The International Monetary Fund or IMF today described the Goods and Services Tax (GST) as a “milestone reform” in India’s tax policy, but pushed for a simplified structure, saying the multiple rate structure and other features could give rise to high compliance and administrative costs.
In its annual country report, the International Monetary Fund also said that a dual rate structure with a low standard rate and an additional higher rate on select items can be progressive and preserve revenue neutrality. Click to read more
The government Tuesday introduced four bills to amend the Goods and Services Tax (GST) laws which among other things seek to simplify the return forms and raise the turnover threshold for availing composition scheme to Rs 1.5 crore.
The Goods and Services Tax (GST) amendment bills are primarily aimed at helping the Ministry of Micro, Small and Medium Enterprises (MSME) sector and small traders, Finance Minister Piyush Goyal said while introducing the bills in the Lok Sabha. Click to read more
The government today introduced four bills to amend the GST laws which among other things seek to simplify the return forms and raise the turnover threshold for availing composition scheme to Rs 1.5 crore.
The Goods and Services Tax (GST) amendment bills are primarily aimed at helping the MSME sector and small traders, Finance Minister Piyush Goyal said while introducing the bills in the Lok Sabha. Click to read more
The Union government has once again extended the suspension of reverse charge mechanism on the purchase of goods and services by registered dealers from unregistered dealers by one year. Earlier, the suspension was valid till September 30 this year. Central Board of Indirect Taxes and Customs (CBIC) has said that the suspension of the reverse charge would be valid till September 30, 2019 now.
The suspension on the reverse charge has been extended several times in past. The further extension would allow registered dealers to purchase goods and services from any unregistered dealers without paying the GST under reverse charge till one year. Click to read more
In a business-friendly move, the Centre has extended the suspension of the reverse charge mechanism on purchase of goods or services by registered dealers from unregistered dealers within the state till September 30.
The suspension was earlier valid till September 30 this year. However, this has been extended by one year. The suspension would now be valid till September 30, 2019, the Central Board of Indirect Taxes and Customs (CBIC) has said. Click to read more
The 13 months of experience with GST implementation have been eventful and the businesses are gradually getting acclimatised to the new tax. In hindsight, the question of the hype and hoopla preceding its implementation on the midnight of June 30, 2017, was really necessary. Indeed, the taxpayers have faced the tryst with destiny and continue to hope that the promised “good and simple tax” and the “one nation, one market, one tax” will be realised sooner rather than later. Of course, despite the glitches, the policy-makers have been sensitive to the concerns of the taxpayers and, hopefully, the tax will take firmer roots. Click to read more
Monthly revenue collections from the goods and services tax (GST) are improving, but adjusting for refunds, the mop-up is not very comforting. And the recent concessions are likely to exert more pressure on tax collections, pushing the fiscal deficit higher. Last week, GST Council cleared a proposal to incentivize digital transactions on a pilot basis via Rupay cards, BHIM app and the UPI system. Customers making payments through these platforms would get cashback of 20% of the total GST amount, subject to a maximum limit of ₹ 100. Click to read more
The Centre has reportedly favoured a pause in further rate cuts on the goods and services tax (GST) due to the revenue shortfall, estimated at over Rs 40,000 crore in the first quarter of this fiscal. This is hasty, on two counts. The slew of changes that have periodically been brought about show that the tax system has stabilised neither in terms of the rate structure nor in categorisation of goods and services. There are too many rates now and some rates are still way too high. Rates must be lowered, converged to three to bring down classification disputes, and boost collections. Click to read more
Foreigners coming to India may not get GST refunds on goods purchased and carried back by them as the government has not invoked relevant provisions of the Integrated Goods and Services Tax Act yet, the Finance Ministry has said in reply to an RTI query.
It was asked to provide details on procedures for foreigners to get GST refunds on goods purchased by them in India.
Some western nations provide refunds of certain taxes on goods purchased by foreigners there. Click to read more