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GST made 2017 most significant year for economy since Independence

Dec 27, 2017

GST made 2017 most significant year for economy since Independence

The 70th year since Independence will go down in Indian history since the country switched over to the Goods and Services Tax (GST) regime, realising, thereby, the vision of a unified market in a federal system that guided the nationalist bourgeoisie in joining Mahatma Gandhis struggle to liberate India from the British.

Of course, the structural reform came accompanied with pain for trade and industry caught off-guard by the rigours of new compliance procedures. Queried by corporate leaders at industry chamber Ficci’s 90th AGM here earlier this month on how GST was impacting through lower tax collections, Finance Minister Arun Jaitley put the onus on them. Click to read more

Sliding GST collections may put pressure on government

Things don’t augur well for the exchequer, with recent GST rate cuts and a lenient implementation of the goods and services tax causing collections to slide further in December, posing a challenge to the government.

Total GST collection of the central and state governments, including taxes on inter-state supplies and the cess on certain items, added up to Rs80,808 crore in December.

This is a 14% drop from the collections in August, the first month of tax collection and return filing under the new indirect tax system that kicked in on 1 July. Click to read more

GST collection goes down again

The Goods and Services Tax (GST) collection in November fell further to Rs. 80,808 crore from Rs. 83,346 crore in October, show official data released on Tuesday.

“The total collection under the GST for November has been Rs. 80,808 crore till December 25, 2017,” the government said.

“[A total of] 99.01 lakh taxpayers have been registered under the GST till December 25, of which 16.60 lakh are composition dealers who are required to file returns every quarter. [A total of] 53.06 lakh returns have been filed for November till December 25.” Click to read more

GST collection in Nov falls to Rs 80,808 cr on rate cuts, credit usage; clarity likely only by Q1 of FY19

GST collections slipped for the second straight month to Rs 80,808 crore in November, down from over Rs 83,000 crore in the previous month.

The total collection of GST until 25 December stood at Rs 80,808 crore for November and 53.06 lakh returns have been filed for the month, a finance ministry statement said.

Of the Rs 80,808 crore collected, Rs 7,798 crore has been garnered as compensation cess in November – the fifth month of GST rollout. Click to read more

DoT suggests cutting GST on telecom services to 12%: Sinha

The Telecom Department has suggested the Finance Ministry that GST for telecom services be lowered to 12 per cent against the existing 18 per cent, Parliament was informed today.

The recommendation was made during the process of the Budget exercise, and the matter is with the Department of Revenue under Ministry of Finance for necessary action, Telecom Minister Manoj Sinha said in a written reply to Lok Sabha.

“…the DoT (Department of Telecom)…dated 01.12.2017 had recommended to the Department of Revenue during the process of the Budget exercise that a standard rate of GST at 12 per cent for telecom service should be fixed in place of existing 18 per cent,” the minister said. Click to read more

Expired, damaged drugs returned are not “supplies”; to save Rs 500 crore hit

In a significant relief to the pharmaceutical industry, the government has clarified that the expired or damaged goods that are returned to manufacturers from stockists and distributors will not be treated as “supply” and hence not attract a GST levy of 12%.

Earlier in October, in a submission to Ananth Kumar, the union minister for chemicals and fertilizers, the Indian Pharmaceutical Alliance had noted that the industry annually receives around Rs 3300 to Rs 5500 crore in expired or damaged stock and expected a hit of about Rs 500 crore. The IPA has opposed the wrong categorization as those drugs cannot be reused and had no commercial value. Click to read more

Why RBI could keep repo rate unchanged even in 2018

Firming crude oil prices in the global market is likely to cast its shadow on retail inflation, which has began to move northwards after hitting a low of 1.46 per cent in June, and may prompt the RBI to hold interest rates at least for some time in 2018. Besides global oil prices, the impact of implementation of 7th Pay Commission, including the hike in house rent allowance, is likely put pressure on prices. Click to read more

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