After Oil Minister Dharmendra Pradhan recently said that GST Council should consider bringing the petroleum products in the ambit of GST, questions are being asked as to whether the government will accept the idea or not.
Market watchers are saying that if government goes ahead with Pradhan’s suggestion and include fuel prices under the ambit of GST, there will be a steep downfall in the prices.
However, in a curious turn, taxes and duties seem to exceed the actual cost of production of petrol and diesel in the country. Click to read more
The increase in the prices of petrol and diesel to a three-year high despite the halving of crude oil prices in the international market is essentially because of the high tax burden on these fuels as running cars and SUVs in the country is seen as a luxury.
Both petrol and diesel are supplied by the oil companies to petrol pumps at a little over Rs 30 per litre. It is the imposition of Central excise duty and state government levies such as VAT that result in raising the price of petrol to over Rs 70 per litre and that of diesel to Rs 58.70 a litre. Click to read more
Oil Minister Dharmendra Pradhan on Monday categorically stated that the answer to the growing fuel prices lie in bringing petroleum products under the Goods and Services Tax (GST) regime. Speaking to ANI, he said, “The only solution to it is GST, which should cover all petroleum products. We are sincerely appealing to the state government and GST council to look into this issue. Petrol and diesel should come under GST in that way the infirmity of tax should be equally shared. Also this will help with tax predictability”. Click to read more
The transition to the goods and services tax (GST) regime for many shoppers has not been smooth, especially with regards to the bill of a transaction. This is because there have been instances where customers have been given unauthentic or improper bills.
Read on to find out how you can identify an authentic bill and a business that is eligible and compliant with GST rules. Click to read more
Several Indian companies, including some large entities, may start receiving notices from Monday on transitional tax credits in the run-up to the introduction of the single producer levy, two people with direct knowledge of the developments told ET.
The notices from the indirect-tax department follow last week’s direction from the Central Board of Excise and Customs (CBEC) that asked chief commissioners to verify all transitional credit claims beyond Rs 1 crore. About 160 companies, which collectively have claimed about Rs 65,000 crore in transitional tax credits, would be issued notices in the coming weeks. Click to read more
Earlier, the GST Council had announced “nil” duty on loose and “registered but without trademark” branded packs, which prompted many registered trademark brands to surrender their licenses to come out of the tax net. These mills have neither registered their brand with the local or national authorities nor received any “trademark” to recognise their brands. However, they continued to sell their product under a brand that they claim to be the local one. Click to read more
Three months ago, when the central government was getting ready to roll out the Goods and Services Tax, the textile industrial cluster of Surat, Gujarat, India’s biggest manufacturer of synthetic fabrics, was distinctly nervous.
At play were two conflicting views of how the new tax regime would affect India’s predominantly informal business sector. The government said GST would make it impossible for firms to evade tax. Even small companies would enter the tax net, boosting both the formalisation of India’s economy and tax revenue. Click to read more
It seems one of former Prime Minister Manmohan Singh’s predictions is likely to come true again. Singh had earlier said that GDP growth would be impacted by 2 percentage points on account of demonetisation. Though most of the drop in GDP was on account of Goods and Service Tax (GST), Singh was partly right as GDP did fall by 2 percent. Singh had also said that hasty implementation of GST would have an adverse impact on growth.
The way things stand, the GDP number for the September quarter will be affected as badly as the June 2017 quarter, if not worse. Click to read more
They call it ‘Project Zoom’ inside Rivigo, a tech-enabled logistics company headquartered in Gurgaon. Essentially, if a family wants to move from Delhi to Mumbai, you notify Rivigo online, listing the items to be transported. Rivigo’s staff of loaders, known as faujis, come to your house to pick up the goods and deliver to your destination. This project has been in the works for around a year at a company in the long-haul trucking tech segment. Rivigo, founded in 2014, Click to read more