Several amendments to the Goods and Services Tax (GST) law is likely to be placed before Parliament in the Monsoon Session, a senior official said in Kolkata on Monday.
“There are several amendments to the GST which is proposed to come up during the Monsoon Session of Parliament,” GST Council special secretary Arun Goyal said at a seminar organized by the Merchants’ Chamber of Commerce. Over a dozen pending GST amendments are aimed at easing operational functioning of the indirect tax reform, he added. Click to read more
Sale of a going concern by a business house will not attract Goods and Services Tax (GST), as per an order by the Authority for Advance Ruling (AAR).
The Karnataka bench of the AAR gave its ruling based on an application filed by Rajashri Foods Pvt Ltd which wanted to sell one of its units along with fixed and current assets as well as liabilities, including bank loans, for a lump sum consideration.
The AAR said that as per a government notification, any transfer of a going concern constitutes a ‘supply of service’ and ‘nil’ tax rate will apply on it. Click to read more
The Central Board of Indirect Taxes and Customs (CBIC) has asked its field offices to levy GST on goods in customs warehouse only at the time of final clearance.
The move is aimed at ensuring ease of doing business for importers, experts said.
In a circular to principal chief commissioners and chief commissioners, the GST policy wing of the CBIC said, “transfer/sale of goods while being deposited in a customs bonded warehouse” is a common trade practice whereby the importer files an ‘into-bond’ bill of entry and stores the goods in a customs bonded warehouse. Click to read more
Encouraged by the Union road transport and highways minister Nitin Gadkari’s support to the demand for bringing fuel under GST purview, online activists have shot out a fresh online missive addressed to PM Narendra Modi as part of the campaign #GST4Petrol.
The online petition, now gaining ground, has also pointed out that Maharashtra chief minister Devendra Fadnavis has come out in support of bringing diesel and petrol under the GST purview. Click to read more
Textile traders from the man-made fabric hub of Surat have urged Prime Minister Narendra Modi to create a special committee to study and analyse the impact of the Goods and Services Tax (GST) on the textile sector. They have urged that the government should remove traders and weavers from the purview of GST, which should be levied only at the yarn stage.
The output of man-made fabric has come down from around four crore metres per day to less than two crore metres in the July-April 2017-18 period, i.e. post implementation of the GST, the Federation of Surat Textile Traders’ Association (FOSTTA) office-bearers said in a letter to Modi. Click to read more
Ministry of Finance has stated that there has been no change in the GST law and taxation relating to farmers since July 2017, when GST was implemented. Support services to agriculture, forestry, fishing or animal husbandry are exempt from GST.
Such exempted support services include renting or leasing of vacant land with or without a structure incidental to its use. Thus, renting or leasing of land by farmers for agriculture, forestry, fishing or animal husbandry on batai (share cropping) or otherwise is also exempt from GST. Click to read more
It is almost 11 months since the Goods and Services Tax (GST) came into being. Yet, the necessary consequential changes have not been made in the Special Economic Zones (SEZ) Act, 2005, or the SEZ Rules, 2006.
There is no mention of GST in either. References to the repealed laws for service tax, purchase tax, etc, continue in the SEZ laws. For example, Section 26 (e) of the SEZ Act still says every developer and entrepreneur shall be entitled to exemption from service tax under Chapter V of the Finance Act, 1994 (32 of 1994) on taxable services provided to a developer or unit to carry on the authorised operations in a SEZ. Similarly, Section 26 (f) and (g) of this Act talk of security transaction tax and purchase tax. Similarly so with the SEZ Rules, 2006. Click to read more
It may appear that the goods and services tax (GST) hasn’t given a big boost to states governments’ tax revenue (or for that matter, the Centre’s) so far, but there’s little reason for them to complain. The constitutionally guaranteed compensation mechanism under GST ensures, in effect, a 14% annual growth in the states’ revenue. A cursory look at their past performance will reveal that most states had previously registered growth rates much lower than 14% from the taxes that later collapsed into GST. Click to read more
Over the past 18 months, fund managers faced two structural disruptions — demonetisation and GST — which posed a challenge in selecting companies. Besides, while the micros improved, a few key macro indicators — crude oil and interest rates — showed signs of deterioration. A few largecap and midcap funds sailed through these challenges and delivered more than 15 per cent returns. Buying into financials, consumption, consumer discretionary and playing themes like unorganised to organised and spotting good investment ideas in IPOs helped these fund managers create alpha. Click to read more