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Wealth & Money 175 views Mar 16, 2018
GST Rates in India 2016/2017: What has changed till now?

The Goods and Services Tax has come a long way since its implementation. The ill-effects of the earlier taxation regime were overlooked by the government. But the decreased tax revenues and increasing corruption led the government to launch a robust taxation structure. However, the GST Council was unable to achieve the end-goals in the first attempt. Considering the expectations and problems of the taxpayers of the nation, the government keeps on making the changes in the regime in order to make it easier to comply with. Here’s how the government modified GST in the course of one year:

GST rates

The GST rates in India 2016/2017 have been on an extreme roller-coaster ride. Initially, the government finalized five tax percentage slabs as 0%, 5%. 12%, 18%, and 28%. The businesses had to match and confirm that under which tax percentage their goods and services fall into. This process was tedious but important as well because it ensured the right payable tax amount. Now the government has:

  1. Made a decision to merge the tax percentage categories of 12% and 18% into one.
  2. Exempted hundreds of goods and services from the GST regime.

E-way billing

The e-way bill is a document that is required in order to transport the goods and services from one place to another. This document keeps the transaction involved in the transportation of the GSTN records. Post implementation of the Goods and Services Tax, the government realized that the scrutiny over the movement of the goods is necessary. In the previous taxation regime, the business adopted fraudulent measures that resulted in the tax evasion in the form of illegal and off-record movement of the goods and services.

The GST bill would be required to be renewed once it crosses 50 kilometers while in transit. And each time the vehicle gets an e-way bill, the detail of the same gets uploaded on the GSTN network. This special feature of the process makes it completely impenetrable, thus reducing the risk of tax evasion.

Return filing

The government, by not restricting its focus, has taken effective measures to repair all the damaged and weak sections of the taxation regime. One of the most important aspects of the Goods and Services Tax is return filing which troubled people the most. A single taxpayer is required to file 37 returns in a financial year. But what messes the taxpayers is filing three separate returns of the sales, purchases and then the summary in a month.

Thus, the government decided to make the GSTR3B form that is filed once in a month more robust and full proof. Ultimately, the taxpayer would be able to get rid of the separate return forms. Once this rule gets implemented, the taxpayers, for obvious reasons, would experience low-cost and time needed for the return filing processes. As soon as the government backs GSTR3B with controllable measures so that the people couldn’t use it unlawfully, the regime would become untroublesome.

Input Tax Credit

The most substantial and visible feature of the GST regime is the input tax credit. This special feature has been able to hold the taxpayers with the regime because it assures return spend by the businesses on the goods. The main motive of the government through incorporating ITC into the taxation regime is an uncorrupt flow of the benefit from the manufacturers to the consumers.

But lately, the process became defective. The manufacturers had denied the consumers of any benefit on the products and started blaming GST for the hiked prices. To combat these situations, the government decided to launch an anti-profiteering body that will investigate such cases and take strict actions against those found guilty.

Summary

Keeping a track on the modifications in the Goods and Services Tax Act is important. The growth of the business and money, both depends upon the effective compliance of the GST regime. Safeguarding the business with the complications of GST regime can only be possible if the person is well aware of the most recent rules and regulations it. The GST rates in India 2016/2017 will keep on evolving until the regime becomes hassle-free.



