Tag Archives: ECAI

NDA may tweak GST norms as it looks to woo traders

If implemented, it will be among a series of steps taken by the government to pacify traders forced to reorient the way they do business

The government is devising a way to ensure that a buyer does not suffer in case of non-payment of tax by the seller under the goods and services tax (GST), finance minister Piyush Goyal said, as the government looks to appease the politically important trading community ahead of the general election in 2019.

If implemented, it will be among a series of steps taken by the government to pacify traders forced to reorient the way they do business, as GST moved them on to an electronic invoice-based system from a so-called “kucha bill” system that was the norm earlier.

The GST Council’s law review and information technology committees will look into how to further simplify this process for traders, Goyal said at an event organized by the Confederation of All India Traders.

Under GST, the buyer of a commodity can claim input tax credit only if the seller has paid tax on the same. In case of non-payment of tax, the buyer cannot claim input tax credit.

Traders had expressed concerns that there may be instances wherein the buyer does business with an unknown seller and incurs losses because the latter does not pay tax, Goyal said, adding that the government is devising a way by which the buyer pays tax on behalf of the seller using the latter’s GST identification number (GSTIN).

In this case, the buyer can deduct the tax amount before making the final payment to the seller, he added.

The finance minister said it was the intention of the National Democratic Alliance (NDA) government led by Prime Minister Narendra Modi to resolve the issues faced by traders and provide them with relief as far as possible. The statement comes just days after the GST Council reduced the compliance burden on smaller firms, allowing them to file quarterly returns.

Firms with a turnover of up to Rs 5 crore were allowed to file quarterly tax returns, instead of paying taxes every month. This is expected to benefit 93% of taxpayers.

The Council also approved doing away with the reverse charge mechanism (with the exception of a few select groups) that would have adversely impacted small traders.

Under the reverse charge mechanism, entities registered under the GST that purchase goods from small, unregistered dealers have to pay a tax on behalf of the latter. This, while adding to the compliance burden of all involved, discourages purchases from unregistered dealers.

The decision was taken after the NDA government concluded that the measure will lead to hassles for traders without providing commensurate revenue gains.

The Council is also holding a special meet on 4 August to address concerns of the micro, small and medium enterprises (MSMEs) related to all taxes, including direct and indirect taxes.

Goyal said the government’s special drive to address the concerns of MSMEs was unprecedented and comes on the diktat of the prime minister.

Goyal added that it is possible to expand the taxpayer base under the goods and services tax to 30 million from the existing 12 million.

There are an estimated 650,000 firms linked with trade, the Union minister said, adding that a 30-million taxpayer target was not impossible.

Source :   Press Reports

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

Advise for contacting VidyaSunil & Associates;

Website :    http://www.vidyasunilassociates.com

E Mail ID : vidyasunilassociates@gmail.com

Cell No. : +91 9739834819

Advertisements

India Inc hails GST Council’s decision to allow quarterly return filing, Rate Cut

So far, businesses with turnover of up to Rs 1.5 crore were permitted to file returns quarterly

So far, businesses with turnover India Inc today welcomed the GST Council’s decision to cut rates on several items and simplification of tax return filing process for businesses, saying the move will boost compliance and benefit consumers.

In his first GST Council meeting since he took charge as the Finance Minister in May this year, Piyush Goyal allowed businesses with turnover of up to Rs 5 crore to file quarterly returns — a move which will benefit 93 per cent of the GST registered taxpayers. They will have to, however, pay taxes monthly.

So far, businesses with turnover of up to Rs 1.5 crore were permitted to file returns quarterly.

In a statement, the Confederation of All India Traders (CAIT) said the single page return form to be filed quarterly for traders having turnover up to Rs 5 crore is a bold step which will ease miseries of traders.

“The decisions relating to simplification of returns and especially keeping the interests of small taxpayers are noteworthy. This would facilitate ease of doing business both for small and large taxpayers,” Ficci President Rashesh Shah said.

He further said that the decisions would increase compliance, widen the tax base and are in the right direction to achieve the objectives of GST.

