GST Ready India

GST Ready India’s Latest News and Updates

GST: Modi government’s tax revolution set to sweep India’s $2 trillion economy, biggest tax reform since independence

May 22, 2017

GST will be a tough job, but not for the reasons you think!

Are you a businessman? If you are, then it’s statistically likely that you cheat on taxes. From the roads you drive on to the army that defends you, your share is partly paid for by others, mostly by salary-earners who can afford it less than you can. Don’t get offended but the fact is that a majority of Indian businesses pay less tax than they should.

The Goods and Service Tax (GST) is primarily designed to fix this cheating. Coupled with this stick, there’s the carrot of a single nationwide market across which tax credit will be available. Both depend on what is the core deliverable of GST: Click to read more

A crucial piece of GST puzzle is still missing

With tax rates finally in place for most goods and services, it is now known what gets cheaper and which items get dearer in the goods and services tax (GST) era. However, there is a larger worry—uncertainty about the extent to which GST will impact the supply chain ecosystem and, eventually, customers still prevails.

The answer to this lies in the transition rules, which are yet to get a green signal.

Transition rules are critical because they deal with the process of shifting businesses from the existing tax system to a new one. Since taxation under GST would be entirely different from the current indirect tax regime, these rules aim to provide clarity on various issues, including tax treatment of goods on which tax has already been paid. Click to read more

India Inc ready for July 1 GST roll-out: CEO poll

Captains of Indian industry across sectors say they are ready for a July 1 roll-out of the “game-changing” goods and services tax (GST).

The GST would help the economy pick up pace, bring down the inflation rate, and boost the fortunes of corporate India, a nationwide poll of top chief executive officers (CEOs) revealed.

A survey of 34 CEOs conducted across India on Saturday, after the GST Council agreed on the rates for various goods and services in Srinagar last week, found that 88 per cent of corporate executives were prepared for a July 1 roll-out. Click to read more

Anti-profiteering under GST: Rules in the works to check unfair pricing before rollout

The government has begun discussions to bring rules pertaining to the anti-profiteering provision under Goods and Services Tax (GST) to ensure that companies benefiting from tax reduction ensure a commensurate lowering of prices for the consumer. The revenue department is likely to finalise the rules pertaining to anti-profiteering closer to the GST rollout date of July 1, a senior government official said. Click to read more

All set for GST

The GST Council crossed the Rubicon last Friday when it agreed upon the rates applicable on 500 services and about 2,000 goods. While the rate slots for the crucial categories of textiles, gold, bidis and footwear are yet to be decided (for which the Council meets again on June 3), the Srinagar meeting marked a major leap forward, particularly in a time of political acrimony. The July deadline for moving to GST still looks difficult to achieve, but the groundwork — from passing the laws concerned, arriving at rates of zero per cent, 5 per cent, 12 per cent, 18 per cent and 28 per cent for all goods and services, to fixing the levies for goods and services — is finally complete. Twelve States have passed their respective SGST legislations (allowing them to tax services as well), while the Centre has passed its CGST law (allowing it to tax goods so far exclusively taxed by States) and three others — one for Integrated GST applicable on inter-State transactions, a law for Union Territories and one compensating States for the transition. Click to read more

Top 5 things you should know about GST if you are an investor in Indian market

The goods & services tax (GST) has moved closer to becoming a reality by July 1, 2017. The GST Council earlier this week fixed tax rates on 1,211 items and released the final list of GST rates for 98 categories of goods.

Although the market has already priced in all the good news about GST, but successful implementation is likely to boost the confidence of investors and improve earnings growth of companies has remained flat or in single digits for the past 4-8 quarters.

Equity markets mirror the economic fundamentals and if GST is likely to add to that strength, investors have nothing to worry about. Click to read more

GST Council’s next step: Ensuring tax benefits are passed on to consumers

After having fixed the rates of the goods and services tax (GST) on almost all commodities and services, the powerful federal tax body GST Council is trying to ensure that businesses pass on any tax reduction benefit to consumers when the new indirect tax regime comes into force on 1 July.

The most important issue related to the implementation of GST is whether the tax cuts will be passed on to consumers, Kerala finance minister Thomas Isaac said, adding that the council, which debated it prior to bringing in the anti-profiteering clause in GST law, will discuss this matter further. Click to read more

Guessing game on GST course

The implementation of the goods and services tax (GST) will cause inflation to fall 2 per cent and create buoyancy in the economy, revenue secretary Hasmukh Adhia has said.

With the stage set for a major overhaul of the country’s tax system, the government will launch a massive awareness campaign to educate consumers about GST so that they are not fleeced by traders in the name of the new tax.

In an interview to PTI, he said the GST Council will meet next week to decide on the tax rates of contentious items such as gold, bidi and biscuits, just in time for its rollout from July 1. Click to read more

Missed out buying a phone during sale? Don’t worry, GST rollout may see retailers offering discounts

Consumers who may have missed the recent mobile phone offers on Amazon and Flipkart need not lose heart as more such discounts are expected in the weeks leading to July 1 from brands and retailers wanting to move out old stock before the implementation of the goods and services tax (GST) regime, which could lead to a rise in handset prices.

Analysts and sector watchers say that while some handset brands may offer discounts directly to consumers, via online and offline modes, retailers are also likely to offer price cuts to reduce unsold inventory. Counterpoint Research expects up to 10% price cuts on handsets late June. Click to read more

GST: Modi government’s tax revolution set to sweep India’s $2 trillion economy, biggest tax reform since independence

Prime Minister Narendra Modi’s government is set to dramatically reshape Asia’s third-largest economy with the biggest tax reform since independence in 1947. After finding common ground among India’s 29 states, the finance ministry on Friday released detailed rates for the incoming goods and services tax, slotting more than 1,200 items — from sugar to steel pipes and motorcycles — into five tax brackets between zero and 28 percent. With that done, India is almost ready to implement a tax code that unifies more than a dozen separate levies, effectively creating a single market with a population greater than the U.S., Europe, Brazil, Mexico and Japan combined. Click to read more

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