The GST landscape for old and refurbished cars has undergone significant changes, simplifying tax compliance for dealers and buyers alike. With the 55th GST Council meeting introducing a uniform 18% GST rate on used vehicles, the tax structure now focuses on profit margins rather than the entire sale value. This shift clears misconceptions like "tax on losses" and ensures fairness in the second-hand car market.GST Rate on Used Cars: The 55th GST Council meeting sets an 18% GST on used vehicles, targeting profit margins instead of the full sale value.As a business owner or buyer, understanding GST rates, HSN codes, and key rules is essential to navigate this evolving framework. In this article, we’ll explore everything from applicability to recent updates and practical scenarios for GST on used cars.Understanding GST on Used CarsLevy of GST on used cars is based on the taxable event called as supply. The definition of supply under includes all kinds of sale, exchange, transfer, barter, lease, rental, license and disposal undertaken for the furtherance of business consideration.

Have you ever thought about how GST on shoes affects your pockets? Depending on the type, material and cost of the footwear, the GST rates are different. In this blog, we break down every aspect of GST on footwear.GST on shoes is 12% for prices under Rs. 1,000 and 18% for prices above Rs. 1,000.Current GST Rates on ShoesThe GST on footwear in India depends on many factors, such as the type of shoes, the material used, and the price of the shoes. The GST rate charged for shoes with a price below Rs.1,000 is less at 12% compared to those priced above Rs.1,000, charged at 18%.

The first question that probably comes to most people's minds when they are considering taking a personal loan or have already taken one is: How much extra do I have to pay over the tenure of the loan? GST is one of the additional costs you will incur when taking a personal loan. This blog discusses everything you need to know about GST on personal loan.GST Rates on Personal Loan-Related ChargesTo answer the question, “How much GST do I have to pay on a personal loan?” it is essential to break down the loan into its components. A personal loan consists of three key components: the principal, interest, and charges such as loan processing fees and foreclosure or prepayment charges.Principal amount - When repaying the principal amount of the loan, you are essentially transferring money to the lender. GST applies to the supply of goods and services, but both are defined in a way that excludes money. The principal amount is not subject to GST, and consequently, there is no GST personal loan EMI.Interest - The charging of interest is an agreement between the borrower and the lender based on predetermined rates that have to conform to guidelines laid down by the Reserve Bank of India.

In this article, we will discuss what a business owner needs to do if he/she has to change or update the GST registration details. There may be a need to modify registration details later on due to mistakes made while applying for GST registration or due to any changes during the course of the business over a period of time. It is also called the amendment of GST registration details as per the GST law in form REG-14.Latest Updates17th April, 2025The CBIC has issued new instructions regarding the processing of GST registration applications. The instructions aim to streamline the process and eliminate unnecessary document requests. They clarify the acceptable documents for proving the principal place of business and the constitution of the business.

The Income Tax Department has discontinued the C9 correction option that was previously used to add new challans or transfer vouchers in correction statements. This option has been removed in the RPU 4.8. The online correction facility can be used on statements from FY 2007-08 onwards. This online correction can be done free-of-cost on TRACES. Online correction is that it can be done without requesting a Conso file.

TRACES (TDS Reconciliation Analysis and Correction Enabling System) is an online portal introduced by the Income Tax Department. Once you are registered you can avail many facilities provided by traces. You can view TDS/TCS credit, verify form 16, view refund status etc.Here are the steps to register in TRACES:Step 1: Click on “Register as New User” tab, Select “Deductor” as the type of user and click on “Proceed”.Step 2: Provide TAN of the deductor, enter “Verification code” and click on “Proceed”.Step 3: Enter the Token number of the Regular (Original) Statement only, along with CIN/BIN and PAN details pertaining to the Financial year, Quarter and Form Type displayed on the screen.Token Number: Challan details (CIN): Challan amount, Challan date, BSR code and CD record number (it is optional). Govt deductor can enter the only Date of Deposit and Transfer Voucher amount mentioned in the relevant Statement. PAN details: Maximum of 3 distinct valid PANs and corresponding amount must be entered.

Employers and organisations that deduct tax at source can check the TDS statement after filing the statement, just to make sure everything is correct. Here is the step-by-step procedure to do it.Step 1: Visit the income tax e-filing portal at the URL http://www.incometaxindiaefiling.gov.in/home.Step 2: Log in to the e-filing portal with your log in credentials.Step 3: Select the ‘View Filed TDS’ option under the ‘TDS’ tab.Step 4: Select the financial year, form name, and quarter, from the dropdown menu for which the TDS statement was uploaded. Click on the ‘View Details’ button.Step 5: The details of the TDS statement will be displayed. Once you upload the TDS statement, the ‘Status’ column will be shown as ‘Uploaded’. Upon validation, the status will either be ‘Accepted’ or ‘Rejected’.The final judgement will be reflected on the portal within a period of 24 hours from the time of upload.Step 6: If the statement is rejected, it will state the reasons for rejecting it.

