FUNDAMENTAL DUTIES of Indian Citizens
(by the Constitution (Forty-second Amendment) Act, 1976, s. 11 (w.e.f. 3-1-1977).)
51A. It shall be the duty of every citizen of India— Fundamental duties.
(a) to abide by the Constitution and respect its ideals and institutions, the National Flag and the National Anthem;
(b) to cherish and follow the noble ideals which inspired our national struggle for freedom;
(c) to uphold and protect the sovereignty, unity and integrity of India;
(d) to defend the country and render national service when called upon to do so;
(e) to promote harmony and the spirit of common brotherhood amongst all the people of India transcending religious, linguistic and regional or sectional diversities; to renounce practices derogatory to the dignity of women;
(f) to value and preserve the rich heritage of our composite culture;
(g)to protect and improve the natural environment including forests, lakes, rivers and wild life, and to have compassion for living creatures;
(h) to develop the scientific temper, humanism and the spirit of inquiry and reform;
(i) to safeguard public property and to abjure violence;
(j) to strive towards excellence in all spheres of individual and collective activity so that the nation constantly rises to higher levels of endeavour and achievement;]
(k)( by the Constitution (Eighty-sixth Amendment) Act, 2002, s. 4 (w.e.f. 1-4-2010) who is a parent or guardian to provide opportunities for education to his child or, as the case may be, ward between the age of six and fourteen years.]
Indian law refers to the system of law which operates in India.
It is largely based on English common law.
Various Acts introduced by the British are still in effect in modified form today.
Much of contemporary Indian law shows substantial European and American influence.
History of Indian law
Ancient India represented a distinct tradition of law .
India had an historically independent school of legal theory and practice.
The Arthashastra , dating from 400 BC, and the Manusmriti , from 100 AD, were influential treatises in India .
Manu’s central philosophy was tolerance and pluralism, and was cited across Southeast Asia.
Source of Law
a. The primary source of law is in the enactments passed by the Parliament or the State Legislatures.
b. The President and the Governor have limited powers to issue ordinances.
c. These ordinances lapse six weeks from the re-assembly of the Parliament or the State Legislature.
a. S econdary source of law is the judgments of the Supreme Court, High Courts and some of the specialised Tribunals.
b. The Constitution provides that the law declared by the Supreme Court shall be binding on all courts within India.
Constitution of India
The Constitution declares India to be a sovereign socialist democratic republic, assuring its citizens of justice, equality, and liberty.
It is the longest written constitution of any independent nation in the world.
It contains 395 articles and 12 schedules, as well as numerous amendments, for a total of 1,17,369 words in the English language version.
Preamble of the Constitution
We, the people of india,
Having solemnly resolved to constitute India into a sovereign socialist secular democratic republic and to secure to all its citizens:
Justice, social, economic and political;
Liberty of thought, expression, belief, faith and worship;
Equality of status and of opportunity;
And to promote among them all:
Fraternity assuring the dignity of the individual and the unity and integrity of the nation.
Equality before the law.
Freedom from discrimination on grounds of religion, race, caste, sex or place of birth.
E quality of opportunity in matters of public employment.
F reedom of speech and expression.
Right to assembly peacefully without arms.
P rotection against deprivation of life and personal liberty.
Freedom of conscience and the profession, practice and propagation of religion.
To move freely through India, to reside and settle in any part of India.
Added to the Constitution in 1977.
T o abide by the Constitution.
Respect its ideals and institutions, the National Flag and the National Anthem.
To value and preserve the rich heritage of our composite culture.
T o protect and improve the national environment including forests, lakes, rivers and wild life.
To have compassion for living creations.
To strive towards excellence in all spheres of individual and collective activity.
Indian Penal Code (IPC) provides a penal code for all of India including Jammu and Kashmir, where it was renamed the Ranbir Penal Code (RPC).
The code applies to any offence committed by an Indian Citizen anywhere and on any Indian registered ship or aircraft.
Indian Penal Code came into force in 1862 (during the British Raj) and is regularly amended, such as to include section 498-A.
Civil Procedure Code
The Civil Procedure Code (C.P.C.) regulate the functioning of Civil courts.
It lays down the:
– Procedure of filing the civil case. – Powers of court to pass various orders. – Court fees and stamps involved in filing of case. – Rights of the parties to case (plaintiff & defendant) – Jurisdiction & parameters of civil courts functioning. – Specific rules for proceedings of a case. – Right of Appeals, review or reference.
Indian civil law is complex, with each religion having its own specific laws which they adhere to .
After independence Indian laws have adapted to the changing world.
The most recent being the Domestic Violence Act.
Industrial and Labour Laws
The most notable laws are as follows:
Industrial Dispute Act, 1947
Wages Act, 1948
Employees State Insurance Act, 1948
Employees Provident Fund and Miscellaneous Provisions Act, 1952
Beedi and Cigar workers Act, 1974
Equal Remuneration Act, 1976
Contract Labour Act, 1970
Child Labour Act, 1986
Bonded Labour System Act, 1976
The Employee’s Provident Funds Act, 1952
The Act shall apply to:
every establishment which is a factory
engaged in any industry mentioned in schedule I of the Act and
employing 20 or more persons or
any other establishment employing twenty or more persons or
such other establishment as the Central Government may notify.
Right To Information Act, 2003
The Right to Information emerges out of the umbrella of Right to Freedom of Speech and Expression and Right to Life.
Right to Information is also the centrifugal point for access to myriad other basic human rights such as environment, health, food, livelihood etc.
The most direct transformation that the right to information effects is in the governance system.
From the perspective of citizenship, right to information is the primary tool in the hands of the citizen.
