently levied by the States is like a turnover tax.

PIB

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