Disadvantages of GST: The downside in implementing GST

The Goods and Service Tax (GST) is all set to change the Indirect Tax scene in the country. Incorporating the vivid and complex tax brackets under one umbrella may seem like a brilliant strategy from the point of view of revenue inflow but in a diverse country like India formulating and enforcing a new law has never been a cake walk. Let us look at some drawbacks that traders might face owing to the proposed implementation of GST come July.

Midyear implementation:

The roll out of GST in the middle of the accounting year is bound to cause a compliance chaos. There is still no clarity as to what repercussions the transition from one tax structure to the other will hold.

Change in Accounting Software:

Businesses now-a-days, large or small, use tax enabled software mainly for accounting and filing returns. Incorporating an entirely different tax structure into the system will bring out many technical exigencies and the same will call for a revamp of the entire Accounting system.

Also Read: What is GST? All you need to know about Goods and Service Tax

Higher tax burden for SMEs manufacturers:

Small manufacturing firms are going to feel the sting of GST as the overall exemption limit under the tax is 20 Lakhs, while the earlier exemption limit under excise was 1.50 crore.

No input credit under composition scheme:

Though the composition scheme provides for lower tax rates to small scale businesses who have annual turnover of more than 20 lakhs but less than 50 lakhs they would not be allowed to avail any input credit on the tax paid.

Service providers and online suppliers not eligible for composition scheme:

Service providers and online suppliers would not be considered for registration under the composition scheme. It is only meant for the suppliers of goods. Consequently, small scale service providers will share the tax burden at par with their large-scale competitors.

Also Read: Advantages of GST – The bright side

Multiple registrations:

Traders are required to register separately under GST in all states they are operating in. This means an increase in compliance complications.

Pathos of E-sellers:

Business especially small ones that have web based operations will have to register in every state. Increasing their compliance procedures exponentially. Moreover, they would not be eligible for the composition scheme. Also, they would have to collect TCS (Tax Collected at Source) under GST which will further- payment, credit and compliance complications.

Apart from the above the major issue that the application of GST would bring into being is the inflation of products. There is tax on virtually all goods. Essential items like health services and medication will get more expensive due to the higher GST cap. Economists are also predicting a hike in food items like vegetables and cereals.

 

Advantages of GST – The bright side

Goods and Service Tax (GST) has been advocated as the tax that will forever simplify the overly intricate indirect taxation system (viz. excise, VAT and Service tax) prevalent in India. It is said to curb 17 indirect taxes and bring the revenue from such taxes under the solo GST gamp. Though a month from its proposed application let us view the proposed advantages of GST:

Higher exemption thresholds:

In most states, the exemption for paying VAT is 5 Lakhs (annual turnover), whereas the exemption limit for Service tax is 10 Lakhs. The same for GST on the other hands is 20 Lakhs. Which would mean that there would be no indirect tax liability on traders with an annual turnover of less than 20 Lakhs.

Also Read: What is GST? All you need to know about Goods and Service Tax

No tax on tax:

According to the current system there is no provision for setting off VAT on your purchases against the Service tax on input services. But under GST owing to its single tax mechanism you can easily avail an input credit on your purchases for tax already paid.

Composition Scheme:

GST will further introduce a Composition Scheme which will be especially beneficial for small traders and business. Under this scheme the GST rate would be lower than the applicable rates for suppliers. Under the scheme, traders whose turnover is more than 20 Lakhs but less than 50 Lakhs would have to pay GST at the rate of 1% for manufacturers, 2.5% for restaurant owners and 0.5% for other suppliers.

Online:

The entire process for GST i.e. from registration to payment to filing of returns can be done online. The procedures are fully web based and therefore they are free of any bureaucratic churns and leg work to Government offices.

Curb on compliances:

The filing of returns for each tax segment under the existing indirect tax mechanism is a tedious endeavour that will be limited by the unified GST policy. The number of returns to be filed will be lesser and simpler as compared to the current system.

Also Read: Disadvantages of GST: The downside in implementing GST

Road map for e-commerce business:

There are a lot of compliance restrictions on the interstate transaction of goods, especially under the current VAT system. GST has set out a clear and uniform road map for hassle free interstate transactions.

Consolidation of logistics sector:

To avoid various state entry taxes and Central Sales Tax many logistic companies have warehouses in each state. This will not be the case once GST is rolled out. Warehouse consolidation would be made possible.

