If you are a service provider with operations in only one state, GST is going to be excellent because without too much of compliance burden, you tend to get more input-tax credits. But, if you are a service provider in more than one state, and I believe, the majority would have operations in multiple states; in that case it would be hugely different under GST.
Service providers now have to grapple with a completely new set of facts. Many of them are going to be assessed in several states, several of them would have to obtain registration in new states, which they are not familiar with. Click to read more
The much-vaunted Goods and Services Tax (GST), rolled out amidst fanfare on July 1, has made construction work costlier because the end user has to pay 18 per cent GST on every purchase of material like sand, chips or other construction materials. Even electric wire, which was being sold @ five per cent VAT, has become costlier because 28 per cent GST has been imposed on it. With this real estate sector has been affected considerably by the new system.
Talking to The Pioneer a shopkeeper in Dehradun said that earlier wire was cheaper but now there is 28 per cent GST on it. If you buy wire worth Rs 1000 then you will have to pay Rs 280 as GST on it. Due to this reason it has become costlier. As is known, every person who builds a house also buys electric wire, which are being used to facilitate various electricity powered appliances like lights, fan, gyser, air conditioner, room heater, immersion rod and other mechanisms, but the government has kept this material on the list of luxury items. Due to this reason highest slab ie 28 per cent is being collected on its purchase. Click to read more
The Good and Services Tax (GST) may hit the jewellery business hard. After the implementation of the GST, buying, making and repairing jewellery have become expensive for buyers and sellers both. The sales are down by 50 per cent. As per GST rules, the jeweller has to pay 3 per cent tax on buying any kind of jewelleries whether it is diamond, gold or silver while a buyer has to pay 5 per tax on jewellery repairing.
Traders and businessman dealing in diamond, gold and silver jewellery in the city rued that post GST it has become difficult for people to purchase jewellery. While there are many crying over the new tax rules, there are others for whom cashless transaction was more worrisome than the GST. Click to read more
We’re overwhelmed by the number of medu vada breakfast bills you’ve posted on Facebook and Twitter this month. Following the Goods & Services Tax (GST) implementation, the cost of eating out has fluctuated. Bars have dithered between charging two kinds of tax (and been seen to charge both!) on alcohol; your local tea stall is wrangling taxes for the first time in their life; and your firm’s accounts department still doesn’t know if they can claim rebates on that bill you expensed for a business meeting. “Why don’t date a girl after GST,” young men now advise each other. Click to read more
Delhi government will be launching six mobile vans on Monday to tour the city’s markets and attempt to help traders with issues related to GST.
The decision to start the vans was announced by deputy chief minister Manish Sisodia about 10 days back after he received feedback that several small traders were facing problems with the new GST regime.
“The mobile vans will tour the city’s markets and will also set up helpdesks across the city,” said an official. “We found out that the problems being faced by traders are largely very basic. All the vans will have one official who can address all the basic problems.” Click to read more
While many market experts are optimistic on earnings recovery this fiscal, some like Saurabh Mukherjea of Ambit Capital expect it to be similar to trends in the previous years.
“We have begun with high hopes like every year. But by the end of the year it (the momentum) gets moderated. We are heading in a similar direction this year as well,” Mukherjea told CNBC-TV18 in an interview.
The first and second quarters of this fiscal will be hit by goods and services tax (GST). “They could be exceptionally weaker (due to GST) and would not focus much on it,” he told the channel. Click to read more
Unhappy customers look at changing consumption patterns; restaurants complain of dip in sales
Eating out has become a costly affair for consumers across the State after the Goods and Services Tax (GST) came into force. While the additional 18% that is loaded on to the bills is proving to be a burden, it has also become clear that some hotels and restaurants have hiked the base price of food compared to pre-GST rates.
The price hike may have already had an impact. Hotels and restaurants say they are seeing 10-20% fewer customers depending on the location. Click to read more
Calling the Goods and Services Tax (GST) a “great step towards transparency,” Union minister Smriti Irani Saturday urged the business community to become a part of this historic tax reform. “GST is not only a good and simple tax, but also a great step towards transformation. Let us make history and be a part of it, so that we can tell our future generations that we never evaded tax,” she said.
Irani was addressing businesspersons at a function on GST here. “When I say GST is a great steps towards transparency, what does that mean? How many consumers before GST knew what all taxes they paid? How much VAT, excise, multi-tax you were paying that you did not know of? Click to read more
The government on Friday extended the deadline for small businesses to opt for the composition scheme in the goods and services tax (GST) regime by nearly four weeks to 16 August.
Small businesses with turnover of up to Rs75 lakh earlier had time till Friday to opt for the scheme in the goods and services tax regime. “The board hereby extends the period for filing an intimation in Form GST CMP-01… up to 16 August 2017,” the Central Board of Excise and Customs (CBEC) said in an order. Click to read more
The Builders Association of India (BAI) organised the second General Council & Managing Committee Meeting in Shamshabad over the weekend.
The meeting was inaugurated by Energy Minister G Jagadish Reddy along with HN Vijaya Raghava Reddy- National President BAI, B Seenaiah, Former National President (BAI), SN Reddy – National; Vice President BAI (South-1), N Sachitan and Reddy- All India Trustee BAI and B Sugunakar Rao – State Chairman BAI.
Raghava Reddy said “This is a critical time for the industry as there is a major push by the government to push the infrastructure projects, opening a plethora of opportunities for the construction industry. This coincides with the introduction of GST. Click to read more