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Expected to hold talks on bringing real estate, stamp duty on a property before registration, petrol and diesel products under GST BUDGET NEWS  : Finance Minister Arun Jaitley chaired the twenty fifth assembly of the goods and services Tax (GST) Council in New Delhi on Thursday. also read: right here's what GST Council may also announce today after the essential meet A key time table for the assembly will be to planned on motives for the autumn in GST sales series, flagged as a main count number of difficulty for the finance ministry. other than this, the GST council is possibly to check the preparedness of GST community (GSTN) in managing the return filing manner. The GST Council in its twenty fourth meeting authorized the inter-kingdom e-manner invoice compliance, to be powerful from February 1, and compulsory intra-kingdom e-manner bill compliance powerful June 1. in advance of the Union finances, Jaitley can even preserve a pre-price range assembl...

The news sent benchmark 10-year bond yields down over 15 basis points BUDGET NEWS : India has cut its additional market borrowing requirement by more than half for the financial year ending in March to Rs 200 billion ($3.13 billion), Economics Affairs Secretary S C Garg said on Twitter. The news sent benchmark 10-year bond yields down over 15 basis points. Subhash Chandra Garg @SecretaryDEA Government has reassessed additional borrowing requirements taking note of revenue receipts and expenditure pattern. Requirement of additional borrowing being reduced from Rs 50000 crore as notified earlier to Rs 20000 crore. Last month, the finance ministry had said that the government is likely to borrow additional Rs 500 billion ($7.79 billion) in 2017/18 fiscal year that ends in March. CLICK HERE TO READ MORE : BUDGET 2018-19

Levy on Biodiesel has gone from 6% in excise duty to 18% in GST BUDGET 2018 : Struggling to survive despite the government 's clean energy dream, biodiesel industries have demanded the Goods and Service Tax (GST) rate on them be slashed from the current 18 to 5 per cent. The demand came days after solar industry made a similar pitch, stating while the unrealistic levy on the solar panels is killing the Indian industry and giving an edge to Chinese exporters. On Tuesday, the Biodiesel Association of India (BDAI) wrote to Union Finance Minister Arun Jaitley and Finance Ministers of West Bengal and Rajasthan seeking a reduction of high GST rate. The apex industry body pointed out that while there is a huge potential of producing more cleaner fuel in India, the extraordinary levy has bought the industry at the "brink of extinction". With the implementation of GST from July 1 2017, levy on Biodiesel has gone from 6 per cent in excise duty to 18 per cent...

The GST Council is also considering a 'staggered' system where bigger companies would be allowed to file their taxes first BUDGET 2018 : In what may be the single biggest new year gift to businesses, the GST filing process may be reduced to a single stage process, reported the Times of India. The GST Council meeting scheduled on January 18 will consider amendments in the filing process. Initially, filing the GST was a three-step process. A seller had to fill up a form (GST-R1) about output supplies, another about inward supplies(GSTR-2) and at last the tax liability is calculated and paid (GSTR-3). However, the government has already suspended the need to fill up the GSTR-2 and GSTR-3 forms indefinitely to ease the compliance burden. The ToI quotes a source as saying that those with no tax liability would be able to proceed to the third stage directly. Moreover, the GST Council is considering a 'staggered' system where bigger companies would be allowed ...

If the consumer has to benefit on the pricing front, the rate cut will have to be tax efficient to restaurants: NRAI President LATEST NEWS :  The National Restaurant Association of India (NRAI) is likely to make a representation to the government over the next two days regarding the passing on of benefits of the lower goods and services tax (GST) rates to consumers. NRAI has the country’s top fast-food chains, among others, as its members. The government on November 10 had slashed the GST on AC and non-AC restaurants — excluding five-star hotels — to 5 per cent from the earlier 18 per cent and 12 per cent, respectively. But the input tax credit, a facility to set off tax paid on inputs with final tax, was withdrawn with the November 10 revision, prompting restaurant chains, including McDonald's to withhold passing the full benefit of the tax cut. Their argument was that the non-availability of input tax credit pushed up costs by 10-12 per cent, implying that ...

