Rolling a truck of vegetables into Gujarat, the state once governed by Prime Minister Narendra Modi, requires a bribe of 500 rupees to 2,000 rupees even with your papers in order, according to Rakesh Kaul, vice-president of Caravan Roadways Ltd., which has about 400 trucks plying India’s pot-holed road.
But getting past the state tax collectors into Uttar Pradesh, India’s most populous state, will cost you more: Upwards of 20,000 rupees, Kaul says. The penalty for not paying off the right people is steep fines from factories whose raw materials are stuck at state borders sometimes for as long as five days. Click to read more
India Inc. is already feeling the heat of goods & services tax (GST) which will come into effect on July 1. The countdown has already started for the ‘One Nation One Tax’ reform to transition on the midnight of June 30 to July 1.
After the launch of GST, the next big trigger which will be tracked by market participants will be June quarter results from India Inc. which most experts think could be muted especially for FMCG and auto stocks amid implementation of GST.
The GST Council had last month fixed the rates for over 1,200 goods and 500 services — at the slabs of 5, 12, 18 and 28 per cent. Click to read more
The government has threatened to cancel the registration of entities that do not pass on gains from GST to consumers.
The cancellation of registration is in addition to the power to levy penalty that was prescribed under the law.
The government has repeatedly threatened to invoke anti-profiteering provisions to ensure that gains of GST by way of lower taxes and input tax credit for taxes paid at all stages are passed on to consumers. At the same time, it also wants to ensure that in cases where the levy is going up, companies do not take unfair advantage. Click to read more
In 10 days, the government is scheduled to roll out India’s most ambitious indirect tax regime, the goods and service tax, which seeks to put in place a uniform tax structure for commodities across the country. Already under criticism for becoming needlessly complex, a prominent industry body Assocham has expressed fears that the deadline of July 1 may not be realistic.
If GST has to run from July 1, it needs a strong backbone but the signs of strain are showing already. Click to read more
Why companies are scrambling to clear old stock ahead of GST implementation
Ever since the Goods and Services Tax Council began releasing the rates on various items in May, companies ranging from e-commerce platforms and car manufacturers to apparel retailers and phone manufacturers have been bombarding registered customers and other recipients with messages, emails, and phone calls, offering attractive discounts valid till June 30, a day before the GST kicks in.
But why are they doing this? It surely can’t be that they are celebrating the roll-out of the new indirect tax regime. By all accounts, most companies are quaking, fearing the huge increase in compliance costs and paperwork that GST will bring. Click to read more
The government will not blink on rolling out the goods and services tax (GST) from July 1, Finance Minister Arun Jaitley said on Tuesday, emphasising that businesses cannot give any excuse for not being ready as enough time was given to them for preparation.
Ruling out deferring the roll-out because of a small number of people who say businesses are not ready, he said when reforms are implemented “the first principle is you should never blink. If you blink, then you get derailed.” “We have for the last six months saying that the date is July 1. Nobody had any business to be not ready,” he said. Click to read more
Days ahead of the rollout of Goods and Service Tax, the government today notified sections in the GST Act dealing with mandatory registration of current indirect tax payers in the new regime.
As many as 18 sections relating to registration of current central excise, service tax and VAT payers with the GST-Network (GSTN) as well as transitional provisions were notified today.
As a precursor to GST, the Central Board of Excise and Customs (CBEC) has also notified two rules — registration and composition levy. Click to read more
The government on Tuesday notified anti-profiteering rules under the Goods and Services Tax (GST) regime. BloombergQuint had reported on most of these rules earlier.
The anti-profiteering authority, to be called National Anti-Profiteering Authority, will have the power to cancel the registration of any trader or manufacturer which fails to pass on to consumers the benefit of lower taxes under the new indirect tax regime, according to a statement released on the website of the Central Board of Excise and Customs. Click to read more