10 things to know before GST rollout
GST will be rolled out from July 1, 2017 and just before its implementation the Govt. had
issued various notifications on GST.
Key takeaways from such notifications are given hereunder:
1. There is a requirement to mention HSN code of items in tax invoice under GST. Now the
Govt. has given some relief to small assessees with annual turnover uptoRs 1.5 crores. They
are not required to mention HSN code in their tax invoice. Taxpayers having turnover in
the range of Rs 1.5-5 crore will be required to mention only two digits of HSN code and
taxpayers with turnover more than Rs 5 crore will be required to mention four digits of
HSN code.
2. Now the Govt. has given exemption from reverse charge in those cases wherein the value
of goods or services does not exceed Rs 5000 and such goods or services are received by
registered person from the unregistered person.
3. Earlier Military canteens (‘Canteen Stores Department’)were not required to pay any
indirect tax on purchase of goods. Now Military canteens will be required to pay GST at the
time of purchase of goods and they would be entitled to refund of 50 percent of inputtax
under GST.
4. Now e-commerce operators (like Ola, Uber) are required to pay GST on radio taxi services.
5. Now e-commerce operators (like MMT, Oyo rooms) are required to pay GST on services
of hotel accommodation only when such hotels are not registered under GST.
6. Exemption from reverse charge has been given to registered person on purchase of second
hand goods from unregistered person subject to the condition that buyer will pay GST on
its subsequent sales.
7. Now builders would not be able to claim credit of unutilized input tax on supply of
construction services.
8. Earlier UN and Foreign diplomatic missions were not required to pay any indirect taxes.
Now they are required to pay GST and they will be entitled to claim a refund of GST
subsequently.
9. GST will be be levied at rate of 5% on various goods used for petroleum operations subject
to some conditions.
10.Any services provided by Panchayat will not be liable to GST
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