Replying to a debate in Parliament on July 20, 2018, during the no-confidence motion against his Government, Prime Minister Narendra Modi gave a comprehensive account of the various schemes, reform measures and achievements during the last four years of his stint. A prominent reform measure listed by Modi was the Goods and Services Tax (GST) launched on July 1, 2017.
Dwelling on the contentious issue of five hydrocarbon products: Natural gas, crude oil, petrol, diesel and aviation turbine fuel, he opined that under the UPA, these products were excluded under their version of the Constitution (Amendment) Bill, 2010. Click to read more
Officials of the Department of Legal Metrology on Thursday raided several electronics and electrical appliances showrooms and booked 62 cases after they found that owners were selling goods at old GST rates despite them being revised.
Department officials said that they had received several complaints after which 18 teams were formed. These teams conducted checks at Reliance Digital in Banjara Hills, Big Bazaar in Tarnaka, Yash Electronics in Malkajgri, Lot Mobiles in Madhapur and Bata in Tarnaka, among several others. Cases were booked where violations were found. Click to read more
Exports of micro, small and medium enterprises were hit more by issues related to implementation of the goods and services tax than demonetisation, according to the Mint Street Memo published by the Reserve Bank of India.
MSMEs, considered a powerful engine of the country’s economic growth, are contributing around 40 percent of the overall shipments from India.
“MSME exports were affected more adversely by issues relating to the GST implementation due to a delay in refund of the upfront GST and input tax credit affecting cash-driven working capital requirements,” said the report. Click to read more
Initial apprehensions over the classification of items in the GST regime are coming true, at least in some cases. The recent action against Himalaya Drug Company, whose offices were searched by tax authorities, emanates from this very problem.
Bengaluru-based Himalaya was allegedly paying 12 per cent GST on wet baby wipes by claiming the item is non-cosmetic. On the other hand, the Centre demanded a rate of 18 per cent. The rate on wet baby pipes was earlier 28 per cent. Click to read more
Raids on 13 star hotels, all of which house liquor shops, revealed tax irregularities to the tune of Rs12.65 crore by State Goods and Services Tax (GST) department, official sources said.
An official statement said searches were conducted on 13 hotels in Ahmedabad, Surendranagar, Bhuj, Mundra, Gandhidham, Surat, Jamnagar and Rajkot by State GST authorities recently. Each of the 13 hotels also house a liquor shop, where liquor is sold to permit-holders. “The tax amount in these cases is Rs12.65 crore. Of this, Rs1.96 crore have been recovered, and steps have been initiated to recover the remaining sum,” the statement said. Click to read more
Even as India’s economic growth seems to be normalising, deteriorating macroeconomic imbalances are again posing a concern. As global uncertainties – trade wars and global crude oil prices – escalate, emerging market economies that are running twin deficits, that is fiscal and current account deficits, including India, are likely to face heightened financial market volatility as well as downside risks to their growth outlook. The key is to ensure macroeconomic stability so that a recovery in growth can be sustained in the medium term and is not sacrificed for the sake of short-term growth and inflation dynamics. Click to read more
Spurred by the Modi government’s various policy initiatives and taxation reforms, the nation’s real estate sector – facing headwinds for quite some time — has finally started showing signs of revival.
According to a recent report by ANAROCK Property Consultants, for instance, new housing launches have recorded a whopping 50% jump in Q2 of 2018 over the preceding quarter, while housing sales across the top seven cities of India rose by 24% during the same period compared to those in Q1 of 2018, indicating that home buyers are coming back to the market. The contribution of the National Capital Region (NCR) in the new supply was around 17% with 8,500 units, an 89% rise over the previous quarter, while the Mumbai Metropolitan Region (MMR) saw the maximum supply with nearly 13,600 units in the second quarter of 2018. Click to read more