The challenge is daunting: Convert an economy of more than 1 billion consumers, 29 states, 22 official languages, 9 million businesses all operating under a spider’s web of taxes, arcane regulations and competing political ambitions into a unified common market.
But that’s the goal as India gets ready to roll out a goods-and-services tax after a 10-year battle to win over the country’s powerful states and fractious federal parties. Designed to free up trade, foster tax compliance and make it easier to do business in the world’s fastest-growing major economy, the GST is scheduled to go into effect on July 1. Click to read more
The biggest reform in the indirect tax regime is set to get implemented very soon. Instead of different types of taxes—central, state, local and so on—soon there will be only one tax: the Goods and Services Tax (GST). Like any other sector, real estate will also come under the ambit of GST. However, as of now, there is lack of clarity on various aspects such as whether the rate of GST will remain at par with current applicable taxes and whether affordable or low-cost housing will remain out of the GST’s ambit. Read on to know what impact GST will have on the real estate sector in India. Click to read more
Goods and Service Tax (GST) is going to be a reality soon and businesses, especially small and medium enterprises (SMEs and MSMEs) are going to find it difficult initially to cope up with the increased paperwork and scrutiny.
With the GST rollout beginning on July 1, 2017, the government and tax authorities are asking companies to register themselves on the GST platform in order to ensure a smooth transition to the new tax system. Click to read more
Small and mid-sized cars may see a small hike in prices after the Goods and Services Tax (GST) is rolled out from July 1 as different goods are fitted into the four-slab rate structure.
The GST will unify at least 10 central and state taxes into one.
Goods and services will have to fall into one of the approved four rate categories of 5, 12, 18 and 28 per cent, which is closest rate to the present incidence of taxation. Click to read more
With GST to be rolled out soon, the GST Council is all set to decide item-wise rates in May for goods and services based on the Harmonised System of Nomenclature (HSN) and Service Accounting Codes (SAC). While the four-tier rate structure of 5%, 12%, 18% and 28% has been finalised by the GST Council for levy of taxes on goods, it is expected that GST rates for bulk of goods will be at standard rates of 12% and 18%, essential commodities could be taxed at a lower rate of 5%, while luxury goods will be taxed at the higher rate of 28%. Additionally, a compensation cess on ‘sin’ goods—such as luxury cars, tobacco products, pan masala and aerated drinks—is proposed to be levied. Click to read more
How will our exports be treated under the Goods and Services Tax (GST) regime? Exports will be treated as zero-rated supplies. No tax will be payable on exports of goods or services. However, you can take input tax credit (ITC). You will have the option to pay tax on the export goods/services and claim refund of Integrated GST (IGST) or export under Bond without payment of IGST and claim refund of ITC. However, no refund of unutilised ITC will be allowed in cases where the goods exported out of India are subjected to export duty or when you avail of drawback in respect of Central GST. Click to read more
When 48-year-old Anubhav Bhandari, a trader from Wakad, began undertaking the numerous steps required to migrate to the Goods and Service Tax (GST) system earlier this month, he was shocked to find that his registration certificate (RC) has been cancelled altogether. Now, he has been making rounds of the sales tax office in Yerwada and various consultants to finish the procedure, but in vain. Click to read more
BJP’s Mumbai unit today demanded abolition of octroi in the city once the Goods and Services Tax (GST) comes into force.
“Octroi is being levied in Mumbai for a long time and it should be abolished immediately once GST comes into force. We also want most of the transactions of Municipal Corporation of Greater Mumbai (MCGM) to take place electronically to bring more transparency in its services and functioning,” BJP said in a release following a meeting of its city unit. Click to read more
Crediting state chief ministers for “keeping aside ideological and political differences” to arrive at a common ground, Prime Minister Narendra Modi Sunday said that the consensus on Goods and Services Tax (GST) would “go down in history as a great illustration of cooperative federalism”.
An official statement issued by Niti Aayog said, “The Prime Minister said that the Goods and Services Tax shows the strength and resolve of the federal structure. He gave credit to all chief ministers for coming on one platform for this cause, keeping aside ideological and political differences. Click to read more
Traders and businessmen should ensure the cost reduction on account of introduction of GST is passed on to consumers, Haryana Finance Minister Capt Abhimanyu said yesterday.
Addressing the inaugural session of the two-day National Conference on GST organised by the Gurugram branch of Northern India Regional Council (NIRC) of the Institute of Chartered Accountants of India (ICAI), the minister said the Goods and Service Tax (GST) will bring a revolutionary change in the economic system of the country. Click to read more
Union Minister Venkaiah Naidu sought to allay Tamil film industry’s apprehensions over GST and said he would lead a delegation of various industry bodies to address the issue of tax rates for films with Finance Minister Arun Jaitley.
Naidu, the Information and Broadcasting Minister, stated this while assuring his Ministry’s support to issues raised by the South Indian Film Chambers of Commerce (SIFCC) at a meeting with him here. Click to read more