Feedback/ Issues related to Goods & Services Tax (GST) to be submitted to various authoritie
As you may be aware, the Hon’ble Finance Minister, Sh. Arun Jaitley while presenting Union Budget 2014-15 on 10th July 2014 said that in order to streamline the tax administration, avoid harassment of the business and increase revenue collection both for the Centre and the States we need to work towards a smooth transition to Goods and Services Tax (GST). He has also asserted for working towards approval of legislative scheme to facilitate introduction of Goods and Services Tax in India.
The current structure of the Indirect Taxes poses a lot of issues to masses who are impacted by its cascading effects. For Example: In an activity wherein goods being food or any other article of human consumption or any drink are supplied in any manner as a part of the activity at a restaurant the value of service portion is 40% of the total amount. The supply of food/drink is already covered under the VAT provisions as the same amounts to sale of goods under the sales tax provisions. So on a bill of Rs. 100 with Service Charge of 12%, we pay 100+ 12(service charge) + 13.5 (VAT @ 13.5%) + 5. 4384(Service Tax @ 4.944%) = Rs. 130 approx. Imposition of multiple taxes on single product/ service puts a burden on the consumer which can be subsumed by introduction of GST.
With a view to facilitate the smooth implementation of GST in the country, the Institute of Chartered Accountants of India has decided to support the Government in this upcoming tax reform. In this regard, as a part of its distinctive research, the Indirect Taxes Committee of ICAI has taken up an initiative to collate issues/ hurdles related to Indirect Taxes to be submitted to relevant authorities for a hurdle-free transition to GST. Accordingly, we request you to share the current issues related to Indirect Taxes which can be eliminated in the upcoming GST regime. The issues so received would be shared with the respective authorities in order to help them to provide a solution to these issues with introduction of GST. We request you to share the issues at the following link:
https://docs.google.com/a/
We trust that the issues shared by you with your experience and expertise will help the government in framing the law which meets the need of the masses.
Please write to us at s.singhal@icai.in or call on 0120-3045954 for any queries.
Source- ICAI
Government and other Authorities are not interested to govern the country in a good way keeping down unnecessary expenditure and subsidies. Go to the houses of poor people and provide them all assistance like free ration,
accomodations and clothes. Let Govt need not indulge in running Liquor shops and ban all tobocco products and tanneries. People should be freed
from all kinds of control. No Caste, No religion No region should be written in admissions in school and colleges. Government to do minium things like providing drinking water, elctricity, good hospitals, good roads, good transport and good schools and colleges. No politics should come in in these institutions. Accord merit every where then automatically people will be happy and feel proud to be Indians.
Every dealers & Service providers must be registered with the authorities.
There must not be any turnover limit for Registration.
There must be Single Law, form Central Govt, to all States.
There must be Single Rate of Tax for all products and services, in all States.
No Tax exemption, holidays and rebates to any products, or industry or States.
Abolish all forms like H, C, E1
Abolish Entry Tax in all States.
Abolish Deemed Sales, Deemed Exports,Deemed Imports.
Books of Accounts should be maintained for one year.
E file of monthly returns, must be assessed in every quarterly.
There must not be any rights to assess the accounts after one year.
Please consider all , as the Tax payers.
If the States insist that Petroleum and Alcoholic Beverages should be kept outside GST, in spite of the Centre’s gesture to grant power to States to levy Additional Tax to compensate the loss,the Centre may also keep high yielding borderless services like Banking,Financiali,Insurance,Broadcasting,Telecom and Digital Services outside State GST and share 50% of CGST (levied at higher rate equal to CGST +SGST) with the respective States.The place of supply of service rules in these sectors is complicated and European Union is making changes on 1st January 2015.State VAT officials can not easily understand and handle them as the virtual control of these sectors otherwise rests with the Centre.
