The goods and service tax (GST) will be implemented soon. This is a value-added tax (VAT) system that subsumes a number of central and state taxes. How would GST impact state governments? We look at the finances of 12 large states.
In a VAT system, each person in the value chain gets input credit on the tax paid by the previous persons. This acts as an incentive to ensure that the previous person has paid tax. When VAT was introduced for sales tax a decade ago, states saw an increase in the tax growth rate (though there could be other factors such as higher nominal gross domestic product growth). Click to read more
Aerated drinks and consumer durables like TV, AC, washing machines and refrigerators will cost more, while smartphones, small cars and daily use items will turn cheaper when the GST is implemented from July.
An analysis of the tax rates decided by the all-powerful GST Council for over 1,200 goods and 500 services revealed that daily use items like soap and toothpaste will cost less while fresh fruits, vegetables, pulses, bread and fresh milk will continue to be exempt from any tax. Click to read more
The Union government on Sunday (May 28) started a new Twitter handle to answer industry queries related to the Goods and Services Tax (GST) proposed to be implemented from July 1.
“The Department of Revenue has opened a new Twitter Handle @askGST_GoI to invite queries from all taxpayers on GST,” a finance ministry statement said. Click to read more
Gains from the Goods and Services Tax (GST) in its current form will be “far less than initially envisioned” as the structure is fairly complex with multiple tax rates, Japanese brokerage Nomura has said in a report. The GST as proposed has a multiple rate structure as almost all goods and services have been classified into groups attracting rates of 5, 12, 18 and 28 per cent, respectively. In addition, four items (namely luxury cars, aerated drinks, tobacco and related ‘paan’ products) will attract separate cesses each. Click to read more
Goods and Services Tax (GST), the most critical tax reform that India has been longing for, is finally poised to become a reality. With the finalisation of the rate-bands and most of the rules, Finance Minister Arun Jaitley has reiterated that July 1 will be the roll-out date for the revolutionary tax law.
However, the service rate structure announced seems to be causing apprehension in the minds of service providers and recipients alike. Click to read more
The GST is finally here. It is a major reform that can streamline India’s complicated indirect taxation. Instead of multiple sales, service, entertainment, VAT, excise and octroi-like taxes, there will be one GST, making accounting easier and avoiding situations like taxes on taxes.
The GST also hopefully reduces the impact of abrupt changes in industrial tax rates. Every budget tinkered around with them. The hope is that now with one GST, things will be more stable, and hence, more predictable. Click to read more
A bunch of business sectors have made representations to the government in the past week for a review of rates under the goods and services tax (GST). These include toys, multiplexes, ayurvedic products, paints, detergents, aerated drinks and hotels.
However, Vanaja Sarna, chairperson of the Central Board of Excise and Customs, ruled out a review of these rates on Friday, saying there would be no end to this. Click to read more
The government has missed out on an opportunity to spur growth of the struggling cement and housing segment by putting the commodity at the highest tax slab of 28 per cent under GST, according to industry body CMA.
The Cement Manufacturers Association (CMA) also lamented that tax incidence on cement in India, which is the highest in Asia Pacific, has affected the health of the industry that is witnessing only 70 per cent of capacity utilisation due to low demand. Click to read more
The goods and services tax (GST) Council is likely to clarify on the tax rate applicable to solar modules at its next meeting in early June, which might reverse a decision to set an 18% rate on the key component of solar energy infrastructure, company executives say.
Under the final GST rates, which takes effect on 1 July, solar modules have been classified under an 18% tax slab; the present effective tax rate on them is zero. Click to read more
Goods and Services Tax (GST) is set to get implemented from 1 July 2017. There are different GST rates prescribed for various goods and services, which may impact their cost. A homebuyer will have to pay GST at the rate of 12% to buy a home. We talked to Rajeev Talwar, chief executive officer, DLF Ltd and chairman, National Real Estate Development Council (Naredco), about how GST will impact home prices. Along with GST, we also discussed the implementation of Real Estate (Regulation and Development) Act, 2016 (RERA), and more. Edited excerpts: Click to read more
The goods and services tax (GST) is not merely a tax change but a business change that will impact all functions of an organisation such as finance, product pricing, supply chain, information technology, contracts and commercials. Its companywide implementation is not limited to the finance and IT departments, but involves the entire business ecosystem. Any training and sensitising programme has to involve employees, vendors and key customers. Sudipto Dey looks at what it entails: Click to read more
The government is touting it as the biggest tax reform since Independence. Its critics (and there are a few) call it a good idea that has been mangled beyond recognition. The final iteration of the Goods and Services Tax (GST), after rates were determined for all goods and services on May 19, answers to both descriptions equally.
There is no doubt the GST is a giant step forward in simplifying the tax regime. By prescribing a single tax rate for a good/ service irrespective of the state it originates in, or the state it gets consumed in, GST brings a certain order to taxation. But we didn’t go the whole hog. Other countries that implemented GST went with a single tax rate (or at best two). Click to read more
Will the implementation of the goods and services tax (GST) really help you in buying your home for a lesser price? Maybe, if developers do not increase property prices in order to keep themselves afloat to repay returns on investments during this time.
Implementation of the GST regime also means, “In order to avail tax rebates, developers will have to cut on cash component and inputs need to be sourced from registered vendors in order to claim any tax rebate,” mentioned a report by CARE Ratings. Click to read more