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Former RBI governor Raghuram Rajan hits a jarring false note in his GST critique

Last weekend’s was not the first‘ he said-he responded’ episode involving former RBI governor Raghuram Rajan and finance minister Arun Jaitley. But it was probably the first time Rajan, who his admirers always say brings analytical rigour and honesty to any debate, hit a false note, and a jarring one, too.

Demonetisation (DeMo) and the implementation of the goods and services tax (GST), said Rajan, were twin policy shocks that hit India’s growth rate just as the world economy was recovering. Therefore, he argued, India’s growth rate, at a recent average of 7%, is less than both what the economy can potentially do, and what the country needs. Click to read more

Jaitley counters Rajan’s remarks, says GST a monumental reform

The GST was implemented across the nation on July 1, 2017. The shift to a new taxation regime, immediately after the shock demonetisation of November 2016, had slowed the pace of economic growth.

Jaitley contended that the economy rebounded after a decline in the first two quarters after the GST came into force. His comments came a day after reports cited former Reserve bank of India Governor Raghuram Rajan as saying that GST and demonetisation slowed India’s economic growth at a time when other economies were expanding fast. Click to read more

Is GST derailing the retail sector

“I am not from a retail background,” American businessman and investor Edward Lampert, who was bullish on retail stocks, said. “But I am a shopper,” he added. So it is with the Goods and Services Tax (GST). The success of a consumption tax ultimately depends on just that — consumption. The retail sector is one of the most crucial of crucial linkages to determine the buoyancy of GST – because like Edward, everyone is a ‘shopper’. That said, let us look at how GST has impacted the retail sector from July 2017. The first few months saw the retail sector facing common upheavals in undertaking compliance. Having peculiarly large inward and outward supplies, retailers were faced with the daunting prospect of huge volumes of uploads in the yet untested GST portal. Click to read more

Here’s how govt can still meet fiscal deficit target despite GST shortfall

Crossing Rs 1 trillion, the goods and services tax (GST) collected in October brought cheer to the government. But a closer look at this financial year reveals that the trillion mark was touched only twice in seven months.

As a result, analysts expect a shortfall of Rs 500 billion in Central GST (CGST) in FY19. Despite this imminent shortfall, the government looks confident of achieving the fiscal deficit target of 3.3 per cent of the gross domestic product (GDP). Does it mean that acche din (good days) have really arrived for GST or the government will have to look for other. Click to read more

GST returns to be filed by Dec 31

Chambers general secretary T Pardhasaradhi appealed to the members to raise their queries regarding GSTR-9 & GSTR-9C and file monthly returns of GST regularly.

As the industrialists were facing so many problems in connection with the GST, he appealed to the government to extend the date to file the returns.

Chambers member Paruchuri Lakshmana Rao briefed about the procedures of filing of GST annual returns and GST audit under GST Act 2017. Due to lack of knowledge some of them are not filing the returns in a proper way, he said and added that the financial statements and filed GSTR-1 must be same. Click to read more

World’s first GST calculator launched

Casio India has announced the launch of the world’s first GST calculator. With the introduction of GST in 2017, Casio India adopted the mission to provide a single solution for all GST based calculations, said Kulbhushan Seth, vice-president, Casio India.

Casio GST calculator’s features bring a refreshing touch to the whole calculator’s category. It will make manual Invoicing easy and hassle-free, he added. Click to read more

Changes to GST carve-up reward the incompetent

The Government’s “no state worse off” amendments to GST distribution currently being debated in the Senate will cost each and every Australian an additional $360 in extra tax or future debt over the next decade, Liberal Democrats Senator David Leyonhjelm has warned.

“If it was just rearranging the distribution of GST revenues to make it fair, whatever fair might mean, at least it would have no overall financial impact,” Senator Leyonhjelm said. Click to read more

Financier jailed in Perth over GST rort

A former Perth financier who was extradited from the US after defrauding the Australian Taxation Office out of $517,741 by lodging false GST rebates has been jailed for five years.

Gary Andrew Parsons, 53, claimed the GST credits for seven entities on 152 occasions over a 26-month period between 2004 and 2007, and was charged after a lengthy and expensive ATO investigation. Click to read more

The post Here’s how govt can still meet fiscal deficit target despite GST shortfall appeared first on GST Ready India.

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Arun Jaitley says GST had only transient impact on growth

Finance Minister Arun Jaitley on Sunday hit out at the “critics and cynics” who blame GST for growth deceleration, saying the indirect tax reform had only a “transient” impact on growth and that too for two quarters.

