GST and Restriction on Cash Transactions in Income Tax

Business Standard Smart Business panel discussion was held in Kolkata on May 26, 2017

A panel discussion on ‘GST and Restriction on Cash Transactions in Income Tax‘ was conducted under the banner of Business Standard Smart Business in association with Rotary Club of Calcutta jointly with Concern for Calcutta, the Calcutta Citizens’ Initiative. Narayan Jain, Advocate, Chairman, Direct Taxes of AIFTP explained the new restrictions on cash receipts of Rs. 2 Lakhs in one day in aggregate or for one event or for one transaction under section 269ST with effect from April 01, 2016. The department may impose a penalty of 100 per cent in cash of any violation. Touching GST, Jain was of the view that though many Central and State taxes will be subsumed in GST, the compliance formalities will considerably increase. “All transactions have to be recorded online. Even if the goods for more than Rs. 50,000 are to be sent from one place to another, E way bill has to be printed from GST Website”, he said.

Speaking on the occasion CA Arun Agarwal, Chairman, Indirect Tax Committee, MCC said that implementation of GST will change the way of life as all transactions are going to be transparent. The businessman will get input credit for all the taxes paid on previous purchases. There will be Central GST, State GST, as well as Integrated GST. These are scheduled to be effective from July 01, 2017.

CA Vikash Parakh, said that business community should acquaint itself with the various rules and provisions of GST. The rate in some cases will be lesser than present aggregate rate of Excise duty, VAT and service tax,etc. The maximum rate will be 28 per cent particularly on luxury goods and air-conditioned hotels and restaurants.

Nilima Joshi delivered welcome address. The Seminar was moderated by Ishita Ayan Dutt, Resident Editor of Business Standard. Ashok Purohit summed up and thanked all. The session was followed by question answer session.