In its meeting yesterday, the GST Council also cut tax rates on 88 items, including footwear, refrigerator, washing machine and small screen TV, while the widely demanded sanitary napkins have been exempted from the levy.

“Exemption of GST on Sanitary napkins is welcome as it is a great step towards empowering women as sanitary napkins are necessary for female hygiene. This is a big step towards encouraging menstrual hygiene among young girls and women as scrapping of GST from Sanitary napkins will make napkins more affordable and more women will be able to use them,” Pinky Reddy, President, Ficci Ladies Organisation (FLO) said.

“While rate rationalisation would definitely bring cheer for the industry and consumers, what would be interesting to see is how the government would try and compensate the revenue loss on account of tax rate reductions,”

He said rate cuts on handicrafts items such as deities made of stone, marble and woods, phool jharoo, Rakhis etc. was a long pending demand of the sector.

“Imposition of rate of 5/12 per cent, added to the woes of sector which is already dwindling. Exemption from GST may provide much needed impetus to the industry which is a key contributor to rural employment,” Singh said.

Quarterly returns for taxpayers with turnover of up to Rs 5 crore, which comprise of 93 per cent of taxpayers, would definitely reduce the compliance burden of small dealers and assist them in channelising their energy in doing business rather than worrying about monthly tax filings, he added.

Consumer appliance maker Usha International CEO Dinesh Chhabra appreciated reduction in the GST rates from 28 to 18 per cent on food grinders, mixers, storage water heaters, water coolers, water heaters, electric ironing machines, among others.

“These are basic appliances and are required in every household on a daily basis. This move ahead of the festive season will certainly bring cheer to consumers and lead to a spur in the growth of the appliances category,” Chhabra said.

“Big relief for hotels as GST rate of 28 per cent would not apply if the actual tariff value is less than 7,500 even though the published tariff may be more than 7,500; this will also ease the IT systems for hotel players.

“Reduction in GST rate of ethanol for use by oil companies to 5 per cent is again welcome as major petroleum products are outside GST and this would help reduce their cost,” Jain said.r of up to Rs 1.5 crore were permitted to file returns quarterly.

Source :  Press Reports

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

Advise for contacting VidyaSunil & Associates;

Website :  http://www.vidyasunilassociates.com

E Mail ID : vidyasunilassociates@gmail.com

Cell No. : +91 9739834819

E-commerce companies may need to prepare for withholding tax in two months

India Inc, in particular e commerce platforms such as Amazon and Flipkart, may need to prepare for withholding tax provisions in two months under the goods and services tax (GST).

The tax deducted at source (TDS) and tax collected at source (TCS) provisions had been
put on hold following petitions by industry that this would increase the compliance burden.

But with the GST regime stabilising, these provisions may be imposed from July 1, said a
senior government official.

The TDS provision mandates that notified entities have to deduct up to 1% state GST and
1% central GST on intrastate supplies of over Rs 2.5 lakh.

In the case of interstate supplies of over Rs 2.5 lakh, TDS will be 2% integrated GST. These provisions are aimed at checking tax evasion as TDS/TCS will leave a trail of transactions. In the case of e commerce companies, it means that when they make payments to suppliers for goods sold on their platforms, they have to collect 1% tax and deposit this with the government.

“The GST Council decision was to extend suspension of TDS/ TCS proposal till June 30,” said the official cited above. On June 26, 2017, days before the July 1rollout of GST, the government had deferred implementation of the provisions after industry feedback.

The Odisha state government has already issued a circular on TDS provisions that says identified deductors need to register themselves, with the likelihood of these coming into force on July 1. It asked the state tax authorities to identify deductors within their respective jurisdictions and facilitate registration. “A nodal officer should be nominated at the circle level to handle all TDS-related activities,” according to the circular, which ET has seen.

Other states are expected to follow suit. E commerce firms are likely to lobby the government against the move, reiterating that TCS provisions will add to their compliance burden and could squeeze cash flow for small and medium-sized enterprises. Although TDS / TCS can be claimed, industry is of the view that it could lead to working capital issues.

