The Goods and Services Tax (GST) as well as protracted issues of corporate and bank balance sheet problems pushed India’s economic growth downward in 2017 but a gradual recovery is expected and the country’s economy is forecast to grow at 7.2 per cent in 2018, according to a UN report.
According to estimates in the UN Economic and Social Commission for Asia and the Pacific’s (ESCAP) flagship publication the Economic and Social Survey of Asia and the Pacific, India’s GDP grew at 6.6 per cent in 2017, down from 7.1 per cent in 2016. Click to read more
A proposal to bring back the sugar cess, which was abolished following the implementation of Goods and Services Tax (GST) in July last year, has been opposed by several states as well as experts, who call it a move that will defeat the very idea of ‘one nation, one tax’.
At a recent meeting, the GST Council, it was reported, was contemplating reimposing the sugar cess, saying it would help sugarcane farmers. The council argued that the cess, if introduced, will help the Centre in raising Rs 6,700 crore for the distressed sugarcane farmers because the cost of production of sugarcane has exceeded the market price. Click to read more
The fate of the Goods and Services Tax (GST) will be determined tomorrow after the election and if it were to be abolished, regardless of what sceptics of the tax are saying, the country will be taking a step backwards.
Being one of the last ASEAN countries to implement GST and has the lowest GST rate in the region, World Bank Malaysia Country Manager Faris Hadad-Zervos said that GST is crucial as another revenue source to reduce risks. Click to read more
In a bid to boost measures against tax evasion, the government may ask taxpayers to explain any discrepancies between their income tax and GST returns. For this, the authority is looking to add a section in annual GSTR 9 form, reported Mint.
GSTR 9 is a return to be filed once a year by registered taxpayers under GST (Goods and Services Tax). It is a detailed collation of sales and purchases made during the year by a company under the three different tax heads — central GST, state GST and integrated GST. Click to read more
The new single-page return and the transition process approved by the GST Council in the May meeting is a step in the right direction as it tries to iron some of the difficulties faced by tax payers in the first few months, while trying to retain the basic objectives of GST – expansion of tax base and checking tax evasion.
That said, one of the provisions of this new return filing process that might not go down too well with tax payers is the withdrawal of the leeway provided to smaller companies to file quarterly returns. Click to read more
A coaching class that helps students prepare for engineering and medical entrance exams is not exempt from the ambit of Goods and Service Tax (GST), according to a ruling given by the Maharashtra Authority for Advance Rulings (AAR). The ruling points out that a GST levy of 18% would apply on its fees.
Simple Rajendra Shukla, owner of Borivili-based Simple Shukla Tutorials, sought a ruling to determine whether providing coaching to students of classes XI and XII to prepare them for entrance exams such as medical or engineering would be subject to GST. Click to read more
Coaching centres are not exempt from the Goods and Services Tax (GST) even as some educational services bear ‘nil’ tax, the government has clarified. 18% GST will be applicable on fees of coaching classes, a ruling by the Maharashtra Authority for Advance Rulings (AAR) said, TOI reported. A Mumbai-based coaching institute had moved state AAR seeking clarification if GST was applicable on coaching fees. Click to read more
It couldn’t have come at a better time for Prime Minister Narendra Modi and his party. Just ahead of the approaching poll date in Karnataka, there seems to be a clear endorsement, coming from foreign media, on two of his most controversial and disruptive economic moves— demonetisation and the roll out of the Goods and Services Tax (GST).
In an article published on Monday (India shows neighbours the way out of tax trap), the UK-based Financial Times, quoting data from India’s latest economic survey, said Modi’s demonetisation has significantly pushed up the number of new taxpayers. Click to read more
While compliance under the goods and services tax (GST) is improving slowly for regular taxpayers, the January-March quarter also saw the composition-scheme dealers reporting average annual revenue of Rs 20 lakh, over twice as much as they reported in the previous two quarters. This signalled increasing compliance by this segment of relatively small taxpayers and officials attribute the same to recent efforts to nail down evaders. Click to read more