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GST and your personal wardrobe

The GST council that met on Saturday, June 3, in New Delhi has decided the rates of taxation on gold, apparel, and footwear. GST and the yellow metal The GST Council declared that gold, silver, and processed diamonds will be taxed at 3% under GST. Rough diamonds will be taxed at a mere 0.25%. The jewellers have feared a much higher incidence of taxation for a long time. However, the re-sale value of the gold will be down by three percent now. The government has implemented the taxation with a view don’t invest in physical gold or silver but rather in sovereign gold bonds. GST and readymade garments Readymade garments will attract a tax of 12%, hence some spike in your next shopping bill will be reflected. However, clothes below Rs 1,000 will be taxed at 5% only. The administration has atte...

Levy of Taxes Under Goods and Services Tax

Article 246A of the Constitution, which was introduced by the Constitution (101st Amendment) Act, 2016 confers concurrent powers to both parliament and state legislatures to make laws with respect to GST. However, clause 2 of Article 246A read with Article 269A provides exclusive power to the Parliament to legislate with respect to inter-state trade or commerce. The Bill provides for a levy of GST on supply of all goods or services except for Alcohol for human consumption. The tax shall be levied as Dual GST separately but concurrently by the Union (central tax – CGST) and the States (including Union Territories with legislatures) (State tax – SGST) / Union territories without legislatures (Union territory tax – UTGST). The Parliament would have exclusive power to levy GS...

Journey of Indirect Tax in India

The history of Indirect Tax in India dates back to few hundreds of years and we get some cue of the same in Kautilya’s Arthasashtra. Those days’ taxes were collected in the form of crop and/or any agricultural produce. Such collections were generally ear-marked for some specific purposes or for the development of the State. Taxes were also raised separately for meeting internal and external exigencies like famine, flood, war etc. It was also known as ‘Lagaan.’ During the British Rule, mainly raw materials were exported from India and it used to come back as finished products and consumables. Most of the exports of raw materials were to England. The Rulers those days used to discourage any manufacture of finished products in India so that they can have the major profit by way of value addit...

Goods and Services Taxes

Presently, the constitution empowers the central Government to levy excise duty on manufacturing and service tax on the supply of services, Further, it empowers the state to levy sales tax or VAT on sale of goods. This exclusive division of fiscal powers has led to a multiplicity of indirect taxes in the country. In addition, central sales tax is levied on inter-state sales of goods by the central Government, but collected and retained by exporting state, Further, many state levy an entry tax on the entry of goods in local area, This multiplicity of taxes at State and Central level has resulted in a complex indirect tax structure in the country that is ridden with hidden cost for the trade and industry. There is no uniformity of tax rates and structure across State, there is cascading of t...

Benefits of Goods and Services Tax

Multiple Taxation is removed. Goods are services are taxed at same rate. Taxes on manufacturer are reduced. It will help in seamless flow of credit in the country. GST will replace more than 17 indirect tax levies; hence compliance cost will fall. Input Tax credit will encourage suppliers to pay taxes. Logistic, inventory cost will reduce. There will be boost to investment as now on many capital goods input credit is not available. Full Input tax credit under GST means drop in the cost of capital goods Will help to create a unified common national market for India, will boost to Foreign investment and “Make in India” campaign. State restrictions and levies have complicated ecommerce. Some sellers do not even ship to particular States. All this will end with GST. Efficient neutralization of...

GST in a nutshell!

India has fastened its belt for Goods and Services Tax (GST). GST will be effective beginning July 1, 2017. GST aims to establish a common national market. It is a comprehensive tax structure that will subsume several Central and State taxes into a single tax. The simplicity of tax shall lead to easy and effective administration and enforcement. GST will: Reduce overall tax burden Reduce paper work in tax compliance Promote free movement of goods. No waiting for hours for payment of state tax or entry tax will be required It will bound following taxes together: Central Excise Duty Service Tax Countervailing Duty Special Countervailing Duty Value Added Tax (VAT) Central Sales Tax (CST) Octroi Entertainment Tax Entry Tax Purchase Tax Luxury Tax Advertisement taxes The small business having t...

Come GST, e-commerce players to fly high!

As businesses are getting technologically innovative, they find themselves in a race to increase their online presence. There has been a phenomenal rise in the number of startups that are providing goods and services through the internet. With the unveiling of the long awaited Goods and service tax or GST, e-commerce would get smoother. Since GST is one tax which will subsume all taxes, a simple tax conduct is expected across the country—which, currently, varies as different states levy different rates of taxes. One nation One Tax Since GST is applicable all over India, there will be no complication for the inter-state movement of goods. E-commerce players have welcomed the new GST regime as inter-state movement and delivery of goods will become easier. If a product crosses state border, w...

Here is your daily guide to GST

GST Exempted for: Goods :  No tax will be imposed on items like stamps, judicial papers, printed books, newspapers, fresh meat, butter milk, curd, natural honey, fresh fruits and vegetables, flour, besan, fish chicken, eggs, milk, bread, prasad, salt, bindi, Sindoor, bangles, handloom. Services :  Hotels and lodges with tariff below Rs 1,000. GST 5 % tax details Goods  Fish fillet, cream, coffee, branded paneer, frozen vegetables,spices, pizza bread, rusk, sabudana, kerosene, coal, medicines, tea, skimmed milk powder, stent, lifeboats will attract tax of 5 %. Services Transport services (Railways, air transport), small restaurants. GST 12% tax for: Goods Frozen meat products , butter, cheese, ghee, dry fruits in packaged form, animal fat, sausage, fruit juices, Bhutia, namkeen, Ayurvedic m...

GST: a quick look

GST will subsume all existing taxes. With GST the VAT, the State excise, Service tax and charges will be the things of the past. GST rates have been divided into 5%, 12%, standard 18% and the luxury 28%. 18% tax slab for telecom, financial services. 5% tax on taxi cab services like Ola and Uber. Economy class air travel will have 5% GST will business class will have 12% Healthcare and education have been exempted from the services list. Railways will have 5% GST.

2016-17. www.IndiaHub.com

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