Centre begins review of legal issues in GST

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The Centre has started a comprehensive review of the Goods and Services Tax (GST) law, as well as different GST rules. It is to offer clarification on concerns that have arisen since the levy’s implementation in July 2017. In this article, we will look at the Centre begins review of legal issues in GST.

What is GST?

GST(Goods and Services Tax) is an indirect tax that the sellers have to collect on the behalf of the government. To do so, sellers have to get GST Registration and GSTIN Number.

It was implemented to cascade the effects of other indirect taxes.

Thus, GST has replaced several indirect taxes such as excise duty, VAT, services tax, etc.

Moreover, it is completely online. Hence, it boosts the speed of the whole process from registration to return filing.

Legal Issues in GST

The government has attempted to decrease direct and indirect tax litigation. Although the GST has resulted in an increase in conflicts in a variety of forums. Confusion has been exacerbated by divergent viewpoints on a number of subjects, notably from the Authority for Advance Rulings.

More than 200 firms, for example, are embroiled in a dispute over the definition of “intermediary” services. This is despite the fact that prior to the GST, multinationals’ back-office services were considered as exports and were not subject to taxation.

Similarly, there are several disagreements about the imposition of GST on reimbursements provided to dealers by FMCG firms in exchange for selling items at a specific price.

Centre begins review of legal issues in GST

With the introduction of a new taxation system(GST) in India, there have been many issues. Now, the Central Government has started reviewing these issues.

  • Firstly, The review aims to clarify the air on problems such as whether services supplied by multinational firms’ back offices in India qualify as zero-rated exports that are thus tax-free.
  • There is some uncertainty about whether or not reductions given to dealers by FMCG and consumer durables businesses to sell items at particularly discounted rates are subject to GST.

The review is designed to make the legislation easier to understand and minimize conflicts. These problems, along with many others, will be brought before the GST Council’s officials’ committee. According to a government official, these issues will be addressed in a debate.

He further states that a thorough plan will be presented to the council for a final decision after receiving the feedback.

Negative Liability in GSTR-4- Filing of Annual Returns by taxpayers

If you want any other guidance related to GST Registration or GST Return filing, please feel free to talk to our business advisors at 8881-069-069.

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