The GST Council is likely to cut the tax rate on electronic items such as washing machine, refrigerator and air conditioner, which are in the top 28 per cent slot, in the next round of rationalisation. Last week, the Council overhauled the new tax regime, reducing the 28 per cent tax levied on 178 items to 18 per cent or lesser. Most important of them all, the Council decided to slash the GST rate on AC and non-AC restaurants to 5 percent from the current 18 per cent slab. The new rates have been effective since November 15. According to The Times of India, a fresh round of rate cuts is likely as the GST Council, chaired by Finance Minister, hinted that only luxury or sin goods are going to stay in the top slot. The move will be a big relief for consumers who might have felt the pinch. While rejecting the idea of the single tax system, Arun Jaitley said, “Rationalisation process in the transition will always continue. So, wherever there is scope for improvement and procedural...

About 45% of taxpayers yet to file returns LATEST NEWS :  The government gathered Rs 90,669 crore Goods and services tax (GST) for August, a little decrease than the Rs 94,063 crore accumulated in July. that is additionally decrease than the Rs 91,000 crore which need to have come to the Centre and states in a month, given the finances Estimates and assumed increase costs in receipts for 2017-18. Only 55 according to cent of assessees paid taxes for August, in comparison to 64 per cent for July. However, the figures should be compared cautiously. approximately Rs 92,283 crore GST became gathered for July until August 29, whilst Rs 90,669 crore turned into garnered till September 25. consequently, increase in collections changed into flat in August, in comparison to July. As tons as Rs 94,063 crore changed into paid till August 31. Approximately Rs 14,402 crore came from the principal GST (CGST) in August, towards Rs 14,894 crore in July (paid till August 29); R...

This could be the first instance of a GST Council official being arrested by the CBI LATEST NEWS :   A superintendent of the newly-established GST Council has been arrested by the CBI for allegedly receiving bribe through one of his close aides. Monish Malhotra, the superintendent, and Manas Patra, the alleged middleman, were arrested by the Central Bureau of Investigation (CBI) last evening, an official said. This could be the first instance of a GST Council official being arrested by the central investigating agency. It is alleged that Patra, a tax consultant, on the instruction of Malhotra, who was earlier posted in the Central Excise, had collected illegal gratification from a number of private parties in the past few days, which was to be delivered to Malhotra yesterday. READ THIS: First Rajan, now Panagariya: Decoding the link between the two exits

Ambiguous rules, multi-rate sales tax have left firms confused on how to price their products LATEST NEWS  : Nationwide goods and services tax (GST) was meant to unify the $2-trillion economy and make it easier for companies to transact across state borders. Nearly a month on, many are finding that doing business is more complicated than ever. Ambiguous rules under the new, multi-rate sales tax that went into effect on July 1 have left firms confused on how to price their products. The tax's complex structure — four main rates ranging from 5 to 28 per cent — has hurt sales and risks denting economic growth and government revenues in the months ahead. Airlines, for example, are uncertain whether to tax premium economy seats as an economy or business class — at rates of 5 percent or 12 per cent, respectively. Auto repair shops face a similar quandary as GST rates vary for different jobs. "People are either overcharging or undercharging for their work,...

Experts help clear doubts around the impact of the new indirect tax regime on businesses LATEST NEWS : I am a service provider having offices in multiple states. Under the service tax regime, I had a centralised billing system. Under the GST regime , should I change my billing system and start raising invoices from the local branch? Jivi Jebaraj, Chennai In the GST regime, service providers are required to obtain registration in each state where they have a place of business. The concept of centralised registration is now redundant. If the services are entirely supplied from the branch, or the branch plays a significant role in supplying the services, then such a branch shall be required to raise invoices and charge applicable GST. It is critical to identify the “establishment” rendering the service and the “establishment” receiving the service to complete the input tax credit chain. How do I ensure that I pass on the benefit to consumers in accordance with the ant...

