It has been a year since the Narendra Modi government rolled out the Goods and Services Tax (GST), on 1 July, 2017. The introduction of the indirect tax regime marked the end of over a decade of wrangling, when politicians struggled to build consensus across party lines. Firstpost is publishing a series of articles wherein experts will analyse the triumphs and the pitfalls of the roll out of the GST.
The Goods and Services Tax (GST) has undoubtedly transformed the business environment in India. Tax reform of this magnitude has possibly not been undertaken anywhere else, more so in a country having a large portion of unorganised business. Click to read more
The Goods and Service Tax (GST) has resulted in greater formalisation of the Indian economy with over 6.5 lakh new assessees having sought registration under the new indirect tax regime, the government said on Monday.
A Finance Ministry release here said that this increased tax information flow would help to eventually boost both direct and indirect tax collections in the country.
“In the past, the Centre had little data on small manufacturers and consumption because the excise was imposed only at the manufacturing stage, while the states had little data on the activities of local firms outside their borders,” it said. Click to read more
Under the GST regime, there will be now seamless flow of availability of common set of data to both the Centre and the states, making direct and indirect tax collections more effective, the government said. Introduction of the Goods and Service Tax (GST) has resulted in formalisation of the economy, it said. The statement added that the information flow would eventually augment not only the indirect tax collections but also direct tax collections. In the past, the Centre had little data on small manufacturers and consumption because the excise was imposed only at the manufacturing stage while the states had little data on the activities of local firms outside their borders, it said. Click to read more
Historic tax reform, the Goods and Service Tax (GST), has resulted in formalization of economy and consequently information flow would eventually augment not only the Indirect Tax collections but also Direct Tax collections. In the past, the Centre had little data on small manufacturers and consumption because the excise was imposed only at the manufacturing stage while the States had little data on the activities of local firms outside their borders. Under the GST, there will be now seamless flow of availability of common set of data to both the Centre and the States making Direct and Indirect Tax collections more effective. Click to read more
The micro, small and medium enterprises (MSMEs) sector is of special significance for the Indian government, expecting it to offer higher employment opportunities by 2020. The sector forms a key component of the government’s ‘Make in India’ and ‘Skill India’ programme.
The advent of the Goods and Services Tax (GST), meanwhile, brought with it expectations and debate about its impact on the domestic economy. These continue even after three quarters since the implementation of GST. In this context, it is most pertinent to study the impact of GST along with other policy initiative, that is, demonetization, on the MSME sector. Click to read more
Online food delivery service companies like Swiggy are facing the heat from restaurants after the goods and services tax (GST) on eating outlets was cut to five per cent, from 18 per cent in November, and input tax credit provision was withdrawn.
Some restaurants have started charging higher prices on online food delivery platforms. Others are negotiating a commission cut with online food delivery partners to make up for the 3.5 per cent additional cost due to unavailability of the input tax credit (ITC) facility. Click to read more
UP has been registering a steady growth in GST collections, and the rise has been to such an extent that the compensation paid by Centre to the states for revenue loss due to GST implementation has come down from 27% in September 2017 to nil for the months of April and May, 2018 in UP’s case. UP’s GST collection for April-May 2018 stood at Rs 7,415 crore, going substantially up from Rs 2,927 crore in September 2017, a 150% increase. Click to read more
West Bengal Finance Minister Amit Mitra today said that exporters across the country were awaiting refunds to the tune of Rs 25,000 crore, which have been stuck due to the “inability” of the GST Network (GSTN).
“There have been three lakh applications from exporters of the country, involving Rs 25,000 crore, which are awaiting refunds,” Mitra, also a GST Council member, said here during an exports conclave, a part of the Bengal Global Business Summit 2019 roadshow.
The GSTN auto verifies refund claims, but it is unable to do so, and therefore, manual verification is relied upon that leads to huge pileup of applications and impacts the working capital of the exporters, the minister said. Click to read more
As India’s new indirect tax regime turns one year next month, the Uttar Pradesh Goods and Services Tax ( GST ) department is likely to announce two parallel schemes to detect and check tax evasion, officials familiar with the matter said. Firstly, a scheme will be launched to give cash rewards to those who help the department detect tax evasion. The second one aims at encouraging consumers to demand bills by giving them prizes through a periodical lucky draws. Besides, action will be taken against traders suspected to be evading taxes. Click to read more