Goods and services tax (GST) collections slipped for second straight month to Rs80,808 crore in November, down from over Rs83,000 crore in the previous month.
The total collection of GST till 25 December stood at Rs80,808 crore for November and 53.06 lakh returns have been filed for the month, a finance ministry statement said. Of the Rs80,808 crore collected, Rs7,798 crore has been garnered as compensation cess in November—the fifth month of GST roll out. Click to read more
The 70th year since Independence will go down in the history of India since the country switched over to the Goods and Services Tax (GST) regime, realising, thereby, the vision of a unified market in a federal system that guided the nationalist bourgeoisie in joining Mahatma Gandhi’s struggle to liberate India from the British. Of course, the structural reform came accompanied with pain for trade and industry caught off-guard by the rigours of new compliance procedures. Queried by corporate leaders at industry chamber Ficci’s 90th AGM earlier this month on how GST was impacting through lower tax collections, Finance Minister Arun Jaitley put the onus on them. Click to read more
Every year has its economic stories to recollect, and 2017 has been no different. When one looks back on the year, one is remind of that phrase from Macbeth: “full of sound and fury, signifying nothing”. That was the sense that one would get when one tries to make out something from the clutter. We are great in ‘doing business’, ‘fastest growing economy’, ‘introducing plethora of reforms’, ‘Bharatmala, UDAY, UDAN, INDRADHANUSH, UJALA’, etc. But at the end of the day there are few jobs being created and investment is not taking place. Just what is happening? Stock markets across the world went crazy and berserk, and all the greedy and gullible investors have switched over to stocks. Or is it Bitcoin now? The world economy is still wobbly, but who cares as long as the indices are singing a different song. Click to read more
It has been about six months for Goods and Services Tax (GST) to have been implemented. However, teething trouble appears to continue plaguing businesses. Amid these, various exporters are among the worst affected lot, with pending Integrated GST (IGST) refunds from the government. Thanks to this, a number of them are reeling under severe crunch for working capital and as a result, their order books have been impacted. Click to read more
The GST regime may have one unintended consequence: It may steal the thunder of the Budget speech when it comes to making changes to indirect tax rates.
Direct tax will take the centre-stage in Part B of the Budget document. And this will happen rightaway, when Arun Jaitley rises to read out his Budget for 2018-19, the first such exercise since the ushering in of the landmark Goods and Service Tax regime.
This is because, for the sake of GST, the Centre has let go of its exclusive powers to tax manufacture of goods (that is, excise) and provision of services (service tax). On their part, the States have given up their exclusive powers to tax sale of goods (sales tax/VAT). Click to read more
Several companies may face challenges on product categorisation under the goods and services tax (GST), experts said. This could revolve around possible questions such as whether Pepsi’s Nimbooz is lemonade or pulp juice, Appy Fizz is an aerated or juicebased drink, and Red Bull is an aerated or energy drink, they said.
That’s due to lack of clarity on how to tax some products and a backlog of cases regarding classification ambiguities, the experts said. The answers to those questions will determine the tax rate. For instance, lemonade is taxed at 28% but pulp juice at 12%. Click to read more
Mobile handset companies, under the aegis of Indian Cellular Association, have sought additional six months to liquidate pre-GST period devices so that they can avail input tax credit.
The deadline to avail input tax credit by mobile firms on handsets manufactured before July 1 is December 31, 2017.
“Our feedback is that the six-month July-December 2017 period is insufficient to liquidate the old stock… at least 20-30 per cent stock is still in pipeline in the vast supply chain under 35 GST jurisdictions,” ICA National President Pankaj Mohindroo said in a letter to Finance Minister Arun Jaitley on December 23. Click to read more
To promote electric vehicles (EVs) in India, auto industry body SIAM has suggested reduction of Goods and Services Tax (GST) on such vehicles to 5% besides giving one-time Income Tax (I-T) deduction of 30% of vehicle price for non-financed buyers. In a white paper submitted to the government, the Society of Indian Automobile Manufacturers (SIAM) also mooted exemption from road tax for EVs while stating that a multi-pronged, segment and customer-specific policy will be needed for a successful transition to electric mobility. Click to read more