More than eight months after the introduction of GST, exporters remain cash-strapped for working capital; this is despite assurances made by the Centre last October-November that the process of granting refunds for input tax credit (ITC) and IGST would be expedited. Given that exports of goods and services account for about 20 per cent of GDP and are characterised by labour intensity and a high working capital to sales ratio, this is no small matter. Indeed, the impact, as this month’s RBI paper titled ‘Working Capital Constraints and Exports: Evidence from GST rollout’ points out, “Petroleum and gems and jewellery have the highest working capital/sales requirement (above 60 per cent) and they were hit the most during October. Click to read more
The government may change the goods and services tax (GST) returns filing periodicity from monthly to quarterly to make it simpler for all businesses to file their taxes.
The requirement of filing three GST returns in a month is also likely to be brought down to one, government sources said.
The committee working on the simplification of GST returns is likely to give its report by this month-end, and the GST Council may take up the issue in its meeting in March. Click to read more
In an attempt to firm up the simplified “single-stage” return filing process, a ministerial panel under Bihar Deputy Chief Minister Sushil Modi will meet before the GST council meeting.
Nandan Nilekani and CBEC Excise Commissioner Manish Kumar Sinha and GSTN Chairman Ajay Bhushan Pandey are to be a part of the meeting.
The officials also met Finance Secretary Hasmukh Adhia on Wednesday.
After the meeting Pandey said from past 2 months series of meetings have been held by return simplification committee with state governments and trade associations. Click to read more
The recently introduced Goods and Services Tax (GST) and state taxes such as stamp duty, electricity duty and vehicle tax are expected to help Gujarat government collect 18.5 per cent more tax revenues in 2017-18. The government expects its overall tax revenue to rise from Rs 83,278 crore in 2016-17 to Rs 98,749 crore as per the revised estimates for 2017-18.
The new estimates released on February 20, also include the share from central taxes, which is around Rs 20,782 crore — a rise of 10.34 per cent compared to Rs 18,835.34 crore as per the final figures for 2016-17. Click to read more
With the festival of Holi around the corner, gulal manufacturers and suppliers across UP are surprised to witness a drastic drop in demand for colours this year. Some of the manufacturers say that the orders have reduced by 30%.
Sambhal-based gulal manufacturer Brijesh Gupta said there was only 5% VAT on herbal gulal in UP earlier. “Our orders have been reduced by 30% this year because of 18% GST on gulal which has increased its price. However, the demand for saffron gulal continues to be high,” he said. Click to read more
In a major success for the GST Commissionerate, Ludhiana, its anti-evasion wing has detected GST evasion of Rs. 1.18 crore by M/S Sardar Associates, a firm based in Chandigarh Road here. A press statement issued by the department said a search was conducted on the said firm on February 15 under suspicion of tax evasion. During the action at the firm’s factory, it was found that the firm had a huge shortage of raw material to the tune of 2,500 metric tonnes in their real inventory, when compared with the stock shown in their books. Click to read more
J&K Branch of NIRC of the Institute of Chartered Accountants of India, organized a seminar on Union Budget- 2018 and GST on contractors with emphasis on tax planning.
CA, Girish Ahuja was guest speaker on the topic with regard to detailed discussion on Union Budget 2018; CA, Nitin Kanwar was main speaker on critical analysis of Union Budget 2018 whereas, CA, Suresh K Malhotra was the guest speaker on the topic of GST on contractors with emphasis on tax planning. Click to read more
India’s complex indirect tax structure became simpler and integrated with the new tax reform-GST. Experts believe that the Indian economy will get a boost with the cascading effect of GST in the long run. The successful GST implementation with a unified tax structure across diverse Indian regions is a daunting task, especially when not all Indians are completely yet aware of the benefits and processes related to GST.
To simplify and automate processes related to GST filling and adherence, a GST software is a must for all industries so that the new tax process doesn’t divert them from their core business processes. This article will elaborate few reasons why businesses should look out for a complete GST solution which complies with all GST norms. Click to read more
Delhi foam traders association member Mahender Malik says Goods and service tax degrades 10% costs of the goods. Mahender Malik who is an active member of Delhi Trade union association and Delhi Foam trade union association says,”for the betterment of the country, GST is the only solution which is helping not only the medium level businesses but also helpful for large level organisations and shopkeepers”. The GST journey began in the year 2020 when a committee was set up to plan GST law in Rajya Sabha. In 2017, the GST bill passed into Lok Sabha and Rajya Sabha and on 1st July law came into force in India; it was a revolution in the Indian market which took 17 years to evolve. Click to read more