GST Ready India

GST Ready India’s Latest News and Updates

Free banking services may not attract GST

May 17, 2018

Jayant Sinha to meet airline chiefs to discuss tax issues

Minister of state for civil aviation Jayant Sinha will meet chiefs of airlines on Thursday to discuss issues related to taxation in the sector, particularly goods and services tax (GST).

A proposal to bring aviation turbine fuel (ATF) under the GST regime that will allow airlines to claim input tax credit from the government is among the issues likely to be discussed during the meeting, according to people aware of the matter. Click to read more

Free banking services may not attract GST

Free banking services, such as cheque book issuance and ATM withdrawals, are likely to remain out of the ambit of the GST, a senior finance ministry official said.

The Department of Financial Services had approached its revenue counterpart to clear the confusion over the levy of Goods and Services Tax (GST) on some free services offered by banks to their customers. “The revenue department is likely to tell the financial services department that GST will not be levied on free banking services,” an official said. Click to read more

Four years of Modi government: Riding on GST, insolvency law

The scale of Narendra Modi’s victory in the Lok Sabha elections four years ago, on May 16, 2014, was such that many observers believed a long-delayed course of economic reform would be implemented, using an unprecedented Lok Sabha majority in recent years. In the years since, Modi’s government has lived up to expectations in terms of the amount of energy it has brought to policymaking — but its record is divided between hits and misses. Click to read more

High GST on auto parts lead to working capital shortage, tax evasion by SMEs

Small and medium companies in the auto components business are facing working capital shortage post-GST implementation, due to the high tax rates on certain components and lower input tax credit (ITC) claim option, which has led to a higher output cost.

Besides, high rates on various components have led to tax evasion by multiple players, although the process of taxation has streamlined post-GST, the companies said. Click to read more

Finally, University of Mumbai adds GST to final-year BCom syllabus

Ten months after the implementation of the Goods and Services Tax (GST), the University of Mumbai has finally included the taxation system in the syllabus of third year BCom.

The decision was made at a recently-held meeting of the varsity’s academic council. “The syllabus of the entire Commerce faculty has undergone some revision. In keeping with the new taxation system, we have now introduced GST in the syllabus,” said Siddheshwar Gadade, Dean, Faculty of Commerce, at the varsity. Click to read more

How should investors play ITC after Q4 show? Brokerages see it rising up to 20%

Global brokerage firms retained their recommendations and target price for ITC which reported its numbers for the quarter ended March 2018 on Wednesday.

Cigarette-to-soap maker ITC reported 9.9 percent year-on-year (YoY) increase in net profit at Rs 2,933 crore for the fourth quarter of FY18 which was better than analyst estimates. A Reuters poll of analysts estimated net profit growth of 6.36 percent to Rs 2,839 crore. Click to read more

India’s GST Model Gets Vindicated As Malaysia Scraps Failed Single Rate Tax

Three years after it rolled out the Goods and Services Tax (GST), Malaysia yesterday (16 May) decided to scrap the tax, reports Business Standard. India had studied Malaysia’s implementation and had borrowed the concept of an anti-profiteering clause to ensure that tax benefits are passed on to the end-user.

While the decision in Malaysia won’t have an impact on India, experts have asked the government to tread with caution over the next few years and study the three-year implementation to expand the GST reforms here. Click to read more

Andhra FM to meet President over 15th Finance Commission’s ToR tomorrow

Yanamala Rama Krishnudu, Minister for Finance, Andhra Pradesh, along with finance ministers of five states will meet President Ram Nath Kovind at 5 pm on May 17, here.

The Finance Ministers of Andhra Pradesh, Kerala, West Bengal, Puducherry, Punjab and Delhi will also meet the President.

They will submit a memorandum to the President on Terms of Reference (ToR) of the 15th Finance Commission.

On May 9, Rama Krishnudu said that the ToR prescribed by the 15th Finance Commission are “discriminatory” against states. Click to read more

Most FMCG firms beat Street math in Q4

The consumer sector is among the few in the economy on which analysts and investors have pinned high hopes for a strong financial performance in the March quarter. And not without reason, given the low base of the post-demonetisation period and better macro environment compared to other industries.

Further, stocks of companies from this sector have been quoting at high valuations on hopes of demand revival in rural markets — a major factor for most FMCG (fast moving consumer goods) firms. Click to read more

Four top PMs debate India’s reform and economic evolution

India has become the darling of the emerging markets in the past few years. The economy is constantly evolving, bolstered by Prime Minister Narendra Modi’s ambitious reforms to the country’s economic and social policies.

Modi impressed the audience at this year’s World Economic Forum in Davos. The first Indian prime minister in 20 years to attend the summit of business leaders, economists and journalists, he delivered a keynote address that indicated a commitment to developing closer relations with the US and other western economies. Click to read more

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