The Writs are issued by the Supreme Court under Article 32 and by the High Courts under Article 226 of the Constitution of India.
Types of Writs:
Writ of prohibition
Writ of habeas corpus
Writ of certiorari
Writ of mandamus
Writ of quo warranto
Indian Judicial System
The three-tiered system of Indian judiciary comprises of Supreme Court (New Delhi) at its helm;
High Courts standing at the head of state judicial system;
Followed by district and sessions courts in the judicial districts, into which the states are divided.
The lower rung of the system then comprises of courts of civil (civil judges) & criminal (judicial/metropolitan magistrates) jurisdiction.
The Supreme Court
On the 28th of January, 1950, the Supreme Court came into being.
The judges of the Supreme Court at the time of inauguration were Chief Justice Harilal J. Kania and Justices Saiyid Fazl Ali, M. Patanjali Sastri, Mehr Chand Mahajan, Bijan Kumar Mukherjea and S. R. Das.
The first Attorney General for India was Mr. M.C. Setalvad.
The Supreme Court
The Supreme Court of India comprises the Chief Justice and not more than 25 (30) other Judges appointed by the President of India.
The proceedings of the Supreme Court are conducted in English only.
The Registry of the Supreme Court is headed by the Registrar General.
The Attorney General for India is appointed by the President of India under Article 76 of the Constitution.
Three types of Advocates: SENIOR ADVOCATES, ADVOCATES-ON-RECORD & OTHER ADVOCATES .
The High Courts
The High Courts are generally the last court of regular appeal.
Besides, for invoking writ jurisdiction, the High Courts can be approached for enforcement of other rights.
It has the power to supervise the subordinate courts falling within its territorial jurisdiction.
The High Courts are Courts of Record.
The High Courts also exercises original jurisdiction under the Companies Act.
The High Court hears First Appeals from the decisions of the District Courts.
Section 100 of the Code of Civil Procedure provides for a Second Appeal from Appellate decrees.
Under Section 115 of the Code, the High Court is conferred wish revisional jurisdiction.
Under Article 227 of the Constitution also, the High Court in the exercise of its powers of superintendence entertains revision petitions to correct errors on the part of lower Courts and Tribunals in Judicial & Quasi Judicial matters.
On the Criminal side, the High Court has to confirm all sentences of death passed by Courts of Sessions and hear References in this behalf.
High Court hears Criminal Appeals from convictions awarded by Sessions Judges and Additional Sessions Judges or from the judgment of any other Court, where a sentence for more than seven years imprisonment has been passed.
The High Court is also empowered to entertain appeals from orders of acquittal passed by any Court.
High Court has also been conferred with Criminal Revisional Jurisdiction.
The Subordinate Courts
This subordinate Courts are:
(a) District Courts, empowered to hear appeals from courts of original civil jurisdiction besides having original civil jurisdiction
(b) Sessions Court is courts of criminal jurisdiction, having the similar scope of powers.
The courts of specific original jurisdiction are courts of Civil Judges, of Judicial Magistrates; Small Causes courts & Courts of Metropolitan Magistrates.
Quasi – Judicial System
This appendage to the Indian judicial system is a recent & sincere attempt on the part of the government to expedite the judicial process through dilution of procedural formalities & avoidance of litigation.
Tribunals form an indispensable part of this system, which are appointed by the government and comprise of judges & experts on the particular field, for which the tribunal has been constituted.
RECENT TRENDS IN LAW
CRIMINAL PROCEDURE CODE
Plea Bargaining in Criminal Cases
Plea bargaining is introduced in India by Criminal Law (Amendment) Act, 2005.
This affects cases in which the maximum punishment is imprisonment for seven years.
However, offenses affecting the socio-economic condition of the country and offenses committed against a woman or a child below the age of fourteen are excluded.
CIVIL PROCEDURE CODE, 1908
MEDIATION & CONCILIATION ENCOURAGED
NUMBER OF ADJOURNMENTS-3
SERVICE OF SUMMONS BY OTHER MEANS
EVIDENCE BY WAY OF AFFIDAVITS
TIME LIMIT TO PRONOUNCE JUDGEMENTS
NEW TRENDS IN JUDICIARY
Computerisation of Courts
Scope of PIL is being limited
Judiciary has become more open
Concept of Justice at Door-Step encouraged
Special Courts to dispose off Petty Cases
Evening Courts started in many States
At present there are two educational options for would-be Law graduates in India.
One is a five year program, to which one can be admitted after passing a school-leaving examination taken after completion of 10+2.
The other is a three year program available only to those who have already graduated with a degree in Arts, Science or Commerce.
Are you aware that…
About two-thirds of our laws have not been used in independent India.
About 10 per cent of them can be scrapped right away.
And most of the 10 per cent in use currently have so many obsolete and conflicting provisions.
The oldest law in the country has been in operation for over a century and half. The one sentence 1836 Bengal District Act empowers the Bengal government to create as many zillas as it wants. The Act still exists.
Under the Indian Sarais Act, 1867, it is a punishable offence for ‘inn-keepers’ not to offer free drinking water to passer-by.
Only about 40 per cent of our laws are in regular use. Independent India has till now found no conceivable use for the rest.
While India badly needs efficient laws, the time spent by the law-making body on the job is unbelievably little.
Parliament spends less than 0.6 per cent of a Lok Sabha day on law-making.
The GST Bill was approved in the Lok Sabha on March 29, 2017 with four supplementary legislations- The Central GST Bill, 2017; The Integrated GST Bill, 2017; The GST (Compensation to States) Bill, 2017; and The Union Territory GST Bill, 2017.
