During the run-up to the implementation of Goods and Services Tax (GST), government officials touted it as a reform that would simplify taxation. To be fair, GST was meant to subsume a number of taxes and make life easier for the people at large. But trust the bureaucrats running the government to make a simple thing such as the GST into a taxing affair. All pun intended.
In a move that has caught the auto industry by surprise and, in some cases, shock, the government has recommended an amendment to increase the cess on all passenger vehicles above four meters and with an engine capacity of 1,500 cc and above. Click to read more
After cigarettes, it is the turn of the auto industry to bear the brunt of the whims of the Goods and Services Tax (GST) Council. The sudden move to hike cess on large cars that are 400 metres in length and of 1,500cc engine capacity will puncture the euphoria of the carmakers.
Besides, the inconvenience of raising the prices of cars to pass on the cess hike and the fickle approach of the government may impact demand in the near term too, if the GST’s recommendations are implemented. Click to read more
Hurry up if you are planning to buy a midsize car or a luxury sedan. The Goods and Services Tax (GST) Council has decided to raise the cess on high-end automobiles. Several car models that have become cheaper after the introduction of GST are set to return to their pre-GST levels or become more expensive.
These include Honda City, Maruti Suzuki Ciaz and Toyota Corolla, as well as luxury vehicles. Click to read more
The GST council recently considered the issue of cess leviable on motor vehicles in its 20th meeting and recommended that Central Government may move legislative amendments required for increasing the maximum ceiling of cess leviable on motor vehicles falling under headings 8702 and 8703, including SUVs, to 25% instead of present 15%. However, the decision on when to raise the actual cess leviable on the same will be taken by the GST council in due course. Click to read more
The Confederation of Indian Textile Industry (CITI) today welcomed the GST Council’s move to slash the rate on job work like weaving, cutting, knitting and embroidery to 5 per cent from 18 per cent decided earlier.
The GST Council, headed by Finance Minister Arun Jaitley comprising representatives from all states, last week decided to tax all job works in the textile sector at 5 per cent.
This 5 per cent rate will be applicable for job works in apparel, shawls and carpets. Click to read more
For more than a year, he has been busy overseeing one of the biggest tax reforms in the history of Independent India, a paradigm shift which required both legal finesse and hard political bargaining.
With GST done and dusted, Finance Minister Arun Jaitley is quietly back in his role as the political troubleshooter for the party and the government. It all began with a seamless coup in Bihar late last month, say sources. The preparations, however, were on for almost six months before the big announcement was made in Patna. Click to read more
The logistics sector broadly comprises the road transport sector (consisting of unorganized small businesses, trucking, fleets and large transport companies), the storage and warehousing sector and finally third-party logistics (3PL). These can be further classified into big and small players and asset heavy/light companies. Given this classification, comparing industry performance as a whole is a complicated exercise. We tackle this by analysing data pertaining to 166 companies during 2010-2015 from the Centre for Monitoring Indian Economy (CMIE)’s industrial database to arrive at some useful insights into the industry’s performance. Click to read more
The oil and gas exploration and production business is likely to get a boost following a proposal to exempt the profit petroleum paid to the Centre from the Goods and Services Tax (GST).
The production sharing contracts (PSCs) signed for exploration and development of oil fields require operators to pay a pre-determined share of the surplus petroleum output to the Centre as a form of royalty. Currently, such profit petroleum is subject to GST as it has been construed as a payment made by firms for a service. Click to read more