Revenue authorities will go slow in undertaking enforcement actions under GST for the first six months as they want industry to settle down into the new indirect tax regime.
Central Board of Excise and Customs (CBEC) Chairperson Vanaja Sarna said there will be genuine errors due to lack of understanding in the initial days.
“CBEC has enforcement authorities and I have specifically said that the first three to six months are a go-slow…. I don’t want small cases to be made,” Sarna said at a CII event here. Click to read more
Consumers across the country have unanimously hailed the Goods and Services Tax (GST), Minister of State in the PMO Jitendra Singh said on Tuesday, stressing the need for launching awareness exercises to overcome certain issues.
“Even though there are some initial reservations among certain sections of trading community during the transition phase following GST rollout, the consumers across India have, by and large, unanimously hailed the One Nation, One Tax GST reform introduced by the central government,” Singh said here. Click to read more
Also, 28% GST for hotels with tariffs above ₹7,500: Ministry
Organised traders and unorganised sellers in the textiles sector have not been affected by the Goods and Services Tax, according to Minister for Finance, Defence and Corporate Affairs Arun Jaitley, who ruled out a decrease in the tax rate on the sector under GST.
Mr. Jaitley added that the textile manufacturers’ and traders’ main demand was for a nil tax rate on fabrics, but that this would not be feasible since a nil rate would make input tax credits unavailable. This answer in Parliament follows several strikes by textile manufacturers across the country protesting the GST treatment of the sector. Click to read more
GST Network today allayed concerns of mixing up of taxpayers’ data on the portal, saying enough protection has been taken to guard against any overlapping.
The Mumbai division of the Central Board of Excise and Customs (CBEC) had received complaints from certain taxpayers that the GST portal is mixing up their data with others. Click to read more
The single window tax regime intended to simplify processes under the Goods and Services Tax (GST) is facing many challenges in its interpretation and implementation. More significantly, transition to GST, despite adequate time given, appears to be in the midst of birthing angst. Serendipitous stories such as that of India Gate basmati rice and its exemption from GST have been taken as a silver lining in a not quite dark cloud by some, but set the alarm bells ringing amongst others. Click to read more
Local beverage players, numbering in hundreds, have firmed up plans to add fruit juice to carbonated beverages as part of their attempts to lower the Goods and Services Tax (GST) burden. While fizzy drinks such as Coke, Pepsi cola and Sprite attract 40% tax under GST, beverages based on fruit pulp or fruit juice fall in the 12% tax slab.
In a bid to increase sourcing from Indian farmers, in 2014, PM Narendra Modi had urged multinational beverage companies such as Coca-Cola and PepsiCo to add 5% natural fruit juice in their products. It resulted in Coke launching Fanta with 5%. Click to read more
The Communications Ministry will “analyse” the impact of Goods and Services Tax on telecom subscribers, and approach the Finance Ministry in case consumers or players face “genuine problems”, Telecom Minister Manoj Sinha said today.
The GST rate for telecom services is 18 per cent. This is higher than 15 per cent that consumers paid on their phone bills in taxes and cess, before July 1. However, under GST, the telecom operators will also get the benefit of input tax credit, bringing the overall effective rates lower for consumers. Click to read more
The government may not revise tax rates for commodities under the new indirect tax system unless there is an anomaly, need for correction or something has been left out.
“Industry will have issues on law, on rules, rates, but there is time for it,” Central Board of Excise and Customs (CBEC) head Vanaja N Sarna said today.
Sarna further said that the textile and entertainment sectors were facing issues with the rates and these will get ironed out with time. Click to read more
Introduction of GST and the resulting withdrawal of commercial tax check-posts by 22 States have increased the pace of inter-State road cargo movement but not as significantly as was initially envisaged.
And, the chances are, the gains will reduce further once the cargo movement picks up. According to the Indian Foundation of Transport Research and Training (IFTRT), barely 70 per cent of the 13 lakh trucks with national permit are plying as cargo movement is down by 40-50 per cent.
Figures available with a prominent logistics provider to top e-commerce firms suggest the travelling time is down by 9-16 per cent on different inter-State routes across the country. Click to read more