Within one year of GST launch, 48 lakh enterprises have been added as compared with 66 lakh enterprises registered in all these years since Independence. This may be attributed to the simple procedures adopted under GST.
An analysis in the ‘Economic Survey’ explains the reason for this phenomenal increase in indirect tax payers. Majority of the new registrants come from the business-to-business (B2B) segment and small enterprises who have voluntarily chosen to register — although they could have opted out because of their turnover — as they can seek to get the benefit of input tax credit. This became possible because GST has integrated the entire value chain, from raw material to retail. Click to read more
With an aim to benefit customers, GST Council last month slashed rates on nearly 100 items. The revised GST rates came into effect 27 July this year. In the latest, the government has announced that anti-profiteering measures will be initiated against those traders who are are not passing on the complete benefit of price cut to the consumers. If the benefits of cut in rates are not passed on to the consumers, the affected consumer or consumers may file an application before the Standing Committee on Anti-profiteering, if the profiteering is of all India character, Central Board of Indirect Taxes and Customs (CBIC) said in recent advisory. If the profiteering is of local nature, the affected consumer or consumers can approach State Level Screening Committees. Click to read more
Complicated returns, technical glitches in the GST Network and increased compliance burden due to multiple monthly returns had turned returns filing a chaotic experience for taxpayers in the first year of the GST regime.
To address these concerns, the GST Council has approved a single monthly return for all taxpayers and given leeway to smaller taxpayers to file quarterly returns through simplified forms. While the new returns and the modified method to claim input tax credit — that may be implemented in early 2019 — will reduce the compliance burden and check tax evasion over the longer term, smaller businesses are likely to face hardships in the changeover phase. Click to read more
Procter & Gamble (P&G) and Johnson & Johnson (J&J), the makers of the top selling brands of sanitary pads Whisper and Stayfree, among others, are under the scanner of the anti-profiteering authority and may have to cough up huge penalties if found guilty of profiteering.
Goods and Services Tax (GST) Council, in its meeting on July 21, had decided to exempt sanitary napkins from the indirect tax. Earlier, it used to attract GST at the rate of 12%. Click to read more
Finance Minister Piyush Goyal on Sunday said that many big nations don’t have the courage to implement a tax reform like the Good and Services Tax (GST).
“No big country has ever had the courage to implement something like GST. It’s not there in the US or China. Big nations don’t have the courage to bring such huge change,” Goyal said at an event here while interacting with Bihar Chamber of Commerce and Industries. Click to read more
Jalandhar MP Santokh Chaudhary has raised the issue of Goods and Services Tax (GST) in the Lok Sabha where he stated that due to high GST slabs imposed on sports goods, the industry is on the verge of closure in the city.
He said all items must be brought under the minimum 5 per cent slab. Small items like whistles, helmet and skipping ropes had been put under higher slabs which must be brought under the 5 per cent slab.
Sports Industrialists on Sunday met the MP and thanked him for raising their issues with the Finance Minister after which the latter gave an assurance that he would raise their demands in the national GST Council. Click to read more
The IT backbone of the Goods and Services Tax was not given enough time to prepare a system to the satisfaction of the GSTN which led to the glitches in the implementation of the new tax regime, a top official said.
However, he added, the system had now stabilized and the policymakers had also acknowledged the need to give enough time to the GSTN to implement any further changes to the system and that there should be smooth sailing in the days ahead despite major changes in the offing like complete overhaul of the return filing system. Click to read more
Fortified toned milk and supply of drinking water not in sealed containers are exempt from Goods and Services Tax (GST). But treated tamarind kernel powder attracts 5 per cent GST.
The three product categories are part of a list of 11 for which the Finance Ministry has tried to clear doubts over the applicability of GST rates.
Other product category in the list include sugar (processed from cane and beet), plasma products, wipes using spun lace non-woven fabric and quilt along with comforter. In two other circulars, the Ministry has issued clarifications on applicability of GST on products related to fertiliser and oil refinery industries. Click to read more