The government on Tuesday put all speculation to rest and clarified that the goods and services tax (GST) will keep its July 1 date for countrywide rollout. Market experts said, when implemented, GST would be dream come true for the stock market.
There are expectations that the immediate benefit of GST would be felt across sectors, but the biggest beneficiaries would be industries where the unorganised sector has a large market share. Click to read more
Amid all the lobbying in fixing goods and services tax (GST) rates and with the 1 July implementation deadline fast approaching, businesses are busy completing the migration process. Businesses have to migrate from the present value-added tax (VAT), service tax and central excise registration to a GST registration.
Out of 84 lakh entities, 60.5 lakh have registered with the GST Network (GSTN), said a recent finance ministry statement. The enrolment window, which was suspended on 30 April, has been reopened on 1 June for 15 days. Click to read more
Claiming that the the confusion over tax rates on job work on garments has not been addressed, the textile industry has knocked the doors of the Ministry, seeking a clarification on the issue.
At the June 11 meeting, the GST Council had said that services by way of job work on textile yarns (other than man-made and filament) and textile fabrics would be brought down to five per cent from 18 per cent. Click to read more
Prices of majority of essential drugs will increase by up to 2.29 per cent when the Goods and Services Tax regime kicks in from next month.
The government has fixed a GST rate of 12 per cent on most of the essential drugs as against the current tax incidence of around 9 per cent.
However, some select medicines such as insulin will see a reduction in prices with the government revising GST rate downwards to 5 per cent from 12 per cent proposed earlier. Click to read more
Despite Goods and Services Tax Council accepting the demand to bring down GST rates on textile job work from 18 per cent to 5 per cent, a section of traders in the country’s biggest man-made fabric (MMF) wholesale market in Surat have appealed to their fellow traders to stop purchasing fresh stock of grey to oppose the central government’s failure in providing relief under GST to them. Click to read more
A farmers’ association has asked the government to roll back 5% GST on raw tobacco and exempt it from the tax bracket like any other agricultural crop.
Fearing drop in prices of tobacco leaves and raw tobacco post the implementation of Goods and Services Tax, tobacco farmers across Andhra Pradesh have stalled auctions in all platforms, said the Federation of All India Farmer Associations (FAIFA) in a statement. Terming the tax rate on tobacco “unrealistic”, farmers said it will severely endanger their livelihoods and asked the government to do away with it in the upcoming GST Council meeting on 18 June. Click to read more
The government is set to roll out GST or Goods and Services Tax from July 1. Amid concerns regarding new paperwork once GST kicks in, the Central Board of Excise and Customs has come out with a few clarifications on facts highlighting GST provisions relating to invoice for trade. In its bid to allay concerns of traders on invoice generation post-GST, the CBEC, under the Department of Revenue, said: “There are some apprehensions in the trade circles that GST invoices have to be issued as per prescribed format and that issuing invoice is going to be burdensome process. Click to read more
At a recent meeting of the new Goods and Service Tax (GST) Council, the Finance Ministers of Indian states had to discuss tax rates for 1,210 items. Yet, according to a report, they spent half an hour on dried fish. Manipur’s FM argued for exempting dried fish from duty, and received support, but finally it was agreed to tax it at the lowest possible rate.
This was a welcome acknowledgement of the importance of dried fish in many Indian diets, especially as the monsoon begins. Click to read more
Even as introduction of Goods and Service Tax looms large with implementation set for 1st July 2017, automakers across the country have been sending out reassurances to their dealers, promising to absorb losses.
As on date, Maruti Suzuki India Limited, Bajaj Auto Limited and Hyundai Motors have sent out notices to their dealers promising absorption of losses with more automakers set to follow suit in the weeks ahead. However, the conditions of promising such financial support are on dealers achieving sales targets. Click to read more