Rubberised coir mattress, the largest selling coir product in the country, is expecting a reduction in goods and services tax (GST) rates to spur sales and to trigger a shift from the unorganised sector. While GST on most coir products have been reduced, that of rubberised coir mattress has been fixed at 18 per cent.
Earlier it came to around 16 per cent in most of the states. In Kerala, which accounts for the largest share of coir products, the tax on coir mattress was even less. “The GST on many coir products has been brought down to 5 per cent from earlier 12 per cent. Since natural products rubber and coir are used in this product, we have represented to the Coir Board to recommend a GST reduction for coir mattress to 5 per cent,” said S Sundareshan, president of All India Coir Mattress Manufacturers Association. Click to read more
The government will borrow an additional 500 billion rupees ($7.79 billion) this fiscal year, a higher-than-expected figure that could lead to it breaching its fiscal deficit target for the first time in four years and hit the bond and equities markets.
The announcement by the finance ministry on Wednesday comes weeks after Moody’s Investors Service upgraded India’s sovereign credit rating for the first time in nearly 14 years, in a boost for Prime Minister Narendra Modi’s government. It had vowed to maintain fiscal discipline without compromising growth. But analysts said the additional borrowing was a “negative” that could raise the fiscal deficit to 3.5 percent of gross domestic product, against Finance Minister Arun Jaitley’s stated target of 3.2 percent. Click to read more
The steady slide in revenue mobilisation under the goods and services tax (GST) regime and the expectation of continuing strain on collections even for December, the government is considering revisiting options such as invoice-matching and the reverse charge mechanism that were earlier deferred due to concerns raised by businesses, two people close to the development said. Click to read more
The Lok Sabha on Wednesday approved a bill to hike cess on luxury vehicles from 15% to 25% with a view to enhance funds to compensate states for revenue loss following the rollout of GST.
The GST (Compensation to States) Amendment Bill, 2017, was passed by the Lower House amid uproar by the opposition over controversial comments made by Union Minister Anant Kumar Hegde on secularism and the Constitution. Click to read more
India welcomed the Goods and Services Tax (GST), a new tax regime on July 1, 2017. The tax reform, which embodies the principle of “one nation, one tax, one market”, had an impact on various industries in the country. While the GST has been greeted with cheers by many, it simultaneously has brought concerns over the issues of sanitary napkins.
A sanitary napkin should be considered as a fundamental right of every woman, as it is a necessity every month. Turning a deaf ear to the outcry of women to make sanitary napkins tax-free, the GST imposes 12% tax on this necessary item. Though there has been a fall from the earlier tax rate of 14.5%, the decision is still irrational, as products like sindoor and bindis are tax free. I can not understand how this makes sense for the government. Click to read more
LupinBSE 0.67 % Ltd, the BSE listed Mumbai-headquartered pharmaceutical company, has dragged the Government of India to court, claiming the stock lying in its godowns could face double taxation when it’s sold.
Lupin, like many other pharma companies, is worried that some of the stock lying in its godowns could face double taxation due to goods and services tax (GST) regulations. Click to read more
Ask most industry representatives across sectors for the high point during the year, they reply invariably: GST. The impact was positive, if the volume of cash transaction was low in their business, and negative, if high. The fall out of demonetisation implemented last year comes a close second. The SME sector is no exception.
For SMEs in the formal sector GST has levelled the playing field across States as they can participate in inter-State tenders for supply of products, says D Ravi, President, Ambattur Industrial Estate Manufacturers’ Association. Except for logistics costs, “we are competitive on base prices,” he said. Click to read more
Every year when the Union Budget was presented in the Parliament by the Finance Minister, the people of the country glued their eyes to television to find out what got cheaper and what got dearer. The Budget 2018, the first GST-era Budget, is going to take the wind out of the entire process. The Union Budget has two parts — Part A contains allocations to different sectors and schemes, while Part B contains tax proposals, both direct and indirect. Click to read more