We are now just days away from the rollout of the goods and services tax (GST) on 1 July—the most ambitious indirect tax reform ever attempted in modern India.
Yes, the design is far from perfect (given the multiplicity of rates), yet it is a visionary idea on which, amazingly, there is political consensus—something so rare, given that, like the rest of the world, India too has transitioned to a binary discourse.
This game changing moment is best summed up in the immortal lines of Victor Hugo: “Nothing is more powerful than an idea whose time has come.” Click to read more
GST is less than a week away. ET brings a last minute check-list by PwC of all the things that businesses need to do.
GET REGISTERED FOR GST
Under GST laws, entities supplying taxable products and services need to be registered in all the states from which these will be supplied. An entity already registered in a state under any existing law should be migrated to the GST regime. Unregistered entities will have to get registered in the specific states from which supplies are made. The window for this is likely to open from June 25 for a month or so. Click to read more
The Goods and Services Tax (GST) is set to be rolled out as per the timeline of July 1 announced earlier. Those who were expecting it to be postponed yet again after many deadlines were missed over the years may not be ready for its implementation, but the overwhelming number of enterprises are keen that the transition take place as quickly as possible.
The GST represents a massive structural reform that will change the way business is done in the country and add huge efficiency to the economy. The Indian model has several firsts to its credit, being a dual tax system. The participation of state governments in its evolution adds a whole new dimension to policymaking and enables their commitment to its success. Click to read more
The push for bringing in GST in India under a ‘one country – one tax’ solution is probably the second most radical game changer in the Indian economy after the demonitisation exercise conducted a few months ago by the Narendra Modi led BJP government in India. Looking to radically push the economic output for the country, the government had been prioritising on removing red tapes which have been clogging the business and investment pipelines in the country for many decades. Aggressive initiatives such as the ‘Make in India’ drive, along with the likes of land and economic reforms, and seeking to increase foreign direct investments (FDI) into the country signify and cement the priorities set by the government in the country. While the government did face quite a hurdle in passing the GST bill, we finally have the uniform taxation policy from July 1 onwards. Click to read more
GST or goods and services tax, the country’s biggest tax reform since Independence, will be rolled out from July 1. The historic Central Hall of Parliament will host a midnight function on June 30 to launch the new tax regime. Subsuming a large number of central and state taxes into a single tax, GST would pave the way for a common national market. From the consumer’s point of view, the biggest advantage of GST would be in terms of reduction in overall tax burden on goods. Services, depending on their nature, have been placed under four tax rates of 5 per cent, 12 per cent, 18 per cent and 28 per cent. Some services will get costlier as financial services and telecom have been put in the 18 per cent GST slab. Education and healthcare will continue to be exempt from taxation. Click to read more
The $5 an ounce discount in the gold market has reduced sharply as bullion banks have stopped importing on consignment basis until clarity emerges on GST treatment over such imports, claimed a Kolkata based bullion dealer.
“Banks prefer to wait and see until after July 1 when GST kicks in,” said Harshad Ajmera, Kolkata based bullion dealer. “Till then they are not taking any fresh orders.”
Banks have represented “issues” that “merit clarity” through various industry bodies like India Bullion & Jewellers Association (IBJA) to the government, said Shekhar Bhandari, business head , global transactions banking and precious metals, Kotak Mahindra Bank. Click to read more
With barely five days left for the roll-out of the goods and services tax (GST), the GST Network (GSTN), a company that provides information technology systems for the GST, reopened registration for assessees on Sunday.
That was for new assessees not enrolled in the existing tax system — central excise duty, service tax and state-level value added tax — and for tax practitioners such as chartered accountants. Existing assessees which did not apply earlier can also enrol. The system also opened for those to be registered as tax deducted at source (TDS) or tax collected at source (TCS). Click to read more
Most cosmetics, which are so far taxed at 12.5%, will come under the highest tax slab of 28% under the goods and services tax (GST). Sachin Parikh, chief finance officer, Nykaa, India’s largest online cosmetics retailer with revenue of Rs280 crore, speaks about what GST means for his company and the industry at large. Edited excerpts:
Cosmetics have come under the tax bracket of 28%. Will there be an impact on your margins?
Yes; earlier, cosmetics were taxed at 12.5%. Now it’s taxed at 28%. Therefore, margins can get impacted; so, we are working with our brand partners and they are helping us to be GST-neutral. In addition, brand partners are supporting us to cover our transition stocks. Click to read more
The job market is looking forward to a big boost from the new GST regime and expects over one lakh immediate new employment opportunities, including in specialised areas like taxation, accounting and data analysis.
The historic tax reform, to be rolled out from July 1, is expected to help the formal job sector attain an annualised growth rate of 10-13 per cent and fuel demand for professionals in various segments of the economy, experts said.
Indian Staffing Federation’s President Rituparna Chakraborty said the GST (Goods and Services Tax) will make procurement and distribution of goods much faster while cash flow is expected to become more predictable and profitability should improve, too. Click to read more
On an average, LeasePlan India, which has a fleet of around 13,000 vehicles, gets about 50 requests for a foreclosure every month.But during the last week alone, there have been over 200 requests and the company’s finance director Nitu Samra fears that there may be more requests this week.
At TranzLease Holdings India, which has a fleet of around 3,000 vehicles on the road, it’s a similar story. “We usually get one or two requests every month for foreclosure, but that number was close to 100 during the last one week,” said TranzLease president Hari Kaushik. Click to read more
Ahead of the Goods and Services Tax (GST) implementation on July 1, small and medium traders have said they are not prepared in terms of infrastructure and the readiness of their supply chains for the new tax regime. “Traders are not prepared for it (GST).The biggest problem is that a large number of the small traders don’t have computers or any online infrastructure. It is not going to be easy. Apart from this there are lots of issues with the internet connectivity…,” said Viren Shah, president of Federation of Retail Traders Welfare Association, which represents 96 per cent of traders across Maharashtra. Click to read more