In remarks apparently aimed at former Reserve Bank governor Raghuram Rajan, who Friday blamed the Goods and Services Tax roll-out along with demonetisation for lower GDP growth, Jaitley said the economy recovered fast from the limited “disruptionist impact” of the tax reform. Click to read more

GST a monumental reform, hit growth only for 2 quarters: Arun Jaitley

The GST implementation was a “monumental reform” which had disruptionist impact on growth only for two quarters, Finance Minister Arun Jaitley said Sunday, hitting out at “critics and cynics” who blame it for hurting the GDP expansion.

The remarks come a day after former RBI Governor Raghuram Rajan blamed the indirect taxation reform for derailing the India’s growth story. Jaitley did not name Rajan. “You will always have critics and cynics who will come up and say it (GST) slowed down India’s growth,” Jaitley said, speaking at state-run Union Bank of India’s 100th anniversary celebrations event here over a video link. Click to read more

Jaitley Says GST Had Only Transient Impact On Growth

Finance Minister Arun Jaitley hit out at the “critics and cynics” yesterday who blame GST for growth deceleration, saying the indirect tax reform had only a “transient” impact on growth and that too for two quarters.

In remarks apparently aimed at former Reserve Bank governor Raghuram Rajan, who Friday blamed the Goods and Services Tax roll-out along with demonetisation for lower GDP growth, Jaitley said the economy recovered fast from the limited “disruptionist impact” of the tax reform. Click to read more

Demonetisation, GST weighed down India’s economic growth last year: Raghuram Rajan

Demonetisation and the Goods and Services Tax (GST) are the two major headwinds that held back India’s economic growth last year, former RBI Governor Raghuram Rajan has said, asserting that the current seven per cent growth rate is not enough to meet the country’s needs.

Addressing an audience at the University of California in Berkley on Friday, Rajan said for four years — 2012 to 2016 — India was growing at a faster pace before it was hit by two major headwinds. Click to read more

GST compensation paid to states declines to Rs 11,900 crore in Aug-Sept

GST compensation paid to states by the Centre has declined to over Rs 11,900 crore during August-September, an official said.

The bi-monthly GST compensation paid during the June-July period was Rs 14,930 crore, nearly four-fold jump from Rs 3,899 crore paid in April and May.

“Over Rs 11,900 crore has been released to the states from GST compensation fund during August-September after regular and ad-hoc settlement of IGST fund,” an official told PTI. Click to read more

GST compensation paid to states declines to Rs 11,900 cr during Aug-Sep against Rs 14,930 cr in June-July period

GST compensation paid to states by the Centre has declined to over Rs 11,900 crore during August-September, an official said.

The bi-monthly GST compensation paid during the June-July period was Rs 14,930 crore, nearly four-fold jump from Rs 3,899 crore paid in April and May.

“Over Rs 11,900 crore has been released to the states from GST compensation fund during August-September after regular and ad-hoc settlement of IGST fund,” an official said. Click to read more

Haryana Government’s Diktat On GST Credit: Masterstroke Or Harassment Tool?

The Haryana government has announced a plan to safeguard its revenue against fraudulent activities by taxpayers. It has laid down guidelines to determine when the input tax credit under Goods and Services Tax regime can be blocked for a taxpayer. Experts are divided over the implications and the ability of the state tax department to issue such a circular.

What’s The Plan Of Action?

The plan of action was set into motion last week via a circular issued by the Excise and Tax Commissioner of Haryana. It says that a tax officer can use the GST Network portal to block and unblock input tax credit. Click to read more

Statsguru: GST collections cross Rs 1-trillion mark for second time in FY19

Goods and services tax (GST) collections crossed the Rs1-trillion mark for the second time in 2018-19. As seen in Chart 1, collections rose to Rs1.01 trillion in October, up from Rs944 billion in September. Collections had previously touched Rs1.04 trillion in April.

The disaggregated data shows that Central GST (CGST) collections continue to remain well below state GST (SGST) collections (Chart 2). One possible explanation is that credit allowed for capital goods under the previous indirect tax regime could still be weighing down CGST collections. Click to read more

FinMin asks foreign missions, UN bodies to correctly state place of supply in GST returns

The finance ministry Friday asked foreign diplomatic missions or UN organisations to correctly mention the ‘place of supply’ of services in their GST return forms to enable quick processing of refund.

The GST Act provides for allotting a Unique Identification Number (UIN) to consulates, embassies and UN organisations to enable them claim refund of the GST paid. Click to read more

The post Arun Jaitley says GST had only transient impact on growth appeared first on GST Ready India.

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Ecommerce firms in a fix as tax collected at source deadline nears

With barely two days to go, India’s ecommerce sector is struggling to comply with the directive to deduct tax at source on all payments made to their sellers and deposit it with the government.