State may levy a reduced rate of SGST on essential and basic necessities,on which Centre may levy standard rate of CGST or vice versa by interpretation leading to litigation.Let the Centre and share equally without bothering the traders (to keep separate accounts for dual authorities) and consumers.There should be uniform rate for goods and services through out the country and if the State or Centre wants to levy more,they may levy Additional Tax over and above SGST/CGST under the pretext of adopting band.By bringing down the threshold fixed for Central Excise(Rs.1.5Crore) to Rs.10Lakhs and expanding their net to lakhs of traders,the present Central Excise Department will expand itself;the Sales Tax Department of the States also will expand under the pretext of collecting SGST on service sector.Many States are continuing exemptions under VAT regime the exemptions granted to goods and institutions under Sales Tax regime and there is no uniform guidelines.
Under GST every point should be clear i.e. works contract of Infrastructure Project exempted, sub-contractor, PRWs, exemption in Infrastructure Projects so, what Tax levy able to on construction of infrastructure projects, Proceeds on Branch transfer Stock or Capital Goods,
What is about Entry Tax of states, or other Local area Tax
Dear Sir,
Suggestion towards
1. To abolish CST.
2. Simplification of Returns filing under Excise/Service Tax.
3. To remove Reverse Charge payment under Service Tax.
4. Simplification of tax structure under Works Contract.
5. To reduce Interest/Penalty levy under Excise & Service Tax
It is my request please avoid unnecessary REPORTS as like present in Income Tax.
These Reports are strict hurdle in the tax collection as well as in development of our country. We need to look first interest of our country & its businessman. We need to avoid indirect employment through GST to any members of accounting body & others etc.
VAT & CST SHOULD BE ELEMINATED BY INTRODUCING GST
There should be one single central law on GST with 3 diff rates for essential, luxury and other necessary services. Essential services to be taxed @ lower rate.
Hurdles such as partial/full reverse charge mechanism for domestic transaction should be done away with completely and the service provider should be held responsible to charge and pay taxes. RCM for import transaction should also be done away with as it is revenue neutral. All the products should be brought under GST net. Other local levies like Octroi/Entry tax etc should be subsumed into GST.
Input setoff should be allowed for all transactions.
Early implementation will be a game changer for economy in terms of getting investment and generation of employment.
Heavy use of IT network should be put in place and the existing workforce of excise/service tax/sales tax should be put through rigorous training to avoid unnecessary litigation.
It is very important to implement GST ASAP because for our country it will prove as High speed engine without eating petro to gear up our Nation’s growth.
Now a days so many investors from JAPAN,China,Vietnam,Ausi,USA etc are eager to invest & to establish their unit in india but because of very bad experience of taxation dept. they are not happy and also recently one of the famous JAPANESE corporator has criticised our tax regime.
after GST al least it will remove too much complex and cumbersome INDIRECT Taxation. It will definitely provide smooth & transparent way to do business.
By overall effect it will boost Indian Economy & dominance of india over the world.
PLEASE WE REQUEST YOU TO AVOID SPLITTING OF GST INTO SGST AND IGST.
SHARING OF REVENUE COLLECTED, CAN BE DONE AT ADMINISTRATIVE LEVEL AT GOVT OFFICE AND BETTER AVOID COLLECTING TAXES / CESS / CHARGES SEPARATELY. FIX A PRODUCT WISE AND SERVICE WISE TAX RATES AND ALLOW ALL ASSESSEES TO WORK IN PAPER LESS MANNER AND LESS PAPER SYSTEM AND MORETHAN THAT PLEASE SEE THAT LITIGATION FREE SYSTEM SHOULD BE IN PLACE.
SO THAT WE CAN AVOID UNNECESSARY DISPUTES AND SAVE COUNTRYMEN’S TIME, ENERGY AND MONEY.
GST WILL SIMPLIFY THE LEGAL PROCESS OF TAXATION SO IT IS IN FAVOUR INDUSTRIALIST & PEOPLE WHO ENGAGED IN ACCOUNTING SECTOR.