Finance Minister Arun Jaitley on Monday said that the quarterly filing of returns under the Goods and Services Tax (GST) was not workable for taxpayers above Rs 50 lakh turnover.
“For all tax payers it is not workable to have quarterly return because input tax credit has to be given every month,” Jaitley said in a letter to All India Congress Committee general secretary Digvijaya Singh.
Only small taxpayers, whose turnover is below Rs 50 lakh per annum under the composition scheme, can avail of filing quarterly returns. But these will not be able to avail of input tax credit. Click to read more
The invoice matching mechanism in the goods and services tax (GST) to be rolled out from July 1 will help curb fake bill frauds, Finance Minister Arun Jaitley has said, in a letter to a Congress leader.
Mr Jaitley said the model of invoice matching for eligibility of input tax credit of the recipient has been adopted in the GST design after much deliberations in the GST Council.
“One of the most important advantages of adopting this model is for curbing the possible tax evasion on account of fake invoice frauds,” the finance minister said in response to the concerns raised by Congress Rajya Sabha MP Digvijaya Singh. Click to read more
Finance Minister Arun Jaitley ruled out any surprises in the tax rates in the Goods and Services Tax (GST) that is proposed to be rolled out on July 1 and also asserted that there will be no cascading in goods and commodities, which can even see tax rates coming down a little.
“Officers are working on rate fixation. No surprise because we have said that in the first round rather than take anyone by surprise, you take the existing level of taxation and fit them closest to the bracket. Click to read more
Union Finance Minister Arun Jaitley assured that there won’t be any ‘surprises’ in the tax rates under the upcoming Goods and Services tax Regime that is expected to roll out from July 1.
He also said that there will be no ‘cascading’ in goods and commodities.
The Finance Minister was talking to media during the three day official visit to Japan to participate in the Annual Meeting of Board of Governors of the Asian Development bank. Click to read more
In the run-up to the implementation of the Goods and Service Tax (GST), distributors and wholesalers in various sectors could be tempted to de-stock, in a bid to avoid losses on the tax credit front. Since product-wise GST rates will be finalized at the end of June, concerns over potential losses arising from mismatch between tax payout and tax refund once GST is in place, has led to traders reducing stock-in-trade. Click to read more
The Goods and Services Tax (GST) is beyond doubt the most revolutionary tax-related reform to be seen in India in several decades, since it will eliminate the conflicting and cascading taxation structures which have confounded several industries over the past few decades. It will most certainly have a profound effect on India’s economic prospects.
A single indirect tax which covers all goods and services will, in the long run, increase tax collection by making it easier for retailers and several other businesses to comply and also moderate overall taxation levels. That said, it should be remembered that the favourable effects of this new taxation regime will become evident only within 2-3 years of its implementation. Click to read more
As salary increments across Indian industries fall to, on average, single-digit percentage figures, goods and services tax (GST) professionals are bucking the trend, taking home hefty mid-term bonuses and increments for moving within the organisation into the GST team.
GST, the nation’s biggest tax reform, is set for a likely July 1 rollout. This has created a big opportunity for the professional services firms to help their clients understand the changing business and tax dynamics, evaluate its impact and take necessary action. Click to read more
The government’s massive network of Common Service Centres (CSCs), or digital kiosks, have been identified to facilitate the rollout of Goods and Services Tax (GST), especially in rural and semi-urban areas.
Out of the total 2,52,000 CSCs that are operational, around 1,72,000 are in the rural areas. These centres will help merchants in filing taxes under the new regime and also provide necessary training and support services to people. The proposal is close to getting a final approval from the government. Click to read more
If a business happens to buy raw material from another which is not GST-compliant and loses input tax credit, would the government compensate the former for the latter’s fault? Area-based tax sops can’t be abruptly terminated for reasons of propriety and law but how will the Centre and states share the burden of retaining these for the residual periods given that GST will transform their relative rights to tax revenue? How will the states that have used VAT waivers to spur business activities within their geographies adjust to GST which is more gainful for consuming states? Click to read more
Lack of preparedness has cast a shadow on the rollout of the country’s largest reform in taxation — Goods and Services Tax (GST). While the Centre has fixed July 1 as the deadline for the system’s implementation, officials say it is likely to get delayed.
Karnataka fares the best in terms of preparedness, with 92% of the traders having registered for GST. Even Andhra Pradesh, Tamil Nadu and Gujarat have shown remarkable progress with more than 85% of the traders having enroled. The scenario in the rest of India, however, is grim — the national average for enrolment is 37%. Click to read more