Some tax experts also cautioned against the timing as the return filing process is expected to undergo a revamp with the upcoming GST Council meeting this week is likely to approve two new forms. “It may not be the best time to introduce TDS or TCS while the whole return processes are being reworked,”

“Also, since the GST system is based on self policing with invoice-matching mechanism, there may not be a need of TDS or TCS, unless there are specific cases of tax evasion that have surfaced.”

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

Advise for contacting VidyaSunil & Associates;

Website :   www.vidyasunilassociates.com

E Mail ID : vidyasunilassociates@gmail.com

Cell No. : +91 9739834819

 

 

100% FDI to fuel the next phase of growth

Ecommerce Association of India (ECAI) welcomes the government’s decision for allowing 100% FDI in marketplace eCommerce. This is certainly a way forward in fuelling the growth of eCommerce in India. 

India has seen a very high growth in the marketplace eCommerce, which has in turn thrived many new manufacturers, traders and suppliers providing them limitless market with larger customer base. The industry has seen numerous success stories of startups and entrepreneurs and unabated growth. And, moreover, the government’s support and regulation shall make the growth process long-lasting and more stable.

With 100% FDI on the cards, the marketplace eCommerce companies expect to see a larger influx required for the next phase of growth. Existing marketplaces would grow bigger and the newer marketplaces may come up. We may also see niche marketplaces coming up and ultimately everything will lead to bigger opportunities for the sellers. The move will allow more capital infusion in the sector from the foreign investors and the same can be used for financing their development needs.

The marketplace model has been a big driver of growth for the small businesses which again has been on the priority list of the government. Many young entrepreneurs have benefitted from the marketplace model with the large market reach and larger customer base. They are now able to access a pan-India market which was not possible earlier for a small business with very low or zero marketing budget. Since the marketplace manage the entire logistics of sales and even return, the small businesses do not have to invest or manage the same. The marketplace model has also increased the efficiency of the small businesses. With almost 350 million internet users and almost 800 million mobile users and that too a considerable number using smartphones, it offers even a larger opportunity for the eCommerce companies.

Equitable growth

Though the honeymoon discount period may gradually fade away, but the growth will now be more structured and equitable among players. The sales shall also be not discount-driven, and this would be good for the smaller players with less funding support. They would not have to follow the discount race, as they do not have large bellies to do that. So, things will gradually fall in line in the larger interest of the industry.
The marketplace model also compliments the brick and mortar stores. Of late, the physical stores have also got a larger bandwidth of market space through eCommerce. They are now able to sell to a larger number of customers, and also the eCommerce players are also going offline.

The era of discounting will gradually be corrected, and this will certainly give more opportunities for the brands to reach out to larger pool of young customers through the online marketplace. Hence, the role of eCommerce players become even more important, as they have a huge young customer base following. Also, the rise of mCommerce has given rise to a convenience marketplace where anything and everything can be sold at the convenience of customers.

The government has been looking forward to support the growth of eCommerce industry and we are hopeful that we would see more such pro-industry moves by the government for the sector that has been the largest employment generator for the economy in the last five years. The eCommerce sector has also given rise to a more structured and organised businesses, as all the transactions are recorded. This helps in checking tax evasion and illegal transactions.

Also, with the government’s focus on building a strong manufacturing base in India, eCommerce can play an enabling role for manufacturers and suppliers to access the consumer base. With the borderless market, the manufacturers and suppliers can access any regional market and even global market as well.

(The author is the secretary general at e-Commerce Association of India)

**********************************

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

Advise for contacting VidyaSunil & Associates;

Website : http://www.vidyasunilassociates.com

E Mail ID : vidyasunilassociates@gmail.com

Cell No. : +91 9739834819

 

 

E Commerce Association of India

Ecommerce Association of India

E-Commerce Association of India (ECAI) is India’s first and nodal agency representing the e-Commerce community in India. ECAI is the association representing companies selling products and/or services online to consumers in India.

e-Commerce Association of India seeks to develop India as an e-commerce hub by collaborating with various e-commerce organizations across the country.

