India Inc may have to start restructuring compensation packages or human resource benefits of their employees to ensure they don’t face taxing times under the goods and services tax (GST).
Reimbursements on home rentals, telephone charges beyond a certain limit, medical premiums for extra coverage, health check-ups, transportation, gym use, uniforms or even re-issue of identity cards could face GST. Click to read more
The new GST regime may prompt India Inc to restructure salary packages and HR benefits extended to their employees in the days ahead. According to a report in The Economic Times, reimbursements on home rentals, telephone charges beyond a certain limit, medical premiums for extra coverage, gym use, uniforms or even re-issuing identity cards could be subjected to the new Goods and Services Tax. Click to read more
A Group of Ministers (GoM), along with a panel of government officials will meet today to deliberate on bringing back the liability to pay tax on reverse charge mechanism under GST, as a part of a larger plan to curb tax evasion.
In the last meeting, Goods and Services Tax (GST) Council had decided to defer reverse charge mechanism (RCM) till June 30. However, some states have insisted that it should be re-introduced, as it will help tax authorities plug revenue leakages. Click to read more
To minimize the impact of the Goods and Services Tax Bill (GST), companies may change the salary restructure plan, claimed an Economic Times report. The report stated that India Inc might restructure compensation packages or human resource benefits of their employees to ensure they don’t face taxing times under the GST.
The report further said that employees that are receiving reimbursements on home rentals, telephone charges beyond a certain limit, medical premiums for extra coverage, health check-ups, transportation among other benefits could face the GST heat. Click to read more
Manufacturers across the country may soon be staring at credit reversal notices from the tax department—thanks to a recent Supreme Court ruling in a case related to UltraTech Cement Ltd.
The apex court directed India’s largest cement maker to reverse the input credit availed since 2008 for transportation of finished goods. And experts say the tax department may soon extend this treatment to all manufacturers. Click to read more
The National Anti-Profiteering Authority in GST will soon reach out to e-commerce companies seeking responses on whether they profiteered from sale of good after reduction in the Goods and Services Tax rates, said a top official.
“We will be asking the e-commerce retailers details on the number of instances where products were sold or delivered after the GST rates were reduced… whether they then passed on the benefit to the buyer because they did not have the authority to collect the extra tax,” B.N Sharma, Chairman, National Anti-Profiteering Authority (NAA) in GST told The Hindu. Click to read more
Appealing to Prime Minister Narendra Modi to immediately intervene and set right the confusion in the GST regime, which had led to a virtual standstill in normal transactions across many States, the Tamil Nadu Chamber of Commerce and Industry has urged to allow the lawful claim of the ITC (Input Tax Credit) to the trade and industry. Click to read more
The goods and services tax (GST) is set to make its way into textbooks. The ICSE board has decided to do away with the component on value added tax and replace it with GST in the Class X mathematics syllabus. The Council For Indian School Certificate Examinations (CISCE) said the segment on VAT carrying four to six marks will be replaced with GST from 2020 as the earlier tax regime has been discontinued. The decision on introducing the new chapter was taken last year. Click to read more
As per the World Bank’s South Asia Economic Focus Spring 2018 report, Indian economy has recovered from the impact of demonetisation and the introduction of the Goods and Services Tax regime and is projected to grow by 7.3 percent in 2018 and 7.5 percent in 2019.
India’s growth is expected to drive South Asia’s growth rate to 6.9 percent in 2018 and 7.1 percent in 2019.
The South Asia Region in this report includes Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. Click to read more
E-way bills were made compulsory for movement of goods within and across five states – Gujarat, Uttar Pradesh, Andhra Pradesh, Telangana and Kerala – on Sunday. Other states will come under the system in a phased manner. Around 240,000 e-way bills (inter state and intra-state) were generated on the portal yesterday. Traders and transporters operating in these states have been mandated to register, or enroll, on the e-way bill portal. Click to read more