BENGALURU: After the Goods and Services Tax (GST) rollout, several local food brands have gone off the market. This has left regular buyers of packaged food items like rice, dal, sooji and atta perplexed about their sudden non-availability.
.
.
A case in point: At one of the wholesale outlets which used to sell 35 registered brands, 25 have changed the logo. The trademark of Mother India rice has now become MI and Angoor tur dal has been changed to `PCR' brand.The reason: Packaged food commodities with registered brand or trademark have been taxed at 5% under GST while the unregistered brands attract no tax. Earlier in the value added Tax (VAT) regime, all kinds of food items were exempted from tax.
.
.
"The concern among traders and consumers is that the new policy has created a nonlevel playing field of sorts with price variation. This has also led to a situation that many suppliers are applying for de-registration of their brands," said D P Nagendra Kumar, principal chief commissioner, central board of excise and customs (CBEC).
.
.
While a few suppliers of packaged food items have opted for de-registering their brands, many have preferred to change the trademark and logo on the packet so that the commodity could be sold at a cheaper price.
.
"About 75% of the suppliers have changed the logo on the packet; only 25% of them have applied for de-registration.This is because the government is thinking of taxing those have de-registered too, while the unregistered brands enjoy no-tax benefit," said Rameshchandra Lahoti, president of Bengaluru Wholesale Food Grains and Pulses Merchants Association.
.
.
Officials in the CBEC said the government chose to exempt the un-registered brands of packaged food from tax just to protect small traders from competing with organized business brands. "However, the move has resulted in an unexpected scenario wherein the price difference among the similar kind of commodities is disturbing the balance," said an official.
.
.
Lahoti said while an average price of tur dal is Rs 100 per kg, a registered brand costs Rs 5 more. Similarly , rice that is being sold at Rs 50 kg costs Rs 2.5 more if it's packed in a bag, sporting a registered trademark.
.
.
B T Manohar, chairman of taxation committee at Karnataka Federation of Chambers of Commerce and Industries (FKCCI), said the FKCCI had received representations from traders seeking a tax policy that ensures a level-playing field for all. "The traders are demanding that food products be exempted from GST. If be taxed, then let the food products be classified under a special slab on the lines of gold jewellery," said Manohar
============= >
CBEC Explains the Concept of Casual Taxable Person under GST [Read Concept Note]
Read more at: http://www.taxscan.in/cbec-explains-concept-casual-taxable-person-gst-read-concept-note/10484/
============= >
SC Dismisses Plea Against Appointment Of Dipak Misra As CJI, Imposes Rs. 10 Lakh
Read more at: http://www.livelaw.in/sc-dismisses-plea-appointment-dipak-misra-cji-imposes-rs-10-lakh/
============= >
Soon furnish 15 digit GSTIN in Regular & Correction in TDS Statements for all forms & years to be filed with IT department (optional initially).
Get your GSTIN updated in your bank accounts and Telephone service provider so that you can claim input credit of GST levied on Bank charges and Telephone expenses.
CBEC notifies GST Rates for specified composite supplies of Works Contract Services for textile & printing service of books & transport of passengers by motor cab service providers to avail full ITC & discharge CGST @ 6%.
When Invoice was mistakenly raised including duty but duty was not collected, there is no question of burden of duty being passed on, hence Doctrine of Unjust Enrichment does not apply. [EPE Process Filters & Accumulators Pvt. Ltd. vs. C.C., C.E. & S.T., Hyderabad - IV 2017 (352) E.L.T. 398 (Tribunal.-Hyderabad.)].
============= >
Govt explains the Concept of Input Service Distributor [Read Concept Note]
Read more at: http://www.taxscan.in/govt-explains-concept-input-service-distributor/10490/
============= >
# *TODAY* (24AUG) deliberating on “Prohibition of Benami Property Transaction, Changes in Sch-III, Audit Report, Tax Audit & Presumptive Taxation” at Safdarjung Enclave CPE Study Circle at “AAIOI-Officers Club”, Safdarjung Airport, Near- Delhi Flying Club, New Delhi, 5:30PM Onwards.
# *GST*: Composite supply of works contract as defined in Sec-2 (119) of the CGST Act, 2017, supplied by way of construction, erection, commissioning, or installation of original works pertaining to Low cost houses up to a carpet area of 60 square metres per house in a housing project approved by the competent authority under will attract 12% GST as compared to 18% earlier - Notification # 20/2017-CT (R), dt.22.08.2017.
