Reforms such as Goods and Services Tax (GST) and demonetisation will improve tax collection and broaden the tax base in India overtime, Moody’s Investors Service said today.
In a report on broadening tax base in Asia Pacific countries, Moody’s said although there are uncertainties surrounding GST implementation and compliance, including the timely provision of input tax credit refunds, India’s strong economic growth and stable fiscal regime should support the effectiveness of ongoing tax reforms in yielding gains. Click to read more
Notices sent by the tax department to major pharma companies over not cutting the Goods and Services Tax (GST) on free supplies to retailers are likely to have repercussions on fast-moving consumer goods (FMCG) companies as well, warn tax experts, who found no ground for the notices.
The notices sent by the Directorate General of Goods and Services Tax Intelligence (DGGI) say that some free supplies of drugs – injections, tablets, syrups – have been made to stockists and retailers without charging GST on them. Click to read more
The government will undertake a second special fortnightly drive since March to liquidate pending refund claims made by exporters amounting to Rs 14,000 crore, the finance ministry said in a statement. The refunds include those on account of integrated GST (IGST) paid on exports, unutilised input tax credit (ITC) and other GST refunds submitted in form GST RFD-01A (for manual processing of refunds). The government admitted that refunds of GST have been a concern for the past several months. Till now, the government has sanctioned more than Rs 30,000 crore as GST refund (including those for exporters), which includes Rs 16,000 crore of IGST and Rs 14,000 crore of ITC, it said. Click to read more
Ever since the rollout of GST on July 1, 2017, there have been talks about bringing petroleum products under the new tax net. With oil prices spiralling globally in the past few months, the talks have turned more serious with a few people who matter indicating that petroleum would also be a part of GST.
There is a view that GST would reduce the prices of petroleum products in the country and can act as an effective hedging tool to the price shenanigans of OPEC (Organisation of Petroleum Exporting Countries). Click to read more
A CBI team today conducted searches at the main office of the Goods and Services Tax (GST) in Vadodara city and questioned some officials.
The agency had initiated an inquiry after receiving a complaint about allegations of bribery against GST officials.
No one has been arrested yet,” a CBI official said, adding that the inquiry was at a very primary stage. Click to read more
Union Petroleum Minister Dharmendra Pradhan, while talking to India Today, said that an uniform tax structure for petroleum products across the nation will be realised soon. Efforts are being made in GST Council to develop a consensus among states to bring petrol and diesel under the GST and the success of the tax regime will lead to this outcome soon.
On the question of why the centre is not slashing the excise duty on petrol and diesel to set an example for states to follow, Pradhan said, “Excise duty in not the only factor in fuel prices. Value added tax levied by states VAT is also an important factor.” Click to read more
The government on Wednesday announced a special fortnight-long drive from May 31 to June 14 to process pending GST refunds. Acknowledging that refunds of Goods and Services Tax (GST) was a concern for both government and trade for the past several months, the Finance Ministry said till now, the government had sanctioned more than Rs 30,000 crore as GST refunds including Rs 16,000 crore of Integrated-GST (IGST) and Rs 14,000 crore of input tax credit. Click to read more
The All India Tax Advocates Forum (AITAF) has expressed serious concern over growing trend of sending of scrutiny notices by the GST authorities to assessees for mismatch between tax payments and final sales return even before the whole process of tax liabilities is completed under the GST rules and regulations.
In a statement, it said assessees are being issued notices to explain mismatches of details in GSTR-1 and GSTR-3B for the same period.
“The authorities issuing such notices fail to appreciate that GSTR-3B requires self assessed detail of tax liability and the ITC whereas in GSTR-1, the assesee is required to give invoice-wise details of sales. Click to read more
The GDP growth in the financial year 2017-18 was 6.7%, lowest in Narendra Modi era even as the economic growth in the fourth quarter shined at an unexpected rate of 7.7%, highest in seven quarters. The slow full-year GDP growth in FY18 is in spite of the fact that the economic growth picked up to a modest 7.2% and impressive 7.7% in the third and fourth quarter respectively. Click to read more