Posts in: December, 2017

Planning to Invest in Bitcoin? – Finance Ministry & RBI cautioned people of India to do at their own risk – Bitcoin is not a Legal Tender

There has been a phenomenal increase in recent times in the price of Virtual ‘Currencies’ (VCs) including Bitcoin, in India and globally. The VCs don’t have any intrinsic value and are not backed by any kind of assets.Government Cautions People Against Risks in Investing in Virtual ‘Currencies’ –  Says VCs are like “Ponzi Schemes”.
“There has been a phenomenal increase in recent times in the price of Virtual ‘Currencies’ (VCs) including Bitcoin, in India and globally. The VCs don’t have any intrinsic value and are not backed by any kind of assets. The price of Bitcoin and other

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Impact of GST on the Prices of Goods and Services

Since GST bill has been introduced in the Parliament, economists across the country have started analyzing its impact on the economy. Recommended as the biggest reform of Indian economy, GST has a distinctive impact on every touch point from manufacturer and trader to buyer. Since it is about to proceed in the next couple of months, it is the time to analyze the impact of GST on a common man.

GST has been drafted to create a single window for indirect taxation which was incurred under various names until now. It is estimated to boost GDP by 2% in the short-term and will be a mix bag for the people. Many services may become expensive while goods may witness a fall in their prices due to GST. Though there is a

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Inter-State E-Way Bill compulsory from 1st February 2018 – GST Council Decided in its 24th Meeting

The 24th Meeting of the GST Council held on 16th December 2017, through video conference under the Chairmanship of the Union Minister of Finance and Corporate Affairs, Shri Arun Jaitley. It discussed about the implementation of e-way Bill system in the country. Till such time as the National e-way Bill is ready, the States were authorized to continue their own separate e-way

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Frequently Asked Questions (FAQs) with answers on GST

Question 1. What is GST? How does it work?

Answer: GST is one indirect tax for the whole nation, which will make India one unified common market. GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.

Question 2. What are the benefits of GST?

Answer: The benefits of GST can be summarized as under:

For business and industry – 


Understanding the GST E-Way Bill – How Will It Work?

Under the newly introduced GST regime, the transporters are required to carry an electronic or e-way bill at the time of moving the goods from one location to another. It is a mandatory requirement and the transporters, consignors, and consignees must comply with it. This is an online version of the earlier accepted Way Bill that they had to obtain from the VAT authorities. In this case, e-way bill is required for the movement of goods above Rs. 50,000 in value. The government is planning to allow generating or canceling this bill through SMS as well. At the time of generating an e-way bill, a unique EBN or E-way Bill Number will be allocated to the supplier, recipient, and transporter.

When Should An E-Way Bill Be Generated?

Whenever there is a movement

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What is the Impact of GST on the Export of Services and Goods?

Previously, the export of services and goods was subject to a bevy of indirect taxes. Excise tax, customs duty, VAT, service tax, etc. was standard taxes charged from an exporter. Under the GST regime, all these taxes are subsumed into one. However, customs duty is an exemption and still levied on importers as usual.

Currently, there is no duty charged on exporters of services and goods. Above that, an exporter can claim any inputs that are received for purchasing of their raw materials. The government of India is aiming to increase the export of services and goods. To boost their ‘Make in India’ program, the government has offered various perks including zero duty on the exports. However, there is still some ambiguity in this arrangement and traders are looking for more

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Who Can Be Taxable And Liable for Registration Under GST?

With the introduction of GST, there has been a lot of confusion about the different aspects of this tax regime that combined nine existing taxes into one. Here, we will discuss the taxable person who is liable to register under this law. Any person who carries any business at any location in India and is registered or needed to get registered under the GST Act is defined as a taxable person. Person refers to an individual, company, firm, HUF, a government company, BOI, AOP, co-operative society, government, trust, local authority, artificial juridical person, and a body corporate incorporated under the laws applicable in a foreign country.

Who Should Get Registered Under GST?

 

The registration under this act is mandatory for any business whose turnover exceeds Rs. 20 lakhs in a financial year.

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