GST: To pass on tax benefits, first tabulate them, say experts
Experts help clear doubts
around the impact of the new indirect tax regime on businesses
LATEST
NEWS : I am a
service provider having offices in multiple states. Under the service tax
regime, I had a centralised billing system. Under the
GST regime, should I change my billing system and start raising
invoices from the local branch?
Jivi
Jebaraj, Chennai
In the GST
regime, service providers are required to obtain registration in each state
where they have a place of business. The concept of centralised registration is
now redundant. If the services are entirely supplied from the branch, or the
branch plays a significant role in supplying the services, then such a branch
shall be required to raise invoices and charge applicable GST. It is critical
to identify the “establishment” rendering the service and the “establishment”
receiving the service to complete the input tax credit chain.
How do I
ensure that I pass on the benefit to consumers in accordance with the
anti-profiteering clause under the GST? Is there any mechanism prescribed for
calculating the benefit due to the GST?
Dwarkesh
Jhaveri, Mumbai
Anti-profiteering
clause is a self-policing mechanism. The anti-profiteering rules notified by
the government contain provisions relating to constitution of authority,
procedure for conduct of proceeding, etc. Companies need to tabulate the
benefits arising out of the GST on some reasonable basis and pass them on to
the consumer. The rules do not contain any mechanism to calculate the benefit
or the basis on which it will be passed on to the customer.
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