In a comprehensive overhaul of the four-month-old goods and services tax (GST), the Centre and states are reviewing nearly half of items in the top bracket of 28% and allowing even larger firms to file returns once a quarter instead of every month.
A senior official told TOI that the fitment committee, which decides on product-specific rates, is looking at proposals to pare the rates on 150-200 items with a majority of them being from the top bracket. The list includes several daily use products as well as sanitary and electrical fittings, construction material, furniture and goods are manufactured by the small scale sector. Click to read more
The government may review the requirement of filing at least three returns every month under the GST regime with a view to easing compliance burden of taxpayers, officials said.
Presently, businesses have to file returns in GSTR-1, GSTR-2 and GSTR-3 forms for every month. These forms detail outward supplies of taxable goods and/or services, inward supplies for claiming input tax credit and monthly return.
The review follows businesses complaining problems in matching invoices while filing July returns. Click to read more
Finance Minister Arun Jaitley today hinted at bringing down the number of products in 28% GST slab. While speaking at India Today Conclave Next 2017, the Finance Minister said that some of the items should never have been in the 28 per cent slab.
“We have been gradually bringing them down. The whole idea is, as your revenue collections neutralise we must prune it and that is the pattern in which the Council has so far been functioning. I see that as a future guide as far as the Council is concerned,” Jaitley said. The GST Council in the last 3-4 meetings has slashed rates on over 100 items. Click to read more
The all-powerful GST Council may consider lowering tax rates on a host of goods such as handmade furniture, plastic products and daily use items like shampoo, and simplify return filing rules in its meeting this week.
The Council, headed by Finance Minister Arun Jaitley, is scheduled to meet on November 10 to consider lowering of the 28% GST rate on certain common use items, government officials said. Click to read more
The idea of a Goods and Services Tax (GST) was, and is, a good idea. It is a tax that is in force in about 160 countries with some variations in each country, but the basic principle is that it is a one-rate tax applicable to all goods and services unless these are exempted.
The Chief Economic Adviser (CEA), in his report on the revenue neutral rate (RNR), recommended a rate of 15 or 15.5 per cent. Taking note of the difficult transition path from VAT to GST and from Service Tax to GST, he also acknowledged the need to have a merit rate (RNR minus) and a demerit rate (RNR plus). That would have preserved the essential principle of a GST while enabling a smooth transition. Click to read more
Former prime minister Manmohan Singh today alleged that demonetisation and rollout of the Goods and Services Tax (GST) have sown a “deep-rooted fear of tax terrorism” among the business community.
Addressing a Congress event for small and medium business owners as part of Gujarat assembly election campaign, he said that the growth in private investment is at a 25-year low which is “terrible for India’s economy”. Click to read more
On the eve of the first anniversary of demonetisation on Tuesday, former prime minister Manmohan Singh Prime Minister Narendra Modi-led NDA government over its big ticket economic policies — note ban and GST and bullet train among other issues. Singh was speaking at an interactive session on the current state of the economy with businesspersons and traders in poll-bound Gujarat’s Ahmedabad.
Demonetisation: ‘Black Day’
Calling November 8 as the “black day” of the Indian economy and democracy, Singh said, “Nowhere in the world has any nation taken such a drastic step that sweeped off 86% of the currency. I repeat what I said in Parliament, this was organised loot and legalized plunder.” Taking a jibe at PM Modi’s cashless India endevour, he said that coercieve steps like demonetisation have turned out to be ineffective. He also said the note-ban exercise was a disastorous policy as none its objectives were achieved. Click to read more