GST Ready India

GST Ready India’s Latest News and Updates

Even if petrol comes under GST, it may not exclude VAT

Jun 20, 2018

Even if petrol comes under GST, it may not exclude VAT

The clamour for bringing petrol and diesel under GST has been growing in recent times, be it from the Opposition or from India’s top industry bodies Assocham and Ficci. After all, even under the highest tax bracket of 28 per cent, one litre of petrol would cost only Rs 50.87, compared to the current price ranging from Rs 76 to Rs 84 per litre in the metros.

However, if the government does indeed decide to take the bull by the horns and bring the automobile fuels under the GST regime, that’s not how the math will work out. Click to read more

No pure GST on petrol, diesel; 28% tax plus VAT on anvil under GST

A peak tax rate of 28 per cent plus states levying some amount of local sales tax or VAT on petrol and diesel is likely to be the tax structure when the two auto fuels are covered under the GST regime, a top government official said.

The peak GST rate plus VAT will be equal to the present tax incidence, which is made up of excise duty, levied by the central government, and VAT charged by the states.  Click to read more

GST Report Card: Understanding the revenue performance of Goods and Services Tax

After one fiscal year into the implementation of the GST, it is worth asking how it has performed in terms of revenue generation, both for the country and for individual states. And, here, the news, based on analysing nine full months of data, is encouraging. Three important and new points stand out.

Aggregate revenues are highly buoyant: In this year’s Economic Survey, we had argued that confusion reigns in understanding GST performance because of focusing on one or more of the bewildering sub-categories of the GST (CGST, SGST, IGST, and the cess.) Click to read more

Swiggy, Indigo under scanner for GST evasion

What do Swiggy Foods,  IAS coaching centres, Indian School of Business (ISB), IndiGo airline and big convention centres in Hyderabad have in common? While some of them are evading Goods and Services Tax (GST),  some others are not paying the tax properly.

Hence, all these firms and establishments are now on the radar of the Commercial Taxes department. The Commercial Taxes officials, to get their revenue, have started tightening the noose around several big firms in the state capital. Click to read more

Credit exposure to MSMEs improving; impact of DeMo, GST waning: Report

The credit growth in the MSME sector is improving with the overall exposure reaching the highest level in over a year and impacts of demonetisation and the GST also seem to be subsiding, says a study.

The overall credit exposure has shown the highest growth in last five quarters at Rs 54.20 lakh crore as on March 31, 2018, with micro, small and medium enterprises (MSMEs)segment constituting Rs 12.6 lakh crore (23 per cent) of the commercial credit outstanding, the ‘MSME Pulse Quarterly Report’ by TransUnion CIBIL-SIDBI showed today. Click to read more

Soon, You May Have to Pay Both GST and State Tax on Petrol, Diesel Prices

A peak tax rate of 28 per cent plus states levying some amount of local sales tax or VAT on petrol and diesel is likely to be the tax structure when the two auto fuels are covered under the GST regime, a top government official said.

The peak GST rate plus VAT will be equal to the present tax incidence, which is made up of excise duty, levied by the central government, and VAT charged by the states. Click to read more

Rs. 672 Crore Worth GST Evasion Detected In Jaipur

The Directorate General of GST (Goods and Services Tax) Intelligence (DGGI) has detected Rs. 672.51 crore worth of tax evasion in 46 cases, in which Rs. 15.31 crore were recovered in 20 cases from July 2017 to March 2018, an official said.

Sharing performance of the DGGI Jaipur zonal unit, additional director general Rajendra Kumar said that his office detected Rs. 672.51 crore worth of tax evasion in 46 cases, nine of them related to central excise and 37 service tax. Click to read more

GST increased illegal activities 4-5 times in terms of billing

The goods and services tax (GST) introduced to track the trail of transaction has in fact increased illegal activities in terms of billing by multiple times. ‘Bill selling’, a practice common in the construction sector among those who inflate cost of projects, has gone up four-five times after the launch of GST.

In case of ‘bill selling’ a dealer or a distributor would buy the goods from a construction material manufacturer paying taxes and would get a proper bill. This bill alone is then sold to a private builder or a government contractor who wants to inflate the cost of his projects. Click to read more

Exempted sectors should come under GST: Arvind Subramanian

Arvind Subramanian, who has stepped down as the Chief Economic Advisor (CEA), opined that there are many exempted sectors that should be brought under the ambit of the Goods and Services Tax (GST).

Addressing a press conference soon after Union Minister Arun Jaitley announced his resignation; Subramanian said the decision to bring petrol and diesel under the GST is a decision to be taken by the GST Council. Click to read more

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