Industry body Assocham has cautioned the government against resorting to a “knee-jerk” reaction to deal with slippage in GST collections, and said those revenues would pick up once the glitches in the system are addressed.
The Goods and Services Tax (GST) collections slipped for the second straight month to Rs 80,808 crore in November, down from over Rs 83,000 crore in the previous month.
Asscoham president Sandeep Jajodia said there is a need for an increased vigil on the implementation of the GST and related problems. Click to read more
Sony, Canon and Nikon called on the government to remove digital cameras from the highest goods and services tax (GST) slab of 28%, citing India’s commitment to the Information Technology Agreement (ITA) to persuade it to lower the levy.
“India amongst other Asian countries like China, Mauritius, Korea, Indonesia etc. signed the ITA and has met its commitment by exempting various IT products including digital cameras from the levy of basic customs duty,” they said in a letter to the GST Council and the finance ministry. “Demerit GST rate of 28% on digital camera may be inconsistent with the government’s clear intent to reduce tax rate on ITA products.” Click to read more
Faced with increasing number of complaints under the anti-profiteering rules, the Finance Ministry will soon come out with a standard operating procedure (SOP) for handling grievances relating to over- charging after GST roll out.
As many as 170 complaints have been filed before the standing committee and screening committee by consumers against businesses for not passing on benefits of tax rate reduction since the roll out of Goods and Services Tax (GST) from July 1. Click to read more
Under the roll out of Goods and Services Taxes (GST) last year, transporters are required to carry an electronic waybill or e-way Bill when moving goods from one place to another. This provision was to be implemented from February 1 pending IT network readiness. The GST Council in its meeting on December 16 decided to implement the e-way bill mechanism throughout the country by June 1, 2018. The e-way bill for inter-state movements will be implemented from February 1 and for intra-state movement from June 1. Click to read more
GST or Goods and Services Tax saw the light of the day on July 1, 2017. The new indirect tax regime subsumes several central and state levies. Touted as the biggest tax reform since Independence in 1947, GST has been cut on a host of consumer items. While the all-powerful GST Council has placed building materials such as bricks and sand under the 5 per cent slab, it has set a rate of 12 per cent on items such as LED lamps, paintings, granite and carpets. Publishing house Taxmann has made a list of some essential household items and the applicable GST rates. Click to read more
With a likely shortfall in GST collections for 2017-18, the government is expected to hold back a big chunk of unallocated Rs 1.2 lakh crore of IGST (integrated goods and services tax) to ensure the fiscal deficit doesn’t slip by more than 20 basis points. Economists point out that the revenues foregone on account of the cut in excise duties on auto fuels, smaller dividends from the Reserve Bank of India (RBI) and lower-than-expected receipts from telecom may result in the fiscal deficit coming in at 3.5% of GDP against the targeted 3.2%. While collections from personal income tax might be lower than those baked into Budget estimates, this could be made up with higher-than-budgeted corporation taxes. Moreover, the disinvestment target of Rs 72,000 crore could be overshot by a big margin of Rs 25,000-30,000 crore if the sale of HPCL to ONGC goes through. Click to read more
Reliance Jio’s disruptive pricing might have brought down telecom bills dramatically over the past one year, but a substantial chunk of what subscribers pay to telcos, be it post-paid bills or prepaid recharges, goes to the government. For every Re 1 that a consumer spends on telecom services, about 30 paisa goes to the government in the form of direct and indirect taxes and levies. That is significantly higher than the taxes that telecom users pay in the neighbouring countries such as China, Pakistan, Malaysia, Sri Lanka and Bangladesh. Click to read more
The first signs of a rebound in corporate earnings growth will likely be visible in the December quarter due to the favourable effect of a low base a year ago and higher consumer spending in the festive season, analysts say. The earnings will also indicate whether the disruption caused by the implementation of the goods and services tax (GST) on 1 July has receded.
The 8 November 2016 invalidation of high-value bank notes squeezed consumption in the third quarter of 2016-17, hitting sales and profits of companies. Click to read more
The The finance ministry’s new year gift is a notification reducing the Goods and Services Tax (GST) rate for manufacturers under the composition scheme, from two per cent to one per cent. The GST rate of five per cent for restaurants remains unchanged.
Others under the composition scheme need to now pay GST at one per cent only on their taxable turnover. Merchant exporters which procure goods on payment of only 0.1 per cent GST are now barred from exporting on payment of Integrated GST (IGST) and claiming refund of this. Click to read more