The idea of moving towards a Goods and Services Tax was first mooted by the then Union Finance Minister in his 2006-07 Budget speech proposing its introduction from April 2010. An Empowered Committee of State Finance Ministers that formulated the design of the State Value Added Tax (transforming sales tax) was requested to come up with a road-map and structure for GST. Joint Working Groups of officials representing the states and the central government were set up to examine the nuances specifically on exemptions and thresholds, taxation of services and taxation of inter-state supplies. Subsequently, the Empowered Committee released its First Discussion Paper in November 2009, laying out salient features of the proposed GST, which formed the basis for discussion between the centre and states. Click to read more
The GST investigation wing has detected tax evasion of over Rs 2,000 crore in two months, and data analysis reveals that only 1 per cent of over 1.11 crore registered businesses pay 80 per cent of the taxes, a senior official said today.
CBIC member John Joseph said alike small businesses who are making mistakes while filing GST returns, multinationals and big corporates too have slip-ups.
“If you look at the way tax revenues are paid, it gives an alarming picture. We have registration of more than 1 crore businesses. Click to read more
It is almost one year since the implementation of GST (Goods and Services Tax) in the country back in July 2017, so it does call for a look at how the new regime is playing out.
We are using two reports for the assessment of GST, one released by the British brokerage firm, HSBC and the other by World Bank. Click to read more
FinanceNSE -0.57 % Secretary Hasmukh Adhia today said Goods and Services Tax (GST) has entered a “smooth phase” within a year of its rollout, with “pretty good” tax compliance and the efforts will now be to simplify tax return forms.
Biggest tax reform since Independence, the GST was rolled out on July 1, 2017 which subsumed over a dozen local taxes. It transformed India into a single market for movement of goods and services.
Over 1.11 crore businesses have registered themselves under GST. The average monthly compliance of return filing and tax payment is going up in a staggered manner and over a period it is expected to be around 96 per cent, Adhia said. Click to read more
Finance secretary Hasmukh Adhia is seen as a key driver of the rollout of GST. He spoke to TOI about the experience so far and the plan ahead. Excerpts:
It’s been a year since GST was rolled out. How do you look at the last 12 months and are you satisfied with the outcome in terms of the revenue collection and checking leakages?
This was a period full of activity and there has been an unprecedented amount of work that has been put in by the entire bureaucracy in implementing GST. Click to read more
As GST rollout is to complete a year in a few days, finance secretary Hasmukh Adhia tells Dilasha Seth and Indivjal Dhasmana that the system has perfectly stabilised now. Adhia, who played a critical role, in the roll-out says bringing petroleum under GST is no solution to their high prices. Edited excerpts:
After the GSTN portal crashed in initial months and then at a time of original date of e-way bill, has the GST system stabilised now?
I may beg to differ. There was no crash of the portal, there were minor glitches initially in certain applications. Those were set corrected very soon. Of course, the system has perfectly stabilised now. Click to read more
It’s been almost a year since India rolled out the goods and services tax (GST) amid intense intense debate over its impact on the economy. As the country gears up to mark the first anniversary of one of its biggest tax reforms since Independence, a Deloitte India survey shows that 77% Chief Financial Officers (CFOs) believe that tax has had a positive effect on their overall businesses. Click to read more
The Employees’ Provident Fund Organisation (EPFO) says 4.1 million formal sector jobs were created during September 2017-April 2018. There is nothing incredible about this seeming pace of job creation, which is at variance with the impression of job-deficient growth from aggregate surveys of employment by the National Sample Survey Organisation. A plausible hypothesis is that the goods and services tax (GST) is persuading employers to bring their hitherto informal workforce on to the rolls and make them formally employed. Click to read more
These days when I think of the looms, I am scared. Just don’t know till what time I can keep running this business,” said Raju, a job worker, who gets powerloom projects on contract from large fabric manufacturers.
In the last one year, his turnover have shrunk by more than half to less than 2.5 lakh per month from 6 lakh a month earlier.
Raju was one of the thousands of small loom owners and operators in Maharashtra’s Bhiwandi, who were out of the tax bracket till Goods and Service Tax (GST) brought fabric under its net. Click to read more