Its mission is to advance the interests and influence of e-commerce in India through advocacy, communication and networking.

ECAI is the only association in India that intends to dedicatedly works towards promoting the business of eCommerce in India. The association shall encompass the entire eCommerce eco-system including, the service providers, suppliers, PE & VCs, supply chain companies and as well as the consumers.

The scope of e-Commerce in India is ever increasing to include all the amenities like healthcare, education, retail, tourism, entertainment etc which is also aligned with the broadband revolution which India is witnessing.

ECAI through its concentrated efforts seeks to contribute in the development of the entire ecosystem for the growth of e-Commerce in India. ECAI seeks to develop India as a e-commerce hub by collaborating with various e-commerce organizations (both government and private) across the country.

Objectives & services

• To promote, project and develop the interests and influence of e-commerce in India through advocacy, communication and networking.

• To press forward the interest of B2C e-commerce industry with relevant stakeholders and institutions

• To provide with new brand recognition and membership engagement at all levels.

• To collaborate and associate with related National and International Organizations for update on technologies and latest practices the ecommerce and online business in India.

• To provide an avenue and forum for an open and constructive framework for the discussion of trends, forecasts, policies, directions and challenges of ecommerce industry in India.

• Political and legislative community supervision through analyzing and following up on political and regulatory developments

• Public affairs initiatives and actions to Indian institutions: meeting with institutions and relevant e-commerce stakeholders.

• Institutional communications: foster research, preparing position papers, white papers, reports, facts and figures relevant to the Indian e-commerce market.

• To collaborate and associate with related National and International Organizations for update on technologies and latest practices the ecommerce and online business in India.

• To actively initiate, organize, and support activities and programs for the development and growth of ecommerce and online business in India.

• To provide an avenue and forum for an open and constructive framework for the discussion of trends, forecasts, policies, directions and challenges of ecommerce industry in India.

*************************************************************************************

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

Advise for contacting VidyaSunil & Associates;

Website : http://www.vidyasunilassociates.com

E Mail ID : vidyasunilassociates@gmail.com

Cell No. : +91 9739834819

CGST Notification No. 65/2017 – Seeks to exempt suppliers of E Commerce platform from obtaining Compulsory Registration

(Last Updated On: November 15, 2017)

CGST Notification no. 65/2017 exempts suppliers of e commerce platform from registration 

Seeks to exempt suppliers of services through an e-commerce platform from obtaining compulsory registration.


[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]

                                                              Government of India
                                                                Ministry of Finance
                                                          (Department of Revenue)
                                             [Central Board of Excise and Customs]

                                              Notification No. 65/2017 – Central Tax

                                                                                          New Delhi, the 15th November, 2017

G.S.R. …..(E).— In exercise of the powers conferred by sub-section (2) of section 23 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act), the Central Government, on the recommendations of the Council, hereby specifies the persons making supplies of services, other than supplies specified under subsection (5) of section 9 of the said Act through an electronic commerce operator who is required to collect tax at source under section 52 of the said Act, and having an aggregate turnover, to be computed on all India basis, not exceeding an amount of twenty lakh rupees in a financial year, as the category of persons exempted from obtaining registration under the said Act:

Provided that the aggregate value of such supplies, to be computed on all India basis, should not exceed an amount of ten lakh rupees in case of “special category States” as specified in sub-clause (g) of clause (4) of article 279A of the Constitution, other than the State of Jammu and Kashmir.

                                                                                                       [F. No.349/58/2017-GST(Pt)]

                                                                                                            (Dr.Sreeparvathy S.L.)
                                                                             Under Secretary to the Government of India

Source : Press Reports

*********************************************************************************

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

Advise for contacting VidyaSunil & Associates;

Website : http://www.vidyasunilassociates.com

E Mail ID : vidyasunilassociates@gmail.com

Cell No. : +91 9739834819