States are likely to gain an additional Rs 37,426 crore in revenue in the current fiscal on the back of surge in oil prices and better tax collection due to the GST, says a report.
According to SBI Research, the impact of GST on tax revenue is minimal except in a few states.
As many as 16 of the 24 states, have seen their revenue increasing over and above the 14 percent baseline/ mutually accepted minimum tax growth rate between the Centre and the states post-GST rollout below which the states have to be compensated. Click to read more
Centre and the ‘concerned state’ will equally share the amount deposited by erring businesses in the consumer welfare fund set up as part of the GST anti-profiteering rules, as per a Finance Ministry notification.
Following the rollout of GST in July last year, the government set up a national anti-profiteering authority to penalise businesses for failure to pass on tax benefits to consumers. In case the customer is not identifiable, the money has to be deposited in the consumer welfare fund. Click to read more
The Central Board of Indirect Taxes and Customs (CBIC) finds itself in a fix over a request from the Ministry for Culture.
The Ministry wants CBIC to set up a mechanism to refund Central GST and Integrated GST on food items purchased by religious organisations, such as gurudwaras, to provide free meals to devotees. But the CBIC is unable to decide on the ways and means.
Officials from the Culture and Finance ministries met last week to formulate a mechanism. Click to read more
The sugar industry is in the middle of a severe crisis. The surplus production of sugarcane has led to a downward spiral in the price of sugar. Mill owners are in need of financial assistance, causing them to default on dues to farmers.
The tax proposal being mooted by the GST Council (Council) in light of the present situation is the imposition of a sugar cess within the GST regime. The Council recently appointed a group of ministers to weigh in on the proposal. The clearance from the law ministry has been given while the attorney general’s office is yet to vet the proposal. In the meantime, the Centre released a relief package of `70 billion for the sugar industry. Click to read more
Securitisation volumes, which dipped about 7.5 per cent to ₹95,000 crore in fiscal 2018 after two years of robust growth in FY16 and FY17, are likely to get a leg up with the GST Council’s clarification that securitised assets are not liable to Goods and Services Tax (GST), according to a report from Crisil Ratings.
The rating agency also expects that robust demand for non-priority sector lending (PSL) securitisation should bring back participants and support transaction volumes after the deceleration seen last fiscal. Click to read more
India is studying the Kenyan model of tracking tobacco products to curb illicit trade that leads to loss of tax revenue, according to people involved in deliberations.
The mechanism includes tax stamps with a QR code that can be scanned through a smartphone to check the authenticity and trace goods throughout the supply chain, the people said requesting anonymity. To begin with, the government may focus only on cigarettes, they said. Click to read more
The National Anti-Profiteering Authority is calling large fast-moving consumer goods companies to understand if last November’s GST rate cut benefits were passed on to consumers.
Only two FMCG companies, Hindustan Unilever and Nestle, have approached the quasi-judicial body voluntarily. The GST benefits include both rate cuts and input tax credit available. The GST Council had reduced rates for over 200 items of common use on November 10 and the changes came into effect from November 15. Click to read more
After receiving complaints from taxpayers that the intermediaries who were authorised by them to apply for registration on their behalf had used their own e-mail and mobile number during the process, but are not sharing the user details with them, Finance Ministry has tried to put an end to woes of such taxpayers with new facility.
According to Finance Ministry statement, GST registrants can approach jurisdictional tax officer with valid documents to change their e-mail and mobile number recorded against their GST identification number (GSTIN). Click to read more
The Finance Ministry on Thursday said GST registrants can approach jurisdictional tax officer with valid documents to change the e-mail and mobile number recorded against their GST identification number (GSTIN).
The revenue department had received complaints from taxpayers that the intermediaries who were authorised by them to apply for registration on their behalf had used their own e-mail and mobile number during the process.
These intermediaries are not sharing the user details with the taxpayers. Click to read more
The Ahilya Chamber, an umbrella body of all the important and prominent trade associations of Indore, has asked for some fundamental changes to ensure smooth operations under GST regime.
The chamber has suggested that a provision should be made to enable those suppliers who are willing to opt this to prepare their invoices directly on the GST Portal.
These invoices should carry some identification showing that these are generated on GST Portal directly.
Transporter should compulsorily carry hard copy of this invoice with the truck. Click to read more