After reducing rates on about 300 items since the implementation of Goods and Services Tax (GST) from July 1, the government may now propose significant changes in the laws and rules, to simplify procedures and ease rules for the business.
The changes could include simplifying the tax return filing process and the composition scheme, apart from the decision on whether to continue with reverse charge mechanism (RCM), tax deducted at source (TDS) and tax collected at source (TCS), two government officials in know of the matter told Moneycontrol. Click to read more
Leading fast-food chains such as McDonald’s have got queries from tax officials seeking details about menu prices before and after GST rate cuts on November 15. The move follows reports of some food chains raising prices. The government is keen to ensure the benefit of GST reduction is passed on to consumers.
The National Restaurant Association of India (NRAI) has said it will soon be advertising price cuts. State GST authorities have made phone calls and sent questionnaires to restaurants. ET has seen a copy of the format in which restaurants have been asked to submit details. A government official said the exercise was aimed at collecting data. “Many restaurant associations and owners in the organised space have received communication from relevant authorities to outline the GST implementation process,” a McDonald’s spokesperson said. Click to read more
During the 23rd GST Council meeting earlier this month in Guwahati, it was decided that customers will have to pay a uniform GST rate of 5 per cent, instead of 12 per cent or 18 per cent that they used to pay earlier depending on AC or non-AC restaurants. The decision was welcomed by consumers as it was expected to bring down their bills significantly. However, many people missed or underplayed the point that the council also decided to not give the benefit of input tax credit to restaurants henceforth. Finance Minister Arun Jaitley said that the decision was taken as most restaurants did not pass on the benefits of input tax credit to customers by reducing prices after GST was implemented from July 1. Click to read more
The National Restaurant Association of India (NRAI) is likely to make a representation to the government over the next two days regarding the passing on of benefits of the lower goods and services tax (GST) rates to consumers.
NRAI has the country’s top fast-food chains, among others, as its members.
The government on November 10 had slashed the GST on AC and non-AC restaurants — excluding five-star hotels — to 5 per cent from the earlier 18 per cent and 12 per cent, respectively. Click to read more
The Centre has proposed a two percentage point discount in the goods and services tax (GST) for consumers who make digital payments. The proposal is likely to be taken up in the next GST Council meeting in January.
The move, if approved, will boost the government efforts to usher in a cashless economy. The incentive will be available to business-to-consumer (B2C) transactions for goods and services that face a GST rate of 3 per cent or more. The incentive will include a 1 per cent concession on the Central GST and another 1 per cent on the state GST. Click to read more
Taxpayer compliance under the goods and services tax (GST) system is steadily improving with 4.4 million assessees filing summary of the transactions made in October, an improvement of 11% from the filings reported for the previous month, said an official statement from GSTN, the company that processes tax returns.
The statement said the number of taxpayers filing their GSTR 3B returns showed a “marked improvement” with the highest number of assessees filing returns for October till 20th November 2017. Click to read more
After consumer products and other daily-use items, the government is now looking to reduce goods and services tax (GST) on consumer durables like washing machines and refrigerators from the current level of 28% as part of the next round of rationalisation.
While the move is expected to help push demand in the sector, amid repeated complaints of a slowdown and excess capacity, the exercise will also be aimed at women and will reduce their daily workload by making such white goods cheaper, said a senior government official, who did not wish to be quoted. Click to read more
Commercial Tax Department believes that collection from entertainment segment has fallen by 30%
The Kannada film industry has estimated a loss of over ₹200 crore in the nearly five months of the Goods and Services Tax (GST) regime. Also, the Commercial Tax Department, based on the data generated so far, believes that tax collection from the entertainment segment has fallen by 30%.
“We are expecting a dip in film production. The number of releases would have crossed the 200 mark by the end of this year had GST not been implemented,” says Umesh Banakar, vice-president, Karnataka Film Chamber of Commerce (KFCC). Click to read more