Three Mumbai-based private banks and a payments bank are being probed for allegedly evading Rs 100 crore of Goods and Services Tax (GST) and flouting RBI guidelines on money transfer. The entities are suspected of evading GST by under-reporting the value of the funds transferred for customers.
A senior official at the Central Goods and Services Tax confirmed the development to Moneycontrol. Click to read more
Salary for services like accounting, IT, human resource, provided by the head office of a company to its branch offices in other states will attract 18 per cent GST.
According to an order passed by the Karnataka bench of the Authority for Advance Ruling (AAR), the activities between two offices is treated as supplies under the GST law.
It said the valuation of supply will include all costs, including the employee cost provided by one distinct entity to the other distinct entities. Click to read more
Last week, the government stated that states and union territories have been paid Rs 52,077 crore since July 2017 to compensate them for the shortfall in their tax revenue. After the last goods and services tax (GST) council meeting in July, it was reported that several states and union territories have reported shortfall in revenue of up to 43%.
Given this background, should the GST council have announced cuts in tax rates on several items? Reports suggest that the bureaucracy was unhappy with this decision since it could lead to an increase in the fiscal deficit. This is an election year, so, there will be pressures for additional expenditures which would lead to a widening of the deficit unless more resources are garnered. Click to read more
Would you prefer lower prices after a reduction in goods and services tax (GST) or a higher quantity for the same rate instead? The anti-profiteering watchdog does not seem to mind as long as the benefit of the tax cut is passed on.
Fast-moving consumer goods (FMCG) companies that raised the quantity of their packaged products instead of reducing prices can breathe easy as the National Anti-Profiteering Authority (NAPA) will accept higher grammage as effectively passing on the benefit. Click to read more
Airlines in India will be greatly relieved if jet fuel is brought under the goods and services tax (GST), industry experts said on Wednesday, as they backed the civil aviation ministry’s proposal to the federal indirect tax body, the GST Council.
High fuel costs is a key factor in the worsening financial health of carriers, exacerbated by a weaker rupee. Fuel comprises about two-fifth of the cost of running an airline in India.
Experts said including fuel in GST will benefit airlines in two ways. Click to read more
As the GST took away Jammu and Kashmir’s exclusive power to tax good and services, state’s own tax collection has witnessed a dip by over Rs 1300 crore since July 8, 2017 – the day on which GST was extended to J&K.
A senior commercial taxes department official said, “Revenue realisation in states witnessed dip as many of the state taxes are subsumed under Goods and Services Tax. J&K is facing the same situation. Click to read more
Demonetisation and the launch of Goods and Services Tax have swayed consumers in favour of organised companies like Titan that are well-governed and tax-compliant, according to Bhaskar Bhat, Managing Director, Titan Company Ltd.
In all the categories where Titan is present there is strong competition from unorganised players. But customer preference for unorganised players is declining. Today, consumers are still buying jewellery in cash (but the limit is ₹2 lakh), and this is beginning to change towards non-cash. At the same time, sellers are also changing, he told BusinessLine on the sidelines of a seminar recently. Click to read more
The Supreme Court has upheld the decision of the Punjab and Haryana High Court that Form – ‘C’ should be made available to an assessee even after implementation of the goods and services tax (GST).
A Bench led by justice Ranjan Gogoi, while dismissing a Haryana government’s appeal, observed that “if you (Haryana government) poke industries like this, they will run away”.
The issue before the court was whether after the amendment to the Central Sales Tax Act, 1956, power company Caparo Power was entitled to be issued ‘C’ Forms in respect of natural gas purchased from Gujarat-based BPCL and IOC in the course of inter-state sales for generation of electricity. Click to read more