GST Keeper 's Entries

2 blogs
  • 16 Mar 2018
    The Goods and Services Tax has come a long way since its implementation. The ill-effects of the earlier taxation regime were overlooked by the government. But the decreased tax revenues and increasing corruption led the government to launch a robust taxation structure. However, the GST Council was unable to achieve the end-goals in the first attempt. Considering the expectations and problems of the taxpayers of the nation, the government keeps on making the changes in the regime in order to make it easier to comply with. Here’s how the government modified GST in the course of one year: GST rates The GST rates in India 2016/2017 have been on an extreme roller-coaster ride. Initially, the government finalized five tax percentage slabs as 0%, 5%. 12%, 18%, and 28%. The businesses had to match and confirm that under which tax percentage their goods and services fall into. This process was tedious but important as well because it ensured the right payable tax amount. Now the government has: Made a decision to merge the tax percentage categories of 12% and 18% into one. Exempted hundreds of goods and services from the GST regime. E-way billing The e-way bill is a document that is required in order to transport the goods and services from one place to another. This document keeps the transaction involved in the transportation of the GSTN records. Post implementation of the Goods and Services Tax, the government realized that the scrutiny over the movement of the goods is necessary. In the previous taxation regime, the business adopted fraudulent measures that resulted in the tax evasion in the form of illegal and off-record movement of the goods and services. The GST bill would be required to be renewed once it crosses 50 kilometers while in transit. And each time the vehicle gets an e-way bill, the detail of the same gets uploaded on the GSTN network. This special feature of the process makes it completely impenetrable, thus reducing the risk of tax evasion. Return filing The government, by not restricting its focus, has taken effective measures to repair all the damaged and weak sections of the taxation regime. One of the most important aspects of the Goods and Services Tax is return filing which troubled people the most. A single taxpayer is required to file 37 returns in a financial year. But what messes the taxpayers is filing three separate returns of the sales, purchases and then the summary in a month. Thus, the government decided to make the GSTR3B form that is filed once in a month more robust and full proof. Ultimately, the taxpayer would be able to get rid of the separate return forms. Once this rule gets implemented, the taxpayers, for obvious reasons, would experience low-cost and time needed for the return filing processes. As soon as the government backs GSTR3B with controllable measures so that the people couldn’t use it unlawfully, the regime would become untroublesome. Input Tax Credit The most substantial and visible feature of the GST regime is the input tax credit. This special feature has been able to hold the taxpayers with the regime because it assures return spend by the businesses on the goods. The main motive of the government through incorporating ITC into the taxation regime is an uncorrupt flow of the benefit from the manufacturers to the consumers. But lately, the process became defective. The manufacturers had denied the consumers of any benefit on the products and started blaming GST for the hiked prices. To combat these situations, the government decided to launch an anti-profiteering body that will investigate such cases and take strict actions against those found guilty. Summary Keeping a track on the modifications in the Goods and Services Tax Act is important. The growth of the business and money, both depends upon the effective compliance of the GST regime. Safeguarding the business with the complications of GST regime can only be possible if the person is well aware of the most recent rules and regulations it. The GST rates in India 2016/2017 will keep on evolving until the regime becomes hassle-free.
    176 Posted by GST Keeper
  • The Goods and Services Tax has come a long way since its implementation. The ill-effects of the earlier taxation regime were overlooked by the government. But the decreased tax revenues and increasing corruption led the government to launch a robust taxation structure. However, the GST Council was unable to achieve the end-goals in the first attempt. Considering the expectations and problems of the taxpayers of the nation, the government keeps on making the changes in the regime in order to make it easier to comply with. Here’s how the government modified GST in the course of one year: GST rates The GST rates in India 2016/2017 have been on an extreme roller-coaster ride. Initially, the government finalized five tax percentage slabs as 0%, 5%. 12%, 18%, and 28%. The businesses had to match and confirm that under which tax percentage their goods and services fall into. This process was tedious but important as well because it ensured the right payable tax amount. Now the government has: Made a decision to merge the tax percentage categories of 12% and 18% into one. Exempted hundreds of goods and services from the GST regime. E-way billing The e-way bill is a document that is required in order to transport the goods and services from one place to another. This document keeps the transaction involved in the transportation of the GSTN records. Post implementation of the Goods and Services Tax, the government realized that the scrutiny over the movement of the goods is necessary. In the previous taxation regime, the business adopted fraudulent measures that resulted in the tax evasion in the form of illegal and off-record movement of the goods and services. The GST bill would be required to be renewed once it crosses 50 kilometers while in transit. And each time the vehicle gets an e-way bill, the detail of the same gets uploaded on the GSTN network. This special feature of the process makes it completely impenetrable, thus reducing the risk of tax evasion. Return filing The government, by not restricting its focus, has taken effective measures to repair all the damaged and weak sections of the taxation regime. One of the most important aspects of the Goods and Services Tax is return filing which troubled people the most. A single taxpayer is required to file 37 returns in a financial year. But what messes the taxpayers is filing three separate returns of the sales, purchases and then the summary in a month. Thus, the government decided to make the GSTR3B form that is filed once in a month more robust and full proof. Ultimately, the taxpayer would be able to get rid of the separate return forms. Once this rule gets implemented, the taxpayers, for obvious reasons, would experience low-cost and time needed for the return filing processes. As soon as the government backs GSTR3B with controllable measures so that the people couldn’t use it unlawfully, the regime would become untroublesome. Input Tax Credit The most substantial and visible feature of the GST regime is the input tax credit. This special feature has been able to hold the taxpayers with the regime because it assures return spend by the businesses on the goods. The main motive of the government through incorporating ITC into the taxation regime is an uncorrupt flow of the benefit from the manufacturers to the consumers. But lately, the process became defective. The manufacturers had denied the consumers of any benefit on the products and started blaming GST for the hiked prices. To combat these situations, the government decided to launch an anti-profiteering body that will investigate such cases and take strict actions against those found guilty. Summary Keeping a track on the modifications in the Goods and Services Tax Act is important. The growth of the business and money, both depends upon the effective compliance of the GST regime. Safeguarding the business with the complications of GST regime can only be possible if the person is well aware of the most recent rules and regulations it. The GST rates in India 2016/2017 will keep on evolving until the regime becomes hassle-free.
