CA NeWs Beta*: Enjoy the Holi colours with multicoloured GST

Search This Site

Friday, March 22, 2019

Enjoy the Holi colours with multicoloured GST

The festival of holi is celebrated with great enthusiasm all over India.
Various colors of holi denote various circumstances that a taxpayer has to face because of recent Amendments and circulars. Lets see what the taxpayers have to face this holi!
Arjun (Fictional Character): Krishna, the festival of holi is celebrated with great enthusiasm
all over India. On occasion of Holi, which colors has the government brought in GST?
Krishna (Fictional Character) : Arjun, every year, holi is played with lots of colors and zest. This holi, the Government has mixed various colors and spread happiness, as well as brought worries to the taxpayer.
Arjun (Fictional Character)Krishna, Pink color is considered as a mark of joy and happiness. What in GST is similar to color pink?
Krishna (Fictional Character) Arjun, Pink color represents the clarification regarding to sales promotion. If Free samples and gifts are supplied without consideration under GST, ITC of such items cannot be claimed. Also, “Buy one get one”, “quantity discount”, “sales promotion” etc. related clarification regarding allowance of ITC has been issued. A useful circular for taxpayers.
Arjun (Fictional Character) : Krishna, what does GREEN color signify in GST?
Krishna (Fictional Character) Arjun, Green color signifies a green signal to taxpayers, as in to solve the old disputes regarding MVAT, and to turn towards GST. For the same the Government has introduced “The Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late fees Ordinance Act 2019”. It means the Government is in full endeavor to complete pending Appeals, assessments or disputes. As we celebrate holi by burning all the old conflicts, disputes and contentions, in the same way this ordinance will help taxpayers to solve old disputes as soon as possible and promote GST.
Arjun (Fictional Character)Krishna, what does RED color denote in GST?
Krishna (Fictional Character)Arjun, from 1st April 2019 onwards, new return system is going to be introduced. Red color indicates that even today taxpayers are facing difficulties in the existing return system, and now taxpayers have to be more alert for the new return system. The new return system shall have simple and clear norms.
Arjun (Fictional Character) Krishna, what is BLACK color in GST?
Krishna (Fictional Character)Arjun, black color is a sign of negativity and darkness. In relation to the council’s meeting held on 24th of February on Real Estate, no clarification has been given till date. For residential properties which are outside affordable housing, GST shall be levied at an effective rate of 5% but no ITC benefit would be given. GST shall be levied at an effective rate of 1% without ITC, on affordable housing properties. The new rate shall become applicable from 1st of April, 2019 subject to notification being issued for the same. So, in Real estate sector there is dark situation. Also because of all this confusion, new bookings of houses is not taking place, and what treatment should be given to remaining ITC by builders, is still a question.
 Arjun (Fictional Character)Krishna, which color of GST is irremovable?
Krishna (Fictional Character): Arjun, The mismatch concept in sales/purchase, E-way bill, the difficulties in revised returns, etc. the taxpayer has to suffer through all of these. Some colors does not fade away even after a few days of holi, similarly, these issues continue to concern taxpayers.
Arjun (Fictional Character)Krishna, how will be GST on occasion of holi for small taxpayers?
Krishna (Fictional Character): Arjun, the threshold limit for registration under GST that was earlier 20 lakh Rs., now from 1st April 2019 onwards has been increased to Rs. 40 lakhs for Goods Suppliers only. The limit for composition scheme has been proposed to increased upto Rs. 1.5 crores. For supplier of services, A new composition Scheme is proposed with the aggregate limit under composition scheme may be Rs. 50 lakhs, and 6% GST shall be payable under such scheme. So, small taxpayers can celebrate holi with double enthusiasm.
Arjun (Fictional Character)Krishna, what can the taxpayer learn from Multicolored GST?
Arjun (Fictional Character)Arjun, the issues in GST have now been reduced to large extend as compared to previous year. Hence, the joy of Holi with GST may increase this year. The new return system shall not bring more controversies for taxpayers, this has to be seen by the GSTN portal otherwise in like in Holi Dust of colors and Shouting (Bomba bom) in name of GST may increase.

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...
For mobile version of this site click here


News Archive

Recommended Post Slide Out For Blogger