AS 10 Property, Plant and Equipment prescribe the accounting treatment for properties, P&E (Plant and Equipment) so that the users of financial statements could recognize and appreciate the information about the investment made by any enterprise in property, P&E and the also understand the changes made in such investments.It is also important to note that AS 6 – Accounting for Depreciation stands withdrawn and such matters related to depreciation is included in AS 10.Applicability of AS 10 Property, Plant and EquipmentAS 10 is to be applied in accounting for property, P&E (Plant and Equipment) and this standard are not applicable to:(a) biological assets which are related to agricultural activities except for bearer plants. The Standard is applicable to bearer plants, however, it doesn’t apply to the produce on bearer plants; and(b) wasting assets which include mineral rights, expenses related to exploration for and extraction of oil, minerals, natural gas and other non-regenerative resources.Recognition of Asset under AS 10 Property, Plant and EquipmentThe cost of property and P&E should be recognized as an asset only if: (i) it is apparent that the future economic benefits related to such asset would flow to the business; and (ii) the cost of such asset could be reliably measured.Measurement of cost of the assetAn enterprise can select the revaluation model or the cost model as the accounting policy and employ the same to the entire class of its properties and P&E. According to the cost model, after recognizing the asset as an item of property or plant and equipment, it should be carried at the cost less the accumulated depreciation and the accumulated impairment losses (if any).As per revaluation model, once the asset is recognized and its fair value could be measured reliably, then it must be carried at the revalued amount, which is the fair value of such asset at the date of the revaluation as reduced any following accumulated depreciation and accumulated impairment losses (if any). Revaluations must be done at regular intervals for ensuring that the carrying amount doesn’t differ much from that which would be determined using the fair value at balance sheet date.Depreciation under AS 10 Property, Plant and EquipmentAs per the standard, depreciation charge for every period must be recognized in the P/L Statement unless it’s included in carrying the amount of any another asset. Depreciable amount of any asset should be allocated on a methodical basis over the useful life of the asset.Every part of property or P&E (Plant and Equipment) whose cost is substantial with respect to the overall cost of the item must be depreciated separately.The standard also prescribes, that the residual value and useful life of an asset must be reviewed at the end of each financial year and, in case the expectations vary from the previous estimates, changes must be accounted for as changes in accounting estimate as per Accounting Standard 5 – Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies.The method of depreciation employed must reflect the pattern of future economic benefits of the asset consumed by an enterprise.

AS 5 is prescribed to bring a uniformity in presentation among all enterprises. IntroductionAS 5 specifies the method of classification and disclosure for the following items:a. Prior period itemsb. Extraordinary itemsc. Certain specific items w.r.t. profit and loss from ordinary activitiesThe standard also describes the treatment of changes in accounting estimates and disclosures to be made on account of such changes.

As per Section 145 of the Income Tax Act, any assessee having taxable income under the heads “Profits and gains from business or profession” or “Income from Other Sources” has to compute their taxable income in accordance with cash or mercantile system of accounting.Furthermore, the section states that the Central Government may notify from time to time if it is to be followed by any class of taxpayer or in any class of income.Key Aspects of ICDSIt is applicable to all taxpayers (corporate/non-corporate or resident/non-resident) irrespective of the turnover or income. It will not have any impact on the minimum alternate tax (MAT) for corporate assessees as it will be based on the book profits to be determined as per the current applicable AS. It will only be applicable for computation of income chargeable under the heading “Profits and gains of business or profession” or “Income from other sources”. It is applicable only on the computation of the income and not for maintenance of the books. If there is any conflict, then the Income Tax Act will prevail over ICDS. Income Tax Authorities have the power to assess the income on the best judgment basis on non-compliance of ICDS. All ICDS (except VII relating to Securities) contains transitional provisions which in general provide for recognition of outstanding contracts and transactions as on 1st April 2015 in accordance with it after taking into account income/expenditure/loss already incurred in the past. There is no ‘grandfathering’ for outstanding contracts or transactions as on 31st March 2015. It does not provide any explanations or illustrations like AS. It only lays down the principles to be adopted for computing Income. Revenue or Expenses on which there is no ICDS will continue to be governed by existing AS.List of ICDS notified under the Income Tax ActI – Accounting PoliciesII – Valuation of InventoriesIII – Construction ContractsIV – Revenue RecognitionV – Tangible Fixed AssetsVI – The Effects of changes in Foreign Exchange RatesVII – Government GrantsVIII – Securities IX – Borrowing CostsX – Provisions, Contingent Liabilities and Contingent Assets Below is the list of ICDS and corresponding notified AS: Few ICDS for which drafts were circulated but not notified1.  Events occurring after the end of Previous Year   2.