GST has been a hot topic of discussion from the date it was launched. The main reason behind the same is ambiguity regarding numerous provisions of law. In order to ensure the creditworthiness of the govt across the world , the govt. could not delay the applicability of law but which finally created a scenario where on every other day the rates and the provisions of GST are changing .
Talking about the MILLING INDUSTRY which is highly resistant regarding the provisiosns of GST have their own sad story. Prior to the applicability of GST they enjoyed the various exemption benefits provided by central and state govt under Excise, Vat and Service tax laws. But GST have become a pain in the arse for them since the govt tried bifurcating their products on the basis of branding. Govt through its central tax rate notification no. 1/2017 levied 2. 5% CGST and similar provisions were applicable in UTGST and SGST Act too which consolidated for a tax burden of 5% on the sale of products which are packed in units or containers bearing a Registered brand name or Trade Mark . Govt further through its notification no. 1/2017 dated 28.06.2017 clarified that a mark, symbol, monogram, label, signature, invented word which is registered under the Trade Mark Act 1999 shall be treated as a brand name after which most of the traders and manufacturers related to milling industry were operating through their unbranded products and getting their brand names unregistered.
The above said problem did not end up there rather a situation of hue and Cry was created when govt. announced that those who are getting their brands unregistered to avoid tax will also come under the purview of GST soon as per the amended definition. And the amendment would be made applicable retrospectively which was the biggest challenge for this industry about how to collect the tax on the products already sold without taxes In the mean time new rumors were also hitting the market that a person who is operating in both registered and unregistered brand name will be taxed on the aggregate value of the products which brought a situation of shut down for many small and medium traders and manufacturers in this industry.
But GST council after its 21st meeting held at Hyderabad on 22nd september through a press release clarified that the amended definition will be applicable prospectively and not retrospectively. In addition to this a major relief was also given as the govt. provided an option of not paying the taxes to the people who were unregistering their brand names provided they would voluntarily give up any kind of actionable claim associated with their brand names with the following 2 conditions
Thus we can say that the time has come when the dust has settled …
Do you think CBDT should extend Tax Audit Report and relevant ITR Due Date? Please Comment, Vote, Retweet and Like.— Tax Guru (@taxguru_in) September 18, 2018