Govt has given 3 months time to reprint revised MRPs under the Packaged Commodities: Paswan tweeted Latest news : The government on Tuesday warned that legal action will be initiated against manufacturers for not printing the revised MRP post rollout of the GST. Food and Consumer Affairs Minister Ram Vilas Paswan said the government has given three months time till September to reprint the revised maximum retail price (MRP) with the implementation of the landmark Goods and Services Tax (GST) . In a series of tweets, Paswan said that prices of some commodities have fallen, while some have increased with the implementation of GST. "Fall in prices due to lower GST should be passed on to consumers. ...The government will take legal action against vendors not declaring revised MRP after GST," he said. The revised rates should be displayed on commodities so that consumers are aware what is the MRP of each item after GST, he added. "The government has given...

Bidi to be taxed at 28% without cess; all states on board for rollout of the tax regime from July 1 Latest news  : The Goods and Services Tax (GST) Council on Saturday cleared the pending rules for the rollout of the new indirect tax regime from July 1. The include transition provisions and returns. All states have agreed to the July 1 rollout timeline. "Transition rules have been cleared and everybody has agreed for July 1 roll out," Kerala Finance Minister Thomas Isaac told said. Finance Minister Arun Jaitley chaired the 15th meeting of the GST Council , where the rates of tax and cess on gold, biscuits, footwear and textiles were decided. Finance Minister Arun Jaitley explained the math of GST rate. Here are the highlights: * Packaged food items sold under registered trademarks to be taxed at 5 per cent. * GST on Agri machinery fixed at 5 per cent * GST on apparel below Rs 1,000 fixed at 5 per cent: Arun Jaitley * A nominal rate of 0.25 im...

The realisation of a common indirect tax is critical for the semblance of a common Indian market Latest news : Termed as one of the biggest reforms of India’s complicated indirect tax base since 1991, the passage of the Constitution Amendment Bill, enabling the introduction of the Goods and Services Tax (GST) seems to have become a reality at last. On March 29, 2017, with the passing of four bills related to different aspects of the GST via the Lok Sabha, the Indian parliamentary system has demonstrated a strong will for enhancing cooperative federalism by signing off on a ‘pooling of sovereignty’ in taxation matters applicable for all 32 states. The realisation of a common indirect tax, like the GST is critical for the semblance of a common Indian market where all goods and services, depending on the elasticity of their consumption, will broadly be governed under a common indirect tax rate system. In an earlier article, I discussed how regressive India’s tax structu...

According to Debroy, multiple rates emanate from the 'desire to tax items' that are seen as luxuries Latest news    :   NITI Aayog member and wellknown economist Bibek Debroy on Friday said that one of the key problems with the present GST (Goods and Services Tax) regime is its multiple rates structure. According to Debroy, the multiple rates of GST emanate from the "desire to tax items" which are perceived to be luxury through the means of indirect tax and not the direct ones. "Please understand these multiple rates are coming from... this desire to drive other ends through indirect tax policy and other concerns of the states," Debroy said at Aaj Tak GST Conclave. "And therefore, you have plenty of exemptions, plenty of items that are outside the GST net and multiple rates." The present GST tax rates are divided into four slabs of -- 5 per cent, 12 per cent, 18 per cent and 28 per cent -- as decided by the GST Council. Als...

' India currently has one of the worst tax-to-GDP ratios among major economies at 16.6% Latest news : Rakesh Sachdeva sells auto parts in a busy market in central Delhi, just a few miles from Prime Minister Narendra Modi's office. Yet despite having a flourishing business he does not pay any tax. Until now, his rundown premises and small scale operation has kept the business below the radar of the country's tax officials. Come July 1, however, "the party will be over", says the 51-year-old, with a resigned shrug. A nationwide Goods and Services Tax (GST), set to come into effect on Saturday, has faced criticism for its complex design. But the country's biggest tax reform since independence is promising to bring millions of firms like Sachdeva's into the tax net, boosting government revenues and the country's sovereign credit profile. The new tax will require firms to upload their invoices every month to a portal that will match ...