    Mar 16, 2018 176
  • 23 Feb 2018
    The Goods and Services Tax in India has emerged as an appropriate tool that can help in the tax evasion. But the tax evasion is not the sole objective of the implementation of the GST Act. The taxation is brought into effect for the unification of all the taxes making it more streamlined. The initial phase of GST was not well received by the people. Because the entire idea of the government to change the taxation system completely seemed to people as if the authorities are trying to hit too hard on the financial parameters. Recently, the results of GST started showing up in real figures and not just in the imagination. The businesses from different backgrounds showcased the types of changes that occurred in their processes due to the implementation of the Goods and Services Tax. Since these businesses have adopted the GST regulations, their businesses, in terms of taxation, has become more contoured and easy. Amazingly, most of these businesses assuring the benefits of GST are associated with the restaurant industry. The  liveliness in the business There are plenty of reasons due to which the food businesses are enjoying GST so much. As they have experienced minimal drawbacks of the new taxation process, here are few factors that helped the restaurant sector in an impeccable way: 1. Complete digitalization- In the past two decades, the food industry in India has gone through an ultimate transformation that has made it adopt the most recent and cost-effective ways to operate the business. And GST being completely digital in nature has become like icing on the cake for the restaurant industry. The people’s inclination towards making the payment through an online medium makes doing business even easier for the restaurants all over. Not only they can do their taxation completely and receive payments digitally, but can also enjoy the advantage of business operations like ordering, booking etc. by doing them online and saving an enormous amount of time and cost. 2. Tax percentage- As per the India GST regulations, the tax applicability of the air conditioned and non-air-conditioned restaurants is different. But this differentiation of the taxation category made beforehand by the government keeps the restaurants at bay, untouched from the hassle of the regime that most of the businesses of other backgrounds face. With pre-identified taxation, the restaurant owners can effectively file GST returns and even comply with all the rules and regulations of the Goods and Services Tax. And just because the prices and charges are constant in almost every restaurant so the tax calculation bends effortlessly and becomes manageable. 3. Organized retail- In the restaurant business, the purchase of the goods and services is restricted and the food items captivate the majority of it. And since the GST is completely digital, it gives the businesses to maintain a sorted detail of the inputs/outputs of the goods and services. With a focused market of operation, the process of creating invoices and filing returns becomes much easier for those involved in the restaurant business specifically. 4. Expansion- As the restaurant owners gets free from the taxation system, they are planning the expansion of their businesses. The people involved in the restaurant businesses now have a solid blueprint of how they have to comply with the rules in order to make their business registered. The Goods and Services Tax cuts short the excessive strain of formal meetings and discussions in the planning of tax management. With the unified process of GST, even a single person can easily comply with the taxation. Summary The restaurants all over India are showing a green signal to the government for GST Act. This ultimately means that those people are in the favor of the new taxation regime and will definitely show a positive support as GST evolves. And sooner or later, the GST regulations, completely eliminating the tax evasion from the country, will become a simplified and sorted-out process which now sees some minor glitches and problems.
    38 Posted by GST Keeper
  • The Goods and Services Tax in India has emerged as an appropriate tool that can help in the tax evasion. But the tax evasion is not the sole objective of the implementation of the GST Act. The taxation is brought into effect for the unification of all the taxes making it more streamlined. The initial phase of GST was not well received by the people. Because the entire idea of the government to change the taxation system completely seemed to people as if the authorities are trying to hit too hard on the financial parameters. Recently, the results of GST started showing up in real figures and not just in the imagination. The businesses from different backgrounds showcased the types of changes that occurred in their processes due to the implementation of the Goods and Services Tax. Since these businesses have adopted the GST regulations, their businesses, in terms of taxation, has become more contoured and easy. Amazingly, most of these businesses assuring the benefits of GST are associated with the restaurant industry. The  liveliness in the business There are plenty of reasons due to which the food businesses are enjoying GST so much. As they have experienced minimal drawbacks of the new taxation process, here are few factors that helped the restaurant sector in an impeccable way: 1. Complete digitalization- In the past two decades, the food industry in India has gone through an ultimate transformation that has made it adopt the most recent and cost-effective ways to operate the business. And GST being completely digital in nature has become like icing on the cake for the restaurant industry. The people’s inclination towards making the payment through an online medium makes doing business even easier for the restaurants all over. Not only they can do their taxation completely and receive payments digitally, but can also enjoy the advantage of business operations like ordering, booking etc. by doing them online and saving an enormous amount of time and cost. 2. Tax percentage- As per the India GST regulations, the tax applicability of the air conditioned and non-air-conditioned restaurants is different. But this differentiation of the taxation category made beforehand by the government keeps the restaurants at bay, untouched from the hassle of the regime that most of the businesses of other backgrounds face. With pre-identified taxation, the restaurant owners can effectively file GST returns and even comply with all the rules and regulations of the Goods and Services Tax. And just because the prices and charges are constant in almost every restaurant so the tax calculation bends effortlessly and becomes manageable. 3. Organized retail- In the restaurant business, the purchase of the goods and services is restricted and the food items captivate the majority of it. And since the GST is completely digital, it gives the businesses to maintain a sorted detail of the inputs/outputs of the goods and services. With a focused market of operation, the process of creating invoices and filing returns becomes much easier for those involved in the restaurant business specifically. 4. Expansion- As the restaurant owners gets free from the taxation system, they are planning the expansion of their businesses. The people involved in the restaurant businesses now have a solid blueprint of how they have to comply with the rules in order to make their business registered. The Goods and Services Tax cuts short the excessive strain of formal meetings and discussions in the planning of tax management. With the unified process of GST, even a single person can easily comply with the taxation. Summary The restaurants all over India are showing a green signal to the government for GST Act. This ultimately means that those people are in the favor of the new taxation regime and will definitely show a positive support as GST evolves. And sooner or later, the GST regulations, completely eliminating the tax evasion from the country, will become a simplified and sorted-out process which now sees some minor glitches and problems.
    Feb 23, 2018 38

