GST Ready India

GST Ready India’s Latest News and Updates

Tax collection shortfall: Isaac blames it on GST

Feb 02, 2018

Council cuts GST rate cuts on 29 items and 54 services under composition scheme

Off late, the Goods and Services Tax Council (GST Council) cut tax rates on 29 products and 54 services. The same was announced at the 25th meeting of the council, wherein they agreed to make the process of filing tax returns simpler.

At the meeting chaired by FM Arun Jaitley, the federal indirect tax body cut GST rates on products, such as household cooking gas cylinders from private suppliers and precious stones and pre-owned vehicles. Click to read more

Budget 2018 predicts stable GST revenue growth

The central government’s revenue from goods and services tax (GST), which has shown signs of improvement in January, is projected to pick up double-digit growth momentum in FY19 and stabilize over the medium term, according to budget documents.

The centre’s GST receipts estimated at Rs4.4 trillion for eight months of tax collection up to March is set to grow to Rs7.4 trillion in full FY19, suggesting an 11.5% annual growth. Click to read more

GST E-way bill: Why business across India came to a virtual stop on February 1

As Finance Minister Arun Jaitley presented the Union Budget for 2018-19, millions of manufacturers, dealers, traders and logistics player across the country faced a harrowing time. The first day of compulsory application of E-way bill saw massive disruptions as the site crashed and taxpayers could not generate the document.

Late evening the Government in a tweet said the trial period for E-way bill has been extended, but did not give a date when it would be again compulsorily applicable. Click to read more

Pinning hopes on GST

At a time when conventional wisdom of the political establishment is decidedly against Goods and Services Tax (GST), the Economic Review pins its hope on the GST regime turning out to be beneficial to Kerala because of its profile of a consumer State.

“The GST is a destination tax and Kerala is a consumer State. Kerala has every reason to hope that the GST would fetch more tax revenue for the State and achieve the desired growth rate of more than 20% in tax revenues in the years to come. Moreover, considering the share of the service sector in the State GDP, the benefit of GST to the State is expected to be more than enormous,” the Economic Review noted. Click to read more

Economic Review pins hopes on GST

Even as the Left has been blaming introduction of the Goods and Services Tax (GST) as one main reason for financial crisis, the Economic Review 2017 hopes it would fetch the state more revenue in due course and achieve growth of more than 20 per cent in tax revenues.

The Review, tabled in the House on Thursday on state budget’s eve, termed GST introduction as one of the landmark tax reforms in India’s post-independent history. The GST is a destination tax and Kerala a consumer state, and there are reasons to hope it would bring in more tax revenue. Click to read more

Tax collection shortfall: Isaac blames it on GST

Finance Minister T.M. Thomas Isaac has blamed the tardy implementation of Goods and Services Tax (GST) for the poor growth in tax collection and the financial crisis, which the State is striving hard to grapple with.

Presenting the budget for 2018-19 in the Assembly on Friday, Dr. Isaac said the tax collection was expected to grow between 20-25% post GST, but it remained below 10% and with the compensation from the Centre, it touched 14%. The tax on petrol and diesel, registration and stamp duty also did not register an impressive growth. Hence, the growth in tax collection till November last was only 5.2% against the 16.08% projected in the previous budget. Thus the growth in revenue collection was only 7.7%. But the Plan expenditure grew by 22% and non-Plan expenditure 21%, he said. Click to read more

Kerala Budget: GST disappointing, benefits only corporates, says state FM

The Kerala government on Friday said Goods and Services Tax (GST) was highly disappointing and that it benefited only corporates. Meanwhile, the state, which tabled its Budget for 2018-19, has said fiscal deficit will be reduced to 3.1 per cent in 2018-19, while revenue deficit will be reduced to 1.6 per cent

Thomas Isaac in the budget speech said the main issue with GST is lack of a full-fledged administrative system. Click to read more

A lot depends on GST mop-up, oil & rural recovery

The Union Budget 2018 is pro-rural growth, which is well intended and not necessarily populist. But the success of the Budget depends on higher GST revenue collection, benign oil prices and a strong recovery in the rural economy. On an aggregate basis, this seems to be a well-balanced Budget. On the revenue side, the projection of 16.63 per cent growth appears to be reasonable, considering the buoyancy in direct tax and improving compliance. Whereas, on the expenditure side, there has been balanced allocation amongst various sectors with a continued emphasis on infrastructure and the health and rural sectors. Click to read more

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