New Delhi: The administration has informed that from 1st July the central goods and services tax (C-GST) will be executed, making it clear that the squash of the new indirect tax regime is on the way. Finance Minister Arun Jaitely conveyed on Wednesday following a cabinet meeting that, I don’t see much of a difficulty.
Issues always occur each time you make a modification of any kind. But I’m definite of the system is entirely geared up. Asked about West Bengal chief minister Mamata Banerjee’s report against the execution of GST, Minister conveyed that the date had been determined by the GST committee. Arun Jaitely further added that, the date has not been considered by the Centre.
There is a constitutional mandate and that is on 16th of September, you will lose the right to gather existing taxes. States will recently inform their respective GST Acts and another provision counting the roll out date.
A limit of Rs 5,000 every day has been set for payment of tax under reverse charge, which offers relief from unwieldy compliances in case of little expenses. For purchases beyond this value, instead of self-invoicing for every transaction, a facility of doing this on a monthly basis has been provided. Summary format for the first two months has been prescribed (GSTR- 3B) in line with the declaration made in the previous GST Council gathering.
The number of Harmonised System of Nomenclature digits needed to be printed on a tax invoice. Recorded person with a yearly turnover of up to Rs 1.5 crore in the previous financial year will not need to state the digits. Those with turnover between Rs 1.5 crore and Rs 2 crore will mention two digits and those above Rs 5 crore will mention four digits.
Centre has also notified the rate of interest of 18% for late payments, 24% for excess assert of input tax credit or undue or excess lessening in output liability, 6% in case of withheld refund and 9% for delayed refund following an order of adjudicating authority of appellate tribunal. Today the administration would also introduce a new simplified procedure for exporters to guarantee a smooth transition to GST.