At the debate preceding the passing of the bills, finance minister Arun Jaitley said the GST, which will usher in a uniform indirect tax regime in the country, will make commodities ‘slightly cheaper.’ “Today, you have tax on tax, you have cascading effect. When all of that is removed, goods will become slightly cheaper,” he said. On why the GST Council has decided on multiple GST rates, Jaitley said one rate would be ‘highly regressive as hawai chappal and BMW cannot be taxed at the same rate.’
Intent of the GST
The GST will subsume central excise, service tax, VAT and other local levies to create a uniform market. GST is expected to boost GDP growth by about 2 per cent and check tax evasion. States will have to pass their State GST or SGST law that will allow them to levy sales tax after levies like VAT are subsumed.
Tax structure under the GST
The GST Council has recommended a four-tier tax structure – 5, 12, 18 and 28 per cent. On top of the highest slab, a cess will be imposed on luxury and demerit goods, to compensate the states for revenue loss in the first five years of GST implementation. However, the Central GST (CGST) law has pegged the peak rate at 20 per cent and a similar rate has been prescribed in the State GST (SGST) law, which takes the peak rate to 40 per cent which will come into force only in financial exigencies.
GST’s impact on taxes
In the present tax system, there are a lot of different taxes that one has to pay, like the VAT, octroi or the local body taxes. GST will subsume all these taxes into it. Diipesh Bhagtani, Chairman-Exhibition, CREDAI-MCHI, explains: “Instead of paying various taxes, at various states and cities, we would soon have just one tax that is going to benefit us. So, in this process, a lot of labour will be saved, along with large sums of money. Also, we look at taxes to be in line with the standard of the absorption of the industry. We as an industry, who have been suffering from excess of taxes, which in sum, amounts to 40%; if all that can be reduced then it’s a big advantage to all of us.”
See also: GST impact on the realty sector: The short to long-term analysis
Current real estate transaction taxes
Bengaluru Mumbai Pune Chennai Gurugram
VAT 4.0% 1.0% 1.0% 2.0% 4.0%
Service Tax 4.5% 4.5% 4.5% 4.5% 4.5%
Stamp Duty 5.7% 5.0% 5.0% 7.0% 6.0%
Registration Charges 1.0% 1.0% 1.0% 1.0% 0.5%
Total Taxation 15.2% 11.5% 11.5% 14.5% 15.0%
Source: Industry, JM Financial
Impact of GST on real estate
The construction of a complex building, civil structure, or a part thereof, intended for sale to a buyer, wholly or partly, is subject to 12 per cent tax with full input tax credit (ITC), subject to no refund in case of overflow of ITC. In other words, residential construction services, will invite GST at the rate of 12 per cent, which will apply to developers selling residential units before completion of construction to the home buyers.
According to the JM Financial report on GST, for states with non-composite VAT (Karnataka, Tamil Nadu, Andhra Pradesh), the transaction value changes marginally from 10-11% to 12% under the new regime. With input cost credits available, developers in these regions may witness improvement in margins in case no price revision takes place (subject to the anti-profiteering clause).
Abhishek Anand, assistant vice-president (Equity Research), JM Financial Ltd, explains: “In the current regime, states with composite VAT require developers to pay lower VAT rates on the total property value without any input tax benefit (Maharashtra, Haryana) or partial benefit (intra state offset- Bangalore). Under this regime, developers pass on the transaction cost – VAT (1%) and service tax (4-5%) to buyers (total 5-6%). Developers get offset for only the input service tax component. In the GST regime, the transaction cost increases to 12%, with input credit available on both, services and material. Property transaction costs will increase by 6%, in case no input credit is passed on by developers. If developers pass on the input credit to buyers, the property price increase could be restricted to 1-2%.” If the developers pass on the credits completely and bring down the base prices, then, home buyers may marginally benefit under the GST regime.
Nevertheless, stamp duty will continue to be applicable, irrespective of whether the property is under-construction or constructed, in the pre-GST and post-GST regime.
Will GST help home buyers?
With the introduction of the Goods and Services Tax (GST), the total incidence of tax will increase from 5.5 per cent to 12 per cent. However, developers will be able to avail of input credit, on all the goods and services purchased and spent in the construction of the property.
Shrikant Paranjape, president of CREDAI Pune Metro, maintains that “The impact of the GST on property prices, will be difficult to gauge at this stage because of the lack of clarity on abatement for land value. In a product, where the major raw material is not covered by the GST and the completed unit is also not covered by the GST, the tax input benefit will be hard to calculate or justify. Only the market forces, the ready reckoner rates and time, will decide whether and how much benefit will be passed on by the developers to the purchasers.”
Moreover, the prices of input materials can also be volatile. Cement and steel prices can soar, without warning. Similarly, sand is always in short supply and not available in the monsoons. Hence, it is likely that these industries may not pass on the entire benefit of tax credit.
Another important factor that needs to be examined, is the stage of construction. If the project is at an advanced stage, where substantial cost has already been incurred before the application of the GST, very little input credit will be available and very less benefit will be passed on. If the project is at an early stage, more benefits can be passed on.
GST on under construction property – Affordable housing
It is important to note that if GST exemption is extended to affordable housing projects (affordable housing is currently exempted from service tax and a clarification is expected from the government for exemption from GST), then, affordable homes may become cheaper under the GST regime.
Impact of GST on property prices – Luxury segment
In the case of a premium properties, while the basic construction cost may come down a little, but as the input tax credit is limited to 12 per cent, it will not be sufficient to bring down the fresh tax liability to nil because of the taxes paid on other expenditures.
