The Goods and Services Tax (GST) Council might consider converging the current standard GST rates of 12% and 18% into a single rate after the new indirect tax regime settles down, finance minister Arun Jaitley said on Thursday. Speaking at the India summit organised by The Economist here, Jaitley said, “I do see a situation where, assuming tax compliance remaining high and the transition smooth, the GST Council, which is sensitive to the challenges of time, can take the appropriate decision (on tax slabs) taking into account its impact on inflation.” Click to read more
Finance minister Arun Jaitley on Thursday said he expects the two standard rates of GST — 12 per cent and 18 per cent — to converge into one in due course to make the indirect tax regime even more simpler. He said the GST Council decided these two standard rates keeping in mind the diversity of income levels of Indian citizens and the inflation impact of the new tax system. Overtime, the GST may considering converging the two standard rates, he said. He said the country witnessed a smooth GST roll out and collections have surpassed government’s internal target.” Click to read more
India’s Gross Domestic Product (GDP) data surprised analysts and economist, as touched to a three-year low in the first quarter of financial year 2017-18.
As per Ministry of Statistics & Programme Implementation, GDP at constant (2011-12) prices in April – June 2017 is estimated at Rs 31.10 lakh crore, as against Rs 29.42 lakh crore in Q1 of 2016-17, showing a growth rate of 5.7%. Lower compared to GDP of 6.1% in January – March 2017 (Q4FY17) and 7.9% in April – June 2017 (Q1FY17). Click to read more
India’s GDP growth tumbled to 5.7% in the April-June quarter of 2017, in a further sign that the slowdown induced by demonetisation coupled with the uncertainty around GST hit growth. The growth rate was the slowest in 13 quarters.
Data released by the Ministry of Statistics show that GDP slowed to 5.7% in the quarter ended June 30, from 7.9% in the corresponding period a year ago. The data also showed that the sectors that would have been affected by demonetisation were the ones that took the biggest hit. Click to read more
A day after finance minister Arun Jaitley said that goods and services tax (GST) collections in the first month had been better than expected, the government on Wednesday indicated that the kitty could swell further as more taxpayers file their returns and small traders who are part of the compensation scheme also paid up, triggering expectations that rates could moderate in the months ahead if receipts continue to be robust. Click to read more
Luxury cars and SUVs may become more expensive with the Union Cabinet approving an ordinance to raise the maximum compensation cess that can be levied over and above the 28% GST on such cars, from 15 % to 25%.
However, these changes will not come into effect immediately. The final decision of whether the cess should be raised, and by how much, will be taken by the GST Council, whose next meeting is on September 9. Click to read more
All India Organisation of Chemists and Druggists (AIOCD) has flagged some concerns faced by trade channel over transactions relating to expired and recalled products under the new goods and services tax (GST) norms and sought resolution from the government for those issues.
In a letter to revenue secretary Hasmukh Adhia dated 21 August, AIOCD, a trade body representing about 800,000 chemists and druggists in India. Click to read more
Implementation of goods and services tax (GST) will have a positive impact on state governments’ finances in the medium to long term, according to a report by ratings firm India Ratings. Even in the short term, the impact on individual states varies across states, it said .
GST, a process towards standardisation of taxes across the country, is being criticised for its near term impact on inflation and to some extent impacting states’ autonomy in deciding tax rates. Click to read more
According to a PTI report: However, sales volume will not be impacted as much, the company said in a investors presentation.
“The expected registered sales would be lower. That is because the excise duty has been now subsumed in the GST so the sales line will take a number hit,” CMD, Nestle India, Suresh Narayanan was quoted by PTI as saying.
The company said the excise duty has got subsumed in the GST rate post July 1 and will be netted from the sales, which will be higher than the pre-GST regime. Click to read more
India’s factory activity unexpectedly expanded in August, snapping back from a contraction the previous month, as disruptions stemming from confusion over a new national sales tax eased, a business survey showed on Friday.
The rebound suggests that India’s economic growth rate, which unexpectedly slipped to three-year low of 5.7 percent in the April-June quarter from a year ago, may also improve in the current quarter. Click to read more