In A Four-Part Series, Sachin Menon (Partner And Head, Indirect Tax At KPMG-India), Writes About The Goods and Services Tax And Its Implications On The Common Man And Businesses In Kerala
India is all set to make history on the midnight of June 30 through the introduction of Goods and Service Tax (GST), the mother of all tax reforms. GST is expected to bring about a uniform system of indirect taxation by replacing various taxes levied by central and state governments as well as local authorities. Click to read more
Finance Minister Arun Jaitley on Tuesday said there could be some difficulty initially after the goods and services tax (GST) is rolled out. This was one of the reasons that drove the domestic equity market lower in morning trade on Wednesday.
Analysts believe the short-term impact of GST could be neutral to negative, though this huge tax overhaul is expected to give further direction to the economy and markets. Click to read more
The switchover to the GST regime is undoubtedly one of the biggest tax reforms in post-independence India. From July 1 2017, GST effectively cuts through a confounding Gordian Knot of taxation complexity in the country. In other words, it replaces the multiple taxes levied by the central and state governments and will become subsumed under all the indirect taxes, including central excise duty, commercial tax, octroi tax/charges, Value-Added Tax (VAT) and service tax.
GST has been predominantly conceptualised around a ‘One Nation, One Tax’ philosophy and will: Click to read more
Retailers, especially small retailers, are still grappling with the goods and services tax which will come into effect from 1 July. With a few days left for GST to come into effect, retailers are still in the dark about the details and are refraining from restocking. However, it is unlikely to hit consumers yet.
GST, the most-talked-about tax reform of the NDA government that seeks to make India one market, subsumes a host of central and state taxes like excise duty, service tax and VAT, in the first year. However, media reports have said that many of the businesses are yet not ready for the rollout as the systems are not in place yet. Click to read more
Common man uses such goods, hence the lower rate: Jaitley
The Goods and Services Tax will make several household commodities like soap cheaper, as well as keep small businesses with a turnover of less than ₹75 lakh out of the purview of the full-fledged indirect tax regime, Finance Minister Arun Jaitley said on Tuesday.
“The equivalence principle followed in setting the rates in GST was based on what the rate on a good or service was prior to June 30 combining the centre’s excise duty and the states’ VAT,” Mr. Jaitley said while speaking at a GST conference organised by the ABP Group. Click to read more
Revenue secretary Hasmukh Adhia has said that the ultimate goal of the government should be to move to a single- or dual-rate goods and services tax regime.
“Ideally like all other advanced countries, we should have got one GST which is levied by one government only, and not a dual GST and also a GST in which there is a uniform rate. In our country, where there are different stratas of society to be looked after, it’s not possible to have an ideal GST. We are in a good direction. We will prefer to have a single GST rate but after sometime. Click to read more
Suspense continued on Tuesday over the participation of the Congress in the June 30 midnight meeting in Parliament to coincide with the launch of GST, with the main opposition party likely to decide on the issue today.
According to a senior Congress leader, the party would discuss the issue at a meeting slated in the evening today to arrive at a decision on whether to participate in the event. Click to read more
With GST round the corner (target date July 1), the confusion about its understanding still exists. Though the concept is simple, many, especially the laymen, find it difficult to comprehend. The purpose of this post is to explain, in simple terms, the advantage of GST compared to the conventional system.
GST works on the principle of ONLY taxing the vendor’s contribution to the “overall product’s value”. Also, the tax paid is not included in the price of the product sold to the vendor next in the chain. Click to read more