The latest upward revision of cess rates on cigarettes by the GST Council takes away the earlier benefit of lower tax incidence on cigarettes under GST regime.
The ITC stock had surged to a record high of Rs 353.20 two weeks ago on the back of the announcement that overall GST rates were reducing the overall tax incidence on cigarettes by around 6-7% compared to that in the earlier regime. However, the latest revision neutralises the tax incidence and brings the rates at par with those under the older regime. While the peak GST rate of 28% and ad valorem cess of 5% was not changed – the specific cess has been raised in the range of Rs 485 and Rs 792 per thousand cigarette sticks based on the cigarette length. Click to read more
Tech giant HP has hiked prices of its multifunction printers (MFPs) and cartridges by up to 15 per cent due to higher tax levy on these items post GST.
However, the prices of notebooks and desktops remain unchanged.
HP said the maximum retail price (MRP) of MFPs has been increased by 8-10 per cent, while ink cartridges will be dearer by 12-15 per cent.
There is no change in the prices of desktops, notebooks and single-function printers as there is no effective change in tax rates for these products. Click to read more
The infrastructure sector is the backbone of the Indian economy. The government has been making efforts to boost the sector through various schemes and incentives.
According to the government, total infrastructure spending is expected to be about 10% of GDP (gross domestic product) during the 12th Five-Year Plan (2012–17), up from 7.6% during the previous Plan. A total of 6,604km has been constructed out of the 15,000km target set for national highways in 2016-17, says the ministry of road transport and highways. The Airports Authority of India plans to develop city-side infrastructure at 13 regional airports, with help from private entities for building of hotels, car parks and other facilities. Significant allocations have been made to power, urban development and inland waterways sectors. The above initiatives show the firm commitment of the government to infrastructure. Click to read more
New indirect tax regime Goods and Services Tax (GST) is likely to be beneficial for auto, cement and organised retail sectors, but will have a negative impact on oil and gas, and SME sectors, Fitch Ratings said today.
In contrast, the impact would be broadly neutral for property, electricity, telecom, pharmaceutical and fertiliser sectors, it said.
“The national service tax (GST), is unlikely to lead to rating changes for any of Fitch’s internationally rated corporates despite being negative for certain sectors,” it said. Click to read more
The reverse charge mechanism, now a part of the Goods and Services Tax (GST) regime, has led to considerable debate on its need and its effectiveness. It is instructive to note that the reverse charge as a mechanism has existed in service tax since a long time and several services were added to the list of services attracting reverse charge every year during the Union Budget. Similarly, the VAT legislation in many states had provisions dealing with purchases by registered dealers from unregistered dealers. In that sense, the reverse charge provisions in GST are not exactly a tax innovation, but some key aspects pose challenges for business. Click to read more
Textile traders in Ahmedabad’s New Cloth Market have kept their shops shut since July 10th staging massive protests against goods and services tax (GST).
Watch accompanying video of CNBC-TV18’s Yash Jain. He reports from ground zero on what is the impact of GST on the textile sector and why are these textile traders staging protests in Ahmedabad. Click to read more
After firing a letter to the Union Revenue Secretary asking for the removal of 12% GST (goods and services tax) on lightweight coated paper (LWC), magazine publishers are gearing up for a “long-drawn” struggle with the government. Though industry sources indicated that a meeting is being sought with Hasmukh Adhia later this week, the publishers are aware of the fact that the Revenue Secretary alone will not be able to reverse the decision. Being pragmatic, magazine representatives don’t expect relief in less than two-three months’ time during which they would have to bear the increased taxation burden. Click to read more
Sales of luxury apartments in prime locations, basically those with land cost higher than construction cost, have been hit with rates further rising under the goods and services tax (GST) regime. Sales of such apartments had already been hit due to weak demand. “Developers cannot absorb the increased tax as the markets are down,” says Vijay Wadhwa, chairman at Mumbai-based Wadhwa Group. “The 12 per cent GST is quite heavy,” he says. Before the GST, home buyers were paying the service tax at 4.5 per cent in addition.. Click to read more
The implementation of GST has kicked up a row between roadside vendors and customers who are forced to pay higher prices for each item. The vendors say they are not at fault as they have paid higher prices to wholesalers but customers complain they are bearing the brunt of GST.
Yunus, a vendor selling suit pieces on cycle for past 28 years, said, “We are facing huge loss due to GST. Earlier we earned Rs 4,000 a day but now it is between Rs 1,500 and Rs 2,000. Wholesalers from whom we purchase items are charging higher from us because they are now paying GST. So, the prices of the same items are up by Rs 50 to 60,” adding, “but customers are not ready to pay. Now, I have to convince customers more than earlier,” he said. Click to read more
FMCG major Hindustan Unilever is set to announce its financial result for the quarter ended on June 30, 2017.
In the fourth quarter of last fiscal, HUL had reported a net profit of Rs 1,183 crore, a rise of 8% on quarter-on-quarter basis. During the quarter, the company’s domestic consumer business grew by 8% with underlying volume growth of 4% and EBITDA margin expanded by 90 basis points.
EBITDA for the quarter was at Rs 1,651 crore, a jump of 12% as against Rs 1470 crore in the previous quarter. As per the company’s statement, the net sales grew by 7% during the quarter. Click to read more
With the goods & services tax (GST) coming into force from July 1, household budgets are busy adjusting to the new regime. A typical household spends Rs 50,000 per month. Similarly, an upper middle-class household spends Rs 1 lakh a month. DNA Money spoke to tax consultants to assess the exact impact on common household expenses including home loan EMI, credit card repayment, groceries, cooking gas, water, electricity, phone and cable TV bills, transportation cost, entertainment and medicines. Here’s the low-down on how your budget changes post-GST. Click to read more
A lot of confusion and pain has marked the switchover to the Goods and Service Tax (GST) from July 1, thanks to the marketing gimmicks and lack of clarity
The Goods and Service Tax (GST) was supposed to make 81 percent of the goods cheaper as per Centre’s claims. But consumers are belatedly realising that it has robbed them of benefits and even misled them into taking decisions that they only now regret.
Though the government has stepped in and warned those who mislead customers, a large number of people YourStory spoke to were still confused and unable to fully make sense of the new tax regime. Click to read more