Goods and services tax has been a massive change for the Indian economy. Since its rollout on 1 July 2017, GST has seen both legal and technical amendments to minimize the challenges faced by taxpayers, give a boost to various struggling sectors and industries, check tax evasion and increase the ease of doing business in India. Click to read more
GST has simplified the tax treatment for the realty sector and has resolved some of the long-standing issues like valuation and tax type. It is seen as an additional benefit to consumers in the long term. However, the significant benefit primarily would be around increased input credit on the procurement of materials, as per a report by JLL and PwC, ‘Impact of GST on residential markets’. Click to read more
The Hindu reported that contrary to common perception, Goods and Service Tax (GST), will not bring down housing prices even though it will cut construction costs, a report released by real estate consultancy JLL and PwC today has pointed out. While the effective rate of tax earlier ranged from 10 to 15 per cent, it is now 12 percent under GST. “Therefore, it may appear that GST would result in savings of at least three to four per cent to the customer. However, the ground-level reality may be different. The cost of land involved in the project significantly impact the ultimate savings the customer may derive under GST,” said the report on impact of GST on residential markets. Click to read more
India, which has recovered from disruptions caused by demonetisation and the rollout of the GST, must fully implement the new nationwide indirect tax to avoid tax revenue underperformance resulting in cuts to capital expenditures, the IMF said on Wednesday.
In its Fiscal Monitor report titled ‘Capitalising on Good times’, the International Monetary Fund (IMF) said that relatively buoyant revenues supported by base-broadening efforts and lower capital expenditures were offset by higher spending (including higher compensation to states for the rollout of the GST). Click to read more
The proceeds from the consumer welfare fund, constituted under GST, can be given as grant to the Centre and state governments as well as regulatory authorities, the CBIC said today.
In a notification, the Central Board of Indirect Taxes and Customs (CBIC) said the government shall constitute a Standing Committee with a Chairman, a Vice-Chairman, a Member Secretary and such other members for managing the fund.
The Central GST Act provides for creation of a Consumer Welfare Fund wherein undue benefits made by businesses under the GST law have to be deposited, in case it cannot be passed on to the identified recipient. Click to read more
The government has advanced the deadlines for filing of seller forms under the goods and services tax, GSTR-1, for April, May and June, in comparison to those given for previous months.
GSTR-1 for the month of April will have to be filed by May 31. Earlier, 40 days were given for filing these, which would have made June 10 the deadline. Returns for May have to be filed by June 10 and for June by July 10. So, only 10 days after the month ends, against the earlier 40 days. Click to read more
A ministerial panel, chaired by Sushil Modi, worked out a new simplified model for GST return filing as per which credit could be given on a provisional basis once the supplier uploads the sales invoice.
As it looks to finalise a single-page return form for businesses under GST, the panel on Tuesday met about 40 industry representatives and 15 tax experts to discuss simplification of return filing process.
Briefing reporters after the meeting of the Group of Ministers (GoM), Modi said a “fusion” model of return filing after incorporating stakeholder suggestion has been worked out, which will be placed before the GST Council for approval. Click to read more
The Authority for Advance Rulings (AAR) has held that services performed by Global Reach Education Services, which promoted courses of foreign universities among prospective students in India, cannot be regarded as ‘export of services’. Thus, these services would attract GST.
Global Reach, based in Kolkata, had sought a ruling from the West Bengal AAR on whether the services performed by it could be considered as an export and therefore a zero-rated supply, which would not attract GST under the Central (CGST) Act and the West Bengal State GST Act. Click to read more
The GST return form will be made simpler as it will be of single-page. This will be a major relief to tax payers in the new tax regime. According to tax consultants, GST Council has proposed a single-page return form after consulting tax experts and industry leaders with the objective of simplifying the process for filing returns.
Tax consultant Pravesh Verma said a model of return filing form has been worked out, which will be placed before the GST Council for approval. However, GSTR-3B will continue till the new form is introduced. Click to read more
Commerce and Industry Minister Suresh Prabhu today assured exporters of taking up the issue of GST refund with the finance ministry.
Exporters are claiming that over 60 per cent of their refunds are still stuck with the government.
“I have asked them (exporters) to give me the details of the pending refund. GST refund is a major issue for exports. I will take it up with the finance ministry,” he said. Click to read more
Ashok Leyland, the automotive giant owned by the Hinduja Group, said the implementation of the Goods and Services Tax (GST) and restrictions on truck overloading in certain states has lifted its revenue expectation for tippers and other heavy vehicles to a double digit percentage in financial year 2017-18 from eight per cent growth last year. The company, which also laid out a Rs 1,000 crore capital expenditure plan on Tuesday, said it is planning to set up a factory in Andhra Pradesh with a cost of Rs 200 crore to make trucks, buses and electric vehicles to cater to demand in the heavy vehicles segment. Click to read more