Goods and Services Tax (GST) was introduced on 1 July, 2017 and is about to complete one year in operation. Let’s look at how things stand a year later.
India has four non-zero rates of tax when it comes to the GST; 5 percent, 12 percent, 18 percent and 28 percent (Actually, it has six non-zero rates of tax given that gold is taxed at 3 percent and precious stones at 0.25 percent). Over and above this, there is a special cess on certain goods categorised as luxury and sin goods. Hence, we have many rates of GST. The Indian bureaucrats and politicians, have designed one of the most complicated GST systems in the world. Click to read more
The finance ministry is drafting an annual return form for the filing of the Goods and Services Tax that will be brought upon in the upcoming GST Council meet.
This will help the revenue department collect additional data from taxpayers. Sources in the finance ministry informed the form has to be filed additionally along with the existing monthly GSTR-3B.
This comes after finance ministry complained of not enough information being shared by taxpayers in the monthly GSTR forms. The new annual form will seek all business details to help the government maintain the invoice-wise database. Click to read more
Despite demonetisation and implementation of the Goods and Services Tax (GST), there was no evidence that listed private sector manufacturing firms have de-stocked or liquidated their inventories, the Reserve Bank of India (RBI) said.
In the report, analysing the performance of listed non-government, non-financial firms the RBI said these firms posted a turnaround in 2016-17 mainly due to the improved performance of the manufacturing sector, even as losses incurred by the companies in the services sector (other than in information technology) operated as a drag on the aggregate performance. Click to read more
Government should ensure that ‘One Nation, One Tax’ spirit of Goods and Services Tax (GST) should be realized, demanded trade leaders at the end of two-day National Conference of Confederation of All India Traders (CAIT) in Ahmedabad. The way states are implementing e-Way Bill, the spirit of the tax is being diluted, they said. Talking to DNA, BC Bharatia, national president of CAIT said that, there is a great deviation in the manner different states are implementing e-Way Bill. “Some states have exempted intra district transport of goods from e-Way Bill, some have exempted goods worth Rs50,000 from e-Way Bill, while some have kept the threshold limit of Rs One lakh. Traders are confused and penalized since laws are different. We want uniformity,” said Bharatia. Click to read more
The government on Tuesday extended the special fortnight-long drive to process pending GST (Goods and Services Tax) refunds by two more days till June 16. It said that refunds worth over Rs. 7,500 crore were already sanctioned as a part of this drive till now compared to Rs. 5,350 crore sanctioned in the earlier drive which lasted from March 15 to 29.
“In view of overwhelming response from exporters and pending claims, the period of refund fortnight is being extended by two more days, that is up to June 16,” an official statement said.
The government had last month announced the fortnight-long drive from May 31 to June 14. Click to read more
Telangana Finance Minister Etela Rajender today said the state would suffer huge financial losses if the Centre brings petrol and diesel under the ambit of Goods and Services Tax (GST).
Speaking to reporters on the sidelines of a programme, the minister said Telangana differs with some of the terms of reference issued by the 15th Finance Commission.
“This (bringing petrol and diesel under GST) is not a correct decision. It would hurt the federal spirit of our country. If these products are brought under GST, state finances will be further reduced,” he said. Click to read more
The GST was not just a grand mid-night event in India, it was a transformation which was felt. From initial confusion, chaos, protests and teething troubles, the GST regime has largely stabilised in last one year, but not as much as the government claims, say several experts. The Narendra Modi government sure has won accolades around the globe and back home for breaking the 17-year-long impasse in getting the Goods and Services passed in the country, responding quickly to difficult situations and proving that the federal system can work. Click to read more
Bank recapitalisation along with NPA resolution has started bearing fruits as can be seen in form of the double-digit growth in bank credit in April, the government said on Tuesday. The banks are also getting benefitted by bad loan resolution program through NCLT, he added. “BankRecap in Oct 17 showing results. Bank credit 10.4% in April ’18 up from 5.9% in Oct ‘17; supporting GDP growth in March 18 at 7.7%. NPA resolution through NCLT and write back helping banks,” Financial Services Secretary Rajiv Kumar tweeted. Click to read more
The special IGST refund fortnight being observed by the Customs Commissionerate, Ludhiana under orders of orders of Central Board of Indirect Taxes and Customs (CBIC) is turning to be a huge success.
A large number of businessmen including leading export houses are making use of this opportunity to get their pending IGST refunds processed without any hassle and so far refunds worth Rs 143.87 crores have been processed by department in the fortnight which started on May 31 and will end on June 16 after CBIC on Tuesday evening extended the drive by two more days. Click to read more