Most Viewed Blogs/Articles From This Author

  • 23 Feb 2018
    The Goods and Services Tax in India has emerged as an appropriate tool that can help in the tax evasion. But the tax evasion is not the sole objective of the implementation of the GST Act. The taxation is brought into effect for the unification of all the taxes making it more streamlined. The initial phase of GST was not well received by the people. Because the entire idea of the government to change the taxation system completely seemed to people as if the authorities are trying to hit too hard on the financial parameters. Recently, the results of GST started showing up in real figures and not just in the imagination. The businesses from different backgrounds showcased the types of changes that occurred in their processes due to the implementation of the Goods and Services Tax. Since these businesses have adopted the GST regulations, their businesses, in terms of taxation, has become more contoured and easy. Amazingly, most of these businesses assuring the benefits of GST are associated with the restaurant industry. The  liveliness in the business There are plenty of reasons due to which the food businesses are enjoying GST so much. As they have experienced minimal drawbacks of the new taxation process, here are few factors that helped the restaurant sector in an impeccable way: 1. Complete digitalization- In the past two decades, the food industry in India has gone through an ultimate transformation that has made it adopt the most recent and cost-effective ways to operate the business. And GST being completely digital in nature has become like icing on the cake for the restaurant industry. The people’s inclination towards making the payment through an online medium makes doing business even easier for the restaurants all over. Not only they can do their taxation completely and receive payments digitally, but can also enjoy the advantage of business operations like ordering, booking etc. by doing them online and saving an enormous amount of time and cost. 2. Tax percentage- As per the India GST regulations, the tax applicability of the air conditioned and non-air-conditioned restaurants is different. But this differentiation of the taxation category made beforehand by the government keeps the restaurants at bay, untouched from the hassle of the regime that most of the businesses of other backgrounds face. With pre-identified taxation, the restaurant owners can effectively file GST returns and even comply with all the rules and regulations of the Goods and Services Tax. And just because the prices and charges are constant in almost every restaurant so the tax calculation bends effortlessly and becomes manageable. 3. Organized retail- In the restaurant business, the purchase of the goods and services is restricted and the food items captivate the majority of it. And since the GST is completely digital, it gives the businesses to maintain a sorted detail of the inputs/outputs of the goods and services. With a focused market of operation, the process of creating invoices and filing returns becomes much easier for those involved in the restaurant business specifically. 4. Expansion- As the restaurant owners gets free from the taxation system, they are planning the expansion of their businesses. The people involved in the restaurant businesses now have a solid blueprint of how they have to comply with the rules in order to make their business registered. The Goods and Services Tax cuts short the excessive strain of formal meetings and discussions in the planning of tax management. With the unified process of GST, even a single person can easily comply with the taxation. Summary The restaurants all over India are showing a green signal to the government for GST Act. This ultimately means that those people are in the favor of the new taxation regime and will definitely show a positive support as GST evolves. And sooner or later, the GST regulations, completely eliminating the tax evasion from the country, will become a simplified and sorted-out process which now sees some minor glitches and problems.
    38 Posted by GST Keeper

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