Any new reform, particularly a tax reform, is bound to have initial resistance. However tax paying businessmen were so frustrated by multiple taxes and compliances under earlier laws that they welcome GST wholehearted hoping it will solve all their problems and GST will be easy to understand and implement. The government also trumpeted GST from […]
The standard rate of tax for composite supply of works contracts and also construction services is 9% CGST + 9% SGST and 18% IGST
Reverse charge or TDs provisions are not compatible to the system of forward charge Value added taxation. The system is based on input tax credit mechanism. However there are certain dominant sections of society who resist being subjected to tax and to overcome it the reverse charge is used.
Multiple taxation during supply chain without right to claim input tax credit made most goods and services costly. This is a single most important reason why businessmen are eager to welcome GST. We have witnessed and enjoyed fusion of music, food, cultures etc.
It is now almost two months that a very bold decision was taken by dynamic Prime Minister Mr. Narendra Modi. After initial shock within few days the opinion was divided vertically.
Under no circumstances taxable person shall be subjected to assessment by both Central and State Governments. This will relieve taxable persons having multi state activities of being assessed by different states.
During last 5 decades law relating to works contract is driven more by judicial pronouncements & GST is opportunity for legislature to end uncertainty.
On 14th June Model draft of GST was published. If read properly one will realise that there are more thorns than roses. GST Council is now in place and will discuss and finalise the Model GST Act. This is right time to examine, discuss, represent and if necessary oppose the unjustifiable provisions proposed in Model draft.
