Would it bother you if halwa were designated ‘jelly’, and dhokla ‘cake’? It is worrying mithai makers, though, as the goods and services tax (GST) has made taxation of sweets and savouries a minefield.
For example, plain barfi, which is a ‘sweet’, is taxed at the lowest rate of 5%, but chocolate barfi with a chocolate-flavoured layer on top risks being bundled with chocolates and taxed at 28%. Even plain barfi garnished with cardamom and dry fruit could be taxed along with nuts at 12%. Click to read more
Goods and Services tax or as our Prime Minister likes to call it ‘Good and Simple tax’ regime has been the center point of conversations and discussions across all business, political and media circles for over half a year now.
From a phase of pre-emption to discussions around actual roll-out, to analyses of possible impact across sectors etc., enough and more aspects have been deliberated upon by experts from different spheres. But, now the needle is shifting towards discovery of possible ways of implementing the regime and considerations around most effective tools for easy compliance with the changed law are on the rise. Click to read more
While last November’s demonetisation choked the cash-based unorganised retail trade in the country, the game-changing Goods and Services Tax (GST) is rewiring the retail eco system in other ways.
Walmart and Metro Cash and Carry stores have seen mom-and-pop store memberships surge as they shift away from unorganised wholesalers yet to be GST compliant.
A greater number of small grocers are rushing in to buy daily essentials from the bigbox format, a trend that companies expect to continue in the long term. Click to read more
The proposed anti-profiteering authority under the new GST regime will take up for scrutiny only those cases that have mass impact, but it will not look at small cases of undue profits, Revenue Secretary Hasmukh Adhia said.
A five member National Anti-Profiteering Authority, headed by a secretary-level officer, will be set up soon to keep a tab on businesses that have not passed on to consumers the benefit of lower tax rates under the Goods and Services Tax (GST) regime. Click to read more
Traders urged to cooperate and make it successful
Conveying the message that Goods and Services Tax has been launched with the objective of “one nation, one tax and one market”, Collector K. Veera Raghava Rao on Tuesday urged the trade and industry to cooperate and make it a successful one for the country’s economy.
Speaking at a one-day awareness programme organised for different stakeholders of the GST, top officers from Central Excise and State Commercial Taxes Departments explained the nuances of the GST. Click to read more
Finance Minister Arun Jaitley on Tuesday released a case study on the birth of the Goods and Services Tax (GST) in India titled “The GST Saga: A Story of Extraordinary National Ambition”, an official statement said.
“In view of the successful roll-out of the GST on 1 July 2017, it was felt that there was a need for the public to know of the story of how GST evolved, its timeline, the different stakeholders involved and how it eventually culminated in its inauguration in the Central Hall of Parliament of India on the midnight of June 30, 2017 and July 1, 2017 by the President and Prime Minister of India,” the statement said. Click to read more
Members of the Noida Entrepreneurs Association (NEA) on Tuesday made an appeal to senior officers of the Noida Authority that the 18 per cent GST imposed on all industrial lease rent be waived.
NEA members claimed that industries in Noida have always been exempt from tax on lease rent and this newly imposed tax could affect working costs. They also claimed that they were yet to see the real impact of ‘ease of doing business’ on the ground. Click to read more
Micro, small and medium enterprises, or MSMEs, are the engines of growth for the developing economies of the world. In India, MSMEs contribute 45 percent of industrial output and 40 percent of export and employ nearly 42 million people, second only to the agriculture sector.
There are around 35 million SMEs across the country. I foresee working capital management to be a greater issue for MSMEs in the coming months, as public banks (with greater than 80% market share) are reeling under the pressure of bad loans, and they will be more reluctant to give credit. Click to read more
India ranks on the 23rd position among 165 countries on the Global Cybersecurity Index (GCI), released by International Telecommunication Union (ITU)—telecommunications agency of United Nations (UN). The organization says greater effort is needed in this critical area. The GCI measures factors such as key areas of organizational, technical and legal, and international cooperation. Additionally, India’s biggest data breach was reported recently in which data of 100 million customers was compromised. Leaked information included customer details, like names, dates of activation, mobile phone numbers, emails, etc. At times, the Aadhaar or Unique Identification Number was leaked. Click to read more
Following the roll-out of the GST, state-run Indraprastha Gas Ltd (IGL) hiked the price of CNG in Delhi by Rs 1.11 per kg, and of piped natural gas (PNG) to households by 33 paise per unit, effective Wednesday, to account for increase in tax under the pan-India indirect tax regime. In Noida, Greater Noida and Ghaziabad, the revision would result in an increase in CNG of Rs 1.27 per kg. The new consumer price of CNG will be Rs 38.76 per kg in Delhi and Rs 44.42 per kg in Noida, Greater Noida and Ghaziabad.
“Indraprastha Gas Ltd announced the revision in the selling prices of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) in NCT of Delhi, Noida, Greater Noida and Ghaziabad to offset the overall impact on its costs after transition to GST regime,” an IGL statement here said. Click to read more
Traders stage protest, say the very survival of the industry would be jeopardised if they failed to hike the price
Showrooms selling silk sarees in Kancheepuram town downed shutters on Tuesday protesting against the imposition Goods and Services Tax. The Kancheepuram Handloom Silk Jari Sarees Manufacturers Association had given a call for a day-long protest following the imposition of GST of 5% on raw silk and 12 % on gold zari and 5% on the finished product by the Centre from July 1. Click to read more
The goods and services tax regime (GST) hasn’t really come as a boon for sugar mills that produce ethanol. The oil marketing companies (OMCs) have asked sugar mills to submit details of the input tax credit (ITC) they get before supplying ethanol for the government’s blending programme, hinting that the ITC amount can be deducted from the price of the bio-fuel payable to the suppliers. Also, the hope that the GST will end all kinds of levies on the inter-state movement of ethanol has been dashed, as states like Gujarat, Delhi, Haryana, Punjab, Maharashtra, Uttar Pradesh, Madhya Pradesh have still not scrapped taxes on inter-state movement of taxes (see the chart), frustrating the notion of ‘one nation, one tax’. In a letter to sugar mills, the OMCs have said: “…As per anti-profiteering provisions under Section 171 of the GST Act, it is mandatory for suppliers to pass on the benefit due to reduction in the rate of tax or from the ITC to the consumer by way of commensurate reduction in price. Click to read more
The Ministry of Textiles has clarified that GST registration is not required for job workers/ job units whose annual turnover does not exceed Rs 20 lakh. The ministry has also warned of action against master weavers who insist small job units must themselves GST registered.
The development comes after the ministry received various notices and representations from job workers saying that a few master weavers and grey cloth traders are insisting job workers and job working weaving units with turnover of less than Rs 20 lakh get themselves GST registered. Click to read more