GST will help regulate the largely unorganised sectors such as textile and construction. For instance, the provision of providing input credit only on acceptance of the amount by the suppliers will in itself bring about accountability and organisation of these sectors.

What is GST? All you need to know about Goods and Service Tax

After much ado and economical and parliamentary debates the Goods and Service Tax (GST) is being positioned for a roll out from 1st July 2017.

The tax mechanism in India, especially the Indirect tax system, is cumbersome and complex. The moto of GST is to integrate the prevailing intricate indirect tax structure into a single and simple scheme.

The current tax structure includes Central taxes [comprising of Central Excise Duty, along with other duties, service tax, surcharge and cess] and State taxes [including VAT, Sales tax, Central sales tax, purchase tax etc.]. The introduction of GST and the consequent amendment to the Constitution will allow both the Central and State Government to levy a singular tax component- GST.

Also Read: Advantages of GST – The bright side

Some notable feature of GST are as follows:

  • Rate slabs for GST are 5%, 12%, 18% and 28% the lowest rate being for essential items and the highest rates being reserved for luxury supplies.
  • With regards to Intra state transactions of goods and services Central GST (CGST) and State GST (SGST) would be levied by the Central and State respectively at the prescribed rate.
  • Whereas on Interstate transactions of goods and services Integrated GST (IGST) would be levied by the Central Government at the prescribed rates.
  • The tax would be levied on supply of goods and services rather than the manufacturing of goods or the provision of sale of goods or services.
  • The leaving of GST would be subject to the crossing over of the exemption threshold, currently which is set at Rs. 20 Lakhs- annual turnover. The earlier proposed limit was Rs. 10 Lakhs.
  • GST will be paid on the value of the transaction i.e. the price actually paid or to be paid for the supply of the particular goods or service.
  • Input Tax Credit (ITC) will be available in respect of taxes paid on the supply of goods and services on most B2B transactions where the said good/services are intended to be used further for creating taxable supplies.
  • The ITC would be subject to- Possession of the actual invoice, receipt of goods and services, tax paid to the government, filing and furnishing of returns.

Also Read: Disadvantages of GST: The downside in implementing GST

Every person who is liable to registration under the previous law will have to register under GST. Also, those persons who have crossed the exemption threshold would be liable for registration. Registration for GST would be a simple online process.

For payment of the tax, all major payment platforms can be used.

The Billion Dollar biography – Sachin Tendulkar: a billion dreams

Releasing this May, 2017 is the most nostalgic biopic that every cricket fan has been waiting for. ‘Sachin: A billion dreams’ is a biopic on Sachin Tendulkar. A name that has become synopsis with cricket itself.

Sachin Tendulkar along with his cinematic team recently came together to launch the anthem of his bio-pic. Sukhwider Singh kickstarted the event with a live performance of the song. Followed by interactions with Oscar winning music composer A.R. Rehman, producer Ravi Bhagchandka and director James Erskine where they shared their experience of making the film. But stealing the show, as always, was the star of the event, the man himself, Sachin Tendulkar, who left everyone mesmerised and wistful at the same time with stories of his growing-up days.

After hearing the anthem an emotionally overwhelmed Sachin recapped the days when he used to practice in the rain in the absence of indoor pitches. He also recollected the time when he lived by the mantra of always looking forward for the next match. Sachin fondly remembered his mother when he was asked how he felt hearing the people chanting his name for the first time.

Typography Portrait of Sachin Tendulkar by Vaibhav Jagtap
Typography Portrait of Sachin Tendulkar by Vaibhav Jagtap

According to Sachin the film is set to give the audience a look at the aspects of his life that the even the avid fans are not aware of. The sole reason for this movie is to bring out the essential aspects of his life that were hidden away from the lime light. It is a bio-pic in its true sense. The film is said to include real time footage of his personal life including his friends and family members.

Sachin A Billion Dreams Poster

The director described the movie as being a showcase of Sachin the man, the person in real life rather than Sachin the ‘God of Cricket’.

On further probing James reviled that it was only during the process of making the movie that the phenomenon that is Sachin Tendulkar resonated with him.

Ravi Bhagchandka added that it took him many years of persuasion to get Sachin onboard for the project. He had been wanting to tell the sports master’s story to the world since a long time and more so wanted to bring forth the accounts of his sacrifice.

