Prime Minister Narendra Modi will on June 6 take stock of the readiness of the country for the roll out of goods and services tax on July 1.
“It will be a review of the state of preparedness,” a government official privy to the matter said. The Centre is in no mood to postpone the scheduled implementation and is making all efforts to ensure that the switchover to GST remains as smooth as possible for both industry as well as consumers. Click to read more
West Bengal Finance Minister Amit Mitra had expressed “serious doubts” about the country’s preparedness to meet the July 1 deadline for the goods and services tax (GST) roll-out. But numbers suggest otherwise. Data from the Kolkata Commissionerate of the service tax department show the pan-India GST enrolment rate at 84 per cent. But West Bengal logged 89.4 per cent. The numbers were shared with Business Standard by the The Confederation of Indian Industry (CII). The numbers, as on May 1, show the proportion of taxpayers who have enrolled themselves.. Click to read more
There can be no gain without pain and that may be especially true when it comes to taxes. As about 160 countries overhauled their indirect tax systems, they confronted numerous challenges. Latecomer India is unlikely to escape some havoc.
When Canada implemented its goods and services tax in 1991, retailers offered customers “Don’t Blame Me for the GST” stickers amid cash-register snafus and vending-machine meltdowns. In Australia, Japan, Malaysia and Singapore, where the GST was lower than pre-existing rates, the new regimes initially pushed up inflation, according to a 26 May report from Nomura Holdings Inc. Click to read more
The Delhi Assembly on Wednesday passed the state Goods and Services Tax (GST) Bill even as Chief Minister Arvind Kejriwal pitched for capping the tax rate at a maximum of 10 per cent.
A special session of the Assembly, which saw clashes between a few AAP legislators and sacked minister Kapil Mishra, cleared the bill following an extensive discussion while also adopting a resolution on lowering tax slabs. Click to read more
With GST just over a month away from becoming a reality, the roll-out itself has come under a cloud— the Finance Minister of West Bengal Amit Mitra has said that GST in its current form is not ready for introduction from July 1 2017. He also added that the Bengal legislature will not take up the bill until a solution is found.
However, revenue secretary Hasmukh Adhia is still hopeful of a July roll-out— he held a townhall with industry representatives in Bengaluru and told the industry, “Don’t be complacent” Click to read more
With articles essential for people with disabilities set to be taxed under the new GST regime, organisations representing such people are incensed, and have alleged that the government, which talks about inclusion of persons with disabilities, is in fact depriving them of basics necessities.
The organisations argue that for a person with a hearing impairment, a hearing aid is essential, for someone with a locomotor disability, a wheelchair is indispensable, and for the visually impaired, books in Braille are part of daily life. Click to read more
West Bengal’s threat of not going ahead with GST from the scheduled rollout date of July 1 may end up adversely impacting consumers and manufacturers in the state, albeit for around 75 days.
Following last year’s amendment to the Constitution, by mid-September, all states and the Centre have to move to GST and do away with multiple levies such as excise, service tax, VAT, central sales tax and entertainment tax. Click to read more
Banks that had hoped the government would allow them centralised registration under the goods and services tax (GST) appear to have been caught unaware. Now that they are required to register in each state, both public and private lenders are frantically trying to change their frontend information technology (IT) systems. Some of the bigger private and multinational banks started modifying their frontend IT systems about four months ago and expect to be ready by July 1, when the new tax regime is set to be rolled out. Click to read more
Stainless steel traders in the capital sought the placement of utensils and cutlery under the same bracket within GST taxation framework.
The new GST regime, set for a July 1 rollout, currently places the two products under different categories with varying tax slabs of 12 percent for utensils and 18 percent for cutlery.
Under the GST regime, services will be taxed under four rate slabs of 5 percent, 12 percent, 18 percent and 28 percent. This multiple rate structure is a paradigm shift from the current regime, Click to read more
A hundred-and-forty countries are already familiar with the goods and services tax (GST) or value-added tax. But in its current form, India’s GST is complicated and very different from the global variety. A multi-tier tax rate structure and complex rules make execution of this mammoth indirect tax a herculean task.
Unlike other nations, goods and services in India will be charged at different rates depending on the categories they belong to. Tax rates for 1,211 items have been finalized, though rates on six crucial and controversial items including gold and beedi are yet to be decided. Click to read more