GST Ready India

GST Ready India’s Latest News and Updates

Post GST roll out, shopkeepers still in state of confusion of rates

Aug 07, 2017

Direct impact: Now we know who all took the biggest knock of GST

India Inc is in the last leg of its earnings season for the quarter ended June 30, 2017. Every other consumer-oriented company is blaming destocking in the runup to the implementation of goods and services tax (GST) for tepid performance in Q1FY18.

However, Finance Minister Arun Jaitley on Sunday said the rollout of GST was ‘extremely smooth’ in the country. “It has been an extremely smooth turnover without any disruption,” he said.

Here are 15 companies that took a hit from the new tax regime: Click to read more

GST impact: Britannia Q1 net dips 1.4% to Rs 216 cr

FMCG major Britannia Industries Monday reported a 1.40 per cent decline in consolidated net profit at Rs 216.12 crore for the June quarter, impacted by the GST rollout and subdued growth in international business.

The company had posted a net profit of Rs 219.21 crore in the April-June period a year ago, Britannia Industries said in a BSE filing.

Its net sales were up 6.41 per cent to Rs 2,300.93 crore as against Rs 2,162.16 crore in the corresponding period of the previous fiscal. Click to read more

SUVs, mid-sized, large, and luxury cars to cost more as GST cess hiked to 25%

Sport Utility Vechicles, mid-sized, large, and luxury cars will cost more as the GST (Goods and Services Tax) Council has approved a proposal to hike cess on them to 25% from 15%. Under the new GST regime, these cars attract the top tax rate of 28%. On top of this, a cess of 1-15% is levied on them to create a corpus to compensate the States for loss of revenue from GST implementation.

The Finance Ministry, in a statement, said that after the introduction of the GST, the total tax on motor vehicles (GST plus compensation cess) has come down vis-a-vis the total incidence in the pre-GST regime. Click to read more

GST Council recommends raising maximum ceiling of cess on luxury cars, SUVs to 25%

The GST (Goods and Services Tax) Council has recommended hiking the cap on cess of SUVs, large, mid-sized and luxury cars to 25 percent from 15 percent now, a decision that may make these class of vehicles more expensive.

The Centre will now have to amend the GST (Compensation to State) Act, 2017 to increase the maximum ceiling of cess on big cars, the finance ministry said today.

“After introduction of GST, the total tax incidence on motor vehicles [GST + Compensation Cess] has come down vis-a-vis the total tax incidence in pre-GST regime. The Council…Click to read more

Are benefits of GST actually being transmitted to end users?

It’s been over a month since the rollout of the unified tax regime, Goods and Services Tax (GST) in the country still everyone is wondering what would be the overall effect of GST on the industry. The government also has been closely watching daily price changes in more than two dozen essential commodities to check any abnormal price movement.

Inflation has been in a declining trend after demonetisation and the CPI inflation continued to decline after GST as well to reach its lowest level in June.Click to read more

No clarity on GST over completed flats

Even as completed properties for which an occupancy certificate has been secured from a municipal body are exempted from GST, a section of builders continue to levy tax on it. Builders say there is a general confusion over applicability of the tax, especially on projects where the occupancy certificate has been secured for part of the scheme.

A large section of builders continue to levy GST even on completed flats in case the occupancy certificate is issued for part of the project. However, officials in erstwhile service tax department now in-charge of GST told TOI, the tax will only apply to amount paid for flats under construction. Click to read more

Centre, states to come out with post-GST product rates

Amid pressure from some states, the GST Council will soon start publishing rates of various products to prod companies to pass on gains, including those from input tax credit.

“To begin with, 150 items will be taken up. It will have a detailed explanation of previous taxes and prices as well as new prices after GST.+ It will also explain the price differential between the two tax regimes,” said an official who did not wish to be identified.

More items would be added once the campaign with 150 products takes off. Click to read more

GST: Not taxing sale of old gold jewellery could lead to tax evasion

The finance ministry has clarified that selling old jewellery won’t attract goods and services tax (GST). According to the finance ministry, sale of old jewellery to a trader cannot be taxed as it is not a transaction made in the course of running a business. Also, since sale of old jewellery is not the business of the seller, the transaction cannot be taken as a taxable supply of the item. However, if an unregistered supplier of gold ornaments sells it to registered supplier, reverse charge will apply, it added. Click to read more

GST council’s 20th meeting: Rate on textile job works, tractor parts lowered

The Goods and Services Tax (GST) Council in its 20th meeting on Saturday decided to cut the tax rate for job work for the entire value chain of textiles sector to 5 per cent along with reduction in rate for tractor parts to 18 per cent from 28 per cent. Also, the Council gave in-principle approval to the e-way bill rules, which envisage a technology-driven tracking of movement of goods worth more than Rs 50,000 and for sale beyond 10 km in distance. The e-way bill rules are likely to come into force from October 1. Click to read more

GST impact: Surat textile traders may go on strike again

The Rs 50,000-crore Surat-based textile industry says it is unimpressed at, the recent  goods and services tax (GST) cut on third-party services, popularly known as job work. The city’s textile traders plan to have a meeting on Tuesday with national counterparts on the course of action, including a possible renewal of their earlier strike. The 75,000-odd textile traders had resumed business on July 19 after the government had assured revision of rates in the August 5 GST Council meeting. Their strike had begun on June 16, with an estimated loss of Rs 5,000 crore.. Click to read more

Post GST roll out, shopkeepers still in state of confusion of rates

Call it the goods and services tax effect, the coming festive season could be different from previous ones because the shopkeepers are not clear about the new tax rates. According to Ankit Gupta, owner of Radha Krishna General Store at Bengali Market in New Delhi, he is charging separate GST rates for separate items and adding them up for to fix the final price.

Not only him, there are other shopkeepers like Gupta, who do not have any clarity on the tax rates, especially for “mixed supply”. Click to read more

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