Petroleum is the taxation milch cow for the central and the state governments and it is unlikely to be brought under the Goods and Services Tax (GST) any time soon.
That’s also the view of the Vice Chairman of Niti Aayog, Rajiv Kumar. Several senior ministers have demanded that petroleum products — basically petrol and diesel — be brought under the the new taxation regime.
But says Kumar: “It (oil) can’t be brought under GST. That’s because the total state and central taxes on petrol put together are around 90 per cent right now.” Click to read more
Former Finance Minister P Chidambaram today slammed the government for terming the Goods and Services Tax (GST) as a “celebration of honesty”, saying if that was the case, why did the BJP oppose it for five years prior to coming to power in 2014.
In a series of tweets, the senior Congress leader asked the government whether it knew that millions of traders and exporters were affected because their money was stuck and not being refunded promptly after the implementation of the GST regime, which completes one year. Click to read more
On July 1, 2017, history was created when the country witnessed the biggest and most important economic reform since Independence—the goods and services tax (GST). The reform that took more than a decade of intense debate was finally implemented subsuming almost all indirect taxes at the Central and state levels.
The GST, termed as ‘one nation, one tax’ by the NDA Government led by Prime Minister Narendra Modi, aims to provide a simplified, single tax regime in line with the tax framework applicable across the globe. Click to read more
There have been increasing talks about bringing petroleum products, essentially petrol and diesel, under Goods and Services Tax (GST). While such a decision will go a long way in bringing petrol and diesel rates down, considering the amount of taxation the state and central governments will have to let go, it is unlikely to happen anytime soon. This very notion has been openly expressed by the Vice Chairman of Niti Aayog, Rajiv Kumar, who in an interview with IANS said, “It (oil) can’t be brought under GST. That’s because the total state and central taxes on petrol put together are around 90 per cent right now.” Click to read more
At first many exporters and traders found it difficult to cope with the new tax regime Goods and Services Tax (GST) which was launched last year in July 2017, and now many of these taxpayers are on panic mode, as the Income Tax department asks to submit various documents under GST within seven days of receiving the notice. With shortage of time and heavy data mounting, it has become difficult for taxpayers to fulfill detailed verification of transitional credit claims made under GST. The reason is because of suspected large-scale foul play created by many firms, which has forced IT department to undertake such steps. Click to read more
The turnaround time for trucks has witnessed a substantial reduction since the introduction of GST a year back. In states such as Kerala, West Bengal, Maharashtra, Madhya Pradesh and Bihar, which were one time known for notoriously high waiting time spent at their borders, the impact has been much more pronounced, rating agency ICRA said. A study approximately 50 transport companies (pan-India) and 15 consumer-oriented companies (across various sectors) was conducted by the rating agency to comprehend the impact of GST on the ground since its introduction on July 1 last year. Click to read more
Almost exactly two years ago, Tamil Nadu was perhaps the only state stoically opposed to the Goods and Services Tax.
In June 2016, then Chief Minister J Jayalalithaa had said, “a manufacturing state like Tamil Nadu will permanently lose substantial revenue if GST is implemented.”
Jayalalithaa even predicted a revenue loss of Rs 9,270 crore, under the new tax regime.
A year into GST, state GST collections in Tamil Nadu stand at Rs 86,859 crore out of its total tax revenue of Rs 98,693 crore for FY18. In other words, GST alone accounted for 88% of the state’s tax revenue in just nine months, even as the state managed to lower fiscal deficit from 4.14% to 2.82%. Click to read more
A week after the BJP broke off its alliance with the Peoples Democratic Party in Kashmir and faced a group of Chief Ministers from Opposition parties standing in solidarity against the Centre along with the Aam Aadmi Party government in Delhi, Prime Minister Narendra Modi spoke of the first anniversary of the Goods and Services Tax (GST) regime as a credit to cooperative federalism. He was delivering his monthly radio broadcast, “Mann ki Baat”, on Sunday. Click to read more
A ministerial group set up to consider levy of sugar cess under the goods and services tax (GST) is likely to recommend three options including a levy on some other central taxes or a broader agricultural cess under GST, the proceeds of which will be shared among the centre and the states to tackle all agricultural woes.
The third option will be to levy a cess only for sugar.
These options will be presented to the GST Council that will take a final decision. Click to read more