At midnight on June 30, Prime Minister Narendra Modi will formally usher in the country’s new Goods and Services Tax (GST). First proposed in 2006, the GST will subsume more than a dozen state and central levies into one tax, unifying this country of 29 diverse states and 1.28 billion people into a single market for the first time.
GST will certainly impact your life in more ways than you can imagine. However, initially the impact will be more visible in certain sectors. Click to read more
The introduction of GST from 1 July 2017 would not only have an impact on businesses in India but also on the common man’s monthly budget. The prices of goods and services forming part of the monthly budget would either increase or decrease depending on the GST treatment.
For example, when an individual eats out in a restaurant, today there is service tax and VAT charged in the invoice, apart from having a service charge collected additionally. The service tax and VAT is not applicable for all types of restaurants and therefore varies from restaurant to restaurant. Under GST, the rate of tax on the restaurant invoice could be either 5%, 12% or 18%, depending on whether the restaurant is under composition scheme, non-air conditioned or air-conditioned, respectively. Click to read more
In the making since 2000, the Goods and Services Tax (GST) will finally kick-in from July 1.
The GST will be launched on the midnight of June 30 at a function inside Parliament’s Central Hall.
Touted by the government as the biggest tax reform since Independence, the GST is meant to boost growth and scrap local taxes that add to overhead costs and stymie businesses.
Foodgrains, cereals and vegetables have been zero rated under GST, other rate slabs are 5%, 12%, 18% and 28%. A cess will also be added to certain sin and luxury products. Click to read more
GST, only a few hours away from the grand midnight launch, will be a major disruptor. It will certainly expose small entrepreneurs to pain in the short-term, and even the bigger companies. Even the ardent fans of Modi government wouldn’t deny this likelihood.
But, that’s not an excuse for the Congress-led opposition parties to forget the fair rules of the game by simply disowning GST in the last minute. Just yesterday, Congress leader, Ajay Maken said GST in its present format is “unacceptable” to the party as it will “ruin” small businesses and create “unemployment”. Maken is right about the impact on small businesses. Click to read more
Goods and Services Tax (GST), the biggest fiscal reform India has seen since Independence, will kick in on July 1. In an unprecedented move, the Parliament will hold a midnight joint session to mark the historic move. Moreover, members of both houses will be busy during the day as 23 Parliamentary committees will meet to iron out the final shape of GST.
However, the Opposition is playing hardball and will not be part of the midnight joint session of Parliament. In fact, only a representative of Nitish Kumar’s JD(U) is attending the meet from the other side. Finance Minister Arun Jaitley has already asked members of the Congress and other parties to join the historic gathering. Click to read more
India is bracing with tense anticipation for the inauguration of the goods and services tax (GST), which is expected to rewrite the rules of business, while reducing the burden on the common man.
GST+ is billed to integrate India into a common market, bigger than the European Union. Proponents say that by doing away with the plethora of taxes and barriers on state borders, GST will accelerate economic growth. Click to read more
With barely a few hours to go before goods and services (GST) tax bill becomes a reality, channel / on-ground checks by two leading research houses – Bank of America Merrill Lynch (BofA-ML) and Edelweiss – suggest that India Inc, at least the small and medium enterprises, are not fully prepared for the transition.
Both, however, agree that beyond the short-term pain, there are gains in store over the long run. In the new regime, major Central and State taxes will get subsumed into GST, which will reduce the multiplicity of taxes. Click to read more
On the penultimate day before goods and services tax (GST) is rolled out, the GST Council will meet once more on Friday in Delhi. Although the Council is unlikely to revise tax slabs for goods and services, here is a list of items that various industry associations, traders and retailers have been representing to the government for rate revision.
Under the current regime, biscuits of all types will be taxed at 18%. While this does not hurt premium biscuits, it will lead to a rise in prices for glucose biscuits. As per Mayank Shah, category head of biscuits at Parle Products (makers of Parle G), biscuit makers, including him, have been representing to the government to reduce this tax rate. Click to read more
he BSE Sensex and NSE Nifty edged lower on Friday as caution ahead of the launch of a unified goods and services tax (GST) hit auto makers, with benchmark indexes heading for their first monthly loss this year. The revised tax structure will kick in from midnight Friday, marking India’s biggest tax reform since independence, unifying its $2 trillion economy and 1.3 billion people into a common market.
Weakness in Asian peers following losses on Wall Street overnight also hurt sentiment. The MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.7%. “There is some kind of profit-booking and sideways consolidation in the market.. Click to read more