GST Ready India

GST Ready India’s Latest News and Updates

PM says he is open to GST changes to plug loopholes, make it more efficient

Jan 22, 2018

GST composition scheme may come under reverse charge mechanism to curb evasion

Worried by apparent goods and services tax (GST) evasion, India is likely to bring the composition scheme under the reverse charge mechanism right away. The government will move an amendment to the GST law in the budget session to introduce an enabling provision to prescribe the mechanism where it deems necessary. The GST Council has already approved about 40 changes to the law.

The law will be changed to introduce an enabling provision for you to bring in reverse charge mechanism wherever you want,” said a person aware of deliberations in the GST Council. “The thinking is that at least in the case of composition scheme the reverse charge should be done. Click to read more

PM says he is open to GST changes to plug loopholes, make it more efficient

Six months into the rollout and after dozens of changes, Prime Minister Narendra Modi on Sunday said he is open to more changes in the GST to plug loopholes and make it a more efficient tax.

He also attacked those opposing the Goods and Services Tax (GST), saying they were “insulting” Parliament.

In an interview to Times Now news channel, he compared the new law with that for income tax, asking how many changes and improvements have been made in the income tax law since its inception in 1961. Click to read more

GST rate cut likely to revive used car sales

The decision to reduce tax and remove cess on the sale of used vehicles is expected to boost the pre-owned car market, industry executives said.

The GST Council on 18 January decided to reduce the goods and services tax (GST) on used cars to 12% and 18% (depending on the size of the vehicle) from the existing 28%, and scrap the cess (varying from 1-15%). The new rates will be applicable from 25 January. Click to read more

Move to levy GST cess based on production

The GST Council is likely to consider levying cess on certain commodities such as pan masala at the manufacturing stage itself, a move aimed at checking tax evasion and shoring up revenues.

The council will look at levying the cess at the manufacturing stage based on the production capacity against the current practice of imposing it on the supplies made by the manufacturer.

This proposed amendment to the GST (Compensation to States) Act, 2017, would be discussed by the council in its meeting later this month. Click to read more

Trying to bring petrol, diesel under GST: Pradhan

Union Oil Minister Dharmendra Pradhan on Sunday said his Ministry is trying to bring petrol and diesel under the purview of the Goods and Services Tax (GST).

“We are trying that petrol, diesel and kerosene should also come under the ambit of GST. We are hopeful that the GST Council will agree to it shortly,” the Petroleum and Natural Gas Minister told reporters in Ujjain. Click to read more

SC stays proceedings against challenge to 12% GST on sanitary napkins across HCs

The Supreme Court on Monday stayed proceedings in all high courts, challenging the constitutional validity of imposition of 12% goods and services tax (GST) on sanitary napkins.

The matter was brought before a bench headed by chief justice Dipak Misra who said that the matter would now be heard by the apex court and issued notice to petitioners in high courts. Click to read more

GST: Why Nandan Nilekani solution is workable in face of low compliance

Given how revenues from GST have been slowing down over the past few months, and the poor compliance in terms of filing returns, the GST Council’s decision to go ahead with the inter-state e-way bill from February is understandable. It is also not surprising that the Council is toying with the idea of applying the reverse charge mechanism (RCM) to the composition scheme, where the collections suggest evasion is rampant. While some have interpreted the finance minister’s talk of anti-evasion measures—after the 25th meeting of the Council on Thursday—as adversarial, the collections suggest industry has been taking the tax payments way too casually. Click to read more

Govt should reduce GST on insurance sector to 10-12%

Sources indicated that these are also likely to be taxed at nil or 5 per cent, like most other handicraft items. Further, the prevailing concessional rate of 5 per cent for job work on handicraft items will also be available.

However, hand-woven sarees and dresses, leather bags and wooden furniture have not been classified as handicrafts.

Officials said that it was felt that sarees are already taxed at a concessional rate of 5 per cent under GST, while leather handbags and wooden furniture were seen as items of mass consumption. Click to read more

Karnataka CM urges centre to exempt handmade products from GST

Chief Minister Siddaramaiah today urged the Centre to exempt handmade products from the ambit of GST as it would benefit artisans and give a filip to rural employment.

“This (GST exemption on handmade products) would not only benefit a large segment of our rural population,but would also give a boost to rural employment and sustainability,” he said in a letter to Union Finance Minister Arun Jaitley.

“I therefore, urge you to take this issue on priority basis in the next GST Council meeting and decide favourably benefiting a large segment of rural artisans,” he added. Click to read more

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