A proposal to refund central goods and services tax (GST) on items made in formerly excise-free zones in Himachal Pradesh, Uttarakhand and the North-East is set to be presented to cabinet. The move will benefit companies such as CiplaBSE -0.63 %, Dabur, Dr Reddy’s and TVS MotorBSE -0.33 % that invested in those areas because of the tax break.
Such exemptions have largely been scrapped under GST as part of efforts to create a common market across India with as few interstate variations as possible.
The Expenditure Finance Committee (EFC) has approved the scheme, which is likely to benefit a number of automobile, fast-moving consumer goods (FMCG) and pharmaceutical companies that have invested in these zones. Click to read more
If there’s one word that sums up the response of India’s businesses and consumers to the country’s new national sales tax, it’s ‘confused.’
Will premium economy seats be taxed as economy class or business? Is a chocolate-coated biscuit a biscuit or chocolate? These are the questions now troubling businesses large and small across India’s $2.3 trillion economy.
The roll out of the goods and services tax came less than a year after the government’s shock withdrawal of 86 percent of the nation’s currency, which helped knock India’s GDP growth down to 6.1 percent from 7.1 percent in the January-March quarter and eliminated as many as 1.5 million jobs. Click to read more
The GSTN portal has started accepting uploading of sale and purchase invoices of businesses generated post Goods and Services Tax rollout on July 1.
GST Network (GSTN) is the company handling the IT backbone for the new tax regime.
The uploaded invoice data can be saved at the portal and the GST system operated by GSTN will auto populate the invoice data of the respective buyers, the company said in a statement. Click to read more
Business confidence for the July-September quarter declined 13 per cent over the last year as companies are seeing some “teething issues” on their road to compliance with the new GST regime, says a report.
The Dun and Bradstreet Composite Business Optimism Index stood at 72.1 during July-September of 2017, down 13.3 per cent from the same period last year.
“Given the scale of the changes, our respondents are factoring into their scores teething issues in the short run, learning the intricacies of the new tax regime, adjusting to the input tax credit and logistics of the GST system,” said Manish Sinha, Managing Director – India, Dun and Bradstreet. Click to read more
The government today extended the deadline till August 16 for businesses to opt for composition scheme under the GST regime.
“With a view to ease the compliance burden of provisionally migrated small taxpayers opting to pay tax under the composition scheme, it has been decided to extend the time limit for filing intimation for composition levy up to August 16, 2017,” the finance ministry said in a statement.
Small businesses with turnover of up to Rs 75 lakh were earlier given time till July 21 to opt for the scheme in the Goods and Services Tax regime. Click to read more
The proposed anti-profiteering authority under the new GST regime will take up for scrutiny only those cases that have mass impact and those where undue profit of more than Rs 1 crore has been earned, a senior government official said.
A five member National Anti-Profiteering Authority, headed by a secretary-level officer, will be set up soon to keep a tab on businesses that have not passed on to consumers the benefit of lower tax rates under the Goods and Services Tax (GST) regime. Click to read more
With the resale value on glass bottles becoming minuscule after the 18 per cent tax on glass products as per GST, garbage collectors — who have traditionally been a key link in the city’s inadequate waste management infrastructure — have been advising people to dump bottles in the trash. The result, discarded bottles, that once contained beer, whiskey, or even lemon extracts, will likely end up in a landfill — not decomposing for centuries. Click to read more
With the five NPA steel accounts being heard NCLT accounting for almost ₹1.41 lakh crore, the debt-laden steel industry has hogged the limelight more than the Insolvency and Bankruptcy Code under which the Reserve Bank of India is trying to unwrangle the debt issue in the industry. Though burdened by high debt, Tata Steel has done well to stay afloat and is now looking better with steel demand reviving. TV Narendran, Managing Director, Tata Steel, spoke to BusinessLine on way ahead for the company. Excerpts: Click to read more
Its been over 20 days since the GST rollout but confusion looms large among small businesses. Talking to BusinessLine, Archit Gupta, founder of online tax filing portal ClearTax, said that while the tax structure looks complicated, businesses are reacting quite positively to it. As a greater number of businesses now fall under the tax ambit, the platform has seen a 25 per cent surge in terms of traffic, both in terms of queries and business, he added. Excerpts: Click to read more
The Supreme Court’s order banning the serving and sale of liquor within 500 metres of highways has hit the liquor business hard. United Spirits Ltd’s results have been affected and it expects two more quarters for the situation to normalize. And that is if business revives along highways running through cities.
The company’s sales were down by 12.7% to Rs1,782 crore in the June quarter, over a year ago. Some of that decline is due to a shift to a franchise model in some states, for its popular brands. The highway ban’s impact is estimated at a 7% decline in sales, of which about 3-4% was also due to destocking by the trade. The direct impact was a decline of 3-4% in sales. Click to read more