GST rates for real estate – Input materials
HSN Description of goods Rate
Chapter 72 Steel 18 per cent
2523 Cement 28 per cent
6802 Marble and granite 28 per cent
2515 Blocks of marble and granite 12 per cent
Chapter 68 Sand lime bricks and fly ash bricks 12 per cent
2505 & 2517 Natural sand, pebbles, gravel 5 per cent
8428 Lifts and elevators 28 per cent
Data provided by: BMR
Under the tax regime, many of the construction materials are under the 18 and 28 per cent slab. For example, steel and steel products, are mostly in the 18 per cent segment and cement and prefabricated structural components for building or civil engineering, are in the 28 per cent slab. However, as the input tax credit is available on products utilised for construction, the overall tax incidence should be neutralised.
Reverse charge mechanism in GST and its impact on construction costs
The mechanism, where the recipient of services pays the service tax, is called as ‘reverse charge mechanism’ (RCM). The same concept, with wider application, has been borrowed from the service tax laws in the Goods and Services Tax (GST) regime.
A developer has to pay GST on services availed, like those provided by a person who is located in a non-taxable area, services provided by goods transporters, legal services provided by an individual or firm, etc. The developer also has to pay GST under the reverse charge mechanism, on the services provided by government or local authorities, like municipalities, etc. Nevertheless, some of the services provided by the government, like renting of premises, specific services provided by the postal authorities, transport of goods by railways or by state transport undertakings, etc., are outside the scope of the GST, similar to the service tax regime.
A significant departure under the GST laws, compared to the erstwhile service tax provisions, is that under the reverse charge mechanism in GST, a person who is registered under the GST has to pay GST on all the services and goods that are procured from a person who is not registered under GST.
This has significantly expanded the scope of the reverse charge mechanism for all taxable persons and it will adversely affect the developers. Moreover, the tax payable under the reverse charge mechanism under the GST, cannot be adjusted by the developer against the input credit available from the GST paid on the inputs, but has to be paid by cash/bank payment.
So, under the GST, the builders are worse off, due to the dual effect of the levy of GST on the services availed from unregistered person, as well as the requirement to discharge the reverse tax on goods received from unregistered suppliers.This will certainly increase the costs for the developer, especially the small developers who were availing goods and services from unregistered suppliers earlier and were not bearing the cost of taxes to that extent.
GST on ready properties
If the OC for the project has been received, then, no GST will be applicable. A CRISIL report points out that at present, a developer pays excise tax and VAT, on inputs like cement and steel, at 27.7 per cent and 18.1 per cent, respectively, which vary from state to state. Now, under the GST regime, cement and steel will be taxed at 28 per cent and 18 per cent, respectively, while other inputs like paint and white goods, will be taxed at 28 per cent. The final product – the housing unit – will be taxed at 12 per cent, with credit for taxes paid on inputs. As the tax levied on the entire cost including the land will be 12 per cent, the amount would be sufficient to provide for the input credit for developers. Hence, a buyer opting for a ready-to-move-in apartment, is saved from the tax burden.
However, the tax calculations under the GST regime, for the real estate market, are not so simple. For example, the GST on under-construction projects will be charged to home buyers on the sale price but the credit can be availed by the developers, only on the cost of construction. As the builder will have to pay the GST on the full project and the input availed is only on the construction cost, there may be a gap that is no less than 30 per cent. Consequently, whether you opt for an under-construction property or ready-to-move-in unit, the developer will hike the prices in that proportion, to make sure this gap is bridged.
GST on property rentals
“Credit/set-off of input GST is available to a developer, if the sale is executed prior to obtaining the completion certificate or prior to first occupancy. However, this credit is not allowed if the developer chooses to rent out the property. Hence, we might see a spike in commercial rentals,” explains Amit Sarkar, partner and head – indirect taxes, BDO India.
GST has also been levied on the renting of residential property, for use as an accommodation. Consequently, tenants may witness a hike in rent payment under the GST system, as there is no service tax applicable on residential properties, in the existing system.
Here’s how the GST will impact the tax computation on rental income:
With the clubbing of taxes on goods and services, under the GST regime, the confusion about levy of separate tax on service and goods is done away with.
Unlike under the service tax regime, the threshold limit for applicability of GST has been increased from Rs 10 lakhs to Rs 20 lakhs. So, many of the landlords who were covered under the service tax regime, will go out of the indirect tax net, under the GST.
It may be interesting to note that for the purpose of computing the aggregate limit of Rs 20 lakhs under the GST, all the taxable, as well as exempt goods and services supplied, shall be taken into account. So, unlike the service tax regime, where it is only the taxable services, which are taken into account for determining whether you have crossed the basic threshold, under the GST, the value of all the service and goods supplied in India, as well as exported, whether taxable or exempt, are taken into consideration for the Rs 20-lakh limit. The GST is proposed to be levied at 18 per cent, on the letting-out of commercial properties.
There is one more major tax implication under the GST, with respect to rent on commercial properties. The parliament has borrowed the concept of ‘reverse charge mechanism’ from the service tax regime, under the GST. However, unlike in the service tax regime, where the reverse charge mechanism is applicable in case of services and is not extended to the sale or manufacturing of goods, the same is made applicable for goods as well as services, under the GST regime. A person who is registered under GST, who gets supplies of goods or services from a person who is not registered under GST, will have to pay the GST under the reverse charge mechanism. Under the service tax regime, there is no provision of reverse mechanism, with respect to the rent paid by the lessee. The proposed GST provisions, due to the increased rate and the levy under the reverse mechanism, will eventually make it costlier to take any commercial premises on rent.
Will GST make home loans expensive?
