Your shopping out of the accumulated loyalty or bonus points will face tax under the goods and services tax (GST) regime. GST would be levied on the total price of the product and not on the discounted value after adjusting the bonus, loyalty or rewards points.
“Loyalty points are nothing but a mode of payment… GST must be paid on total value of supply irrespective of the fact that loyalty points are utilised while making a purchase,” according to a report on textiles prepared by a group of officials. Click to read more
The State Government is optimistic that its revenue will not decrease in the new tax regime.
Addressing a day-long workshop on the Goods and Services Tax (GST) for media persons in the city on Wednesday, Finance Secretary Sanjay Goyal said under the compensation scheme, the GST Council has calculated that 14 per cent growth rate will be the basis for compensation to those states whose tax realisation will be reduced. Click to read more
The introduction of the Goods and Services Tax (GST) has led to a sea change in the taxability of supplies and procedure/compliances to be followed by assessees. GST has also introduced a scheme for the benefit of small businesses called the Composition Scheme.
The Composition Scheme is not alien to India as it was also present in the now-discontinued VAT regime. This scheme has been mainly introduced to help small businesses run smoothly and reduce the compliance burden on them. Click to read more
Havells India posted disappointing numbers for Q1FY18. The operational front performance was weak.
“This was a special quarter because of the transition of value added tax (VAT) regime to the goods and services tax (GST) regime. Things should come back to normal in the coming quarters,” Anil Rai Gupta, CMD of Havells India told CNBC-TV18.
The whole quarter was marred by the GST transition. The company saw huge destocking at the trade level in the month of May and June which has brought down the sales of high margin products. Click to read more
Opposition members in the Rajya Sabha on Thursday raised the issue of problems being faced by textile manufacturers and traders owing to Goods and Services Tax (GST) implementation. Some MPs also demanded that the sector be exempted from the new indirect tax.
Ananda Bhaskar Rapolu from Telangana highlighted the grievances of the handloom, power loom and the textile sector as a whole. “About 70 lakh workers are employed in the power loom sector. They are worried about the excessive slabs of the GST as it is hampering their livelihood. As a result, the entire textile sector is in agitation mode,” he said. Click to read more
The Retailers Association of India (RAI) has appealed to the finance minister to simplify the prescribed sale invoice format for cash bills rendered to customers claiming it is “confusing”.
“There are some aspects of GST regime, which are causing a lot of challenges in business to consumer (B2C) at retail point of sale,” RAI said in a letter to the FM.
“The GST rules define that it is mandatory to mention GST rates and HS code for each article sold and provide tax details for each line item,” the letter explained. Click to read more
To clear some of the ambiguities created by the implementation of Goods and Services Tax (GST), the government has been regularly coming out with clarifications and notifications.
Whether the resident welfare associations (RWAs) come under the ambit of GST, is one such issue.
To bring in more clarity pertaining to this issue, in a notification dated 13 July, the Ministry of Finance, Government of India, said that services that are provided by smaller housing society RWAs would not become more expensive due to the implementation of GST and in the GST regime no changes have been made to the services that RWAs provide to their members. Click to read more
Worried by the evident anger among stakeholders over the Goods and Service Tax (GST), the Gujarat government and the BJP are leaving no stone unturned to placate them. The state government will hold conventions in days to come where it will give a detailed understanding of GST.
Deputy CM and finance minister Nitin Patel said, “Gujarat government will hold conventions to inform people about benefits of GST. This will be done on the lines of conventions held for demonetisation. The government will decide the schedule of the conventions for GST later.” Click to read more
Powerloom weavers are reeling under shock after senior officer of customs, central excise and service tax revealed there is 18% GST on any jobwork done on polyester yarn.
Until now, the powerloom weavers were under the impression that the weaving sector attracts 5% GST for manufacturing grey fabric from yarn. At the seminar organized by the Southern Gujarat Chamber of Commerce and Industry (SGCCI) on ‘Impact of GST on weaving industry’ on Thursday, deputy commissioner of customs, central excise and service tax, Sachin Singh clarified that any jobwork done on yarn attracts 18% GST. Click to read more
FMCG major Unilever’s volume in India for the first half of this year was ‘flat in aggregate’ on account of destocking of trade partners due to migration to new tax regime GST and economic crisis in Brazil.
Besides, business in countries like Indonesia was adversely impacted by fewer trading days due to public holidays, Unilever PLC said in its first half (H1) results statement.
“In India, trade stock levels thinned in the second quarter ahead of the implementation of the Goods and Services Tax, while markets in Indonesia were adversely impacted by fewer trading days due to public holidays,” it said. Click to read more
Merchants and vendors involved in dried fish trade across the country have suspended selling the value added product ever since the Union government launched GST on July 1. Unlike VAT, the GST council has fixed 5 per cent as tax for all the dried fish, salted fish, and smoked fish irrespective of whether they are perishable or not. They have decided to continue their stir till the 5 per cent GST rate is withdrawn. Click to read more
The GST Council at its meeting next month is likely to take up taxation issues raised by sectoral bodies along with a review of the implementation of the new tax regime, a top official said.
Central Board of Excise and Customs (CBEC) Chairperson Vanaja Sarna also said the department is keeping track of revenue trends post the GST rollout from July 1, but actual positions will be known after returns are filed in September. Click to read more