The economy will grow 7.2% in 2017-18 and 7.7% in 2019-2020 and implementation of the goods and services tax (GST) will provide a big boost to overall economic growth and revenues, a World Bank report said on Monday.
According to Junaid Ahmad, World Bank country director in India, the GST would reduce the cost of doing business for firms, reduce logistics costs of moving goods across states, while ensuring no loss in equity. Click to read more
The banking sector, one of the largest service sectors in the country, will have to put in plenty of hard work to get Goods and Service Tax (GST)-ready.
While the change in tax rate is grabbing the headlines, that is actually one of the many changes to which banks will have to adjust. For most categories of chargeable banking services, the effective tax rate will become 18 percent from the current 15 percent (at present it includes Swachh Bharat and Krishi Kalyan Cess). Banks will definitely pass on this extra levy on to the customers. As users of banking services, prepare to shell out a bit more. Click to read more
The Goods and Service Tax (GST) rate on inputs for solar components has been cut to 5% from the 18% set by the GST Council in its May 18 meeting, according to Revenue Secretary Hasmukh Adhia. “All solar equipments and its parts would attract 5% GST only,” Mr. Adhia tweeted. This should put to rest concern in the industry, as the 18% rate was likely to have had a significant impact on solar energy tariffs. The confusion arose because, while all of renewable energy including solar energy was placed in the 5% tax slab, solar modules were placed in the 18% slab. The formal announcement of the new tax rate is expected to be made at the next GST Council meeting on June 3. Click to read more
Though deputy chief minister Manish Sisodia on Monday welcomed Good and Services Tax (GST) as a “big decision and a good concept”, he warned that the information shared on execution was “bookish for now” and the real test would come only when it rolls out in July.
Sisodia alleged that the GST Council’s decision to keep out liquor, land and real estate out of the purview of the tax regime “smacked of a conspiracy”. He claimed that this was done because many politicians have interests in real estate. He also attacked the Centre saying that the real estate market is known to be a hotbed for black money. If it is kept out of GST then how can the government say it is fighting against black money? Click to read more
They say ‘Change is the only constant’ but in order to succeed, change is not only constant but it is also inevitable. After many reforming initiations like “Housing for all” and RERA, the next thing that Real Estate along with all other sector is looking forward to is the Goods and Services Tax. GST is set to get implemented on 1st July 2017. There are various goods and services which will have different rates prescribed by GST, which may impact their cost. A homebuyer henceforth will have to pay 12% GST to purchase a under construction house. If we look at the current scenario, real estate sector was heavily taxed, therefore 12% single tax structure is definitely a welcome move. Click to read more
The decision on revising the tax rates fixed on various goods and services has been left to the discretion of the GST Council, Central Board of Excise and Customs Chairperson Vanaja Sarna said today.
“We have been getting representations from various industries and businesses to revise rates. So, whether any of the items will be opened for revision or not, it is something the council will take a call on that. It is meeting on June 3,” she said. Click to read more
The implementation of the goods and services tax (GST) will ease consumer price index (CPI) inflation by 25 to 50 basis points, several economists said, indicating the impact of GST on retail inflation is likely to be lower than what has been projected by government officials.
The economists said this is because some items in the CPI basket fall in the exempt category while a reduction in tax rate is proposed for several others. Click to read more
With just over a month left for the rollout of goods and service tax (GST) from 1 July, a few industries are seeking concessions on the rate of tax citing the mass use nature of their products as well as the lower rates assigned to competing products.
Biscuit manufacturers, for example, have sought exemption from GST for biscuits that cost less than Rs100 per kilogram, which they say are more widely consumed than bread that attracts no GST. Click to read more
The biodiesel industry feels the recently announced goods and services tax will make it costlier than diesel and uncompetitive as a clean energy fuel. In the GST rates announced recently, biodiesel, ethanol and other mixing products will be taxed at 18 per cent. Biodiesel has attracted zero excise duty for the past 10 years and producing states like West Bengal, Uttar Pradesh, Uttarakhand, Chhattisgarh and Rajasthan charge zero value-added tax (VAT) on it. The petroleum ministry is planning 5 per cent biodiesel blending by 2022. Click to read more
Oil and gas companies have sought changes in the Goods and Services Tax law, saying in the present form it would adversely impact the sector and leave them with huge stranded tax credit.
Crude oil, petrol, diesel, jet fuel, and natural gas have been kept out of the GST while other products have been included. “It was brought to the notice of the Ministry by the Industry representatives during the workshop, that, this exclusion will result in huge stranded taxes in the hands of oil industry due to non-availability of Input Tax Credit towards non-GST products,” according to a statement by the Oil Ministry. Click to read more
Planning to build or buy your dream home? You may want to hold on for some time, as developers led by the Confederation of Real Estate Developers’ Association of India (Credai), Bengaluru, are trying to convince the Karnataka government to cut or abolish stamp duty and registration fees in the wake of the goods and services tax (GST) being implemented from July.
If the move is successful, you will definitely save some money. “Else, it is expected to burden home buyers by 10%15%,” say some industry leaders. Suresh Hari, secretary, Credai, Bengaluru, confirmed they will soon submit a petition to chief minister Siddaramaiah. Click to read more
Days after Mercedes-Benz and Audi slashed their prices by up to Rs 10 lakh, Isuzu Motors India is offering discounts of up to Rs 1.5 lakh on its models such as the newly-launched MU-X and the V-Cross.
The discounts have come against the backdrop of recent changes in the existing tax structure after the country announced the new Goods and Services Tax rates. After GST is rolled out, the luxury car market will be the biggest beneficiary as prices will come down due to lower tax. Click to read more