Wednesday 24 December 2014

Starting GST Study Group


Hello Friends, Indirect Tax Consultants, Visitors
(Please read below only if you live in and around thane, as this post only applies to them)

Update 29/12/2014: Now can track meetings and discussion through GST Forum. Also all the meets and members shall be managed through "GST Study Circle" page.

There is a new career opportunity developing for all aspirational CA, CS, lawyers or who already are CA, CS, lawyers..

The field I am talking about is GST (Goods and Service Tax)..

I need not specify all the new opportunities GST shall bring, but to list a few - Consultation, Systematic & In-depth accounting, Audit, Representing clients in tax Dept..

We have to start early, if we were to grab this opportunity..
With this in mind, starting a GST forum for those who inspire to make career in GST for people living in and around thane.


We shall meet monthly, have chat group, undertake study of GST, effects of GST in particular industry, study all the aspects of GST.



The meet is scheduled on coming Sunday - 28th Dec 2014 at Korum mall - Food Court at 10.00 AM Sharp

Forum is open to all
Share this info with your friends, may be they will be interested, if not you.

10.00 to 10.30 introduction of Study Group Members
10.30 to 12.00 GST discussion on Constitution Amendment Bill (Can be Downloaded from - http://ge.tt/1m0EzG72)

If interested,
Reply with your confirmation for the meet on 9987166QQQ (SMS or Whatsapp)

Also Join the event and see who all is coming on Facebook - https://www.facebook.com/events/387742061401651/

Update 29/12/2014 : Number Deleted bcoz of SPAM

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Monday 22 December 2014

122nd Constitution Amendment Bill for GST Explained

GST 122nd Constitution Amendment Bill

Introduction

GST will substitute many indirect taxes which are levied by Center and State Government. This shall require changes in constitution to give power to Central Govt to enact new taxation law.
The Union Cabinet approved on 17th December, 2014 the proposal for introduction of a Bill in the Parliament for amending the Constitution of India to facilitate the introduction of Goods and Services Tax (GST) in the country. The Union Finance Minister Shri Arun Jaitley introduced the said Bill in the Lok Sabha on 19th December, 2014. Which can be downloaded from Downloads section.
This is not the first time the Constitution Amendment Bill is brought for introduction of GST. Earlier UPA Govt had introduced similar bill, but was lapsed.

Before we discuss the Constitution Amendment Bill for GST, we need to know peculiarities of the Lists given in part XI of the Constitution of India. Which gives powers to Central and State Govt to enact laws. If you know, these already, please continue to Highlights of the bill.
  • The Union List or List-I is a list of 100 items (though last item is numbered 97) on which Parliament has exclusive power to legislate
  • The State List or List-II is a list of 61 items (Initially there were 66 items in the list)
  • The Concurrent List or List-III is a list of 52 items(though the last item is numbered 47)  concerned with relations between the Union and States
Ordinarily speaking if govt had to bring a law which is subject matter of state list, then they would add that item in concurrent list or in union list. But there is a catch in this. The items specified in the concurrent list have a overriding power by Central Govt over State Govt.[Article 246][Article 256]. That's why to give equal powers, another article i.e. Article 246A is introduced. Article 246A states
Legislature of every State, have power to make laws with respect to goods and services tax imposed by the Union or by such State. Parliament has exclusive power to make laws with respect to goods and services tax where the supply of goods, or of services, or both takes place in the course of inter-State trade or commerce. 

The bill has 21 Clauses, most of which propose to make changes to Union, State and Concurrent List. Other important amendments are - Formation of new Council for overseeing GST, Compensation to Sates for a period of 5 years from Center. 

Salient features of Bill

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Sunday 7 December 2014

Taxes which shall be replaced by GST


There is a talk of GST coming soon, and we all are happy about it as it shall substitute many taxes. But are we aware exactly which taxes shall go when GST comes?

New List of taxes as per 122nd Constitution Amendment Bill for GST.
  • Central Excise Duty
  • Additional excise duty, 
  • Excise Duty levied under the Medicinal and Toilet Preparations (Excise Duties)Act, 1955,
  • Service tax,
  • Additional customs duty (CVD),
  • Special additional duty of customs (SAD), 
  • VAT / State Sales Tax & Central Sales Tax  ,
  • Octroi and Entry Taxes,
  • Purchase Tax,
  • Entertainment tax (Other than levied by Local Bodies),
  • Luxury tax,
  • Taxes on lottery betting and gambling,
  • Central & State cesses and surcharges. 
Source : 122nd Constitution Amendment Bill for GST

As per the old design, the central and state taxes to be subsumed in GST were
  • Central excise duty,
  • Additional excise duty,
  • Service tax,
  • Additional customs duty (CVD),
  • Special additional duty of customs (SAD),
  • Surcharge,
  • Cess,
  • VAT/sales tax,
  • Entertainment tax,
  • Luxury tax,
  • Taxes on lottery betting and gambling,
  • Entry tax not in lieu of octroi,
  • State cesses and surcharges.


Source: Report submitted to the Empowered Committee of State Finance Ministers
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