The rollout of the goods and services tax (GST) has turned mid-sized restaurants into an anxious lot. According to a report, medium class hotels have lost 25 percent of business since July 1. But is this just a temporary blip or a permanent blow to the business.
Here’s a look at what has changed for the restaurants business and how the new regime has treated them.
Under the new tax regime, 12 percent GST is applicable to non-AC restaurants and 18 percent to AC ones. Earlier, hotels taxed food at 11 percent including 5 percent value added tax (VAT) and 6 percent service tax after some rebate. Click to read more
The much awaited GST or goods and services tax became a reality on July 1, 2017. Amid efforts by the government towards a smooth, lag-free transition to GST, the Central Board of Excise and Customs has released a mobile app – called GST Rate Finder. Currently available on Android smartphones, the GST Rate Finder app enables users to find out the new tax rates on several goods and services and cross check their bills on the go. Here are some of the facilities the GST Rate Finder app provide and how to use them. Click to read more
The first set of numbers after the rollout of the goods and services tax should calm any jitters about its prospects. Integrated goods and services tax (IGST) collections on imports in the first 10 days of the new regime crossed Rs 4,000 crore, in line with expectation and suggests that the rollout has been largely smooth.
“Collections would have crossed Rs 4,000 crore… Data is pouring in and final tabulations will be available in some time,” a senior government official told ET. Click to read more
With GST one of the biggest change in habit would be that accounts need to be maintained regularly on a daily basis and the pressure on compliance would then become much lesser because then it becomes a normal activity. If the accounts are not being maintained regularly then it could end up being a high stress activity.
If you look at the number of compliances, the number of reports that a company needs to regularly file- there are primarily three reports GSTR- 1, GSTR- 2 and GSTR-3. Click to read more
Selling of old jewellery or bullion will attract a 3% GST on the value realised, Revenue Secretary Hasmukh Adhia said on Wednesday.
But, if the jewellery is sold and new one bought through the proceeds, the 3% tax paid will be deducted from the Goods and Services Tax (GST) payable on buying new jewellery.
“Supposing I am a jeweller. Somebody comes to me with old jewellery, it is as good as buying gold. You can later claim input tax credit,” he said at the GST Master Class. Click to read more
Prime Minister Narendra Modi today asked all chief secretaries to work expeditiously towards ensuring that all traders register under the GST regime before August 15, a PMO statement said.
He conveyed this while chairing a meeting of Pro-Active Governance and Timely Implementation (PRAGATI), a multi-modal platform through which he interacts with top officials of state governments via tele-conferencing.
GST was rolled out on July 1, ushering a new system of indirect taxes in the country. Click to read more
Swedish auto manufacturer Volvo Cars on Wednesday said it will continue to push for hybrid and electric vehicles in India despite disappointing high tax rate on such vehicles under GST. The company — which had last week announced that from 2019 all its new models will have an electric motor, putting an end to cars that only have an internal combustion engine (ICE) — also said it would try to bring such new vehicles to India as soon as possible after global launches. Click to read more
The bevy of discounts offered by e-commerce companies like Flipkart and Myntra ahead of Goods and Services Tax rollout seems to have paid off as the companies saw a significant rise in orders in June, a study released on Wednesday showed.
E-marketplaces registered a 165% rise in average number of orders received in the pre-GST period compared to the earlier months, claims a study by cashback and coupons site, CashKaro.com. The study is based on the traffic that CashKaro redirected to the sites it has tied up with, including 20 major players like Amazon, Flipkart, Jabong, Myntra, Nykaa and Koovs. Click to read more
The prospect of a tougher September quarter looms large for fast-moving consumer goods (FMCGs) companies as the full impact of the transition to the goods and services tax (GST) is likely to be felt during this period. While the June quarter saw trade destocking in the last 10 to 15 days of the period, companies and analysts Business Standard spoke to said the problem will persist for a longer duration in the three months to September 30. “GST is a huge reform and transition will take time. While our internal systems are ready transition.. Click to read more