Modi Tells US Business Schools – “Study About India’s GST Implementation”

Modi Tells US Business Schools - Study About India's GST Implementation

PM Modi, who met US President Donald Trump for the first time, has hailed the increasing “convergence” of US Indian interests and values. Prime Minister Narendra Modi said that the implementation of India’s “complex” goods and service tax (GST) can be studied by US business schools, as they have invited top American companies to invest in the country that has initiated major reforms.

Modi said on Sunday with 20 top US CEOs at the Round Table Conference in Washington on his first meeting with US President Donald Trump that the implementation of GST’s Landmark Initiative can be a matter of study in US Business Schools.

On GST, the Prime Minister said that after the several efforts this is becoming a reality, which is in front of the roll of historical tax reform measures since 1st July 2017.He said that its implementation is a “complex” task and went on to suggest that it could be a matter of future case studies.Modi Tells US Business Schools - Study About India's GST Implementation

Prime Minister had also said in a conversation that the implementation of GST shows that India can take big decisions and implement them fastly. He said this statement with the CEOs of the groups, in which Apple’s Tim Cook, Sunder Pichai of Google, John Chambers of Cisco and Amazon’s Jeff Bezos were involved.

Modi told them that his government is working on principle like minimum government and maximum governance which is completely dedicated to the peoples of the Nation. The PM Modi told about recent reformation and said that only the Central Government has started 7000 reforms.

He said that this indicates India’s quest for global standards. He emphasised the efficiency, transparency, development and benefits for the government for all. After the meeting, Sunder Pichai told reporters that American businesses are excited to invest in India. While appreciating the steps taken by the Indian government in the last three years, he said that American companies are hoping to roll out of GST.

Tim Cook also said “Good,” when he emerged out of the meeting. President of United States-India Business Council (USIBC) Mukesh Aghi said that the CEOs praised the reforms made by the Indian Prime Minister and stressed on his efforts to make India, a business-friendly destination.
Prime Minister Modi also said that if America becomes stronger, then India will be a natural beneficiary. Apart from this Prime Minister Modi also said that India believes that a strong America is better for the world. He attracted more attention from CEOs in women empowerment, renewable energy, initial and innovation.

He suggested adding sanitary practices, products and techniques to the needs of school going girls. He repeated that his main interest is improving the quality of life in India. Concerned as the biggest taxation reform since independence. GST will unify sixteen different types of taxes including excise duty, VAT and service tax. It converts India into a single market for uninterrupted movement of goods and services.

The powerful GST Council, which is involved in the Center and States, recommended a four-level tax structure – 5, 12, 18 and 28 %. Above the highest slab, a cess will be levied on luxury and defective items to compensate the states for revenue losses in the first five years of GST implementation.

GST rates will be depended on whether the commodity uses by a rich person or a common man. States and Union Territories GST Laws has passed by all the states and Union Territories of India except J&K (Jammu and Kashmir) from 1st of July 2017. So, make the tax path smooth with GST.

How GST Affect you? GST – Boon or Curse

How GST Affect you GST - Boon or Curse

Tax Expert Explained The New Tax System

 As we all know that the India is going to acquire a new tax system from 1st of July 2017 known as GST or goods and services tax. It is an indirect tax which is subsumed of central and state taxes. Tax expert explained that local consumers will get the benefits in terms of reduction of the tax burden on goods. And the businesses will get the benefits in terms of reduction in multiple of taxes and get rid of the hectic process of tax submission process.

How GST Affect you GST - Boon or Curse

The businessman will get a much simpler tax payment path with fewer rates and several exemptions. Yet, people (local consumers or businessman) have many doubts and query related to the implementation of GST.  So, if you want to know about the GST and its effects on you and your business then you should read the below highlights of an interview with the Tax Expert.

  • If a distributor manufactured a product in one state and sold it in another state. How much input tax credit can distributor avail and how with 28 % product Tax rate?

Expert Reply: GST is a destination based tax. As per above question, there is a movement of goods (from one state to another), Therefore it will come under integrated goods and services tax (IGST) that replaces the central sales tax. IGST is set against any IGST liability, then it will set for CGST (central goods and service tax) and finally for SGST (state goods and services tax). Hence, the distributor gets the full credit for the entire 28 % input tax for above order.

  • Before GST, a management consultant was paying 15 % service tax. Now, from 1st of July 2017 with GST implementation, what will be the GST rate for him? 

Expert Reply: Now, a management consultant need to pay 18 % Tax under GST Rate

  • How GST implementation affects the prices of mobile phone and TV (Up or down)?

Expert Reply: After GST implementation, ex-excise duty on mobile phones manufactured in India will be available for set off. Therefore, low-end mobile phones manufactured in India are likely to be cheap. Earlier, excise duty was not available for the set-off. High-end mobile phones are still importing dependent, so the expansion the basic customs duty (BCD) remains constant and is not available for the set against the GST. Therefore, the expansion of high-end smartphones can be expensive.

  • A dealer/distributor (Karnataka to Uttar Pradesh, Andhra Pradesh and Delhi) of fresh vegetables and ginger, whose turnover per annum is more than Rs. 60 lakh. All distributed products are exempt from GST. So, does he need to register for GST? 

Expert Reply: If a Dealer is dealing is exempted goods, then the question of registration does not arise, even if dealer business is worth Rs. More than 60 lakhs.

  • A person sells products or items through online platforms with the maximum turnover of Rs. 1,000 per month. Online e-tailers ask them to submit GST TIN (Tax Identification Number). What should that person do?

Expert Reply:
According to news reports, the tax deducted at the source (TDS) from E-tailer’s payment to its suppliers has been deferred for now. Therefore, 1% tax collected at the source (TCS) has been deferred which was in the plan. So, that person should write back to the e-commerce compliance team.

  • How GST affect a home buyer? Under old tax system, the buyer was paying 4.5 % service tax for the stamp duty during registration/ documentation. Now what?

Expert Reply:
Previously, input tax credits were not available to developers for building materials such as cement, steel etc. Now, there is a relief that developers can claim input tax credits and can settle it against the last GST liability. Therefore, it is expected that developers will pass the buyers for a profit.