The Goods and Services Tax (GST) will be levied at several rates ranging from 0 to 28 percent. GST Council has finalised a four-tier GST tax structure of 5 percent, 12 percent, 18 percent and 28 percent, with lower rates for essential items and the highest for luxury and ‘demerit’ goods that would also attract an additional cess.
Service tax will go up from 15 percent to 18 percent.
While details have not been announced, essential items including food, which presently constitute roughly half of the consumer inflation basket, will be taxed at zero rate. Click to read more
New-age warehousing and logistics in India would be midwifed by the Goods and Services Tax (GST), which also aims to transform the South Asian nation into an integrated market for the first time since Independence.
Small and often ill-equipped storage space in the country would now give way to neatly stacked, air conditioned warehouses, with higher levels of automation, as India ushers in the biggest tax reforms since 1947. And driving the change in India’s supply chain landscape are the consumer goods companies, such as Hindustan UnileverBSE -0.70 %, Glaxo Smithkine, and Johnson & Johnson. Click to read more
The Goods and Services Tax (GST) Council will decide on applicable tax rates for commodities on May 18, said M Vinod Kumar, Chief Commissioner of Central Excise here.
Addressing a workshop on GST, organised by the Bangalore Chamber of Industry and Commerce (BCIC), Kumar said, “In all probability, we will freeze the allocation of commodities into the agreed tax rates under the GST, which is widely expected to be rolled out post July 2017.” Click to read more
Goods and services tax (GST) implementation is going to be a watershed in the re-imagining of India’s supply chains. GST will make supply chains more efficient, but there is a serious drawback in the current draft—GST makes supply chains vulnerable to upstream compliance-related disruption.
Consider a three-stage supply chain with an upstream Firm A selling goods or services to Firm B which then sells to downstream Firm C. Assume a tax rate of 20%. Firm A sells goods worth Rs1 crore to Firm B, raises an invoice of Rs1.2 crore, gets paid, and deposits Rs20 lakh tax. Firm B now raises an invoice of Rs1.44 crore (Rs1.2 crore plus Rs24 lakh GST) on Firm C. Firm B is eligible for input tax credit of Rs20 lakh and hence needs to deposit Rs4 lakh as tax. Click to read more
With regulations for the country’s largest tax reform still being firmed up, tax officials as well as consultants are constantly brushing up on their knowledge on the new levy.
The Central Board of Excise and Customs has now asked its officials to work out an in-house mechanism for updating their knowledge on the goods and services tax.
Following such a move in the Ahmedabad Zone, the CBEC has now asked its field formations to prepare presentations and hold routine training and awareness updates for its officials and staff on GST. Click to read more
Demonetization has not just infused digital spending habits among people, but it’s also changing the way companies do business.
Fast moving consumer goods (FMCG) companies such as Emami, Dabur and Bajaj Corp that rely on layers of middlemen are sprucing up direct networks to reach retailers.
The note ban which affected volumes growth led the companies to restructure distribution. Click to read more
The impending GST maelstrom is coming and millions will be caught unawares. Just how many small businesses will be able to swim?
As the GST train rolls onward to the proposed implementation date of 1 July, millions of small Indian businesses are woefully underprepared for the transition to the new tax regime.
The GST has been rightly billed as a landmark tax reform. It heralds not just a new unifying tax but also a new way of doing business for an overwhelming majority of Indian businesses. Whilst its success in fostering growth remains to be seen, its disruptive potential has not been properly assessed by most commentators. Click to read more
Any business can opt for voluntary registration under the Goods and Service Tax regime. They can do so even when their turnover is below Rs 20 lakhs (Rs 10 lakhs for NE States). Every provision contained in the GST Act which applies to a normal taxpayer would apply to the individual who has registered voluntarily and they will have to comply with all the provisions.
Let us look at this with the help of an example. We know that the turnover threshold for normal taxpayers is Rs 20 lakhs. This means that a spare parts dealer having a turnover of Rs 13-15 lakh is not required to register under the GST regime. Click to read more
In an interview to CNBC-TV18, Sandeep Jain, ED of Monte Carlo Fashions spoke about the latest happenings in his company and sector.
“Demonetisation concern is over and we are positive for the next financial year,” said Jain.
He also said that goods and service tax (GST) will be beneficial for branded players. On e-Commerce front, he said it’s an important channel for company’s sales. Watch accompanying video for more details.