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Cus - Export of non-basmati rice - Notification 20/2023 insofar as it denies the benefit of the transitional arrangement as contained in para-1.05 of the FTP 2023, is bad in law: HCCus - Refund of SAD - 102/2007-Cus - Areca Nut and Supari are one and the same - Objections with regard to name, nature and status of importer or buyers or the end use of goods purchased by them etc. are extraneous: HCCX - Interest on Refund - Since wrong order annexed by petitioner in paper book, Bench is unable to proceed further - Petition is dismissed with liberty to file a fresh one: HCGST - No E-way bill - When petitioner imports machinery and after Customs clearance, transports same to his own factory, it cannot be said that such a transportation would fall within the definition of term 'supply' - Penalty imposable under second limb of s.129(1)(a): HCGST - Fix responsibility on officers who allowed BG to lapse - Petitioner not justified in not renewing BG - Cost of Rs.15 lacs imposed, to be paid to PM Cares Fund: HCGST - Since the parties agree that petition can be disposed of on the basis of records available before Appellate Authority, petitioner is directed to enclose all documents filed before Appellate Authority in a compilation, in form of a paper book: HCWrong RoadST - Whether any service is used for personal consumption or not is certainly question of fact and being question of fact, no substantial question of law arises: HCGovt proposes to amend Geographical Indication of Goods Rules; Draft issued for feedbackST - If what has been paid as tax is without authority of law, Revenue should refund the same - Denial of credit would result in the whole exercise being tax neutral: HCWarehousing Authority notifies several agri goods to be stored in only registered warehousesST - Even if the petitioner may have a case on merits, it is best left to be decided by the Appellate Authority under the hierarchy prescribed under the FA, 1994: HCUS FDA okays Eli Lilly Alzheimer’s drugGST - Petitioner challenges jurisdiction of assessing officer - Petitioner is entitled to file an appeal u/s 107 by availing an alternate efficacious remedy: HCFive from Telangana killed in car accident on Pune-Solapur HighwayGST - Existence of an alternative remedy is a material consideration but not a bar to the exercise of jurisdiction: HCHush money case against Donald Trump - Sentencing deferred to Sept 18GST - It is open to a trader to take goods by whichever route he opts, unless the law otherwise requires, destination point being intact: HCDeadly hurricane Beryl smashes properties in JamaicaGST - Conclusion that taxable person is providing a service to supplier while taking the benefit of a discount by facilitating an increase in the volume of sales of such supplier is ex facie erroneous and contrary to the fundamental tenets of GST law: HCIsrael claims 900 militants killed in Rafah since May monthGST - Order expressly records that personal hearing notice was returned with endorsement 'no such person at address' - Since petitioner has shifted to a new premises, it is just and necessary to provide an opportunity to contest demand: HC116 die in stampede at UP ’Satsang’I-T- Application for revision of order dismissed in limine on grounds of delay; case remanded for re-consideration: HCWe are deepening economic ties with India, says US officialI-T- As per Section 119(2)(b), power to condone applications relate to claims for amount exceeding Rs 50 lakhs are to be considered by CBDT; however it is impermissible for CBDT to pass order on merits: HC8 Dutch engineers build world’s longest bicycle - 180 feet, 11 inchesI-T- Additions framed u/s 68 for unexplained income & u/s 69 for unexplained expenditure not tenable where complete transactional details are furnished & not doubted: HCRailways earns Rs 14798 Crore from Freight loading in June monthI-T- Delay in filing ITR is per se insufficient reason to estimate assessee's profit @15% on turnover, more so where audited financial report is filed in timely manner: ITATMoD inks MoU to set up testing facilities in Unmanned Aerial System in TN Defence Industrial CorridorI-T- For invoking section 69A, assessee should be found to be owner of any money, bullion, jewellery or other valuable article & which is not recorded in the books of account: ITATGovt proposes Guidelines for ethical approach to Coal MiningI-T- TDS credit can be allowed based on AIS, where details pertaining to TDS, advance tax & other payments are reflected in Form 26AS: ITATVaishnaw to inaugurate Global IndiaAI Summit 2024I-T- Lending money with the primary intention of earning interest can be considered a business activity, but nature and manner of lending, as well as the frequency, should be taken into account: ITAT
 
GST, a simplified or a complex tax?

