There have been a lot of rumors and messages circulated widely that there will be double taxation levied on the credit card transactions – which has led to chaos amongst the public. The government took up a stand with the Revenue Secretary HasmukhAdhia and communicated through twitter – Busting 7 myths about GST that was implemented w.e.f. 1stJuly 2017. HasmukhAdhia who has been the architect of the new revolutionary Tax reform in the country has advised the Indian public to not believe in the rumors without checking it with the authority. He clearly mentioned that the person who pays bills through Credit Card will not be charged tax twice on his purchase. He clearly stated that the GST – Goods and Service Tax Bill was implemented dated 1st July 2017 and a 4 tier slab system was introduced on all the goods and services. He clearly confirmed that the essential items such as unpacked food grains, salt, healthcare services are kept at zero rates.
The confusion aroused where people have posted pictures of receipts issued against the eateries or grocery stores showing the tax deductions in form of CGST – Central Goods and Service Tax and SGST- State Goods and Service tax where they were charged VAT and Service Tax in previous receipts.
Therefore to clarify their doubts Adhia said that the GST rates just seem to be higher as the excise duty and the other taxes that were invisible/hidden earlier all fall under the single umbrella of GST therefore, though there are visible changes now, earlier taxes were hidden and not known to people.
Adhia said that the businesses can continue to do that business under GST in the same way for which a provisional ID will be assigned immediately and there will not be any need to wait for the Goods and Service Tax Payer Identification Number. Another thing that HasmukhAdhia confirmed was the Provisional ID will remain your final GSTIN – therefore if you wish to start a business you can start it right away.
He mentioned that the businesses need not generate all invoices on the computer or the internet – the invoices can also be generated manually. On the rumor that the businesses that were earlier exempted will immediately require and a new registration Adhia said that you can register within 30 days of starting your business.
He said that the retailer will not need to file the invoice-wise details in their return forms as they will be required to fill just one return form and the other two forms will get auto populated by the computer. Adhia clarified saying that - going forward there is only 1 return with 3 parts and once you file 1 return the other two will get auto-populated by the computer.
Adhia said that the internet is not required to do the business all the time under GST. The internet will only be required once in a month when you will be filing your return.
A statement that was made by the Ministry of Finance said that there were no major problems from the field offices were noticed even after two days of successful implementation of GST. In fact, the revenue department had received encouraging reports from roadside Dhaba, big restaurants as well as Kirana shops to departmental stores which have started getting acclimatised to the new tax reform. The central and the state government officials have tried their best to offer accurate information to everyone who is enquiring about GST.
The good news is that since 25th June -2017 when the GSTIN portal was opened to invite fresh registrations, 2.23 lakh new dealer got enrolled. Out of these new enrolments around 63000 have submitted full details, 32000 have been granted fresh registrations. The window for fresh registration is open until 30 days.
Only appeal the Revenue Secretary– HasmukhAdhia has made to the public is to avoid frivolous information being passed through the social media and confirm the authenticity of the statements before believing in such rumors.Main Category: Credit Cards, Finance