The collection of Integrated Goods and Services Tax from imports crossed Rs 20,000 crore in July — the first month of the roll out of the new indirect tax regime, pointing towards a major jump in revenues. Total customs revenues in July 2017 stood at Rs 26,500 crore as against Rs 16,625 crore collected in July 2016.
Collections have been quite robust,” a government official said. However, the official said IGST collections have also received a boost from the fact that there is a component of state GST as well in the tax. Click to read more
The GST Council in likely to consider this week lowering of tax rates for job works for making garments to 5 per cent from 18 per cent, a source in the finance ministry has said.
The panel, headed by Finance Minister Arun Jaitley and comprising of representatives of all the 29 states, is also likely to consider removing anomaly in taxation in cases where the intermediate goods are taxed at the highest bracket than the tax on final output, the source said.
It will be the first full fledged meeting of the GST Council, chaired by Jaitley and comprising state counterparts, after the roll out of the new indirect tax reform on July 1. Click to read more
After initial hiccups, India seems to have come to terms with the Goods and Service Tax (GST) which kicked off on July 1.
According to the chamber of associations of Maharashtra industry and trade (CAMIT), the transition has been quite smooth. “There are still some issues but overall the traders have now got used to GST,” said Mohan Gurnani, chairman, CAMIT.
The GST department which was previously the sales tax department in states had started a helpline and deputed staff to help traders. Seminars were also held to spread awareness. Click to read more
The Goods and Services Tax has been uniformly seen by marketers and their counterparts in advertising agencies, media agencies, etc. as the ‘Good Tax’. But the implementation of the Good Tax has led to some marketers tightening purse strings, and demanding agencies to make-do within the set budgetary constraints without actually increasing ad spend to account for GST. As the month of July draws to a close, we take a look at how marketers reacted to the new tax regime.
When GST kicked in on July 1, some sales teams of broadcast networks were fielding calls from unprepared marketers who wanted to rejig their plans to account for the new tax regime. Click to read more
The Government has received representations from small businesses relating to exemption from GST, reduction in applicable rates of GST, and product and area wise exemptions. The GST rates on supply of goods and services have been notified based on the recommendations of the GST Council. The tax rates on goods have been fixed taking into consideration, inter alia, the total indirect tax incidence on goods prior to GST, which included the central excise duty rates / embedded central excise duty incidence, VAT rates or weighted average VAT rates, embedded VAT incidence, cascading of VAT over excise duty, incidence on account of CST, Octroi, entry tax, etc. Click to read more
Popular promotional schemes such as ‘buy one get one free’ will have to be scrapped under the GST regime as the new indirect tax norms suggest anything classified as ‘free’ will have to forgo input credit.
Various packaged products and food services companies have been offering such freebies to bolster sales. But, most offers have gradually been withdrawn since GST rolled out on July 1.
.A top marketing official at Parle Products told the Economic Times that they might drop such offers, and move to more direct discounts. Though it could create disruption, GST demands it, he said. Click to read more
The uncertainty over the manner and form in which the Real Estate (Regulation and Development) Act, 2016 (RERA) rules will be implemented across states and the implementation of the Goods and Services Tax (GST) from July 1, 2017 has created confusion among stakeholders, especially with respect to on-going projects, says FICCI-NAREDCO Real Estate Sentiment Index for the second quarter 2017.
The “wait and watch mode” continues to rule current sentiments in the sector. Most industry stakeholders are awaiting more clarity on various policy measures over the next six months. Click to read more
Traders’ body CAIT today said that the GST Council needs to re-look at the 28 per cent slab as many of the items placed in this bracket ought to be brought under lower rates of the new tax regime.
The body claimed that there are still “anomalies, disparities and contradictions” in various tax slabs under GST that should be addressed by the council. “Anomalies, disparities and contradictions do exist in various tax slabs under GST and as such it needs to be reconciled by the GST Council.”
“Moreover, the slab of 28 per cent requires a re-look as many of the items falling under this slab ought to be placed under other lower tax slabs,” the Confederation of All India Traders (CAIT) said in a statement. Click to read more
Road Minister Nitin Gadkari has written to Finance Minister Arun Jaitley seeking a reduction in excise duty on alternative fuels such as biodiesel and ethanol, to encourage eco-friendly fuel.
Biodiesel attracts zero excise duty. Some states such as West Bengal, Uttar Pradesh, Uttarakhand, Chhattisgarh and Rajasthan used to charge zero value added tax (VAT) on biodiesel. The Biodiesel Association of India had said that the higher GST rates could adversely impact the sector. The body feared that a high GST rate could shut the biodiesel industry, already reeling under the pressure of complex and varied taxation policies of the states. Click to read more