Before evaluating the likely impact of the GST on home loan costs, it is important to understand the components that will be impacted by the increased rates under the GST. The main cost of taking a home loan, is the interest payment on the money. This cost will not change, as there is no service tax or GST on it. Similarly, any stamp duty charged in connection with the documentation of the home loan, will not change with the GST, as stamp duty is not subsumed under the GST.
However, there are various charges that are levied by lenders on home loans. First and foremost is the processing fee that is paid at the time of taking the home loan. At present, it is 15 per cent but it will go up by 3 per cent under the GST, to 18 per cent. This is generally a one-time cost and its overall impact on your home loan tenure, will be insignificant. The banks may also recover other charges like advocate fees, valuation charges, etc., in connection with the home loan, which will go up proportionately.
Like the processing fee paid at the time of application, you may have to pay prepayment charges, in case you decide to prepay the home loan before the completion of its tenure or shift the home loan to another lender. This is generally payable, in case the home loan is taken under a fixed rate of interest. For floating rate home loans, banks cannot levy any prepayment charges. Housing finance companies can, however, levy the prepayment charges, if you decide to shift the home loan to another lender. However, for payment of the home loan from your own resources, the housing finance companies cannot levy any prepayment charges.
The lenders can also charge you for any EMI default, either due to return of the cheque or ECS return, on which the GST rates will go up. So, it is practically on all the charges that are recovered by the lenders that the GST rates will go up by 3 per cent.
How are banks affected by the GST?
The implementation of the GST, will bring some tax savings for the lenders, as the input credit with respect to the services availed, as well as goods purchased, will be available for set off, against the GST output taxes liability. However, the reverse charge mechanism, which is borrowed from the service tax regime and which is expanded under the GST, will adversely affect the profitability of banks. Moreover, lenders are now required to register in all the state under the GST, whereas, under the service tax regime, they could have obtained one centralised registration. This will significantly increase the compliance costs of the lenders and affect their profitability.
Grey areas in the GST that could determine the final price of properties
It is still not clear what would be the abatement available for the land cost, for calculating service tax on under-construction projects. The abatement rules, as applicable under the service tax regime and the input tax credit facility for developers, will determine if the effective tax incidence on real estate, is lower or higher under GST.
Effectively, the composition scheme allowing for abatement against cost of land to the extent of 75 per cent of the house cost, for residential units priced under Rs 1 crore and less than 2,000 sq ft, makes the effective rate at 3.75 per cent. In other cases, the abatement goes down to 70 per cent, making the effective rate at 4 per cent. This will go a long way, in determining whether GST is tax neutral or tax adverse for real estate.
In addition, as states have different state-level taxes, the implication of GST may not be uniform, across all states.
Strong case for bringing real estate under GST: Finance minister Arun Jaitley
Finance minister Arun Jaitley, while delivering a lecture at Harvard University on October 12, 2017, has said that the real estate sector should, ideally, be brought under the ambit of the Goods and Services Tax (GST). “The one sector in India, where maximum amount of tax evasion and cash generation takes place and which is still outside the GST, is real estate. Some of the states have been pressing for it. I personally believe that there is a strong case to bring real estate into the GST,” Jaitley said. The finance minister said the move would benefit consumers, as they will only have to pay one final tax on the whole product. “As a result, the final tax paid on the whole product under the GST, would almost be negligible,” he said.
Will GST on real estate benefit home buyers and the sector?
There are many issues and grey zones that need to be ironed out, before GST becomes a reality in real estate. Niranjan Hiranandani, president of NAREDCO, maintains that bringing real estate under GST’s ambit, will benefit the consumers who will only have to pay one final tax on the whole product.
However, if the GST slab for real estate is finalised above 12 per cent, then, home buyers and developers may take a hit, at a time when property prices are already unaffordable in many places.
Moreover, the finance minister will also have to convince states to come on board, to create a consensus. This maybe particularly tough, in states where real estate transactions are major source of revenue for the state, through stamp duty and property registrations.
ART12.In this Part, unless the context otherwise requires, “the State” includes the Government and Parliament of India and the Government and the Legislature of each of the States and all local or other authorities within the territory of India or under the control of the Government of India.
ART13. (1) All laws in force in the territory of India immediately before the commencement of this Constitution, in so far as they are inconsistent with the provisions of this Part, shall, to the extent of such inconsistency, be void.
(2) The State shall not make any law which takes away or abridges the rights conferred by this Part and any law made in contravention of this clause shall, to the extent of the contravention, be void.
(3) In this article, unless the context otherwise requires,—
(a) “law” includes any Ordinance, order, bye-law, rule, regulation, notification, custom or usage having in the territory of India the force of law;
(b) “laws in force” includes laws passed or made by a Legislature or other competent authority in the territory of India before the commencement of this Constitution and not previously repealed, notwithstanding that any such law or any part thereof may not be then in operation either at all or in particular areas.
1[(4) Nothing in this article shall apply to any amendment of this Constitution made under article 368.] Right to Equality 14. The State shall not deny to any person equality before the law or the equal protection of the laws within the territory of India.
Article 5, At the commencement of this Constitution, every person who has his domicile in the territory of India and—
(a) who was born in the territory of India; or
(b) either of whose parents was born in the territory of India; or
(c) who has been ordinarily resident in the territory of India for not less than five years immediately preceding such commencement, shall be a citizen of India.
