The life of India’s millennials is going to get tougher from July 1. Why so?
We are on the verge of a historic tax reform—Finance Minister Arun Jaitley has decided to roll out Goods and Services tax (GST) from July 1. It will replace various taxes levied at present by the central and state governments.
If you are a millennial, you may rejoice because millennials are all for reforms, etc. But the ground reality is that the GST is going to be heavy on your pocket. Click to read more
In the run-up to July 1, 2017, when the Goods and Services Tax (GST) will be rolled out nationwide, everybody is eager to know which items will be costlier and which cheaper. The government has categorised 1,211 items in a massive list under the various tax slab rates of GST and here’s a quick peek on what to expect.
Daily consumption items such as fresh fruits and vegetables, fresh meat, chicken, fish, eggs, milk, curd, butter milk, flour, bread and natural honey among other essential items have been put under the zero GST Slab. Click to read more
Since the time the first set of goods and services tax (GST) rates were announced, the S&P BSE Fast Moving Consumer Goods (FMCG) Index is up by 8.6%. Some of that is due to the broad market rising by 2.8% in this period and the monsoon’s onset has brought cheer too.
The FMCG sector is expected to benefit in the long term from a more efficient business structure. Even in the near term, moderation in tax rates on some goods was positive for the industry, but the government’s anti-profiteering rules may be a dampener. Click to read more
The worst fears that the anti-profiteering clause in the goods and services tax (GST) law would result in the creation of a regulatory monster have come true.
Media reports of the anti-profiteering rules finalised by the GST Council (see here and here) show that far from it being a benign mechanism that finance minister Arun Jaitley and revenue secretary Hasmukh Adhia would have us believe, the provision is draconian to the core and has enormous potential for harassment and extortion. Click to read more
The markets are gung-ho about the shift to the goods and services tax (GST). One factor driving this optimism is the anticipated shift of business from small, unorganized firms in some sectors to organized ones. Since the latter are already in the formal economy, comply with regulations, are generally larger in size and pay taxes, the switch will be much easier for them, which will ultimately translate into increased market share.
Analysts have been preparing lists of companies that will benefit in sectors such as apparel, tiles and sanitaryware, plywood, textile, footwear, electrical equipment and appliances, and plastics and packaging. All these sectors have a high composition of unorganized firms. Click to read more
All states and union territories (UTs), except Jammu & Kashmir, have passed the State GST Act and are on board for the rollout of the goods and services tax (GST) from the midnight of June 30.
Two opposition-ruled states of Kerala and West Bengal have issued an ordinance to approve the SGST Act, while all other states and UTs have passed it in their respective legislative assemblies. “As of (now), all the states and union territories (having Assemblies), except the State of Jammu and Kashmir, have passed the State Goods and Services Tax (SGST) Act,” the finance ministry. Click to read more
The goods and services tax (GST) has come as a boon for consumers in the month of June. Distributors, dealers and retailers of consumer durables, fashion, apparel, lifestyle goods and luxury cars are liquidating stocks at breakneck speed as they seek to start afresh on July 1.
But while June has effectively become the festive month for these products, there is a flip side to this: the prospect of thin inventory held by trade in the period post GST, though companies insist the problem will be sorted out soon. Click to read more
Dangal, the Nitesh Tiwari-directed wrestling drama starring Aamir Khan that released in about 9,000 theatres in China, has earned more than Rs1,100 crore, to become an all-time blockbuster Hindi film in that country. The figure is way higher than the Rs387.38 crore it made back in India.
The film opened in China on 4 May and earned $2.27 million (Rs14.67 crore) on the first day itself. Of course, one big factor for the film trumping its India collections could be the difference in ticket prices in the two countries, with China charging a much higher price. Click to read more
A leading consumer appliances maker will stop taking fresh orders from its dealers starting Thursday. This will ensure that the company clears all pending orders in the next two-three days and spends the following four-five days to update its system for transition to the goods and services tax (GST) from July 1+ . Between June 25 and 30, the company’s dispatches will either stop or slow down to a minimum.
Companies across several sectors have decided to stop dispatches or keep them to a minimum during the last days of June to ensure they are ready for the switchover to GST+ and their dealers and distributors are not saddled with excess stocks. Click to read more