The government has ruled out centralised registration for banks under the goods and services tax (GST) and has mandated separate registration for each state they operate in.
Banks have been demanding a single centralised registration system, like at present, arguing that multiple registrations would create procedural and compliance problems. “They have no choice. They have some issues relating to registration, which will be resolved in due course,” said a top finance ministry official. Click to read more
The Goods and Services Tax (GST) Council’s decision to lower rates on 66 items brought cheer to a host of companies in the jewellery, cinema and pharmaceutical sectors. Take jewellery companies. While a lower than expected rate of three per cent on gold was a positive, the earlier decision was to have 18 per cent (from two-three per cent) on making jewellery from plain gold. This would have meant price increases by jewellery makers, which could have impacted the volume. Importantly, it would have further widened the price differential between jewellery sold. Click to read more
With less than three weeks to go before the Goods and Services Tax becomes a reality, there is a great deal of anxiety among different business segments.
In the case of the two-wheeler industry, dealers do not want to stock up vehicles due to uncertainties over tax payments in the new tax regime. This is expected to lead to lower factory despatches which will show up in June sales numbers.
Dealers have confirmed that they would prefer maintaining lower inventory levels this month. Bajaj Auto outlets in Tamil Nadu have told the company that they are limiting their two-wheeler offtake from the plants this month. This is due to a strange State tax payment schedule in TN. Click to read more
With just a few days left for the rollout of the goods and services tax (GST), the centre is in favour of postponing by a few months the implementation of the e-way bill, which requires movement of goods above Rs50,000 to be pre-registered online.
However, with states unwilling to defer the provision, the GST Council agreed to rope in the National Informatics Centre (NIC) to work along with the GST-Network (GSTN) to assess if an all India e-way bill system can be created in a short time-frame, an official told PTI. Click to read more
Insurance companies are still in the process of preparing for the new Goods and Services Tax (GST) regime even as there are less than three weeks left for the July 1 deadline. Not only will they have to realign their backends, but they will also have to register their offices across all states.
The GST Council which has imposed an 18 percent tax on insurance has structured a system of Central GST and State GST. Hence, at the time of payment of taxes, a company has to channelise tax to the Centre as well to the speciifc states. For this, they need to be registered in all 29 states. Click to read more
Tax rates for as many as 66 items including kitchen staples like pickles and mustard sauce under the ensuing GST regime were cut on Sunday to meet demands from various quarters as the country prepares for rollout of one-nation-one-tax regime in less than three weeks.
Within weeks of the all-powerful GST Council fitting over 1,200 items into one of the 5, 12, 18 and 28 per cent tax slabs, there were complaints from various quarters about high tax incidence on various goods and services. 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
Revenue Secretary Hasmukh Adhia on Tuesday sought to dismiss speculation that the implementation of the Goods and Services Tax (GST) regime will be delayed.
The new tax regime is set to be rolled out on July 1. Some states had been calling for the date to be pushed to September citing logistical concerns.
Finance Minister Arun Jaitley also recently said that there was no scope for rethinking the July 1 deadline. Click to read more
Following months of deliberation, the Goods & Services Tax bill has been finally passed by the Indian Government in bid to create a unified taxation system in the country. The new levy ushers a revolutionary change in the taxation system with the “One Nation, One Tax” motto. This standard tax rates-standard pricing model aims to bring more transparency within the system by eliminating hidden costs and/or taxes and a fall in prices of commodities across India is expected. Click to read more
Union Heavy Industries Minister Anant Geete today said he will take up the issue of lowering the 43 per cent tax rate on hybrid vehicles under GST with Finance Minister Arun Jaitley.
Yesterday, Jaitley hinted that the tax rate on hybrid cars will not be reviewed, saying the industry demands were not in sync with a study conducted by tax officers.
The GST Council has fixed 43 per cent tax (28 per cent GST plus 15 per cent cess) on hybrid cars, a rate that the automobile industry feels is too high for the fuel efficient vehicles. Click to read more