# *GST*: “Limited Liability Partnership (LLP)” formed and registered under the provisions of the Limited Liability Partnership Act, 2008 shall also be considered as a partnership firm or a firm” - Notification # 22/2017-CT (R), dt.22.08.2017.
# *PMLA*: MoF has notified further amendments to the Prevention of Money-laundering (Maintenance of Records) Rules, 2005, which may be called the Prevention of Money-laundering (Maintenance of Records) Third Amendment Rules, 2017.
# *RBI* to issue Rs.200 Currency Note on 25 AUG 2017.
# *Supreme Court*: A nine-judge Constitution Bench Upholds Right to Privacy is a Fundamental Right overturned all earlier decision.
E-Commerce Operators providing House-keeping Services are Not liable pay GST [Read Notification]
Read more at: http://www.taxscan.in/e-commerce-operators-providing-house-keeping-services-not-liable-pay-gst/10476/
============= >
Soon furnish 15 digit GSTIN in Regular & Correction in TDS Statements for all forms & years to be filed with IT department (optional initially).
Get your GSTIN updated in your bank accounts and Telephone service provider so that you can claim input credit of GST levied on Bank charges and Telephone expenses.
CBEC notifies GST Rates for specified composite supplies of Works Contract Services for textile & printing service of books & transport of passengers by motor cab service providers to avail full ITC & discharge CGST @ 6%.
When Invoice was mistakenly raised including duty but duty was not collected, there is no question of burden of duty being passed on, hence Doctrine of Unjust Enrichment does not apply. [EPE Process Filters & Accumulators Pvt. Ltd. vs. C.C., C.E. & S.T., Hyderabad - IV 2017 (352) E.L.T. 398 (Tribunal.-Hyderabad.)].
BSE has issued a public notice stating that the Trading Members of the Exchange are hereby informed that the 55 companies that have been compulsorily delisted by NSE, would be delisted from the platform of the Exchange, with effect from August 23, 2017.
[============= >
The tentative dates of upcoming functionality given by GSTN are as follows:
1. Core amendments: 25th August
2. Cancellation request for migrated taxpayers: 25th August
3. TDS/TCS registration: 7th Sept
4. Opt-out from composition: 15th Sept
============= >
#Economy:The Supreme Court is likely to pronounce on Thursday its judgement on the vexatious issue whether the right to privacy can be held as a fundamental right under the Constitution. A nine-judge constitution bench headed by CJI had on August 2 reserved its verdict after hearing marathon arguments for six days over a period of three weeks, during which submissions were advanced in favour and against the inclusion of the right to privacy as a fundamental right.The contentious issue had emerged when the apex court was dealing with a batch of petitions challenging the Centre's move to make Aadhaar mandatory for availing the benefits of various social welfare schemes.
#Finance:The Cabinet approved a framework to speed up mergers of public sector banks, the first of which could take place by March.The mergers will not involve any cash but only share swaps. The Govt also said there would be no job losses after any of the mergers.The decision lifted banking stocks, but bankers said the decision should not be forced on them. FM made it clear the process would be initiated by the boards of the banks.
#Supreme Court of India has clarified that the high way liquor ban imposed by it is not applicable to licenced bars and beverages outlets within municipal area.The purpose of the directions contained in the order dated 15 December 2016 is to deal with the sale of liquor along and in proximity of highways properly understood, which provide connectivity between cities, towns and villages.
============= >
📺 *Updates*
➡1. Ind AS 20: EPCG exemption for import duty on capital goods is a Government Grant.
➡2. HC dismissed second writ as first writ was withdrawn by assessee without liberty to file fresh writ.
Kamal Galani v. Assistant Commissioner of Income-tax, Mumbai
➡3. CBEC explains concept of casual taxable person, ISD and National Anti-Profiteering Authority under GST
➡4. Period of limitation for passing assessment order to be extended by time taken for special audit, SC dismissed SLP
Shyamal Sarkar v. Commissioner of Income-tax, siliguri
============ >
: GST Gyan - GST on composite, supply of works contracts for affordable housing up to carpet area of 60 sq metre in a project approved by a competent Authority will be 12% instead of 18% earlier GST rate notified on 22.08.2017.2