Article 6, Notwithstanding anything in article 5, a person who has migrated to the territory of India from the territory now included in Pakistan shall be deemed to be a citizen of India at the commencement of this Constitution if—
(a) he or either of his parents or any of his grandparents was born in India as defined in the Government of India Act, 1935 (as originally enacted); and
(b) (i) in the case where such person has so migrated before the nineteenth day of July, 1948, he has been ordinarily resident in the territory of India since the date of his migration, or
(ii) in the case where such person has so migrated on or after the nineteenth day of July, 1948, he has been registered as a citizen of India by an officer appointed in that behalf by the Government of the Dominion of India on an application made by him therefor to such officer before the commencement of this Constitution in the form and manner prescribed by that Government: Provided that no person shall be so registered unless he has been resident in the territory of India for at least six months immediately preceding the date of his application.
Article 7, Notwithstanding anything in articles 5 and 6, a person who has after the first day of March, 1947,
migrated from the territory of India to the territory now included in Pakistan shall not be deemed to be a citizen
of India: Provided that nothing in this article shall apply to a person who, after having so migrated to the territory now included in Pakistan, has returned to the territory of India under a permit for resettlement or permanent return issued by or under the authority of any law and every such person shall for the purposes of clause (b) of article 6 be deemed to have migrated to the territory of India after the nineteenth day of July, 1948.
Article 8. Notwithstanding anything in article 5, any person who or either of whose parents or any of whose grandparents was born in India as defined in the Government of India Act, 1935 (as originally enacted), and who is
ordinarily residing in any country outside India as so defined shall be deemed to be a citizen of India if he has
been registered as a citizen of India by the diplomatic or consular representative of India in the country where he
is for the time being residing on an application made by him therefor to such diplomatic or consular representative, whether before or after the commencement of this Constitution, in the form and manner prescribed by the Government of the Dominion of India or the Government of India.
Article 9. No person shall be a citizen of India by virtue of article 5, or be deemed to be a citizen of India by virtue of article 6 or article 8, if he has voluntarily acquired the citizenship of any foreign State.
Article 10. Every person who is or is deemed to be a citizen of India under any of the foregoing provisions of this
Part shall, subject to the provisions of any law that may be made by Parliament, continue to be such citizen.
Article 11. Nothing in the foregoing provisions of this Part shall derogate from the power of Parliament to make any provision with respect to the acquisition and termination of citizenship and all other matters relating to citizenship.
WE, THE PEOPLE OF INDIA, having solemnly resolved to constitute India into a 1[SOVEREIGN SOCIALIST SECULAR DEMOCRATIC REPUBLIC] and to secure to all its citizens:
JUSTICE, social, economic and political;
LIBERTY of thought, expression, belief, faith and worship;
EQUALITY of status and of opportunity;
and to promote among them all
FRATERNITY assuring the dignity of the individual and the 2[unity and integrity of the Nation];
IN OUR CONSTITUENT ASSEMBLY this twentysixth day of November, 1949, do HEREBY ADOPT, ENACT AND GIVE TO OURSELVES THIS CONSTITUTION.
The minimum age for admission shall be 17 years on or before 31st December of the year in which admission is sought.
The maximum age for admission shall be 35 years.
The minimum educational requirements shall be 10 + 2 in Arts (Mathematics, Physics, Chemistry, Biology, Biotechnology, Economics, Political Science, History, Geography, Business Studies, Accountancy, Home Science, Sociology, Psychology, and Philosophy) and English Core/English Elective or Science or Health care Science – Vocational stream ONLY passing out from recognized Board.
Student shall be medically fit.
Students qualified in 10+2 Arts or Science examination conducted by National Institute of Open School.
Student shall be admitted once in a year.
G. N. M.
Minimum and Maximum age for admission will be 17 and 35 years. There is no age bar for ANM/LHV.
10+2 class passed preferably Science (PCB) & English with aggregate of 40% marks.
10+2 in Arts (Mathematics, Biotechnology, Economics, Political Science, History, Geography, Business Studies, Accountancy, Home Science, Sociology, Psychology, Philosophy) and English Core/English Elective or Health care Science – Vocational stream ONLY, passing out from recognized Board under AISSCE/CBSE/ICSE/SSCE/HSCE or other equivalent Board with 40% marks.
10+2 vocational ANM under CBSE Board or other equivalent board from the school and recognized by Indian Nursing Council with 40% marks.
Registered as ANM with State Nursing Registration Council.
Student shall be medically fit.
Students qualified in 10+2 Arts or Science examination or Health care Science – Vocational stream ONLY conducted by National Institute of Open School with 40% marks.
Student shall be admitted once in a year.
B. Sc. (N)
The minimum age for admission shall be 17 years on 31st December of the year in which admission is sought.
10+2 class passed with Science (PCB) & English Core/English Elective with aggregate of 45% marks from recognized board under AISSCE/CBSE/ICSE/SSCE/HSCE or other equivalent Board.
Student shall be medically fit.
Students appearing in 10+2 examination in Science conducted by National Institute of Open School with 45% marks.
Student shall be admitted once in a year.
Post Basic B. Sc. (N)
Passed the Higher Secondary or Senior Secondary or Intermediate or 10+2 or an equivalent examination recognized by the university for this purpose. Those who have done 10+1 in or before 1986, will be eligible for admission.
Obtained a certificate in General Nursing and Midwifery and registered as R.N.R.M. with the State Nurses Registration Council. A male nurse, trained before the implementation of the new integrated course besides being registered as a nurse with State Nurses Registration Council, shall produce evidence of training approved by Indian Nursing Council for a similar duration in lieu of midwifery in any one of the following areas:
Neurological and Neuro surgical Nursing
Community Health Nursing
Candidates shall be medically fit.
Students shall be admitted once in a year.
M. Sc. (N)
The candidate should be a Registered Nurse and Registered midwife of equivalent with any State Nursing Registration Council.
The Minimum education requirements shall be the passing of: B.Sc. Nursing/B.Sc. Hons. Nursing/Post Basic B.Sc.
