The Centre and states are expected to keep the exemption list short — about 100 — under the proposed goods and services tax regime, even as the North Block is flooded with requests from industry associations to keep their products out of tax net or in the lowest slab.
The Centre currently exempts 299 items while states keep 99 out of the tax net. “Some items will remain exempted,” said a top government official.
Goods of common use and consumed largely by the masses will be spared in the final list. Salt, primary produce, fruits and vegetables, flour, salt, milk, eggs, tea, coffee and prasad sold at temples could figure on the exemption list. Click to read more
Ahead of the planned GST rollout from July 1, the government is strengthening the body responsible for detecting tax evasion and will set up two new agencies, including one for business intelligence and analytics.
With the goods and service tax (GST) subsuming central levies like excise duty, service tax and state VAT, the Central Board of Excise and Customs (CBEC) has reorganised its existing central excise and service tax field formations to suit the requirements of the new regime. Click to read more
The increasing formalisation of the Indian economy, especially through digitisation, is an inexorable advance that will upend the business model — based on the twin arbitrage of labour and cash transactions — of micro, small and medium enterprises (MSMEs).
India’s paradigm shift to the Goods and Services Tax (GST) regime in July will increase their compliance costs and snare a majority of them into the indirect tax net for the first time. Click to read more
The state goods and services tax bill is likely to be passed during the forthcoming assembly session starting from May 19.
This session of the assembly is the last one before GST is rolled out across the country in July. Some of the states have already passed the GST bill. And though the ruling Trinamool Congress supports GST in principle, it had objections regarding some issues. Click to read more
The Uttar Pradesh assembly on Tuesday unanimously passed the Uttar Pradesh Goods and Services Tax (GST) Bill, 2017 with chief minister Yogi Adityanath assuring members that the new law would bring uniformity in taxes and that all their apprehensions were unfounded.
All the major political parties – Samajwadi Party (SP), Bahujan Samaj Party (BSP) and the Congress – supported the bill with a voice vote. Click to read more
Ahead of the rollout of Goods and Services Tax from July, an industry body on Tuesday urged the government to keep the levy on gems and jewellery at 1.25% as against the present VAT and excise duty rates of 1% each.
While states are passing the necessary legislation for the new tax regime, the GST council is scheduled to finalise the rates for individual items at a meeting on May 18-19, to pave the way for the country’s biggest tax reform that will unite the country into a single market. Click to read more
The Goods and Services Tax (GST) scheduled to be rolled out from July will improve state finances, the Reserve Bank of India said on Friday, estimating a higher-than-expected average deficit at 3.4% of GDP during 2016-17.
Although states’ fiscal deficit widened to 3.4% as against the budgeted 3%, RBI termed overall fiscal position as “sustainable” in the long run while counting on the GST as a big positive for finances.
In 2015-16, the gross state fiscal deficit (GSFD) came at 3.6% after revised estimates against a budgeted estimate of 2.6%. Click to read more
In the goods and services tax (GST) era, movement of goods worth more than Rs50,000 within or outside a state will require securing an e-way bill by prior online registration of the consignment.
The draft rules say that to generate an e-way bill, the supplier and transporter will have to upload details on the GSTN (Goods and Services Tax Network) portal. Once an e-way bill has been generated, a unique e-way bill number (EBN) shall be made available to the supplier, the recipient and the transporter on the common portal. Click to read more
Stamp collectors have written to finance minister Arun Jaitley asking him to spare their hobby from the steepest slab of 28% under the goods and services tax (GST), which is expected to be rolled out on July 1. The fear is that collectibles such as stamps, coins, paintings and antique items may be treated as ‘unclassified goods’ and hence face the highest GST rate.
We are aware that the government and the finance minister have too much on their plate on GST but a tax would be a death blow for stamp or coin collectors,” said Siddharth Bothra, vicepresident of the All India Philatelists’ Association. Click to read more
Multiple registrations, enterprise resource planning (ERP) systems, credit mechanism for existing stock – retailers are struggling for clarity on these and many more issues as they gear up for July 1 implementation of the Goods and Services Tax (GST).
With 46 days remaining for GST to go live, in BloombergQuint’s special series, GST Countdown, electronics retailer Vijay Sales’ Managing Director Nilesh Gupta said that traders will have to burn the midnight oil to meet the implementation deadline. Click to read more