The goods and services tax (GST) is expected to reduce prices by eliminating multiple levies, but could some goods become costlier?
While the product and service-specific GST rates will be known only after a few weeks, most manufacturers have done their calculations, and some, such as washing machine and air-conditioner makers, expect higher taxes. These appliances are taxed at 2324%, which is closer to the 28% GST slab than 18%. Government sources have already hinted that goods that fall between two GST slabs may be taxed at the higher rate, so the manufacturers’ estimates may be well-founded. Click to read more
The all-crucial meeting of the GST Council to fix tax rates for goods and services got under way here today, with states pitching for their preferred rates for select items.
The goods and services tax (GST) is slated for launch from July 1.
The two-day meeting of the Council, headed by Union Finance Minister Arun Jaitley and comprising representatives of all states, is working on fitting most of the items in the 5, 12, 18 and 28 per cent template. Click to read more
In what is being seen as the last round of discussions before the introduction of the Goods and Services Tax regime from July 1, the Centre and States will meet over two days on Thursday to finalise the fitment of commodities in rate slabs, the list of exemptions as well as the rules for the new levy.
In its meeting, the GST Council is expected to firm up the exact levy over each commodity under the new tax regime. Sources said the general principle to be followed would be to ensure that the tax incidence on most goods should remain the same. Click to read more
One does not know of too many industries today desperately seeking to be taxed. Tractor makers are among those, probably a handful, lobbying hard to get the excise duty exemption now on their product removed — more so, with the scheduled rollout of a nationwide Goods and Services Tax (GST) from July 1.
The reason for their apparently strange demand is simple: Not being chargeable to excise on output means it is not possible for manufacturers to claim any credit for duties and taxes paid on inputs. The tractor industry is at present forking out the Cenvat (Central VAT or value added tax) rate of 12.5 per cent on most components — engine, gearbox, drive shaft, differential unit, wheels/tyres, fuel injection pump, electricals, seats, castings, forgings, sheet metal fabrication, etc. Click to read more
On Thursday, finance ministers of 32 states and Union territories will converge in Srinagar, for what will be the final meeting of the goods and services tax (GST) council ahead of the rollout of India’s most ambitious indirect tax reform on 1 July. Mint spoke to Haseeb Drabu, the finance minister of Jammu and Kashmir, in his modest office in Srinagar. In the course of the interview, Drabu dwelt on the significance of Jammu and Kashmir playing host and the prospects of GST reordering India’s federal polity. Edited excerpts:
Why is this meeting of the GST council so significant? Click to read more
The Centre and states are working to ensure there is a lower GST burden on telecom and financial services, a move that will keep a check on insurance and phone bills, even as states pitch for concessions for products such as ‘puja samagri’ and textiles.
Sources told TOI the Yogi Adityanath government in UP has asked the GST council – which begins its two-day deliberations on deciding rates on Thursday – to keep zero levy on ‘puja samagri’ instead of the proposed 18 per cent. Click to read more
The government is re-designing the export benefit scheme MEIS to make it GST-compliant, a senior official said today.
Neeraj Prasad, Additional Commissioner, GST Cell, Central Board of Excise and Customs (CBEC) also said that the issue of working capital requirements under the new tax regime is being deliberated upon by the government.
He said this while addressing Ficci’s Executive Committee Meeting here. Click to read more
In a relief for business, the government is considering easier provisions related to the Electronic Way (E-Way) Bill and input tax credit for old stock under the coming goods and services tax (GST) regime. The GST Council will meet in Srinagar on Thursday and Friday, its 14th meeting, to discuss GST rates and finalise the rules. On strong corporate demand, the government is considering whether to enhance the threshold limit under the under-draft E-Way Bill, besides removing intra-state supplies from its ambit. Under the draft rules, moving of goods worth more than Click to read more
Ahead of the 1 July national roll out of the much-awaited Goods and Services Tax (GST), the Maharashtra legislature would be holding a special session from May 20 to 22 in Mumbai.
Spread over three days from Saturday to Monday, this is perhaps for the first time that the legislature session would be held on a Sunday.
In the weekly Cabinet meeting presided over by Maharashtra chief minister Devendra Fadnavis last week, the government cleared the Maharashtra GST Bill after hectic consultations between finance and planning minister Sudhir Mungantiwar and Shiv Sena president Uddhav Thackeray – and it has been ensured that the financial autonomy of local-self governments would be protected. Click to read more