GST is now one month old and Government as well as other stakeholders face a testing and challenging timings ahead. While implementation issues will be there which are bound to be, and will also be sorted out at last, the Government including the all powered GST Council, Ministry of Corporate Affairs (MCA), Central Board of Direct Taxes (CBDT) and the Institute of Chartered Accountants of India (ICAI) ought to address the following issues, sooner the better
Health care services have been specifically kept out ride the scope of GST net. This is a fact and a perception too. These include services provided by medical establishments, clinics, medical practitioners, diagnostic centers etc.
Legally speaking, alcoholic beverages meant for human consumption are out of the scope of Goods and Services Tax (GST) net and anybody who knows this would understand that there can not be any new impact, whatsoever, on alco- beverages in GST regime. However, this may not actually happen. Let’s look at how and why this may not hold good.
Who would have ever thought of in the decade of nineties that we will have a levy called ‘Service Tax’ in India after over 45 years of independence which will continue for as long as 23 long years without even a proper tax law of its own
The GST Council meeting held on 3rd June, 2017 at New Delhi succeeded on completing the pending issues on the agenda which inter alia included fitment of rates on textiles, bidi’s, biscuits, gold & jewellery etc.
All forms of supply of services in relation to Education sector shall not be liable to GST as decided by the GST Council. IGST shall be levied on inter-state supplies whereas CGST & SGST/ UTGST shall be levied on intra – state / union territory supplies. Education shall be exempt from GST in terms of GST law while commercial coaching and training will continue to suffer tax in the form of GST as against Service Tax at present.
The understanding of any legal provision is personal to the individual – be it assessee, professionals / consultants or revenue officers. This can be challenged. However, judge’s interpretation becomes the court’s stand.
GST law provides for Goods and Services Tax Compliance Rating which is a new concept in India. Presently, there is no system of compliance rating under any tax laws in India. GST compliance rating is a concept which will be experimented as a legal provision for the first time in our country. Accordingly, every taxable person shall be assigned a GST compliance rating score based on his record of compliance with the provisions of the GST Act. Every taxable person irrespective of its nature or size or turnover shall be assigned a GST compliance rating.
The GST law contains a unique provision on anti-profiteering measure as a deterrent for trade and industry to enjoy unjust enrichment in terms of profit arising out of implementation of Goods and Services Tax in India, i.e., anti-profiteering measure would obligate the businesses to pass on the cost benefit arising out of GST implementation to their customers.
The Central Goods and Services Tax Act, 2017 has been enacted to make a provision for levy and collection of tax on intra-state supply of goods or services or both by the Central Government and the matters connected therewith or incidental thereto.
