Chief economic adviser Arvind Subramanian on Monday said India may be headed to a single rate for goods and services tax (GST) over the next three-tofive years, but called for further rationalisation of the indirect tax regime that kicked in last July.
The comments from the government’s chief economist came after the Economic Survey authored by him and his team suggested that GST had got off to a good start, with growth in collections estimated at 12 per cent. “In the initial phase of such a large disruptive change, this performance is noteworthy. The GST promises to be a buoyant source of future revenues,” the document tabled in Parliament said. Click to read more
India needs to work towards stabilising the goods and services tax, removing uncertainties for sectors such as exports, the Economic Survey said while pitching for a review of tax embedding caused by the exclusion of some products from the ambit of the new levy.
“The government will also need to stabilise GST implementation to remove uncertainty for exporters, facilitate easier compliance, and expand the tax base,” the Economic Survey 2017-18 said. The rollout of the new tax was marred by hiccups related to compliance, prompting the GST Council to expeditiously revisit provisions such as rates on household goods and those for small-scale sectors. Click to read more
The Goods and Services Tax has resulted in a 50% increase in the number of indirect taxpayers, the Economic Survey said, adding the fledgling tax regime has already revealed new data on key aspects such as inter-State trade, State-wise exports, and the extent of formalisation in the economy. Click to read more
In the Economic Survey for 2017-18, which was tabled in Parliament on Monday, Chief Economic Advisor Arvind Subramanian struck an optimistic note about economic growth going forward. The Survey noted that there were “robust signs of growth” in the second half of the financial year, and predicted that growth for the full 2017-18 financial year would be 6.75 per cent year on year, higher than the Central Statistics Office’s prediction of 6.5 per cent. Click to read more
The Survey says measures to curb black money and encourage tax formalisation, including demonetisation and GST, have increased personal income-tax collections substantially. “From about 2% of GDP between 2013-14 and 2015-16, they are likely to rise to 2.3% of GDP in 2017-18, a historic high,” the Survey said.
The actual contribution of these measures in boosting personal income tax collections varies, depending on methodologies followed. Click to read more
Be it online sellers, purveyors of consumer durables and electronics, or auto dealers, pre-Budget sales have been flat this year. Generally, there is a surge in sales across categories, on expectations that the Budget will hike tax rates.
In the online sphere, for instance, while Flipkart and Amazon claim to have outdone themselves in their just concluded pre-Republic Day sale, sales have been flat for sellers, unlike last year, when there was a lot of “panic buying” by customers due to the imminent introduction of the Goods and Services Tax (GST). Click to read more
In its 25th meeting, held on 18 January 2018, the Goods and Service Tax (GST) Council recommended rationalization of GST rates on various goods and services. The list included affordable and low-cost housing. The council’s recommendations were accepted and included in the official gazette on 25 January 2018. Now GST would be charged at 8% on the total value of under-construction properties, which would be 4 percentage points less than the earlier effective rate of 12%. Here is how the new GST rate will impact property prices. Click to read more
Seafood exporters attending the ongoing three-day India International Seafood show lamented that a number of the Goods and Services Tax (GST) provisions continued to be in the grey area, impeding their trade.
Participating in a technical session dealing with various aspects of processing and export of marine products, on Monday, the last day of the show, stakeholders acknowledged that the Centre has addressed many of their concerns over GST. Though they were happy with the merger of multiplicity of Central and State-level taxes, into a single GST. Click to read more
Allaying one of the major concerns expressed by Tamil Nadu in the run-up to the rollout of the Goods and Services Tax (GST) in July, the Economic Survey has stated that “the biggest tax bases still seem to be in the biggest producing States.”
Tamil Nadu’s principal objection to the GST was that manufacturing and net exporting States would suffer heavily on account of the GST, which had been designed as a destination-based consumption tax. It had also argued that the tax base would move towards consuming States, undermining tax collections of the manufacturing or producing States. Click to read more
Sunil Bhai, a resident of Malappuram, sustained a spinal injury in an accident almost a decade ago. His injury necessitated that he use a special variety of wheelchair which costs him ₹27,000. The natural wear and tear of the wheelchair meant that he had to buy a new one three or four years. But his latest wheelchair purchase set him back by ₹32,000, thanks to the Goods and Services Tax (GST) of 5 to 18% now imposed on assistive devices for the differently abled. Click to read more