GST Reform of indirect Taxation

Discussion in 'Taxation Matters' started by naveen_talkin, Jul 15, 2016.

  1. naveen_talkin

    naveen_talkin Active Member

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    Hi,

    What will be the implications on trade cost if GST bill get passed in the assembly. will be only one tax instead of many?
     
  2. niftygupshup

    niftygupshup Well-Known Member

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    Re: Effect of GST to Trade Cost

    Tax will be increased by 3-4% (likely, subject to GST rate decision), as service tax will be increased to 18 or 20% (likely)
     
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  3. Punter786

    Punter786 Banned

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    Hi,

    Creating this thread b'cos I do not have any idea or information about the possible impact of GST on trading and brokerage, and whether it is going to replace the STT, stamp duty etc in the first place! So share what you think about possible GST impact on trading. Positive, negative or none?

    Thanks
     
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  4. niftygupshup

    niftygupshup Well-Known Member

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    Re: Impact of GST on trading.

    Hmmm
    We as a trader pay 2 major cost factors, in addition to brokerage
    One is Service tax (ST) and other STT (other taxes are very small in comparison to these two)
    While nothing has been said for STT but ST is likely to increase considerably.
    So ultimate cost of trading is likely to go up.
     
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  5. Punter786

    Punter786 Banned

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    Re: Impact of GST on trading.


    STT is the biggest back breaker of us traders. Hope GST does not increase it. Achieving break even will become a challenge if both are increased.
     
    Last edited: Aug 13, 2016
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  6. soft_trader

    soft_trader Well-Known Member

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    Re: Impact of GST on trading.

    I think STT will remain unaffected by the implementation of GST. But trading cost will go up as GST will replace ST. :(

    In my personal opinion 15% ST which is charged currently is already on the higher side and 18-22% GST will affect common people and will be highly inflationary. The so called govt babus are saying that GST will result in cheaper prices of goods but I don't agree at all. For example, say a toothpaste which has an MRP of Rs 100/- now won't become cheaper after the implementation of GST. I don't believe that manufacturers are going to reduce the MRP after GST.

    I am not an economist or an analyst. But as a common man this is what I feel.
     
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  7. ram2010

    ram2010 Well-Known Member

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    Re: Impact of GST on trading.

    Go for unlimited trading monthly-(1000 rs available),

    so that no need to pay service tax on brokerage daily,

    regarding stt, CTT and stamp duty some one has to clarify-
     
  8. timepass

    timepass Moderator

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    GST related

    With GST being passed in both the houses of the Parliament and now getting the President's approval, there will be a lot of developments in this. Hence a separate thread for this.

    http://timesofindia.indiatimes.com/...ead-on-GST/articleshowprint/54195775.cms?null
     
  9. timepass

    timepass Moderator

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  10. niftyaajkal

    niftyaajkal Banned

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    Re: GST related

    What is this :D
    ---------------------------------------------

    Centre, States can levy taxes for one year after GST notification: Jaitley

    NEW DELHI, SEPT 30:

    Laying to rest doubts on the government’s powers to levy indirect taxes after the notification of the Constitution Amendment Act for the goods and services tax regime, Finance Minister Arun Jaitley said that the new legislation empowers the government to continue levying excise duty, service tax and value added tax (VAT) till September 16, 2017.

    “Until one year after the provisions of the Constitution (101st Amendment) Act, 2016 is brought into force, the Constitution empowers the Central Government to levy excise duty on manufacturing; and service tax on the supply of services,” he informed the Parliamentary Consultative Committee attached to the Ministry of Finance on Friday.

    He further added that the Constitution Amendment Act similarly also empowers the State governments to levy sales tax or VAT on the sale of goods till that time for the same time period.

    His comments come after there were questions over the legality of levying excise duty and services tax when provisions of the Constitution Amendment Act for GST had been notified on September 16.

    At that time, after discussions with the Law Minister, Revenue Secretary Hasmukh Adhia had said there is “no legal infirmity” in the notifications.

    Rollout as per schedule

    Meanwhile, in his opening remarks at the meeting, the Finance Minister also expressed confidence that GST will be rolled out from April 1, 2017, adding that the government is following the road map for implementation of indirect tax levy as per the schedule.

    Jaitley also assured the Committee that the GST Council is working in a cordial environment.

    Members of the Committee also made suggestions and sought clarifications on GST.

    “The members hoped that this law will bring relief to the common man by exempting certain essential items from GST and moderate the rate of taxation on other items which in turn will bring down the prices consumption items of the common man as well as cost of living at large,” said an official release.

    Read at:
    http://www.thehindubusinessline.com...-act-for-gst/article9168178.ece?homepage=true
     
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