Latest news : The goods and services tax (GST) is unlikely to be a very bitter pill for the pharmaceutical industry, which feared a substantial rise in drug prices under the new indirect tax regime. While around 80 per cent drugs were put in the 12 per cent GST bracket (up from the current 9 per cent slab), implying a sharp rise in prices, the National Pharmaceutical Pricing Authority (NPPA) has stepped in to keep medicines affordable after the GST roll-out on July 1. The pharma pricing regulator has notified the revised ceiling prices of 761 drugs which are part of the Schedule 1 of the Drug Price Control Order (DPCO) 2013. According to the revised list issued by the NPPA, prices of most drugs have come down. With this regulatory move, the price increase after the GST roll-out would be marginal as the base price has been lowered. Even as price revision is a continuous process, the latest order may serve to cool the nerves of the pharma industry trying to grapple with the ne...

The industry, however, needs clarity on standardised billing procedure for selling gold jewellery Latest news : Jewellers across the country are happy with the three per cent rate fixed on gold jewellery under the Goods and Services Tax (GST). The Centre has definitely considered the demand of the gold industry while fixing the rates. Currently, gold jewellers pay one per cent excise and 1.2 per cent value-added tax (VAT) over and above the 10 per cent customs duty on bullion. This effectively works out to 12.43 per cent. With the introduction of GST at three per cent for gold and 18 per cent for making charges, and keeping customs at 10 per cent, the effective rate comes to 15.67 per cent. So, the effective price escalation on gold jewellery comes to 3.24 percentage points. This is still a win-win for gold jewellers; they would not have expected anything better than this, particularly after the chief economic advisor's report of Rs 10,800-crore subsidy on gold.  ...

We are very, very stressed now. We are working 28 hours a day, says Navin Kumar Latest news : A week ahead of the goods and services tax (GST) roll-out, a visibly stressed chairman of the G ST Network (GSTN), NAVIN KUMAR, says that it (the IT backbone of the GST) will be ready by July 15. Although confident of the software, Kumar tells Dilasha Seth it will stabilise over three-four months from the GST introduction. Edited excerpts: With a week to go for the roll-out, what are the thoughts on this? Are you nervous? We are very, very stressed now. We are working 28 hours a day. Are you being flooded with calls and messages from industry and traders? Industry generally talks to the government, but, yes, we keep getting tweets and messages. There was some problem when enrolment was on and the tax department cancelled a lot of registered service taxpayers that had got provisional IDs as they were apparently not active. These 50-60 people lined up at our office. We then refe...

Smaller players could be routed; major Indian brands may not get any significant advantage Latest news : The Union government is mulling imposing a 15 per cent basic customs duty (BCD) on the import of finished mobile handsets once the Goods and Services Tax (GST) comes into effect. The move is intended to protect manufacturers who have set up units in India and put a curb on the outflow of foreign exchange to countries like China, Taiwan, and Vietnam. Boosting local manufacturing or assembly of mobile phones is a key part of Prime Minister Narendra Modi ’s pet project — Make in India. What the government intends to do? The Commerce and Industry Ministry had proposed a customs duty of 15 per cent on smartphone imports. Under the Phased Manufacturing Program (PMP) developed by the ministry of electronics and information technology, the government aims to enable large-scale manufacturing of mobile phones. As local value addition in handsets remains as low as two...

Most companies are minimising the stocking at the distributor level before the roll-out of GST Latest news : The pharmaceutical industry expects supply shortages as it gears up for transition into the goods and services tax (GST) regime from July 1. Inventories lying with stockists at the end of May were lower than the levels the previous month, with most companies minimising stocks lying with distributors, ahead of GST implementation. According to the data from the market research wing of All India Organisation of Chemists and Druggists (AIOCD), the AIOCD-AWACS, May saw a marginal reduction in Day 1 inventory being carried by distributors. For the overall Indian Pharmaceutical Market (IPM) there is a reduction of 1.3 days in inventory. AIOCD represents over 500,000 medicines sellers across India. Analysts claim that apart from the stockist inventory, the in-transit stocks too have fallen. Basically, the stockists do want to be saddled up with old stock. There is so...