The May 2018 numbers for revenue under the Goods and Services Tax (GST) have raised concerns over a slowdown in collections. Such fears, however, are unfounded.
Drawing conclusions from a particular month’s collection figure coming in at less than Rs 1 trillion ( the May 2018 number put it at Rs 0.94 trillion) is as flawed as judging revenue buoyancy without taking into account the factor of seasonality and the annual revenue target. On both counts, the GST revenue numbers released last week show robust growth in tax collections. Click to read more
The Goods and Service Tax Council would likely amend the GST Act to make it mandatory for the Authority for Advance Rulings (AARs) in states to be manned by senior revenue officials. The idea is to avoid conflicting AAR rulings by its different benches and ensure orders based on sound legal principles.
AARs, however, might continue to function without former judicial officers, unlike the previous excise and service tax AARs which were headed by retired Supreme Court judges along with two technical members, officials said. Click to read more
Can 100 tonnes of iron scrap be transported all the way from Agra to Fatehgarh Sahib on a scooter? While looking for an answer to this question, the Punjab Excise and Taxation Department unearthed a fake GST bill scam worth Rs 200 crore.
A Fatehgarh Sahib-based company, Maa Chintpurni Alloys, reportedly mentioned the vehicle registration number of a scooter in the GST bill given to another firm. Though the firm showed that the scrap was transported on a truck, the registration number was found to be that of a scooter. Click to read more
Union Food Processing Minister Harsimrat Kaur Badal on Tuesday said since the Centre has decided that all religious and charitable institutions would not be burdened with GST on ‘langar’, the Punjab government too should announce a complete waiver of state GST on such institutions.
She said the Central government’s landmark decision to give the GST relief to religious and charitable institutions ensured that no institution serving the cause of humanity need pay additional taxes. Click to read more
India is projected to regain its position as the world`s fastest growing major economy advancing 7.3 percent this fiscal year and 7.5 percent in the next two “as factors holding back growth in India fade”, according to the World Bank forecasts.
The growth projections reflect “robust private consumption and strengthening investment,” the bank`s Global Economics Prospects report released on Tuesday said.
“India`s GDP growth bottomed out in the middle of 2017 after slowing for five consecutive quarters, and has since improved significantly, with momentum carrying over into 2018 on the back of a recovery in investment,” the report said. Click to read more
As crude prices rose, India’s airlines and even the Civil Aviation Ministry pitched for including the jet fuel—that contributes a third of a carrier’s costs—within the ambit of the goods and services tax. Such a move, according to BloombergQuint’s calculations, can help the three listed Indian airlines save at least Rs 1,100 crore in taxes a year.
But that’s assuming the overall tax rate on aviation turbine fuel for domestic flights falls from about 40 percent (including both central and state levies) now to 28 percent—the highest GST slab. And a reduced tax rate would mean a loss of revenue for state and the central governments, which have been reluctant to forego income from levies on fuel. Click to read more
The government is planning to revamp the advance ruling mechanism under GST by setting up either a centralised authority or 4 regional authorities, in the wake of the contradictory orders passed by AARs in different states.
Under the Goods and Services Tax (GST) law, each state is required to set up Authority for Advance Rulings (AAR) comprising one member from the central tax department, and the other from the respective state. Click to read more
A delegation of the textile industry representatives from Surat met Union Finance Minister Piyush Goyal and Revenue Secretary Hasmukh Adhia over Goods and Service Tax (GST) issues in New Delhi on Tuesday. The delegation expressed hope that their problems would be looked into. The representatives met Adhia and Goyal after the intervention of Navsari BJP MP CR Patil. After the meeting they said that the ministry had assured to look into their representation. Click to read more
Even as exporters and the government continue to argue over the amount of unpaid refunds under the goods and services tax (GST) regime, the much-awaited e-wallet mechanism remains a non-starter.
Traders had supported the e-wallet mechanism to battle the liquidity crunch that had set in after the GST was introduced.
Subsequently, a decision to adopt it was taken at the 22nd GST Council meet on October 6 last year, with an initial deadline for April 1. Click to read more