OCTOBER 18, 2016

By Puneet Chopra

IN India, currently various Indirect taxes are levied at both Federal and State level. It is proposed to introduce Goods and Services tax ('GST') in India to subsume the various Indirect taxes. So effectively instead of various taxes there would be GST. This seems, on the face of it, to be simplification of taxes, but is it so in the true sense.

It may be noted that GST would not be a single GST, but it would be a dual GST with the Centre and the States simultaneously levying it on a common base. There would be a Central GST, Integrated GST (renamed as 'goods and services tax levied on supplies in the course of inter-state trade or commerce'), and separate State GST for each State. In addition there would be 'Rules', 'Notifications', 'Circulars' etc. for all the above laws. GST would not be that simple, because there would be multiple laws, rules etc.. But GST would not be that complex either because under GST the various laws would contain similar provisions, unlike the current Indirect tax system where there are many different laws with dissimilar provisions.

The concepts of 'Manufacture', 'Production', 'Sale', 'Provision of Service' is proposed to be replaced by the concept of 'Supply' under GST. Instead of so many definitions, there would be only one definition i.e. that of 'Supply'. The definition of 'Supply' is an inclusive one, thus it leaves enough scope for interpretation issues. 'Supply' would include transactions made or agreed to be made whether or not for a consideration and whether or not in the course or furtherance of business. Simply stated 'Supply' would include consignment transfers/ branch transfers, exchange and barter transactions, self/ captive consumptions of goods and services? The concept of 'Supply' is by no stretch of imagination a simple one.

Further, the applicability of the concept of 'Supply' would also require analysis of not only the definition, but one would also have to analyze the concepts such as ' Time of supply of goods ', ' Time of supply of services ', ' Value of taxable supply', 'Matters to be treated as supply of goods or services', etc. Not so simple, after all.

Basic Customs duty would continue to be applicable on import of goods in addition to GST, and Central Excise duty would continue to be applicable on tobacco in addition to GST. Simple!

Currently, a service provider providing services from various locations can apply for Centralized Registration, but under GST he would have to apply for Registration in each State, as there would not be any concept of Centralized Registration. So many more registrations would be required. Further each business vertical would have to take separate registration, which would further increase the number of registrations and compliance burden. Simple!

It may also be noted that to avail input credit the receiver would have to ensure that the tax charged in respect of input supplies has actually been paid to the credit of the appropriate government.This would definitely not simplify things for businesses.

Businesses at the initial phases would have to put in lots of efforts as it would require making changes in their supply chain models, re-negotiation of contracts, changes in ERP systems, training of employees, tax planning etc.

There would definitely be simplification due to the reason that currently there are multiple different types of taxes under which lot of compliance requirements are there. Under GST there would be fewer taxes with similar provisions, as stated above. Classification of goods would be simplified as there would be a single classification, unlike under the current Indirect tax system of different classification under Central excise and VAT for same goods. Further,there would be fewer slabs for tax rates.

The simplification due to GST is largely due the fact of subsuming of various laws, but the complexities in interpretation would remain or could also increase, as discussed above.

Definitely GST will simplify things, but not as much as the hyper around it!

(The author is Senior Manager with Mazars.)

(DISCLAIMER : The views expressed are strictly of the author and Taxindiaonline.com doesn't necessarily subscribe to the same. Taxindiaonline.com Pvt. Ltd. is not responsible or liable for any loss or damage caused to anyone due to any interpretation, error, omission in the articles being hosted on the site)

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