Litigation, said Ambrose Bierce, is a machine which you go into as a pig and come out of as a sausage. To get a sense of how many pigs are being turned into sausages in India, or how severe the problem of lawsuits can get, look no further than this year’s Economic Survey. It points out that more than 200,000 tax cases, amounting to nearly 4.7% of India’s gross domestic product (GDP), are stuck in appellate litigation across all levels of the judiciary. The introduction of a rather complex goods and services tax (GST) will aggravate the problem. Click to read more
UK healthcare company GlaxoSmithKline Consumer’s growth globally could ease in 2018 due to the impact of India’s Goods & Services Tax, the pruning of its product offerings and competitive pressure.
“In 2018, we continue to expect low single-digit growth from consumer after factoring in the impact of tail brand divestments, the impact of GST in India, and the TDS generic (competitive pressures in the US), which in aggregate are expected to reduce growth by about 1.5% points on a reported basis,” GSK global chief financial officer Simon Dingemans said on an earnings call over the weekend. Click to read more
The government appointed panel on GST returns under GSTN chairman Ajay Bhushan Pandey will meet industry and traders this week to seek their views on simplification of return filing process.
The committee is likely to submit its report to the Group of Ministers, headed by Bihar Deputy Chief Minister Sushil Modi, which will finalise its recommendations by the month end and place it before the GST Council, Pandey said.
The government had set up the return simplification committee in November last year to ease the burden on businesses to file three returns in a month along with initial sales return GSTR-3B. Click to read more
The GST Council will most likely come up with simplified Goods and Services (GST) return system before March 31 as it has decided the return filing under the old system of GSTR- 1, 2, 3 and 3B only until March 31. According to a report by PTI, the chairman of GST Network (GSTN) will seek suggestions from industry and traders’ bodies on simplification of the returns filing.
According to him, the GST Council is planning to come up with a new system as soon as possible. The entire process of deliberating upon the new and simplified systems by the Group of Ministers (GoM) of the GST Council is likely to get expedited in next two weeks. Click to read more
The ‘highly publicised’ Goods and Services Tax (GST) regime launched with much fanfare in Parliament, is not tax-friendly and those in charge of its administration need to ‘wake up’ now, the Bombay High Court said this week.
A Division Bench of Justices S.C. Dharmadhikari and Bharati Dangre said, “A tax like GST was highly publicised and termed as popular. We have yet not seen a celebration of New Tax regime, but that has followed with great hue and cry. These celebrations mean nothing. Click to read more
The Gujarat High Court has issued notice in a petition questioning the sanctity of the Authority for Advance Ruling (AAR) and the Appellate Authority for Advance Ruling (AAAR), under both the Central and State Goods and Services Tax (GST) Acts.
The Centre has the power to set up AARs and AAARs to determine an applicant’s Central Goods and Services Tax (CGST) liability. A similar power is conferred upon state governments with respect to State Goods and Services Tax (SGST). Click to read more
The government is taking various steps to check evasion as well as educate the taxpayers about the new tax regime and encourage voluntary compliance. The steps which are being taken include introduction of e-way bill, simplification of measures for filing tax returns, steps to capture invoice details of transactions so that the same could be matched with credit taken and verification of transition credit availed by tax payers, said the minister. Click to read more
The Government through its ‘FAQ tweets’ has clarified that in case of event-related services, a supplier shall be required to obtain the GST registration in the state where the event is held only if such person supplies services from such state. Where the services are provided from a different state, the supplier can charge IGST, treating the location of the event as the ‘Place of Supply’.
Therefore, the need for the event management company to obtain the GST registration in the state where the event is held would need to be determined based on whether they supply any services from such state or not. Click to read more
From GST to Aadhaar, road renaming to anti-Romeo squads, and no-fly lists to Delhi pollution, noted economist Bibek Debroy explains with the help of limericks the key developments of 2017.
He has come up with “The Book of Limericks”, a compilation of hilarious five-liners on economic issues, citizen’s concerns and major happenings with illustrations by Sayan Mukherjee.
On the GST, he writes, “If you happen to sin,/get ready to take it on the chin,/The GST rate will be hefty,/Forcing you to be thrifty/And sending your budget into a tailspin.” Click to read more
The Congress today condemned the GST being imposed on products used in the langar being served at the Golden Temple.
Speaking at a press conference held at the Punjab Press Club here today, Congress vice-president and spokesperson, Himanshu Pathak said the GST imposed by the Central government on products used in the langar reminded him of the Mughal days and their taxes.
He said yesterday, the SGPC had told the media that they had paid Rs 2 crore as the GST for the ration of the langar. Click to read more
The past year may have been eventful for the real estate sector with the implementation of Real Estate (Regulation and Development) Act and introduction of GST, but a report by Sotheby’s International Realty in partnership with PwC and RICS says 2018 is likely to bring about a positive change in the market, with only developers with strong balance sheets surviving, leading to a return of investor confidence and entry of new end users.
According to the report, the luxury home market, especially branded residences as a segment, will grow with the likes of Trump Tower projects and Four Seasons branded residences entering the Indian market. Click to read more