{"id":35223,"date":"2018-10-31T15:51:41","date_gmt":"2018-10-31T10:21:41","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=35223"},"modified":"2018-10-31T15:51:41","modified_gmt":"2018-10-31T10:21:41","slug":"gst-efficiencies-have-risen-in-manufacturing","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/gst-efficiencies-have-risen-in-manufacturing\/","title":{"rendered":"GST: efficiencies have risen in manufacturing:\u00a0"},"content":{"rendered":"<p><a href=\"http:\/\/www.thehindu.com\/todays-paper\/tp-business\/gst-efficiencies-have-risen-in-manufacturing\/article19657435.ece\"><span style=\"font-weight: 400;\">GST: efficiencies have risen in manufacturing<\/span><\/a><span style=\"font-weight: 400;\">:\u00a0<\/span><\/p>\n<p><b>Context<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Until recently, the manufacturing sector was burdened with multiple indirect taxes.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Introduction of GST, in the backdrop of the \u2018Make in India\u2019 initiative, does away with multi-layered taxation.<\/span><\/li>\n<\/ul>\n<p><b>What was the concern?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">State-border check posts, established to scrutinize documents and location-based compliance, adversely impacted the overall production and logistics time, reducing the efficiency of Indian manufacturers.<\/span><\/li>\n<\/ul>\n<p><b>How GST has come to rescue?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">State \u2013 border check-posts have been abolished with the introduction of GST.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The new tax regime is unifying the Indian market and help smooth the flow of goods within the country.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Prior to GST, the inter-state sale was subjected to 2% CST without input credit, whereas GST on inter-state supply is available for input credit.<\/span><\/li>\n<\/ul>\n<p><b>What is there a need to provide input credit?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Input credit will lead to removal of an extra level of warehousing in the supply chain resulting in cost benefits.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">GST contemplates input credit of tax on supply of goods or services.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The GST Act provides a list of services for which input credit is not available. Thus, the system aims to provide seamless input credit.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">This welcome change help business plan well on product pricing and estimating cash flows.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Anti-Profiteering rules commands that any reduction in the tax rate or the benefit of input tax credit needs to be passed on by way of proportionate price reduction.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Standing committees, both at the Central and State levels, will examine complaints and refer cases for investigation based on merit.<\/span><\/li>\n<\/ul>\n<p><b>The setup of the standing committee<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">After investigation, the Directorate General of Safeguards will report to the anti-profiteering authority. The authority will review the report before taking a decision.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The authority, within a period of two years, has powers to debar an assesse from conducting business, to levy penalty, or to enforce refund of proportionate price reduction.<\/span><\/li>\n<\/ul>\n<p><b>How to achieve seamless input credit?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Administrative machinery has to ensure that input credit is implemented in letter and spirit.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The GST Council has to constantly watch developments and give suitable directions to achieving the objective of seamless input credit.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The Council should also ensure that actions taken by the anti-profiteering committee are genuine and not arbitrary.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">This will boost the confidence of the industry in the GST system and inspire them to concentrate on business development.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The Council has to take a realistic view in making changes to the tax rate for certain goods and services about which select industries are concerned.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>GST: efficiencies have risen in manufacturing:\u00a0 Context Until recently, the manufacturing sector was burdened with multiple indirect taxes. Introduction of GST, in the backdrop of the \u2018Make in India\u2019 initiative, does away with multi-layered taxation. What was the concern? State-border check posts, established to scrutinize documents and location-based compliance, adversely impacted the overall production and&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/gst-efficiencies-have-risen-in-manufacturing\/\">Continue reading <span class=\"screen-reader-text\">GST: efficiencies have risen in manufacturing:\u00a0<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-35223","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704470142},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/35223","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=35223"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/35223\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=35223"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=35223"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=35223"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}