GST Ready India

GST Ready India’s Latest News and Updates

GST will have an overall positive impact on growth

Apr 17, 2017

GST: Government looking to keep single rate for each product group to avoid complexity

After having opted for multiple rates under the upcoming goods and services tax (GST) regime, India is now looking to keep variations in rates on the same types of products at a minimum to ensure that the tax structure does not get any more complicated. For example, all types of footwear or mobile phones could attract the same rate. Click to read more

What is GST, how is it different from now: Decoding the indirect tax regime

In GST, only two buckets will have to be created to get input tax credit — one for State-GST and another for Central-GST. Currently, if companies are selling in, say, seven states, they have to make seven buckets for taking input tax credit in value added tax (VAT). Similarly, for excise duty, they have to make as many buckets as there are manufacturing units. For services, only one bucket is required. Click to read more

GST is final nail on illegal gold market

Demonetization was just a salivating trailer. The pounding of black money hoarders in India is about to begin with the rollout of Goods and Service Tax (GST) regime in a couple of months.

Post the note-ban that ruthlessly flattened the unimaginable cash piles, the focus is now shifting to gold. As the 68-year old Republic shrugs off the byzantine tax regime and unites in a one-tax system, it lends itself a great opportunity to squeeze out illegal gold hoarders. So far, the system allowed tax evaders to understate their income by not reporting all transactions, and thus save excise, value-added tax and octroi. Click to read more

Centre, states taxmen to decide services rate in GST this week

Tax officials of the central and state governments will this week hold their maiden meeting on devising a formula for tax rate to be levied on services under the Goods and Services Tax (GST) regime from 1 July.

While the GST Council had previously decided on a four- tier rate structure of 5, 12, 18 and 28%, its fitment committee will hold its first meeting this week on slotting different services in one of the slabs, a senior official told PTI. The task before the panel is to keep the impact of GST on inflation and prices near neutral or zero. Click to read more

Revenue growth for states: 14% projection may push GST rates higher for most items

With the finance ministry officials kicking-off their internal discussions regarding the fitment of goods and services in the multi-tier tax slabs under the proposed Goods and Services Tax (GST), the decision to assume a 14 per cent revenue growth for states during the transition period is turning out to be one of the sticky points. While the government aims to classify most items, especially mass consumption items such as consumer durables, under the modal 18 per cent tax slab, the emerging view is that assumption of 14 per cent revenue growth for states, instead of the earlier proposed fixed rate of 12 per cent, may create the need for most items being pushed into the higher tax slab of 28 per cent. Click to read more

Government’s money bill route for GST draws TMC ire

Trinamul MP Derek O’Brien on Sunday expressed disappointment over the BJP’s recent introduction the Goods and Services Tax (GST) Bills in the Parliament as Money Bills “essentially bypassing the Rajya Sabha and ignoring its views”.

He also mocked finance minister Arun Jaitley saying if the Finance Minister were to be a footballer, he would be wearing jersey number 110 as a tribute to Article 110 – under which a Bill can be declared a Money Bill and moved out of the jurisdictional purview of the Rajya Sabha. Click to read more

GST will have an overall positive impact on growth: Neelesh Surana, Mirae Asset Global Investments

The relative valuation is tilted in favour of large-caps. While the mid-cap segment will continue to do well, there will be an increased divergence in performance. The fact that some mid-caps are trading at high valuation relative to fundamentals does pose downside risks.

The key is to identify business, which exhibit good growth, and are still available at a reasonable valuation. An important point is that the universe of mid-size businesses (as defined by non-top 100 companies) is almost five times that of large-cap companies, and growing. Click to read more

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