New Delhi | Mumbai | Dehradun | Singapore
GOODS AND SERVICE TAX
Impact of GST on identified types of transactions
2
GST – INFRASTRUCTURE SECTOR
CURRENT SCENARIO
 Issues in valuation of Works Contract
 Double taxation/ multiplicity of ...
3
GST – POWER SECTOR
CURRENT SCENARIO
 No Indirect taxes on output, except electricity duty levied by the States
 Trunca...
4
GST – TELECOMMUNICATION SECTOR
CURRENT SCENARIO
 Double taxation/ multiplicity of taxes
 Classification disputes
 Cas...
5
GST – PHARMACEUTICAL SECTOR
CURRENT SCENARIO
 Inverted duty structure
 Cascading of taxes
 Loan Licensee operations
S...
6
GST – EXEMPTION AND INCENTIVE SCHEME
Exemption broadly categorized as:
 Product/Service specific or sector specific exe...
7
THANK YOU
of 7

Nangia & Co- Impact of GST on identified types of transactions

Nitish Sharma, Executive Director, Nangia & Co spoke at Assocham National Conference on “GST ISSUES AND SOLUTIONS”.
Published on: Mar 3, 2016
Published in: Economy & Finance      
Source: www.slideshare.net


Transcripts - Nangia & Co- Impact of GST on identified types of transactions

  • 1. New Delhi | Mumbai | Dehradun | Singapore GOODS AND SERVICE TAX Impact of GST on identified types of transactions
  • 2. 2 GST – INFRASTRUCTURE SECTOR CURRENT SCENARIO  Issues in valuation of Works Contract  Double taxation/ multiplicity of taxes SCENARIO UNDER GST REGIME  Retaining Article 366(29A): Deeming certain transaction to be sale of goods.  ‘Works contract transaction’ to be subject to GST (CGST and SGST)  Liberalization of input credit pertaining to Civil wok.  Internationally Trunkey projects are considered and taxed as construction services.  The term Goods and Service in bill indicate similar possible tax treatment.  Stamp Duty may continue to apply
  • 3. 3 GST – POWER SECTOR CURRENT SCENARIO  No Indirect taxes on output, except electricity duty levied by the States  Truncated structure leads to cascading effect of taxes. SCENARIO UNDER GST REGIME  Electricity is included in the scope of GST  Bill does not propose any change or amendment in entry no. 53 of State List “Taxes on the consumption or sale of electricity”  State’s power to levy electricity duty not subsumed under GST  If electricity is kept outside the GST regime and procurements are taxed under GST, significant increase in cost of power  International Experience: Electricity taxed as normal goods and industrial consumer get full credit of GST.
  • 4. 4 GST – TELECOMMUNICATION SECTOR CURRENT SCENARIO  Double taxation/ multiplicity of taxes  Classification disputes  Cascading of taxes SCENARIO UNDER GST REGIME  Imperative to levy GST at an appropriate rate on telecom services.  Place of supply rules for telecom services are distinct in almost all the overseas jurisdictions  Situs of taxation for telecom services i.e. the place of supply or use or consumption.  Ensure availability of seamless input tax credits across goods and services for the sector.
  • 5. 5 GST – PHARMACEUTICAL SECTOR CURRENT SCENARIO  Inverted duty structure  Cascading of taxes  Loan Licensee operations SCENARIO UNDER GST REGIME  Notified life saving drugs/Active pharmaceutical Ingredients ( API)  Inverted duty structure and accumulation of credit.  Clarity on tax treatment from supplies form and to loan licensee  Exemption/Incentive schemes by Central and State Government.
  • 6. 6 GST – EXEMPTION AND INCENTIVE SCHEME Exemption broadly categorized as:  Product/Service specific or sector specific exemptions - Unlikely to continue, providing for concessional rate of duty or no duty under GST.  End user exemption. - supplies provided to mega power project - supplies provided to EOU’s and SEZ’s  Area based exemptions - Outright tax exemption - Tax liability deferments; or - Refund for paid taxes
  • 7. 7 THANK YOU

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