For Shashank Dixit, founder and chief executive of cloud-based business software provider Deskera, the India opportunity in 2017 will mark the second big instance in the company’s short history where the goods and services tax (GST) roll-out is set to be a game changer.
The first such instance was in 2012, when GST had brought about a paradigm shift in the fortunes of Singapore-based Deskera, then a fledgling start-up.
The Singapore government had approved the company’s offerings as GST compliant, and the year saw it sign up Google as a client and rake in over 800,000 downloads, with revenues crossing the million-dollar mark. After eight years of operations, Deskera had become cash positive. Click to read more
GST has infused optimism in the job market. As the goods and services tax rollout date nears, companies across sectors are rushing to get their GST teams in place, leading to a jump in demand for tax and technology professionals.
The demand is being led by the FMCG sector, followed by consumer goods, pharmaceuticals, real estate, banking and insurance, as firms scramble to get the right team in place to benefit from the new tax regime, according to industry experts and executives at the Big Four audit firms. Click to read more
The Union Cabinet, chaired by Prime Minister Narendra Modi, on Thursday passed a resolution thanking chief ministers and finance ministers from all the states as well as political parties for extending cooperation for the introduction of GST.
“GST is a shining example of national integration and of fiscal federalism at its best. It is a testimony to the working of India’s federal democracy. It has been made possible because of close cooperation between Central Government and all the State Governments as well as all political parties,” an official statement said. Click to read more
For close to two years now, Revenue Secretary Hasmukh Adhia has kept the implementation of GST on top of his list of priorities. His mission is very close to fruition now. Earlier this month Adhia explained the nuts and bolts of the new tax regime to readers of The Indian Express in Part I of this special Explained event, in New Delhi.
What is so transformational about GST? We have heard that it is the biggest indirect tax reform since Independence. In what manner will it transform India’s entire tax structure? Click to read more
As the July 1 deadline for the rollout of the Goods and Services Tax (GST) draws near, the financial press is filled with tales of woe from businesses large and small. Apart from fervent pleas to the Government to defer implementation, India Inc is worried that the new tax regime will raise costs and tax outgo. Retailers are busy with pre-GST sales urging you to indulge in one last shopping binge.
But before you fall for all this propaganda, it is important to appreciate that GST is a tax reform intended to benefit consumers. Here’s why you should look forward to GST. Click to read more
For some days now, several service providers — from insurance and banking to telecom and hotels — have been sending emailers to customers warning of a GST-driven increase in prices+ starting July 1.
Alarmed and unconvinced, the revenue department in the finance ministry has roped in other ministries to impress upon industry to adjust input tax credit against possible increase in tax liability. The tax credit being referred to will be on taxes paid on the purchase of ACs and furniture used in the service providers’ offices. Click to read more
GST cell to sensitise govt officials
With the goods and services tax (GST) set to roll out from July 1, the ministry of textiles has set up a separate GST cell for stakeholders in the industry.
This was announced by textiles minister Smriti Irani as she chaired a workshop to assess the readiness of the textiles sector PSUs, export promotion councils and other stakeholders on GST on Thursday.
Sources said the minister also allayed the industry’s concerns on the impact of the GST. Click to read more
Global logistics group DHL, with plans to invest $100 million in coming years, is working with its customers to prepare for the Goods and Services Tax (GST) being implemented next month. Well ahead of the curve, DHL is planning to invest over $100 million in its supply chain operations in India in the next 3 to 4 years to meet the expected increasing demand following the GST implementation. “We are working together on how to create new solutions for the Indian market especially focusing on GST for likely immediate challenges,” said Scott Allison, President of Life Sciences & Healthcare sector, DHL Customer Solutions and Innovation. Click to read more
Consumer-facing companies selling groceries, medicines, cars and electronics could be ready for the new goods and services tax regime only by mid-July as a significant part of their ecosystem — dealers, wholesalers and retail stores — still lack basic IT infrastructure and licences for the transition.
“Larger companies are well on their way in putting systems in place. From the compliance perspective, they have got leeway to put it in place till August,” said Hitesh Sharma, partner, life sciences, at EY. “On the IT side, some are prepared 70%, some 30%.” Click to read more
As the roll-out date of new Goods and Service Tax (GST) regime approaches, the Bharatiya Janata Party Pashchim Nagpur Vyapari Aghadi had organized a workshop for city businessman to clear their doubts at a mall in Sitabuldi on Wednesday.
National president of Confederation of All India Traders BC Bhartia gave a presentation, informing traders about registration process, filing returns and compliance criteria. Click to read more
Multiplex companies—PVR Ltd and Inox Leisure Ltd—are expected to benefit from the implementation of the goods and services tax (GST). That’s mainly on account of the input tax credit on fixed costs that these firms bear such as rent, common area maintenance and so on. Ratings agency Icra Ltd estimates that input tax credit will be available on 33% of the total operating expenses.
The GST rate has been fixed at 28% for tickets costing over Rs100 and 18% for those under Rs100. Tickets below Rs100 account for a small portion of overall ticket sales of PVR and Inox. This is disappointing considering that the entertainment tax is in a similar range (of 28%) for these firms. Click to read more
The Goods and Services Tax (GST) may have led entrepreneurs running from pillar to post trying to understand its implication but for employees of tax consultancy and accounting firms GST has brought a mid-year bonanza.
People who are able to provide solutions over GST have been much in demand over the last 6-8 months. Sources say that separate teams working only on GST have been given promotions and sizeable increments even without the normal appraisal process. Click to read more
The Goods and Services Tax (GST) will roll out in exactly one week from now.
Like previous Value Added Tax, the GST is also a multi-stage, destination-based tax which will be levied at every stage where some value addition is done to a product.
So, what is the difference between the existing tax structure and the GST apart from the fact that the new regime will reduce a basket of taxes to mere three categories and four calculation slabs? Click to read more