AS THE industry prepares for the rollout of the Goods and Services Tax (GST) from July 1, the enforcement of the crucial e-way bill mechanism is likely to be pushed back by at least six months. The delayed implementation of the e-way bill is being contemplated as the draft rules are still to be discussed in the GST Council and the requisite infrastructure is not in place yet, Goods and Services Tax Network (GSTN) chairman Navin Kumar told The Indian Express. Click to read more
India is working on a new system to allow companies with units in tax-free zones to claim refund of the Goods and Services Tax (GST), helping ensure a smooth transition to the new regime for businesses located in industrially marginal areas.
“The Department of Industrial Policy and Promotion is working on a scheme that will replace the current system, built on areabased exemptions, once we switch over to the GST,” a government official, privy to the deliberations, told ET. Click to read more
As a mark of disagreement with the exorbitant tax rates under the much-awaited Goods and Services Tax (GST) Bill to be rolled out on July 1, hotels and restaurants across Tamil Nadu will observe a one-day shutdown on May 30.
According to the Tamil Nadu Hotels’ Association, over two lakh restaurants will be participating in the protest, including 1,500 bakeries, 400 restaurants and 300 small eateries in and around Coimbatore. Click to read more
With 3% increase in service tax likely after the implementation of Goods and services Tax (GST) from 1 July, the expense ratio of mutual fund houses across the country will also go up by 3%. Expense ratio is the measure of the cost incurred by an investment company to operate its mutual fund. The GST will, however, benefit small MF distributors having an annual income of upto Rs20 lakh.
The government has exempted distributors’ annual earning up to Rs20 lakh from paying service tax. Currently, distributors earning up to Rs10 lakh as a commission are exempted from paying service tax. Click to read more
In order to understand the new GST regime’s impact, we must understand where a consumer is placed in the GST chain.
Ever imagined an industry without a consumer? All units produced and warehoused but not sold is something which no trade and industry would ever want. It is not farfetched to say that more than machines and employees a business needs consumers. This article intends to analyse the impact of upcoming Goods and Services Tax (GST) on consumers. But before we proceed further let’s understand where a consumer is placed in the GST chain and how it will get impacted. Click to read more
On the surface, the link between the Goods and Services Tax (GST), India’s biggest-ever tax reform, and ransomware Wanna-Cry appears tenuous.
And yet, to the surprise of a Mumbai based mid-sized company, PwC’s cyber security team stumbled upon security loopholes in the newly implemented information technology (IT) infrastructure for GST, underscoring the risk of the malware that affected 300,000 computers globally. Click to read more
As luxury carmakers step on the gas to pass on GST benefits to customers, buyers of top car brands can look forward to 4-6% mark downs or price reductions to the tune of Rs 1.5 lakh-Rs 7 lakh for models assembled in India.
While some carmakers are awaiting further clarity on GST, a clutch of luxe automakers are already announcing markdowns and special benefits to spice up the market. Click to read more
India’s landmark tax reform, the goods and services tax (GST), may not be good news for farmers. Retail prices of commonly used fertilizers and micronutrients are likely to increase, not only raising the cost of cultivation but also leading to imbalanced use of fertilizers.
Last week, the GST Council fixed a 12% rate on fertilizers, up from the current 4-8% rates, depending on raw materials used and in which states the products are sold. For urea, the most commonly used fertilizer, prices may go up by Rs300 to Rs400 per tonne. Click to read more
Once the goods and services tax (GST) is implemented, reliance on organized staffing providers is poised to rise. To claim tax benefits under GST, businesses would prefer meeting their hiring needs via staffing firms registered under GST.
No wonder then that temporary staffing firm TeamLease Services Ltd sees GST as the most significant near-term trigger for itself. The anticipated shift from the unorganized to the organized sector would not only result in new clients but also more market share for the company. Click to read more
Prices of sugar, tea, coffee and milk power may soften from July as the proposed goods and services tax (GST) will be lower than the present levies.
The GST Council, which finalised the tax rates for most items last week, has fixed the levy at 5% for sugar, tea, coffee and milk powder.
At present, sugar attracts specific central excise duty of Rs 71 per quintal plus a sugar cess of Rs 124 per quintal, which translates to ad valorem rate of more than 6%. Including incidence on account of account of CST, octroi and entry tax, the present total tax incidence would work out to more than 8%, the finance ministry said. Click to read more
The concept of ‘place of supply’ is not new to indirect taxation, as it is already in use in the service tax law under the Place of Provision of Service Rules (POPS Rules).
India’s service tax laws treat the whole country as a single tax jurisdiction. Hence the place of provision of a service assumes significance only when deciding if a transaction is an ‘export of services’. Excise laws, on the other hand, do not have a place of supply concept, as duty is collected at the factory gate and also because India is a single tax jurisdiction. Click to read more
The GST Council may reconsider the proposed 43 per cent tax on hybrid cars at its meeting next week after the auto industry voiced disappointment over the steep rate hike.
As per the tax slabs decided by the Council last week, the incidence of GST on mid- and large-sized hybrid cars has been kept at the same level as passenger cars.
Under the GST, the tax incidence on hybrid vehicles will go up to 43 per cent from the current level of effective tax rate of 30.3 per cent. Click to read more
The 5 per cent GST on coal will help state-owned CIL to find consumers for its 62 million tonnes of stock piled up at its pithead, an official said.
Coal pithead is where the mine is located and the mined coal is kept usually before being transported to power companies. Click to read more