Buy one and get one, free samples and additional quantities for the same price — the mainstay of marketing for FMCG, pharmaceutical and textile companies and food and retail chains — may no longer be taxed. Tax authorities had sent notices to companies in these sectors that had offered such freebies, which had become taxable after the goods and services tax was rolled out last year.
A panel of officials under the GST Council, the decision-making body of the tax, has favoured doing away with GST on freebies. The final call on the issue will be taken by the Council, a government official told ET. Click to read more
Petrol and diesel will not be included under the Goods and Services Tax (GST) any time soon. According to a PTI report, neither the central government nor state governments are in favour of this move, as they fear it could result in major revenue losses.
GST was implemented in India on July 1, 2017 as a part of the One Nation One Tax movement, doing away with other taxes such as the Value Added Tax (VAT), excise duty and service tax. However, petro-products such as petrol, diesel, natural gas, crude oil and aviation turbine fuel (ATF) were excluded from the GST regime. Click to read more
In what seems to be a huge relief for several sectors, the Goods and Services Tax (GST) on ‘buy one get one’ products, free samples and additional quantities of products may not be taxed anymore, reported The Economic Times. Several sectors like FMCG, pharma, textile, food and retail chains, who offer freebies along with their products as part of a marketing strategy will breathe a sigh of relief if tax collection on ‘extras’ is stopped. The report goes on to suggest that tax authorities had earlier sent notices to companies belonging to the aforementioned sectors, enquiring about the freebies which also became taxable under the ambit of the GST. Click to read more
Nitin Kumar bought a flat in an under construction project and pays 12% effective Goods and Services Tax (GST) every time he pays an instalment. He has not been able to avail the benefit of the input tax credit paid by the developer.
What exactly is Input Tax Credit (ITC)? Home buyers frequently ask this question while buying a property in the current tax regime. GST came into force on July 1, 2017. It is levied on the supply of goods and services. Click to read more
The rupee depreciation has impacted India’s paint makers, given that the raw materials are mostly imported. The surging cost of Brent crude has kept prices of crude oil-based derivatives, monomers and TiO2 (titanium dioxide) at higher levels for the past few quarters.
As a consequence, paint prices were raised by around 5% in fiscal year 2018. Prices were hiked by 2-3% in the June quarter as well. Increased prices, along with some cost-saving measures, aided operating margins of decorative paints market leader Asian Paints Ltd, and Berger Paints India Ltd in the three months ended June. Click to read more
The Kerala government will ask the goods and services tax (GST) council to abandon the uniform tax structure of the indirect tax regime. Kerala, which faced the worst floods in a century, will seek support from other states to get a free hand in setting tax rates or levy a cess over GST rates to raise emergency funds during natural calamities, the state’s finance minister, Thomas Isaac, said. Click to read more
Kicking the butt was never easy, and the Goods and Service Tax (GST) does not make it any easier.
Whereas cigarettes face a ‘sin tax’ of 28 per cent and cess, Nicotine Replacement Therapy (NRT) products attract 18 per cent tax.
Among NRT products, nicotine gum is the most popular, in addition to nicotine patches, lozenges, and oral strips. Prior to the GST, the total tax on these products stood at 11.3 per cent — 6 per cent Central Excise and 5.3 per cent weighted average of the Value-added Tax (VAT). Click to read more
Before roll out new GST return form, at least three months of time should be give to registered traders for training and practice. The penalty imposed on mistakes committed in returns must be waived off for nine months. This will help in building confidence among stakeholders.
These are some of the suggestions, which Ahilya Chamber of Commerce and Industry gave to GST Council chairman on Tuesday. The GST Council in its meeting held on July 21, had proposed new format of GST return for registered traders. Click to read more
Leasing activity in India’s Industrial and Logistics space gained 45% in the first half of 2018 to close to 10 million sq.ft. of space as compared with H1 2017, mainly owing to GST implementation, CBRE said in a report.
The transactions were primarily driven by consolidation and expansion initiatives of e-commerce, 3PL, retail, and engineering and manufacturing companies, which together accounted for more than 75% of the leasing during the period. Click to read more