India will tax gold at a rate of 3 percent under a new nationwide sales tax that comes into effect on July 1, the government said on Saturday.
The Goods and Services Tax (GST) on gold, which was lower than industry expectations of around 5 percent, will replace a number of federal and state levies.
“In the case of gold, keeping various factors in mind, because there was an extensive debate … we finally reached a consensus of taxing gold at 3 percent,” Finance Minister Arun Jaitley told reporters in New Delhi after a meeting of the GST Council. Click to read more
The roll-out of the goods and services tax (GST) from 1 July on the back of information technology systems that will reduce human discretion and chances of corruption will face its first test in August, when millions of invoices filed by businesses and traders will be matched to ensure there is no “tax on tax” on transactions in a seamless market of 1.3 billion people.
Central and state governments, businesses and traders are racing against time to meet the 1 July-deadline despite calls from banks, small and medium enterprises (SMEs) and the West Bengal government for more time. Click to read more
The government has started its media blitzkrieg to tell the common man that the impending shift to the Goods and Services Tax (GST) regime will reduce prices of most goods.
The Central Board of Excise and Customs (CBEC) in advertisements in leading dailies gave pictorial representations of items which are exempt from Goods and Services Tax and the ones which would attract a lower tax of 5 per cent. Click to read more
India’s move to tax gold at a rate of three per cent under an impending nationwide sales tax is expected to give an unexpected fillip to gold and jewellery business in the UAE, traders and analysts said.
While the gold trade in India heaved a sigh of relief at the lower-than-expected Goods and Services Tax on the precious metal, in Dubai, jewellery traders welcomed the move as positive, arguing that it would make domestic jewellery market more price competitive.
The three per cent GST on gold announced on Saturday by the Indian government, lower than industry expectations of around five per cent, will come into effect on July 1 and will replace a number of federal and state levies. Click to read more
Even after a monthlong wait on their discussion with the working committee appointed by the Central Board of Excise and Customs (CBEC), online marketplaces are ambivalent on the final set of rules announced by the GST Council on Saturday.
While the marketplaces and sellers are relieved about the increase in input tax credit, the confusion over the taxation structure for returns continues ahead of the rollout of the goods and services tax (GST) on July 1. Click to read more
With just over three weeks left for the roll-out of the goods and services tax (GST) from July 1, issues related to electronic way (e-way) bill, anti-profiteering guidance and area-based exemption rules, among others, are yet to be addressed. Though the return filing rules have been simplified, experts argue that such changes just ahead of the GST roll-out will only complicate the IT preparedness of the industry and the GST Network (GSTN). The revised return rules have done away with the need to mention invoices along with the product code. Click to read more
With less than a month left for the roll-out of the Goods and Services Tax (GST) regime — touted as the biggest indirect tax reform in the country’s history — mobile handset manufacturers are a worried lot. Their main concern is that the duty differential, which incentivises domestic production as opposed to importing products, will no longer exist as GST will subsume all indirect Central and States taxes into a single tax rate. Click to read more
Given the government’s stance about anti-profiteering, one-off gains for any particular sector from GST should be ruled out, says Vishal Kapoor CEO, IDFC Asset Management Company in chat with ET Wealth.
With Sensex and Nifty at new highs, what are your short- and long-term views on the equity market?
Our long-term view on the market is constructive. There have been several positive fallouts of the three years the Modi government has been in power, including structural reforms, government spending to accelerate growth and benign inflation. Click to read more
The Canteen Stores Department (CSD), which runs retail stores for India’s defence forces, will get a refund of 50 per cent of the goods and services tax (GST) paid from the states and the Centre. This follows CSD having suspended orders this month to avoid tax payout disparities ahead of the goods and services tax (GST) that’s set to be rolled out on July 1.
“CSD will pay full GST and 50 per cent of the total tax would be refunded by state and the Centre,” union finance minister Arun Jaitley had said on Saturday after the GST Council meeting. Click to read more
The GST regime has replaced 11 central and state taxes with eight tax rates, defeating the idea of having a three-slab tax structure.
The current GST structure on goods ranges from zero to around 40 per cent. If jute, silk and muri (puffed rice) fall in the exempted category, luxury cars and SUVs fall in the top bracket because of the cess that will top of the demerit rate of 28 per cent.
In his report submitted in December 2015, chief economic advisor Arvind Subramanian had advised a modified two-rate structure with a standard rate of 18 per cent and a lower rate of 12 per cent. Luxury cars and cigarettes, he had said, could be taxed at a much higher demerit rate. Click to read more
Diamond exporters have called the government’s move to introduce a 0.25% goods and services tax rate (GST) on rough diamonds to keep a trail on such items ‘retrograde’. However, the bullion sector heaved a sigh of relief, as gold, silver and processed diamonds — including jewellery — will be taxed at 3% (and not more) under the new indirect tax regime, against the current tax incidence of around 2%. Nevertheless, it has now sought a cut in the basic Customs duty on gold from the current 10% to discourage smuggling. Click to read more
The Union Finance Ministry is understood to have suggested that natural gas be brought into the ambit of the GST, in what is seen as the first step towards including petroleum products under the new indirect tax regime.
According to the proposal, which was mooted at the meeting of the GST Council on June 3, the Department of Revenue has suggested including natural gas within GST at a nominal rate of five per cent with immediate effect. Click to read more
Logistics is the spine of all industries, globally. This industry is worth over a $1 trillion dollars, accounting for approximately 10 per cent of total amount spent on all goods and services combined. Despite its size, logistics is an unorganized sector, vis- à-vis mining, retail and pharma. The state of Indian logistics is better when compared with other developing nations while India could be at par with the current benchmarks set by USA in a decade. With the commencement of GST, the logistics industry will undergo a lot of changes. Click to read more
Canara Plastic Manufacturers Association (CPMTA) has expressed its disappointment at the proposed Goods and Service Tax (GST) rates of 18% and 28% for plastic products. This is a big blow to the plastic industry, CPMTA maintained adding that time and again, the government has assured the stakeholders that there will be no extra burden of tax in GST than currently being paid by the industry. Click to read more