The slowdown in exports may mark the beginning of trouble ahead, said exporters a month and half after the goods and services tax (GST) rollout. Consider this: Consignments worth Rs 300 crore of handmade carpets were held back last month.
While issues regarding the refund mechanism and blockage of working capital have been flagged frequently, exporters said their worries are now spiralling and getting reflected in production and overseas clients looking elsewhere. On Monday, official data showed exports slowing to an eight-month low in July in the current 11-month cycle of growth of exports with shipments remaining stuck in factories in the first week of last month. Click to read more
The number of dealers opting for the composition scheme under Goods and Services Tax (GST) has increased to 6.36 lakhs till August 8, a 24 percent increase in nine days. As of July 30, dealers opting for composition scheme under GST was 5.12 lakh, with the last date for enrollment being August 16.
Composition scheme is an alternate method of taxation that allows small businesses with annual turnover up to Rs 75 lakhs to pay tax at a concessional rate as well as reduce the compliance cost. The threshold is 50 lakhs for dealers across nine states including Arunachal Pradesh, Nagaland, Tripura. Enrollment into the plan, however, is optional. Click to read more
Occupancies in hotels that charge Rs 7,500 or more a night have dropped in the first month after the country rolled out goods and services tax, according to online travel sites. But they have seen higher bookings for midrange and budget properties.
A levy of 28%, the highest rate under GST, is imposed on hotels with room tariff of Rs 7,500 or more. Those that charge less face GST at 12% or 18%. Click to read more
Here is a delicious titbit for all connoisseurs of complicated tax rules. The government has clarified this week that food takeaways from air-conditioned restaurants will be taxed at 18% even when the customer is handed over the food in an area that does not have air-conditioning. Who is going to impose this rule? What if a restaurant owner registers the takeaway business as a separate entity? The mind boggles.
This newspaper has been a strong votary of the goods and services tax (GST)—and especially the clean structure that was originally envisaged. Click to read more
The Goods and Services Tax (GST), for sure makes businesses gain overall by reducing costs of logistics for both finished goods and raw materials, which is one of the major direct costs for multiple industries today. Certain organizations will gain more as the GST rate will be lower than the current tax rates they pay. Let’s look at the likely impact across sectors. Click to read more
Akshay Kumar starrer ‘Toilet-Ek Prem Katha’, which has raked in over Rs 50 crore already got a shot in the arm from the Yogi Adityanath government, which moved within two days to ensure that cinegoers get to watch the movie at cheaper tickets in the state.
In the process, the movie has become the first big Bollywood release to get such a benefit in the new Goods and Service Tax (GST) regime as UP waived state GST share on the movie’s tickets. State governments could earlier waive off ‘entertainment tax’ on movies. Click to read more
July 2017, the first month of the Good Services Tax (GST), did bring with it loads of teething problems that reportedly resulted in a drop of up to 25% in ad revenue. Industry experts, particularly from the television sector, admit facing the GST heat during the last two months. The impact on sales was so big that a few organisations have reportedly made it mandatory for the sales team to work for six days. Click to read more
LPG, kerosene, jewellery and currency are among the common use items that have been exempted from the requirement of obtaining electronic permits for transportation under the GST regime.
The Goods and Services Tax (GST) regime, rolled out from July 1, mandates obtaining permits called e-way bills for transporting goods consignment of more than Rs 50,000 in value with a view to checking tax evasion.
A senior finance ministry official said the GST Council in its last meeting on August 5 approved a list of 153 items that have been exempted from the requirement of obtaining e- way bills. Click to read more
The Goods & Services Tax (GST), which was rolled out in India on July 1, and its beneficial impact on the transportation sector has, for the second time, found mention in prime minister Narendra Modi’s nation-wide comments.
Following up on the subject first addressed in the ‘Man Ki Baat’ radio programme on July 30, the prime minister spoke about the considerable reduction of time and costs following GST within barely 45 days of the implementation of the reformative tax.
The abolition of inter-state check-posts after the implementation of GST has reduced time for movement of goods by 30 percent and saved thousands of crores of rupees, prime minister Narendra Modi said in his address to the nation from the ramparts of the Red Fort on the occasion of the 71st Independence Day on August 15, as reported by PTI. Click to read more
June quarter sales and profit growth of listed companies were hit by the transition to goods and services tax (GST), a Mint analysis shows. This has prompted analysts to continue cutting earnings estimates for the current fiscal and the next, thus making stock valuations look more expensive.
According to data compiled from Capitaline, June quarter net sales growth of 1,671 BSE-listed companies slipped to a three-quarter low of 4.51% as distributors and retailers stopped stocking goods and liquidated inventory ahead of the GST implementation on 1 July. Click to read more
India’s complex indirect tax structure became simpler and integrated with the new tax reform-GST. Experts believe that the Indian economy will get a boost with the cascading effect of GST in the long run. The successful GST implementation with a unified tax structure across diverse Indian regions is a daunting task, especially when not all Indians are completely yet aware of the benefits and processes related to GST.
To simplify and automate processes related to GST filling and adherence, a GST software is a must for all industries so that the new tax process doesn’t divert them from their core business processes. This article will elaborate few reasons why businesses should look out for a complete GST solution which complies with all GST norms. Click to read more
With less than a week left for filing interim tax returns under the goods and services tax (GST), taxpayers may be staring at another stumbling block. Sources told FE that the GST Network has delayed the delivery of application programming interfaces (APIs) for the summarised interim return (GSTR 3B) to GST suvidha providers (GSPs). This would mean the assessees will have to file returns directly on the GSTN portal instead of being able to use the IT solution provided by GSPs. However, a senior GST Network (GSTN) official said API for GSTR 3B was never intended to be delivered to the GSPs in the first place and was only accommodated as a deliverable as an afterthought. Click to read more
House, a place we stay in, a place we call home, the place that shelters us, is one of the basic requirements. People can’t just stop buying houses just because a 12% or 18% GST is being levied on it, this need is one that cannot be done away with and so this article aims to help all those homebuyers take a decision about the most feasible and easy on the pocket option for them.
Since after the roll out of GST, purchase of any developed plot or apartment attracts 12% GST, however, the purchase of a housing unit in a completed project, which has received occupation certificate (OC) or where registry can be done is exempt from GST. Click to read more
The Central Board of Excise and Customs had issued circulars 2/2/2017-GST and 4/4/2017-GST to clarify the issues relating to furnishing of bonds/letter of undertaking (LUT) for exports without payment of IGST. Considering the large number of representations, the CBEC issued circular 5/5/2017-GST on August 11, 2017, clarifying as follows: Click to read more