Input tax credit under GST has a very well-defined structure and is more comprehensive than the erstwhile indirect taxes. Cross-utilisation of credit between the Integrated GST and the Central GST/ State GST and vice-versa is another landmark departure from the previous regime. With one year of GST coming to a positive closure, let’s take a look at present notables regarding input tax credit and the likely future focus around it. Click to read more
A peak tax rate of 28 per cent plus states levying some amount of local sales tax or VAT on petrol and diesel is likely to be the tax structure when the two auto fuels are covered under the GST (goods and services tax) regime, a top government official said.
The peak GST rate plus VAT will be equal to the present tax incidence, which is made up of excise duty, levied by the central government, and VAT charged by the states. But before the two fuels are put under GST. Click to read more
At first glance, the goods and services tax’s (GST) revenue buoyancy seems unproven yet, given that 31 of 34 states/UTs in the country reported a ‘revenue shortfall’ during the July 2017-March 2018 period — among the larger states, Bihar’s deficit was 38% and Madhya Pradesh’s 26% — and received compensation. But the picture is actually not all that grim as most of these shortfalls are against the so-called ‘protected revenue’; when compared with the relevant tax revenue growth rates of the states during the pre-GST period, the new tax. Click to read more
The Government must do away with imposition of any levy in addition to the highest tax rate of 28 per cent Goods and Services Tax (GST) on movie tickets (costing over Rs 100) and accord industry status to the film sector for inclusive growth of media and entertainment sector, suggested a just-concluded ASSOCHAM-PwC joint study.
“While the GST legislation classifies access to cinema as a luxury and puts it under the highest tax rate of 28 per cent (tickets costing above hundred rupees), but considering the socio-economic developments round the world, the cinema may not really be a luxury. Click to read more
The government has cleared pending GST refunds to the tune of ₹38,062 crore to exporters so far, the Central Board of Indirect Taxes and Customs said on Wednesday.
“In all, ₹21,142 crore (IGST refunds), ₹9,923 crore (RFD-01A refund by CBIC) and ₹6,997 crore (RFD-01A refund by states), all totalling ₹38,062 crore has been sanctioned till June 16, 2018,” the CBIC said in a statement. Click to read more
Despite demonetization and GST fever, the credit growth in the MSME sector improved, according to a CIBIL-SIDBI joint report.
In the last five quarters, the overall growth exposure registered the highest growth at Rs 54 lakh crore as on March 2018, noted MSME Pulse quarterly report.
According to the report, the MSME exposure constitutes 23% of this, which means Rs 12.6 lakh crore is the overall credit exposure to MSME for the same period of time. Click to read more
The goods and services tax (GST) introduced to track the trail of transaction has in fact increased illegal activities in terms of billing by multiple times. ‘Bill selling’, a practice common in the construction sector among those who inflate cost of projects, has gone up four-five times after the launch of GST.
In case of ‘bill selling’ a dealer or a distributor would buy the goods from a construction material manufacturer paying taxes and would get a proper bill. This bill alone is then sold to a private builder or a government contractor who wants to inflate the cost of his projects. Click to read more
The Authority of Advance Rulings (AAR), Uttarakhand recently held that the Goods and Services Tax ( GST ) cannot be levied on the services or materials procured from Government authorities to another Government Authority. The applicant, a society registered under the Society Registration Act, 1860 and administrative control of Information Technology Department of Government has requested an advance ruling on the applicability of the GST on the services or materials procured from the Government or Government authorities. Click to read more
The Commercial Tax department officials are cracking down on those not carrying an e-Waybill and evading Goods and Services Tax (GST). The department has now started levying fines amounting to the taxes being evaded, this is in addition to the tax evaded.
As part of the crackdown, the department on Tuesday conducted raids at Medchal and booked cases against 20 GST defaulters. The tax department officials have found out that the traders are resorting to new ways to beat the system. Click to read more