GST breather for Railways

GST breather for Railways; no tax on transfer of goods for self-consumption

No exemption would be available if the dealing is classified as a decent


In a welcome break for the Indian Railways, no goods and services tax (GST) are going to be applicable on inter- or intra-state transfer of equipment/materials (without transfer of title) for self-consumption. This is often a serious relief for the railways, with annual internal consumption calculable to be concerning Rs 20,000 crore.
In a notification to field units on July 11, the railways said,

Transfer of goods/stores from one state/Union Territory (UT) associateother|to a different} state/UT is taken into account to be an exempted activity.

The notification cited section 7 (1) of the CGST Act 2017, along side clause 1(b) the Schedule II of the CGST Act, 2017 for the said exemption.
Experts supported this, claiming that according to the GST Act, transfer of products by any government — Centre or state — or government agency to an analogous government unit, is exempt from the taxation.

Transfer of such equipment (without transfer of title) qualifies as a service as per the CGST Act.

Railways claiming transfer of products as a service.

But here’s the catch: GST consultants said the railways claiming transfer of products as a service could lead on to disputes.

The offer dealings between 2 interstate branches might not essentially be accepted as a transfer of right in goods (defined as ‘service’), and a lot of likely to be treated because of the transfer of products.

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Real estate – After GST

Real estate companies in churn mode after GST & Rera

The real estate sector is slowly catching up after being affected by the goods and services tax (GST) and Real Estate Regulation And Development Act (Rera). It has, however, seen a lot of churning among senior management roles, especially in finance roles.

Real Estate After GST
At least half a dozen senior executives, including chief executive officers (CEOs) and chief finance officers (CFOs), have quit and joined rivals or started as independent professionals in the last couple of weeks.

After the GST and Rera, finance, compliance and legal roles have become very critical and are in great demand. Finance heads are also important today to make the right investment decisions.

Last month, Hari Prakash Pandey, senior vice-president (finance) and investor relations at Mumbai-based real estate company HDIL, quit and joined privately-held developer Runwal group in Mumbai as the CEO. Pushpamitra Das, group CFO at Bombay Dyeing, quit in the same month. Das now works as an independent advisor to real estate companies.

Real Estate and GST
Compulsory registration of projects

Rera, which came into effect on May 1, talks about compulsory registration of projects with respective state authorities, makes it mandatory for developers to put 70 per cent of proceeds from a project in an escrow account and prohibits pre-sales, which is a popular way of raising initial funds, for developers. In short, Rera has hit cash flows of developers significantly.

On the other hand, the GST, which came into effect on July 1, has hit the sales of premium apartments.

Real estate investment Trust

R Suresh, former managing director of head-hunting company Stanton Chase India, said property developers were facing a lot of liquidity issues and needed to do equity infusion, get debt or monetize assets.

 

REIT (real estate investment trust) has also become a big opportunity. Besides, Rera has strict compliance rules that are why they need to be experienced finance professionals.

Real Estate and GST

 

Suresh said that many realtors have bought land, built assets and now want to unlock the value. “They need senior people to do that.

Many promoters want to run their business professionally after Rera. So, there is a lot of demand for professionals. But one should wait and choose the right offer.

 

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GST & Small Business Adaptation

GST Impacts on Small Businesses

GST Impacts: At the point when the across the nation products and administration impose takes off on July 1, it is likely that miniaturized scale and little endeavors will under-report their yearly salary. Firms may do as such to remain in the Rs 20-50 lakh section so that a low expense rate of 1-2 for each penny applies to them.

Extended consistency under GST will benefit firms as time goes on by giving them access to more affordable capital and lower input costs, for the present, the transform from the messy to sort out part will make them less engaged.

benefits of gst to common man

As shown by the latest yearly report (2015-16) of the administration of littler scale, pretty much nothing, and medium attempts, there are evaluated to be around 51 million MSME associations, using more than a 117 million people, and having a joined settled asset estimation of about Rs 15 lakh crore. Around 55 percent of such associations could be a bit of the tumultuous part, will be in the Rs 20-50 lakh segment.

Inspectors say different associations with turnover above Rs 50 lakh could rely on upon under-uncovering their pay to pay cut down charges.

GST Impacts: Situations

“You may have circumstances where autonomous endeavors will endeavor to stay away from the structure. Say, there is a family guaranteed business worth around Rs 90 lakh yearly wage. It may endeavor to go off as two separate associations controlled by relatives, each worth Rs 45 lakh, just to pay cut down obligations under the GST.,” said an Eminent Tax Expert

“People will continue attempting to different on the system, as they do now. In any case, as upstream consistence upgrades, a number of such associations under-enumerating compensation will diminish. In the whole deal, such a move will be hindering for attempts whose solitary wellspring of force is expense shirking,” said Strategist @ Credit Suisse

As shown by the latest yearly report (2015-16) of the administration of littler scale, close to nothing, and medium attempts, there are evaluated to be around 51 million MSME associations, using more than a 117 million people, and having a joined settled asset estimation of about Rs 15 lakh crore. Around 55 percent of such associations could be a bit of the tumultuous part.

Organizations doing a change to the sorted out segment would, in the short run, turn out to be less aggressive with the ascent in consistency costs, the examiners said.

In any case, formalization will in the end be useful.

“Entering the formal division under the new GST administration can give littler organizations access to less expensive capital and in addition lawful response “

 

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