Nursing with minimum of 55% aggregate marks.
The candidate should have undergone in B.Sc. Nursing / B.Sc. Hons. Nursing / Post Basic B.Sc. Nursing in an institution which is recognized by Indian Nursing Council.
Minimum one year of work experience after Basic B.Sc. Nursing.
Minimum one year of work experience prior or after Post Basic B.Sc. Nursing.
NOTE: Simultaneous attendance in other courses is not permitted. It will be applicable to all the above courses.
Bengaluru: Activity in India’s predominant administration area contracted at the most keen rate in about four years in July after another assessment strategy sowed disarray and sent new requests into free fall, a study appeared on Thursday. Starting disarray on the national merchandise and ventures impose (GST) drove July’s Nikkei/IHS Markit composite Purchasing Managers’ Index, which measures both assembling and administrations movement, to sink to 46.0 – its least perusing since March 2009 – from June’s eight-month high of 52.7.
The PMI for India’s overwhelming administration industry dropped to a close to four-year low of 45.9 in July from 53.1. June’s perusing had been the most astounding since Prime Minister Narendra Modi restricted high-esteem cash notes in November.
The most recent review is the first run through in a half year where the administrations perusing was beneath the 50 check that isolates development from withdrawal.
“PMI information for July feature an inversion in fortunes crosswise over India, with the economy going into switch mode subsequent to seeing a get in development energy amid June,” said Pollyanna de Lima, primary financial analyst at IHS Markit.
“A large portion of the constriction was credited to the execution of the merchandise and enterprises impose (GST) and the perplexity it caused.”
Surging costs caused by the expense, actualized on July 1, scratched interest for administrations and pushed the sub-record on new business to 45.2 in July, its least in about four years, from 53.3 in June.
Correspondingly, perplexity among makers over the evaluating of their items after the GST was actualized dragged manufacturing plant action to its most minimal level in over nine years in July, a sister study appeared on Tuesday.
In spite of introductory GST interruptions, members in the overview stayed idealistic about development in administrations movement over the coming year, which helped the business desire sub-list to a 11-month high.
“Many will address how profound an effect the GST will have on the economy in the close and long haul, firms appear to be persuaded that prospects will light up as the new expense administration progresses toward becoming clearer,” said Ms de Lima.
The GST means to supplant different falling duties. The change should enable India to recover its position as the quickest developing real economy this year, market analysts surveyed by Reuters a month ago said.
On Wednesday, the Reserve Bank of India cut its approach rate by 25 premise focuses to 6.0 for each penny, which should help development.
Appraisal in GST is predominantly centered around self-evaluation by the citizens themselves. Each citizen is required to self-survey the charges payable and outfit an arrival for each assessment period i.e. the period for which return is required to be documented. The consistence check is finished by the office through investigation of profits,
review or potentially examination. In this way the consistence confirmation is to be done through narrative checks as opposed to physical controls. This requires certain commitments to be thrown on the citizen for keeping and keeping up records and records.
Key focuses that are huge from the point of view of upkeep of records and records are:
1. Area 35 of the CGST Act and “Records and Records” Rules (hereinafter alluded to as guidelines) give that each enlisted individual should keep and keep up all records at his primary place of business. It has thrown the duty on the proprietor or administrator of distribution center or godown or some other place utilized for capacity of products and on each transporter to keep up indicated records.
The area likewise enables the Commissioner to advise a class of assessable people to keep up extra records or archives for indicated reason or to keep up accounts in other endorsed way.
It additionally gives that each enlisted individual whose turnover amid a budgetary year surpasses as far as possible should get his records reviewed by a contracted bookkeeper or a cost bookkeeper.
2. Each enlisted individual is required to keep up genuine and revise record of following:
(a) generation or fabricate of products
(b) internal and outward supply of merchandise or benefits or both
(c) load of products
(d) input charge credit profited
(e) yield assess payable and paid and
(f) such different particulars as might be recommended
(g) merchandise or administrations imported or sent out or
(h) supplies drawing in installment of assessment on invert accuse along of the applicable reports, including solicitations, bills of supply, conveyance challans, credit notes, charge notes, receipt vouchers, installment vouchers, discount vouchers and e-way charges
The previously mentioned list is on a full scale level and what should be put away on ground level as a feature of the rundown is given beneath:
(a) records of stock in regard of merchandise got and provided; and such record might contain particulars of the opening equalization, receipt, supply, products lost, stolen, decimated, discounted or discarded by method for blessing or free examples and adjust of stock including crude materials, completed products, scrap and wastage thereof
(b) a different record of advances got, paid and modifications made thereto
(c) a record containing the subtle elements of expense payable, impose gathered and paid, input charge, input assess credit
asserted together with an enlist of duty receipt, credit note, charge note, conveyance challan issued or gotten amid any expense period
(d) names and finish locations of providers from whom merchandise or administrations chargeable to impose under the Act, have been gotten
(e) names and finish delivers of the people to whom supplies have been made
(f) the total locations of the premises where the products are put away including merchandise put away amid travel alongside the particulars of the stock put away in that
(g) month to month generation accounts demonstrating the quantitative points of interest of crude materials or administrations utilized as a part of the make and quantitative subtle elements of the merchandise so made including the waste and by items thereof
(h) accounts demonstrating the quantitative points of interest of merchandise utilized as a part of the arrangement of administrations, subtle elements of info administrations used and the administrations provided
(i) isolate represents works contract appearing:
• the names and addresses of the people for whose benefit the works contract is executed
• portrayal, esteem and amount (wherever pertinent) of products or administrations gotten for the execution of works contract
• portrayal, esteem and amount (wherever material) of products or administrations used in the execution of works contract
• the subtle elements of installment gotten in regard of each works contract and
• the names and addresses of providers from whom he has gotten products or administrations
3. On the off chance that more than one place of business is determined in the testament of enrollment, the records identifying with each place of business should be kept at such places of business. On the off chance that records can be kept up electronically and access to such records is at each place of business, no necessity to keep up printed copy records at each place of business.
