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Two days into the GST regime, Revenue Secretary Hasmukh Adhia today took to twitter busting "7 myths" that were doing the rounds about the new tax regime. Adhia, the architect behind the country's largest tax reform, sought to dispel concerns that if a person makes payment of utility bills by credit cards, the he/she will be paying GST twice. "This is completely untrue.
Please do not recirculate such message without checking it with authority," Adhia said. India ushered in the Goods and Services Tax (GST) regime on the intervening night of June 30-July 1. A four-tier tax slab -- 5, 12, 18 and 28 per cent -- has been decided with essential items like salt, unpacked food grains, healthcare services being kept zero rated. People have been posting in social media pictures of receipts issued in grocery stores or eateries showing tax deductions as GST, instead of VAT/Service tax earlier. Busting the myth that GST rates are higher than VAT, Adhia said, "it appears higher because excise duty and other taxes which were invisible earlier are now subsumed in GST and so visible now." He reiterated that businesses can continue to do business under GST with provisional ID number and businesses need not wait for Goods and Services Taxpayer identification number (GSTIN). "Provisional ID will be your final GSTIN number. Start business," Adhia said. He said that businesses need not generate all invoices on computer/ internet only. "Invoices can be generated manually also". On the myth that businesses which were earlier exempt will immediately need new registration before starting business now, Adhia said, "You can continue doing business and get registered within 30 days". He said small retailers need not file invoice wise details in their return forms and retailers will have to just file one return form as the two other forms will be auto populated by the computer. "There is only 1 return with 3 parts, out of which first part filed by dealer and two other parts auto populated by computer," he said. On the myth that internet is needed all the time to do business under GST, Adhia said the reality is internet would be needed only while filing monthly return of GST.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)