Taxpayers registered for goods and services tax (GST) have begun receiving notices from the tax department, asking them to produce documents for detailed verification of transitional credits claimed. The government had earlier identified top 50,000 assessees in terms of the claims for further analysis. In the GST regime, businesses are allowed to claim credit for central taxes (excise and service tax) paid on the stock bought in the pre-GST regime but sold after July 1, when GST came into existence. Click to read more
Bihar Chief Minister Nitish Kumar sought an exemption of food prepared as ‘langar’ in Gurdwaras under the Goods and Services Tax (GST) structure.
In this regard, Kumar penned a letter to Finance Minister Arun Jaitley, seeking exemption of all inputs related to the provision of food through a langar (community kitchen) in the Sikh place of worship.
“It is my considered view that the levy of tax should be limited to activities which are undertaken in the course of business. Click to read more
The Goods and Services Tax (GST) regime should be extended to hitherto uncovered sectors — electricity, real estate, alcohol and petroleum products, the new CII President Rakesh Bharti Mittal said.
Time is ripe for Corporate India to start investing in the economy to take advantage of the green shoots and the incipient signs of consumption recovery in rural India, Mittal said in his first press conference after assuming charge as CII President. Click to read more
The Bombay High Court has upheld the Goods and Services Tax (GST) levied by the Central Industrial and Development Corporation of Maharashtra Limited (CIDCO) on one-time lease premium charged for letting out plots of land on lease basis. The bench of Justice SC Dharmadhikari and Justice PD Naik were hearing a writ petition filed by the Builders Association of Navi Mumbai and another realtor based out of Navi Mumbai. They challenged the levy of 18% GST on one-time lease premium charge and sought directions to refrain CIDCO from levying GST on members of the petitioner association as well as the second petitioner for such transaction. Click to read more
Major municipalities in the State, including the Greater Hyderabad Municipal Corporation, have reported losses in revenue from an unexpected quarter.
The urban local bodies suffered losses to the tune of ₹100 crore after the entertainment tax was brought under the ambit of the Goods and Service Tax since the introduction of the new tax regime since July 1 last year. The GHMC is the biggest sufferer losing around. Click to read more
Private sector lender YES Bank has launched a credit product to help small businesses avail secured loans based on their Good and Services Tax (GST) returns.
Called YES GST, the product is an overdraft (OD) facility for micro, small and medium enterprises (MSMEs), and is a first-of- its-kind product in the banking industry. Through this, small businesses can avail ODs up to ₹1 crore, based on their annual turnover and backed by GST returns. Click to read more
The idea of the Goods and Services Tax (GST) was first conceived by the task force on implementation of the Fiscal Responsibility and Budget Management Act, 2003. The tax system was conceptualised to address the heavily skewed proportion of indirect tax rates that prevailed under India’s complicated tax regime. Considered as a destination-based tax, the final introduction of GST on July 1st 2017 sought to simplify the federal construct of indirect taxation, lower compliance cost. Click to read more
The government should rationalise the goods and services tax (GST) by reducing the number of slabs and cut corporate tax rate to 18%, said Bharti Enterprises vice-chairman Rakesh Bharti Mittal, who took charge as the Confederation of Indian Industry (CII) president for 2018-19 this week.
In an interaction with the media on Thursday, Mittal said the government should widen the tax base and reduce the corporate tax to 18% without any exemptions. Click to read more
India will reverse 2 years of declining growth as the economy is set to expand by 7.3% in fiscal year (FY) 2018 and 7.6% in FY2019, aided by various growth-oriented policy measures, says a new Asian Development Bank (ADB) report.
In its latest Asian Development Outlook (ADO) 2018 report, ADB notes that the dip in growth to 6.6% in FY2017 was driven in part by lingering effects of demonetization, which impacted the informal sector in the first half of FY2017. Teething issues related to implementation of the Goods and Services Tax (GST). Click to read more
In what could raise the compliance burden of taxpayers under the GST, the Authority of Advance Ruling (AAR) in Kerala has ruled that the GST will be levied on recovery of food expenses from employees for canteen services provided by the employer. “It is hereby clarified that recovery of food expenses from the employees for the canteen services provided by company would come under the definition of ‘outward supply’ as defined in section 2 (83) of the Act, 2017, and therefore, taxable as a supply of services under GST. Click to read more
The small and medium businesses and retailers are still grappling with the know-hows under the Goods and Services Tax, a survey carried out by e-commerce app WYDR revealed.
It’s been more than nine months since the roll-out of India’s new tax regime- GST but business-men are still facing difficulties and challenges in understanding the whole process of GST, according to survey report. Click to read more