4. In the event that records are looked after electronically, following prerequisites have been endorsed:
(an) information so put away should be validated by method for computerized signature
(b) appropriate go down of records
(c) create, on request, the important records or archives, properly validated, in printed version or in any electronically lucid organization
5. Any section in registers, records and archives might not be eradicated, destroyed or overwritten and all wrong passages, other than those of administrative nature, should be scored out under validation and from that point the right passage might be recorded and where the registers and different reports are looked after electronically, a log of each passage altered or erased might be kept up.
Advance every volume of books of record kept up physically by the enrolled individual should be serially numbered
6. Period for safeguarding of records: All records kept up together with all solicitations, bills of supply, credit and charge notes, and conveyance challans identifying with stocks, conveyances, internal supply and outward supply might be saved for a long time from the due date of outfitting of yearly return for the year relating to such records and records.
7. Records to be kept up by proprietor or administrator of godown or distribution center and transporters: The transporters, proprietors or administrators of godowns, if not effectively enlisted under the GST Act(s), might present the insights with respect to their business electronically on the Common Portal in FORM GST ENR-01. A one of a kind enrolment number might be created and conveyed to them. A man in whatever other State or Union region might be regarded to be selected in the State or Union Territory.
The Goods and Services Tax (GST) has been one of the key things that has caught the attention of the market given its implications on earnings of companies. The government has kept a large number of items under 18% tax slab. The government categorised 1211 items under various tax slabs. Here is a low-down on the tax slab these items would attract:
Here is the complete updated list:
Gold and rough diamonds do not fall under the current rate slab ambit and will be taxed at 3% and 0.25% respectively. No tax(0%) Goods
No tax will be imposed on items like Jute, fresh meat, fish chicken, eggs, milk, butter milk, curd, natural honey, fresh fruits and vegetables, flour, besan, bread, prasad, salt, bindi. Sindoor, stamps, judicial papers, printed books, newspapers, bangles, handloom, and horn cores, bone grist, bone meal, etc.; hoof meal, horn meal, Cereal grains hulled, Palmyra jaggery, Salt – all types, Kajal, Children’s’ picture, drawing or colouring books, Human hair
Hotels and lodges with tariff below Rs 1,000, Grandfathering service has been exempted under GST. Rough precious and semi-precious stones will attract GST rate of 0.25 per cent.
Items such as fish fillet, Apparel below Rs 1000, packaged food items, footwear below Rs 500, cream, skimmed milk powder, branded paneer, frozen vegetables, coffee, tea, spices, pizza bread, rusk, sabudana, kerosene, coal, medicines, stent, lifeboats, Cashew nut, Cashew nut in shell, Raisin, Ice and snow, Bio gas, Insulin, Agarbatti, Kites, Postage or revenue stamps, stamp-post marks, first-day coversServices
Transport services (Railways, air transport), small restraurants will be under the 5% category because their main input is petroleum, which is outside GST ambit.
Apparel above Rs 1000, frozen meat products , butter, cheese, ghee, dry fruits in packaged form, animal fat, sausage, fruit juices, Bhutia, namkeen, Ayurvedic medicines, tooth powder, agarbatti, colouring books, picture books, umbrella, sewing machine, cellphones, Ketchup & Sauces, All diagnostic kits and reagents, Exercise books and note books, Spoons, forks, ladles, skimmers, cake servers, fish knives, tongs, Spectacles, corrective, Playing cards, chess board, carom board and other board games, like ludo,
State-run lotteries, Non-AC hotels, business class air ticket, fertilisers, Work Contracts will fall under 12 per cent GST tax slab
18% Goods Most items are under this tax slab which include footwear costing more than Rs 500, Trademarks, goodwill, software, Bidi Patta, Biscuits (All catogories), flavoured refined sugar, pasta, cornflakes, pastries and cakes, preserved vegetables, jams, sauces, soups, ice cream, instant food mixes, mineral water, tissues, envelopes, tampons, note books, steel products, printed circuits, camera, speakers and monitors, Kajal pencil sticks, Headgear and parts thereof, Aluminium foil, Weighing Machinery [other than electric or electronic weighing machinery], Printers [other than multifunction printers], Electrical Transformer, CCTV, Optical Fiber, Bamboo furniture, Swimming pools and padding pools, Curry paste; mayonnaise and salad dressings; mixed condiments and mixed seasonings.
Services AC hotels that serve liquor, telecom services, IT services, branded garments and financial services will attract 18 per cent tax under GST, Room tariffs between Rs 2,500 and Rs 7,500, Restaurants inside five-star hotels28% Goods Bidis, chewing gum, molasses, chocolate not containing cocoa, waffles and wafers coated with choclate, pan masala, aerated water, paint, deodorants, shaving creams, after shave, hair shampoo, dye, sunscreen, wallpaper, ceramic tiles, water heater, dishwasher, weighing machine, washing machine, ATM, vending machines, vacuum cleaner, shavers, hair clippers, automobiles, motorcycles, aircraft for personal use, will attract 28 % tax – the highest under GST system.
Services Private-run lotteries authorised by the states, hotels with room tariffs above Rs 7,500, 5-star hotels, race club betting, cinema will attract tax 28 per cent tax slab under GST