GST law, as drafted and legislated, does not come free from the interpretational hassles. Taxpayers have started challenging various provisions of GST laws and rules framed there under. High courts have taken a liberal stand so far in view of the fact that law is new and is yet evolving. However, CBEC has decided to move to supreme court where the verdict is against the Government.
The Tourism and Hospitality Industry in India, with its tremendous employment opportunities and is a big source of foreign exchange for India, is one of the major growth drivers in the service sector. As a result of its potential and enormous size, GST regime has a far reaching impact on it as GST affects every nook and corner of the business which is summarized as under –
Lets welcome yet another tax reform in the world in Gulf Countries. VAT is being introduced for the first time in Gulf countries as recommended by Gulf Cooperation Council (GCC).
In its 21st meeting held at Hyderabad on 9th September, 2017, GST Council formed a small Group of Ministers (GOM) led by me Sushil Modi, Dy. CM of Bihar who had earlier also been Chairman of erstwhile Empowered Committee. GOM has been given a mandate to look into GSTN technological glitches and ensure its smooth functioning by taking required steps. GSTN had earlier claimed that it is prepared for GST launch and it has robust system in place.
GST Council (GSTC) which met at Hyderabad on 9th September, 2017 for 21st time took may decisions, major ones being hike in Compensation Cess on automobiles (motor cars) and extension of return filing dates for July, 2017.
If one looks at the trend in economic growth, it is seen that gross value added in the economy has been slowing down with 7.9% in 2015-16, 6.6% in 2016-17 and just 5.6% in Q1 of 2017-18. On the same lines, industrial capacity utilization as well as industrial production has been slipping. Not only this, fiscal deficit and interest rates have also been declining. While all this was happening, demonetization and GST came along which added to disruption of economy.
Goods and Services Tax (GST) in now a reality and then most of the present indirect taxes on goods and services shall become history making GST indeed historic. The launch ceremony at Parliament House has rewritten a new destiny, this time an economic one. GST, though has been claimed as one of the biggest tax reforms ever, it is also being seen as one of the most challenging times for automobile sector. Compensation Cess adds to make GST impact more messy.
As India celebrates its 71st year of independence from British raj, the country also celebrates the independence from even older tax laws. Goods and Services Tax (GST) which turns just 45 days, has freed us from old tax laws including the one in existence even prior to country’s independence, viz, Central Excise Act of 1944.
Goods and Services Tax (Laws, concepts & Impact Analysis for Traders and Service Providers) – with CD Authors Dr. Sanjiv Agarwal and CA Sanjeev Malhotra Publication August, 2017 Publishers Bloomsbury, India Price Rs. 1995/- Pages __________ Yet another classic work from Dr. Sanjiv Agarwal and CA Sanjeev Malhotra analyzing the GST provisions in a […]
GST is now a reality with its mega launch on the midnight of 30th June, 2017 and 1st July, 2017. With about three weeks into GST regime, there have been many teething problems and issues requiring clarity by the tax payers on taxability, tax rates and other procedural aspects.
