New Delhi [India]: With the objective of analyzing in detail the GST provisions vis-a-vis the present indirect tax provisions and understanding the GST Impact on different industry sectors, PHD Chamber is conducting a Knowledge Series on Goods & Services Tax. The Knowledge Series is the second series of GST Workshops conducted by PHD Chamber on Draft Model GST Law, wherein the entire GST law was deliberated in detail.
The first workshop in the above series held here today acknowledged that the Centre is completely geared up and prepared to implement GST whereas the adequate preparations for its execution by assesses is half way through and thus called upon them to gain in pace for this unprecedented indirect reform.The Workshop deliberated in detail the recently released Draft GST Rules & Formats on Registration, Payment, Invoice, Return and Refund, Supply and Time / Place of Supply & Valuation of Goods & Services.
Eminent faculty who addressed and interacted with the participants included Mr. Bimal Jain, Chairman, Indirect Taxes Committee, PHD Chamber; Mr. N K Gupta, Co-Chairman, Indirect Taxes Committee, PHD Chamber; CMA Ashok Nawal, The Institute of Cost Accountants of India; Mr. B L Narasimhan, Lakshmikumaran & Sridharan; Mr. Sudipta Bhattacharjee, Advaita Legal, CA Atul Gupta, ICAI and CA Jayesh Gogri, GSC Intime Services Pvt. Ltd.
Mr. Bimal Jain, Chairman, Indirect Taxes Committee shared certain contentious issues that may arise under the GST. He observed that supply is a taxable event under GST. Even FOC supplies and stock transfer have been made chargeable to GST. This will be a game changer for the industry which at present is not paying any tax on such mechanisms.
The timing of supply of Goods & Services will assume a lot of significance under GST as GST will be chargeable on the advance money collected for supply of goods & services. It is a normal practice in any business to collect advance money from customers for supply / sale of any goods. Collection of advance is the timing of supply of goods, resulting in payment of GST on advances.
Also, at present inter-State supply of goods attract Central Sales Tax. The GST Law provides that an inter-State supply of goods and / or services will attract IGST ((i.e. CGST plus SGST). Thus, it would be crucial to determine whether a transaction is ‘intra-State’ or ‘Inter-State’ as the applicability of GST will be determined on the basis of place of supply.
The Govt. has recently released the Draft GST Rules & Formats on Registration, Payment, Invoice, Return and Refund and sought suggestions from the industry in a day’s time. It is practically difficult for the industry to understand and comprehend the Rules in such a short time and give inputs. PHD Chamber will be shortly sending a detailed Memorandum with a set of suggestions on the new Rules released. The Chamber has earlier submitted a detailed Memorandum of suggestions on the Draft Model GST Law. (ANI-Newsvoir)