The government may have slashed Goods and Services Tax (GST) rates of 178 products last week, but entities are finding some dubious ways of not passing on this benefit to you, the consumer. Have a look at what restaurants are doing after GST rates were slashed. It has come to light that some restaurants, including some big names, have increased their prices post the reduction in rates thereby not passing on the benefits to customers. The likes of McDonald’s and Starbucks have got queries from tax officials seeking details about menu prices before and after the latest reduction in prices. Click to read more
We’re four odd months into the new GST regime, and already there are scores of people trying to trick the system, and clueless consumers. According to GST Helpline India, the most common types of fraud currently are collecting tax on products/services that are GST-free, charging GST over and above the defined rate and fraudsters posing as GST officers. For instance, consumers have complained about shopkeepers and dealers charging additional rates in the name of GST on daily need items like mineral water, grains, milk, vegetables, eggs that are on the exemption list. Then, some businesses are illegally levying GST in addition to the already applied VAT tax on their service bills. Earlier this month, the GST Council slashed the GST rate on restaurants to a uniform 5 per cent from over 12 per cent earlier, but many restaurants reportedly continue to overcharge diners. Click to read more
The government has ordered manufacturers of fast moving consumer goods (FMCG) to display new price tags on existing stock so that the recent Goods and Services Tax (GST) cut is reflected, The Economic Times reported.
The order came from the Department of Consumer Affairs’ Metrology Division, which looks at matters pertaining to measurement and labelling.
“Permission is granted under the legal metrology rules to affix an additional sticker or stamping for declaration of reduced MRPs (maximum retail prices). Click to read more
Earlier this month, the GST Council took a major decision by bringing down the GST rate charged by restaurants to a uniform 5 per cent from the earlier 12 per cent or 18 per cent, depending on whether you ate at an air-conditioned place or a restaurant without one. The council had also decided not to give the benefit of input tax credit, a feature of the new GST under which manufacturers and service providers can deduct the tax previously paid on the goods they purchased. Even though it’s been a week since the implementation of the new tax rates, many customers have complained that the restaurants are overcharging them. Click to read more
Hindustan Unilever Ltd (HUL), India’s largest consumer packaged goods company, will reduce prices by 7-10% on an average across categories following the reduction in the goods and services tax (GST) from 28% to 18% for categories like detergents, cosmetics, deodorants and packaged foods, chief executive Sanjiv Mehta said in an email interview.
The impact will be seen across almost 600 of its stock keeping units (SKUs), with some items seeing an almost 20% reduction. Prominent products that will see price reductions include its Fair and Lovely 15 gram pack, from Rs25 to Rs20; Sunsilk Shampoo 340 ml from Rs204 to Rs165 and Wheel 1 kg pack from Rs52 to Rs48. Click to read more
The government will soon start the process of matching returns and invoices under the Goods & Services Tax (GST) as the IT backbone for the tax reform measure stabilises and the need to assess the extent of taxes due takes centrestage, government sources said. They also said that the revenue position after the introduction of GST was comfortable. The government is also working on making the new tax system more user-friendly and has lined up several steps to hand-hold taxpayers. Click to read more
The finance ministry is considering introducing more incentives for micro, small and medium enterprises (MSMEs) that comply with the requirements of the new goods and services tax (GST) regime, including access to loans at discounted rates, in an attempt to reward early adopters and encourage others to comply.
A senior government official, who spoke on condition of anonymity, said this is one of the ideas being considered in the ministry. Click to read more
The implementation of Goods and Services Tax (GST) and the new Insolvency and Bankruptcy Code will in a major way boost India’s ranking by the World Bank and international rating agencies that will help in attracting huge foreign investment, officials said on Thursday.
They also feel that the rating agencies are biased when it comes to rating developing countries like India vis-a-vis developed countries when it comes to several aspects like ease of doing business and other issues. Click to read more