When the Goods and Services Tax (GST) came into force on July 1, 2017, it subsumed a host of indirect taxes that were levied. Taxes like Central Excise duty, State VAT, Service tax, luxury tax and others are all gone, which has also led many to question if Budget 2018 would be as exciting as before.
“The expectations from the Budget are relatively subdued because the major portion under indirect tax has gone under GST. But, still on direct tax front and the duty structure under customs or even imports under the FDA route, the Budget has many issues to address for the industry,” says Ajay Sahai, Director General &CEO – Federation of Indian Exports Organisation(FIEO). Click to read more
The long-pending demand for granting infrastructure status, levying of Goods and Services Tax (GST) on the declared tariff of hotel rooms and re-introduction of input tax credit for the restaurants industry are some of the expectations topping the wish-list of the hospitality sector for Union Budget 2018. “Under GST the hotel industry is taxed way too higher than other overseas markets, especially the neighbouring South East Asian countries like Thailand. The 28 % tax levied on five star and luxury hotels is killing inbound tourism market. Click to read more
Finance Minister Arun Jaitley will present the Union Budget 2018 on February 1. Earlier on Monday, the Economic Survey prepared by Chief Economic Adviser Arvind Subramanian pegged India’s GDP growth at 7-7.5 per cent in the upcoming fiscal year. The survey also pointed out that the GDP growth has averaged 7.3 per cent for the period from 2014-15 to 2017-18, which is the highest among the major economies of the world. Click to read more
Ahead of the Budget, industry chamber CII today sought redressal of issues related to GST compliance including filing of returns, matching of invoices and getting timely input tax credit.
According to the chamber, simplification of Goods and Services Tax (GST) compliances would result in higher number of returns filed, increased collection of revenues, and easier working capital management by trade and industry. The GST Network (GSTN) functioning and return filing formats could be tweaked to ensure acceptance of invoices, it added. Click to read more
The past 15 months have seen a significant structural shift in Indian businesses and the supply chain ecosystem. Demonetisation and Goods and Services Tax (GST) led to volume disruption, but made the business environment more digital and simpler for the long term.
Since the transition to a new era with the rollout of GST, several tax and process changes have followed to make it simpler for businesses in every category. The supply chain network is getting more and more simplified. Check-posts and borders in 22 states have been completely abolished, leading to transit time improvement and related efficiencies. Click to read more
“As per the government new tax slabs now, hotel rooms of Rs 7,500 and above will have to submit a luxury tax of 28 percent. It means that for a 24-hour hotel stay, one will pay minimum Rs 2,100 as GST only. We believe that 28 percent GST is high for a single night stay. It should be decreased to 12 percent,” he added. Click to read more
Tamil Nadu has the second highest GST tax base, according to the Economic Survey 2018 and forms 10% of the nation’s base. TN trails Maharashtra (16%), but leads Karnataka (9%), Uttar Pradesh (7%) and Gujarat (6%). The survey also reveals that Maharashtra, UP, Tamil Nadu and Gujarat are the states with the highest number of GST registrants.
Tamil Nadu has around 7.39 lakh registrants under GST, said a senior official of the State Commercial Taxes department. “A lot of SMEs chose to register under GST despite being below the threshold limit to avail input tax credit. Click to read more
It would not be out of place to state that despite the many twists, turns (including U-turns) and travails that the goods and services tax (GST) rollout has seen, it is the working of the GST Council that is the all-curing balm.
Cut to income tax, where we deal with a law first introduced in 1922. The current 1961 version has perhaps more text on insertions, deletions, provisos and explanations than the original law itself, and with the loudening global pitch on base erosion (read: protectionism) and profit shifting (read: sharing), the pace of change will only increase. Click to read more
Exports make a crucial contribution to the country’s growth as well as job creation, both of which are predicted to grow in the coming year, according to Economic survey 2017-18. In Moradabad, an export hub for brass and metal handicrafts, exporters continue to wait for close to Rs. 1,100 crore in refundable GST.
“A liquidity crunch was created right after GST was implemented. We had to lay off 25 percent of our workers,” said Vishal Aggarwal, an exporter in Moradabad. “The relaxation implemented in October is only till March. Without knowing what this budget decides, we don’t know if we can rehire workers.” Click to read more