India’s goods and services tax (GST) has a found mention in the quarterly earnings calls and statements of global chiefs of nearly half a dozen consumer goods MNCs, as they cited the disruption caused by the transition to the new tax regime in a market whose profile has risen steadily within their global operations.
The country accounts for 2-9% of the global sales of UnileverBSE -1.57 %, ColgateBSE -0.66 %, GlaxoSmithKline, Coca-Cola, NestleBSE -0.16 % and Reckitt Benckiser, and is potentially a highgrowth market for them. Click to read more
A section of postpaid users and corporate customers are getting their monthly mobile bills late as big phone companies are struggling to capture the impact of the goods and services tax (GST) on invoices issued post-July 1.
Bharti AirtelBSE -0.64 %, India’s No 1 phone company, has sent out text messages to some of its postpaid customers saying their bills would be delayed by at least a week this month owing to technical issues. ET has seen these text messages. Click to read more
As the Goods and services tax (GST) has increased the tax rates on white goods and kitchen appliances by as much as 3 percentage points, retailers have brought down their additional discounts on these products to 6% from 8% earlier. This will in turn help the manufacturers and retailers retain the pre-GST margins on these items. “In the pre-GST regime, retailers could give a discount of up to 8% on market operating prices (MOP) that are usually 3-10% lower than the maximum retail prices across products. With the increase in tax incidence, such steep discounts are no longer feasible,” said Kamal Nandi, business head and executive vice-president, Godrej Appliances. Click to read more
In a bid to promote the recently implemented goods and services tax (GST), the information and broadcasting (I&B) ministry has asked all television broadcasters (news and non-news) to run scrolls about GST awareness campaign Manthan.
GST was launched on 1 July and is pegged as the country’s biggest tax reform in its 70-year history.
In an advisory issued on Thursday evening, the ministry requested all the TV channels, News Broadcasters Association (NBA) and Indian Broadcasting Foundation (IBF) to promote the GST awareness campaign, under which government will conduct workshops across the country. Click to read more
After 500-plus tonnes of import in first half of 2017, supported to a great extent by a 126 per cent surge in demand during the June quarter, gold imports are estimated to nosedive during the second half of the year, due to the implementation of the Goods and Services Tax (GST). By one estimate, the drop in imports could be a staggering 50 per cent, or about 250 tonnes, in the July-December period this year.
According to Thomson Reuters’ GFMS Gold Survey: H1 2017 Review and Outlook, “With imports in the first half already near the whole of 2016 volumes, it is less likely in our view that imports will cross 250 tonnes in the second half.” Click to read more
Crompton Greaves Consumer Electrical reported a mixed performance in Q1. In an interview to CNBC-TV18, Shantanu Khosla, MD of the company spoke about the results and his outlook for the company.
“The impact and reason for decline in last quarter was destocking due to goods and services (GST) transition,” said Khosla.
According to him, GST is good and will help improve the supply chain, cut cost and improve service. Click to read more
Dr Reddy’s performance for the quarter ending June came much lower than expectations on all fronts. While the US business continues to see pricing pressure, the India business is seeing the impact of GST-led destocking, which has added to the company’s woes. US generic sales, contributing 45 per cent to total revenues, declined four per cent year-on-year (y-o-y) while India formulations sales, contributing 14 per cent, declined by a sharp ten per cent. Though Europe generic sales, contributing about six per cent to total revenues, and emerging markets generic sales (17 per cent) did grow 28 and 34 per cent, respectively, providing some respite, they were not enough to drive revenues to meet Street expectations. Click to read more
There were rumours doing round that GST will be levied doubly on credit card transactions/payments, once on the Utility Bill and again on the Credit Card Bill. However, the truth is that there would be 18% GST applicable on Late Credit Card Payments but nothing would be charged doubly. Revenue Secretary – Dr. Hansmukh Adhia had also clarified this in one of his tweets earlier this month. Credit card transactions will undoubtedly be covered under GST and it would be applicable on late credit card payments, interest rate and processing fee. GST will not be applicable on foreign credit cards. Click to read more
Finance Minister Arun Jaitley got it horribly wrong when he said on July 15, “People are GST-phobic in the same way they were of mobile phones initially but slowly grew comfortable with them… They realised it is a boon and a mobile revolution took place.”
It is true that when mobile phones first entered India in 1995, there were people who shunned them for innumerable reasons, including because they found the technology daunting. Click to read more