Skip to main content

Let’s witness the change.


We all know that only a chai wala can clean bad throats with his masala wali chai. It is our honour and privilege to witness a man who himself is making that chai for thousand of throats which were yelling badly since so many years.

This generation is blessed to see the way Indian Economy is transforming. From eradicating of black money to corruption, introduction of GST to Banking Transaction Tax it is all happening in this golden era. Like a transformation  which took place in 1991 when we opened up our economy, this time we are opening our minds to bring the behavioral change.

Earlier when Income Disclosure Scheme was announced, our H’ble PM warned that one should declare his black money himself or he will force them to do so. At that juncture we thought at the most, income tax department would start conducting extensive search and surveys which we all know how to handle. What we never thought was that he would play such a master stroke of demonetization. Although each one of us is facing the problems due to demonetization, but let me tell you majority of the Indian citizens are happy with this decision.

As a professional we feel that this is one part of the story, climax is yet to come. It is highly probable that he may discontinue Rs. 2000 and Rs. 500 notes one year down the line, which will make India cash-less economy and free of corruption in real sense. Our experience also says that Modi might also play another cover drive by replacing the Income Tax Act with Banking Transaction Tax. Although it is not easy, but nothing remains tough for a Prime Minister with this courage and force.

Another change which we are witnessing is the biggest indirect tax reform. With GST coming in, issues like multiplicity of taxes; tax terrorism etc will go away. Tax revenue for the government is set to increase with GST. Apart from tax revenue GST will send a welcome message to the countries worldwide for doing business here. GST will certainly bring ease of doing business if the anomalies of the law are sorted out. Apart from tax element, GST is likely to make our country unified and make us United States of India.

The next big change we are witnessing is the image our country is forming across the world. Even the elected president of US, Donald Trump had to play India Card to win elections. What more to expect, when we travel abroad they recognize us as citizens of Modi’s Country. The brand “India” which he has promoted is exemplary.

There have been major changes in the Foreign Trade Policy as well. This had encouraged the Foreign Investors to invest in India. Gone are days when the investors feared of Investing in India, just because it was difficult to withdraw that money later. This has completely changed, the business can move out easily if they don’t wish remain in India anymore.  

Let’s become the part of transforming India and help our Prime Minister fulfill his dream. As he says that he does not worry about the future, let us also adopt the same and see how we can help our country become one of the best nations across the world. We all are privileged enough to be part of the transformation which we can recite to our future generations.

by:
Keshav R Garg
(B.Com, FCA, CS, ISA (ICAI))
Faculty for GST: Indirect Tax Committee of ICAI
Author: Bharat's GST Ready Reckoner
            A Handbook on GST
Adviser for GST: Industries Association of Chandigarh 
Member: Indirect Tax Committee of CII, PHDCCI, MyGst.MyTax Foundation
Address: 3328, Sector 27 D, Chandigarh, India - 160 019
Phones: +91-172-461-3328, +91-98880-90008

Mails: mygst.mytax@gmail.com, keshavgarg@kdai.in   

Comments

Post a Comment

Popular posts from this blog

GST Registration in case of Renting of Immovable properties:

GST Registration in case of Renting of Immovable properties: By CA. Keshav R Garg 1.      Let us first understand that the place of registration is decided by the term place of business as defined by section 2(85) of the CGST Act 2017. As per the definition of “Place of Business” it is a place from where the business is carried on and/or where a warehouse or any other place for storage of goods is located and/or books of accounts are maintained and/or the business through agent is carried on. It nowhere considers “place of supply” for determining the Place of business for the purpose of GST Registration. Hence, place of supply has no impact as far as GST Registration is concerned. 2.      As per section 22 of the CGST Act 2017, a person is liable to take registration from the place he makes a taxable supply. There is a distinction in place of supply and place from one makes taxable supplies. Place of supply is derived to conclude the state where the tax would be allo
58 comments
Read more

Renting of Warehouse for Agriculture Produce – Taxable under GST

In the case of Rishi Shipping – Gujarat Authority for Advance Ruling has cleared the air that Storing/warehousing and renting of immovable property are two different type of services. Merely because the agricultural produce is stored in an immovable property it would not classify it as Storage and Warehousing Services. Therefore the same shall not be covered under S. No. 54 of Negative List (Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017), hence taxable under the purview of CGST and IGST Act. The Authority held that in order to classify a service as Storage and Warehousing, it should be coupled with loading/unloading/packing services etc. The authority was of the view that where mere building is let out, it shall be classified as renting of immovable property which is chargeable to tax. It is the composite supply, principal supply being renting of immovable property for storage of agricultural produce which is exempt from tax. It further held that once the
19 comments
Read more

GST IMPACT ON DIWALI GIFTS

With Diwali round the corner and GST being implemented, the businesses are in a state of confusion as to what would happen to tax paid by them during the purchase of Diwali gifts. Various questions like whether such gifts are eligible for claiming input tax credit? Are these gifts used in the course or furtherance of business? How the invoices should be taken for these gifts. These questions are but obvious because Diwali is one occasion where business tries to fulfil all its obligations towards vendors, customers, government officials, consultants etc. As per section 16 a taxpayer is entitled to take credit of input tax charged on any supply of goods or services to him which are used in the course or furtherance of his business.  Therefore at the very first instance, we need to understand, what is in the course or furtherance of business. Course of business means usual business practice such as manufacturing, trading etc. It implies those transactions which are directly relat
19 comments
Read more