If you were stumped to read that you will now be paying goods and services tax (GST) on your mutual fund exit load, you are not alone. The frequently asked questions (FAQs) issued by the Central Board of Indirect Taxes and Customs (CBIC) reveals the impact of GST on some financial services.
The FAQs explain tax implication on various charges, penalty and fees such as “exit loads” charged by mutual fund companies at the time of redemption, additional interest charged for default in payment of loan instalments and charges for late payment of dues on credit card outstanding. Here is how GST will impact your investments and financial transactions. Click to read more
Union oil minister Dharmendra Pradhan on Thursday voiced optimism that petroleum products will be brought under the GST purview that will help in checking volatility in fuel prices.
“In the long run, petroleum products are bound to be included within the ambit of the GST regime … It is only a matter of time. It will immensely help in containing prices of petrol and diesel,” Pradhan told reporters here. Click to read more
The government is planning to revamp the advance ruling mechanism under GST by setting up either a centralised authority or 4 regional authorities, in the wake of the contradictory orders passed by AARs in different states.
Under the Goods and Services Tax (GST) law, each state is required to set up Authority for Advance Rulings (AAR) comprising one member from the central tax department, and the other from the respective state. Click to read more
In the din of initial glitches in the GSTN platform, a major triumph of GST implementation in India went unnoticed. The fact that there has been negligible or no increase in prices of goods, particularly FMCG, post introduction of GST, is by no means a mean accomplishment of the GST Council. Typically, one could expect the business in general not to miss cashing in on this potential opportunity by ramping up prices under the guise of GST. Of course, one could argue that market competition counteracts any profiteering inclinations. Click to read more
The Goods and Services Tax Council is likely to bring in two petroleum products – natural gas and aviation turbine fuel (ATF) – under the ambit of the new indirect tax system at its next meeting, a senior government official told Moneycontrol. The date of the Council meeting is yet to be decided but it is expected to happen later this month, the official said. Click to read more
If Lady Luck is on your side, three ‘tenners’ on a lottery ticket can fetch you Rs 75 lakh. And if she’s not, you lose your three tenners, but you’ve still done your good deed for the day. That’s Karunya, a welfare lottery scheme run by the Kerala government.
“Lottery is not gambling… It’s just trying one’s luck. And even if it is gambling, it’s fine as long as it is done for the benefit of the king or the state,” says Thomas Isaac, finance minister, Kerala, quoting an Indian philosophe. Click to read more
The goods and services tax (GST), which was implemented in July 2017, was touted as a game changer that would see the formal economy grow faster.
Lower effective taxes, along with increased compliance, would accelerate formalization, and organized businesses would gain share and tax collections would surge.
Companies in sectors such as ceramic tiles and plywood, where the unorganized sector has a significant presence, continue to face challenges from informal trade, showed an analysis by brokerage firm Edelweiss Securities Ltd. Click to read more
The CBIC has allowed clearance of GST refunds based on PAN of exporters if such refunds are held up due to mismatch in GSTIN mentioned in shipping bill and return forms. As much as Rs 14,000 crore worth of refunds due to exporters are stuck because of various reasons and the Central Board of Indirect Taxes and Customs (CBIC) is organising a special refund fortnight from May 31 to June 14 to fast-track clearance of dues. In a circular to the field officers, the CBIC has said the refund should be cleared if the Permanent Account Number (PAN) mentioned in shipping bill and returns form GSTR-3B/GSTR-1 is same. Click to read more
In a temporary relief to small businesses not registered under the Goods and Services Tax, the Reserve Bank of India on Wednesday extended loan repayments deadline to 180 days from the due date without being classified as a non-performing asset.
This latest announcement comes after the regulator’s April diktat which had allowed GST registered MSME borrowers with a turnover of up to Rs. 25 crore to delay loan repayments by 180 days. Click to read more