A number of goods such as cosmetics, shaving creams, shampoo, toothpaste, soap, plastics, paints and some consumer durables could become cheaper under the proposed goods and services tax (GST) regime as most items are likely to be subject to the rate of 18% rather than the higher one of 28%.
India is likely to rely on the effective tax rate currently applicable on a commodity to get a fix on the GST slab, said a government official, allowing most goods to make it to the lower bracket. Click to read more
The Good and Services Tax (GST) Bills are far from perfect and are not ready for implementation yet, according to former Finance Minister P Chidambaram. Any rush to roll out GST by July 1 could prove harmful, he cautioned while batting for an October implementation of the new tax regime.
“I personally think October 1, the second half of the financial year, is the correct date,” he said.
Chidambaram said the Bills still have some ?imperfections?, including the multiplicity of rates, compliance provisions and a lack of clarity on compoundable offence. Click to read more
The Goods and Services Tax (GST), which has been hailed as historic, revolutionary and as India’s biggest tax reform, is set to be rolled out from July. While former Prime Minister and eminent economist, Dr. Manmohan Singh recently stated that the new indirect tax regime could be a game changer, former Finance Minister P Chidambaram called the July 1 deadline as impractical and told The Indian Express that rushing to roll out the GST could be “detrimental.” It may be noted that Dr. Manmohan Singh had also added a word of caution about “difficulties in its implementation.” Click to read more
There was a time in India when being an entrepreneur got you really sad looks, and a hopeless marriage profile. Then the Silicon Valley found its second home in India, with Bangalore being the first choice, and saying that you were the founder of a ‘startup’ became the new cool. What started in the mid-2000s as a trickling bunch of California-bred NRIs looking for greener pastures to spread their wings has now become a tour de force of innovation and technology, so much so that the government decided to start its own scheme called ‘Start Up India, Stand Up India’ in 2015 to give this rapidly growing sector a helping hand. It is a smart move to rope in and formalise a chaotic industry that still managed to bring in $3.5 billion (Q2-Q3 2016) in angel and direct investments. Click to read more
Around 81,500 companies from the city have already migrated to the GST portal so far and the service tax department is hopeful that the remaining ones will be doing so by the April 30 deadline.
“As per the revised estimate, there are 2,07,000 active companies in Mumbai and out of them around 81,000 have already migrated to the GST portal. This includes the over 15,000 companies that migrated during the five-day GST migration camp that ended today,” chief commissioner of service tax department, Mumbai zone, Piyusha Patnaik told PTI today. Click to read more
Long before the Goods and Services Tax (GST) got Parliamentary approval last week, there were opportunities through draft laws for accountants, lawyers, tax-paying enterprises — even technology companies—to participate in its creation. “The government and administrative machinery are dialogue-oriented,” notes Bharat Goenka, managing director of software company Tally Solutions. Yet, the taxpaying community and government underestimated a statutory stipulation that endangers India’s small and medium enterprises (SME): input tax credit. “And that is our collective responsibility.” Click to read more
A day after the Parliament gave nod for the passage of Goods and Services Tax (GST) to be rolled out on July 1, the Minister of State for Commerce and Industry Nirmala Sitharaman has termed it as a ‘critical bill’ that was passed with every party’s support. The GST, according to the Minister, will give rise to one indirect taxation and help in improving the demand and supply of in-grown goods and services. Click to read more
Over the past few months, GST has been the talk of the town. Hailed as the most revolutionary tax amendment of the Independent India, GST is set to streamline a wide array of indirect taxes levied during different stages of manufacturing, selling and consuming goods and services across the nation.
However, to bring about a change in the existing systems is often fraught with apprehensions and rebuke. Those in the favor of the tax amendment believe that GST is going to set India free from the shackles of red-tapism and simplify doing business in India. Click to read more