Hello and welcome to a live chat with Sumit Lunker, partner, indirect tax, PwC. He will answer your queries on Goods and services tax (GST), rolled out on July 1 and the biggest tax reform for India since its Independence
Sir, I have around Rs 4 lakh to pay to my builder. As of today, the property is 100% complete and registered, and I have taken occupancy. I want to know whether I have to pay GST on that Rs 4 lakh.
Sir, what are the taxes that all industries or businessmen had to pay earlier For example, I sell a product in Delhi and take that product from Mumbai by transport. What will be the difference in taxes paid by me after GST implementation?
CST was applicable for sales from Mumbai to Delhi. Now IGST will apply. You need to pay IGST to the seller in Mumbai and provide your GSTIN to the seller. If you sell such goods in Delhi you will charge CGST+ Delhi GST on your invoice.Such IGST paid on purchases should be available as credit to you against your output liability i.e. CGST+ Delhi GST.
Hi Sir, we registered our GST last month and got the number. But our business has 10 branches all over india. We checked with the service tax dept and they said we have only one service tax registration no (Centralised), so we have to wait till 30th June. Is this correct? Pls guide
GST has subsumed Central and State taxes.VAT has been subsumed under GST. Accordingly, VAT will not have to be charged on the invoices. However if you deal in products like Petrol/Diesel, Alcohol etc then VAT continues.
How does one account for expenses incurred on rickshaw or local taxi fare where no bill or receipt is available? What things does a goods transport agency need to upload under the GST law? What is the applicability of reverse charge mechanism on expenses borne by GTAs?
(a) Service of transportation of passengers, with or without accompanied belongings, by metered cabs or auto rickshaws (including e-rickshaws) is exempt from GST. The said expenses will be accounted as petty cash/ conveyance expenses.
(b) In case of GTA, given that the tax is required to be paid under reverse charge mechanism, registration is not required to be obtained. The rate of tax required to be paid is 5 per cent under RCM basis. No credit is available as no registration
(c) If you are receiving services which are taxable under RCM (eg- Advocate services, Sponsorship etc) then you will have to register and pay GST.
Some advantages of GST are
1) One Nation One Tax
2) Seamless credit
3) No cascading effect of taxes
4) Transparency
5) Paperless compliances
6) Electronically controlled
7) Broadening of the tax net due to robust compliance requirement and self-control automation
GST is an Indirect tax and means Goods and Services Tax.
Some advantages of GST are-
1) One Nation One Tax
2) Seamless credit
3) No cascading effect of taxes
4) Transparency
5) Paperless compliances
6) Electronically controlled
7) Broadening of the tax net due to robust compliance requirement and self-control automation
“goods transport agency” means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called.
Registration under GST will be required in case the aggregate turnover in a financial year exceeds Rs. 20 lakhs. For Special category states the limit is Rs. 10 lakhs.
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MODERATOR:
Hello and welcome to a live chat with Sumit Lunker, partner, indirect tax, PwC. He will answer your queries on Goods and services tax (GST), rolled out on July 1 and the biggest tax reform for India since its Independence
SUMIT LUNKER:
Hello, everyone
PALLAB ROY
Sir, I have around Rs 4 lakh to pay to my builder. As of today, the property is 100% complete and registered, and I have taken occupancy. I want to know whether I have to pay GST on that Rs 4 lakh.
SUMIT LUNKER
No GST payable if you are already occupying the property
JAYANT
Sir, what are the taxes that all industries or businessmen had to pay earlier For example, I sell a product in Delhi and take that product from Mumbai by transport. What will be the difference in taxes paid by me after GST implementation?
SUMIT LUNKER
CST was applicable for sales from Mumbai to Delhi. Now IGST will apply. You need to pay IGST to the seller in Mumbai and provide your GSTIN to the seller. If you sell such goods in Delhi you will charge CGST+ Delhi GST on your invoice.Such IGST paid on purchases should be available as credit to you against your output liability i.e. CGST+ Delhi GST.
TASLIM
Hi Sir, we registered our GST last month and got the number. But our business has 10 branches all over india. We checked with the service tax dept and they said we have only one service tax registration no (Centralised), so we have to wait till 30th June. Is this correct? Pls guide
SUMIT LUNKER
You will have to obtain fresh registrtaion.
VISHNU
Sir, what is rate of GST on insect-repellant products like Good Knight and All Out?
SUMIT LUNKER
It would depend upon the classification- If they fall under HSN 3808 the rate of GST would be 18%
SHABANA MAKANDAR
What is the impact of GST on VAT? Is VAT closed/banned? Or do we have to calculate GST along with VAT?
SUMIT LUNKER
GST has subsumed Central and State taxes.VAT has been subsumed under GST. Accordingly, VAT will not have to be charged on the invoices. However if you deal in products like Petrol/Diesel, Alcohol etc then VAT continues.
DDS
How does one account for expenses incurred on rickshaw or local taxi fare where no bill or receipt is available? What things does a goods transport agency need to upload under the GST law? What is the applicability of reverse charge mechanism on expenses borne by GTAs?
SUMIT LUNKER
(a) Service of transportation of passengers, with or without accompanied belongings, by metered cabs or auto rickshaws (including e-rickshaws) is exempt from GST. The said expenses will be accounted as petty cash/ conveyance expenses. (b) In case of GTA, given that the tax is required to be paid under reverse charge mechanism, registration is not required to be obtained. The rate of tax required to be paid is 5 per cent under RCM basis. No credit is available as no registration (c) If you are receiving services which are taxable under RCM (eg- Advocate services, Sponsorship etc) then you will have to register and pay GST.
HAVEELA
What is the advantage of GST?
SUMIT LUNKER
Some advantages of GST are 1) One Nation One Tax 2) Seamless credit 3) No cascading effect of taxes 4) Transparency 5) Paperless compliances 6) Electronically controlled 7) Broadening of the tax net due to robust compliance requirement and self-control automation
MONIKA SUNIL HAJARE
Hi, could you please tell me what is GST and why has India accept it? Don't we already have so many other taxes?
SUMIT LUNKER
GST is an Indirect tax and means Goods and Services Tax. Some advantages of GST are- 1) One Nation One Tax 2) Seamless credit 3) No cascading effect of taxes 4) Transparency 5) Paperless compliances 6) Electronically controlled 7) Broadening of the tax net due to robust compliance requirement and self-control automation
SAM
Sir, what is the Definition for GTA in GST
SUMIT LUNKER
“goods transport agency” means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called.
DEVENDRA KUMAR
We are a broker and charge only Rs 3/rupee per bag as brokerage. Is company registration compulsory in GST for us as well?
SUMIT LUNKER
Registration under GST will be required in case the aggregate turnover in a financial year exceeds Rs. 20 lakhs. For Special category states the limit is Rs. 10 lakhs.