The movie was in the making since 2012 but due to lack of a decent movie market for sports movies it had to face many delays on technical accounts. Today, the movie is set to release in 5 different languages including Hindi, Marathi, English, Tamil and Telugu.

The singularity that is Baahubali’s 1000 crore club

Baahubali 2 has engraved itself in the history of Indian cinema as the first Indian film to gross 1000 crores in just 10 days of its opening. As a feature film, this S. S. Rajamouli creation, has become a worldwide phenomenon. According to sources about 80 percent of the collection made by the movie has come from India.

Apart from the star-studded venture, the film has banked on its breath taking visual effects and path breaking action sequences. The enthralling drama coupled with the suspense behind Katappa assassinating Amarendra Baahubali, that was unveiled in the most histrionic manner, have contributed to the huge success of the production around the globe.

Also Read: Bahubali 2 – A battle to the end

Even Karan Johar who’s Dharma Productions presented the film in Hindi had acknowledged this marvel on his tweeter feed. Even, trade expert Taran Adarsh had tweeted on about the weekend of the film’s release that it was one of the fastest films to breach the 300-crore bar. Moreover, these numbers only indicated the business collection from the Hindi presentation that too from the domestic market.

Bahubali 2 - A battle to the end

On the other hand, the US market which is dominated by the Khans has also experienced the blaze of Baahubali 2, as it crossed the 100-crore mark within a few days of its release. Further, the film has beaten the Aamir Khan starrer ‘Dangal’ with regards to initial collections in the US market.  

Much is said about the promotion strategy of the movie which has also contributed to its mega success. The stars of the movie were not seen on reality and other T.V. shows promoting their film, unlike most Bollywood movie promotions. The most astonishing part is that, as per sources, the promotion budget of the movie was only 3.5 crores as against the budget of around 8 to 10 crores for a medium sized Hindi movie.

rana-daggubati-look-poster

The cast and director of the movie promoted the picture as a team and this single gesture brings out the true team spirit that must have gone into the creation of this visual treat. In addition to the efforts from the team the film had the solid buy line “Why did Katappa Kill Baahubali?” which added to the success of the P.R. theatrics.

Baahubali 2 is yet to be dubbed and released in other prominent Asian countries like China, Japan, Korea and Taiwan. The collection from these markets is bound to push the figures further.

The film has definitely inspired other film makers to take bold steps and bigger bets in film making and entertainment.

Taraporewala aquarium- An aesthetical display of oceanic life

Mumbai is a city for everyone and of everything. There are overly crowded tourists attractions, it is a foodie’s paradise and explorers’ heaven. Speaking of the overly crowded tourists’ attractions, there is one such property in Mumbai that has been a favourite of a lot of blokes who stay or visit the city of Mumbai. The Taraporevala Aquarium is one of the busiest places in Mumbai.

One of the oldest aquarium’s in India and a memory to many generations, the Taraporevala Aquarium is one of the major attractions of the city. It is located near Marine drive, Mumbai. During weekends it is bustling with crowds from different parts of the city to gaze upon the majestic glimpses of the sea life.

The aquarium hosts both sea and freshwater marine life. The aquarium was recently renovated and re-opened for the masses on 3rd March 2015. Among the new attractions, are the special pool tanks where the children are allowed to touch the fish. These fishes are all harmless and therefore the entire experience is safe as well as joyous for both children and the accompanying parents.

Also Read: A sanctuary in the midst of a bustling city – Sanjay Gandhi National Park

glass tunnel

Another new feature is the 12 feet long and 3600 acrylic glass tunnel that gives you a splendid view of the aquatic flora and fauna.

The aquarium is easily accessible by road and rail. It is near to the Charni Road station of the western local railway line. There is minimum entry fee for Adults. Special concessions are given to students and children below the age of 16 years. The entry fee grants access for one hour.

On weekends the aquarium opens half an hour early. Considering the amount of people that seek to witness the amazing creatures of the sea on the weekend it is best to chalk out a trip on a weekday for a peaceful rendezvous with the fish.

Photography is allowed but there are charges applicable for the same. There are different charges for professional and mobile photographers. Video shooting is also allowed subject to charges.

Taraporewala Aquarium

A trip to this place is a must if you truly want to experience the sea with the luxury of not having to get yourself wet. It is an experience that takes you closest to the aquatic empire. Lastly, Taraporevala Aquarium proves that Mumbai is not just a city where fishes are served on a plate for you to relish but also the perfect destination to explore some of the exotic fishes live.