Last few days had been very significant for a taxpayer, as the GST Council had finalised the much awaited rates for commodities and services along with rate of compensation cess for specified commodities. Government has to the maximum adhered to cumulative rate of existing Central Excise + VAT to most of the commodities. Quite contrary to the expectations, the services are also falling under different slabs ranging from 5% to 28%. The whole scheme of abatement has been taken away for taxing services. The exemption list of services is still lacking in clarification in form definition of various expressions used therein. The confusion may be settled when the final notification is published which is expected to be complete in itself.
Rules on Eway bills are put on hold due to probability of further changes. The return format will also go for a revision on basis of feedback from assessees trying the BETA version made available. It has been made clear that there is no need to file return in GSTR 1 for the month of July and August immediately . The GST Council has relaxed the rules for filing returns for initial two months of July and August. As per the revised rules, a new form GSTR-3B will be introduced by the government. Every taxpayer needs to file his return on self-assessment basis for the first two months i.e July and August. These return forms have to be filed by 20th of next month. Simultaneously, the taxpayer has to file the GSTR-1 for the month of July on or before September 5; an extension of 25 days has been extended for the month of July. For the month of August, this extension is limited to a period of 10 days. Once GSTR-1 is filed, GSTR-2 and GSTR-3 will auto-populate with information furnished under GSTR-1. Eventually, this GSTR-3 will be matched against GSTR-3B and any difference will be refunded or needs to be paid as the case may be. However, no penalty or late fees will be charged on the difference.
The GSTN is to reopen for registration from 25th of June, 2016. There are several assesees awaiting for provisional id since same had not been obtained due to several mismatch issues.
Irrespective of level of preparedness at the end of government, industry and department, the Government is determined to stick to deadline of implementing GST with effect from 01.07.2017. There is no scope for any further postponement, is evident from the news that government has declared that on June 30 a program will be organised in the central hall of Parliament where all members of the Parliament, GST Council, chief ministers, and officials who have assisted in the process have all been invited.
Now the trade has no other option but to fall in line and step in to the new tax regime. So...