This is because a number of them have not been able to register for collections of tax at source (TCS) as some states are insisting that ecommerce companies have a brick and mortar office within their jurisdiction.

This goes against a clarification issued in the form of FAQs by the Centre that the said registration could be done with a head office address and ecommerce players will not require a brick and mortar space in every state. Click to read more

Two Days From Deadline, Ecommerce Cos Struggle To Comply With Tax Rule

Ecommerce companies are in a fix as they reportedly struggle to comply with a November 10 deadline to deposit tax collected at source on all payments made to their sellers in the last month.

The Tax Collected at Source (TCS) provisions, introduced as a part of Section 52 of the Central GST Act, states that tax has to be collected by the ecommerce operator when a supplier supplies some goods or services through its portal and the payment for that supply is collected by the ecommerce operator. The deadline which has less than two days to go, has been deferred repeatedly following requests by ecommerce players. Click to read more

GST refunds of Rs 82,775 cr to exporters cleared; Rs 5,400 cr pending as on October 31

The finance ministry said that GST refund of Rs 82,775 crore to exporters has been cleared as on October 31, which is 93.8 percent of the total such claims with the tax authorities.

In a statement, the ministry said Rs 5,400 crore worth GST refund is still pending with the government and that is being “expeditiously processed”.

“As on October 31, 2018, total GST refunds to the tune of Rs 82,775 crore have been disposed by the Central Board of Indirect Taxes and Customs (CBIC) and the state authorities out of the total refund claims of Rs 88,175 crore received so far,” the ministry said. Click to read more

Government flags mistakes made by embassies claiming GST refunds

The government on Friday issued an advisory flagging common mistakes made by consulates, embassies and UN organizations while filing for refund of Goods and Services Tax (GST) paid, resulting in delay or rejection of claims.

“There are common discrepancies which have been noticed by the GST authorities while processing refund applications,” the Ministry of Finance said in a statement.

The GST Act provides for allotting a Unique Identification Number (UIN) to consulates, embassies and UN organizations for claiming GST refunds. For claiming refunds, they have to file Invoice Level Data in their Form GSTR-11 on the common portal. Click to read more

GST special helpdesks set up

The GST and Central Excise Department has established GST Special Helpdesks in Tiruvallur and Vellore districts in Tamil Nadu to assist micro, small and medium enterprises (MSME) in all matters relating to Goods and Services Tax (GST).

Support for MSMEs

This is part of the Government of India’s initiative to support and reach out to MSMEs in 80 districts.

According to a press release, the officers at the helpdesks will also help the MSMEs in overcoming technical difficulties in paying tax, availing input tax credit and claiming GST refunds. Click to read more

GST, demonetisation caused huge loss: Rahul

In a scathing attack on Prime Minister Narendra Modi, Congress President Rahul Gandhi on Friday said the Goods and Service Tax (GST) and demonetisation caused a huge loss to the economy.

Speaking at election rallies in Kanker and Rajnandgaon in poll-bound Chhattisgarh, Gandhi also accused the government of using the Maoist issue to divert attention from corruption and unemployment.

“Modiji is talking about Naxalites in his Bastar rally. But he is silent over corruption and unemployment,” Gandhi said.

Taking a jibe at Modi, Rahul said: “Before the Lok Sabha election, he (Modi) had promised Rs 15 lakh to every citizen and employment to 2 crore youth. But after the election, he asked the people to pick up the broom and start cleaning.” Click to read more

The post Government flags mistakes made by embassies claiming GST refunds appeared first on GST Ready India.

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GST collections cross Rs 1 lakh crore in October

GST collections in October crossed the Rs 1 lakh crore mark, after a gap of 5 months, on the back of festive demand, anti-evasion measures.

The Finance Ministry Thursday said 67.45 lakh businesses filed goods and services tax (GST) returns in October and deposited Rs 1,00,710 crore as taxes.

“GST collections for October 2018 have crossed Rs 1 lakh crore. The success of GST is lower rates, lesser evasion, higher compliance, only one tax and negligible interference by taxation authorities,” Finance Minister Arun Jaitley tweeted. Click to read more

GST collection surges to over Rs 1-lakh crore in October

The Goods and Services Tax (GST) collections for October have crossed Rs 1-lakh crore after a gap of five months and is 6.64 per cent higher as compared to September’s collection of Rs 94,442 crore. Union Finance Minister Arun Jaitley attributed the higher collection to lowering of rates, lesser tax frauds and better compliance. The total gross GST revenue collected in October is Rs 100,710 crore, of which CGST (Central GST) is Rs 16,464 crore, while Rs 22,826 crore is the state GST. The government collected Rs 53,419 crore (including Rs 26,908 crore collected on imports) as the Integrated GST. The government collected Rs 8,000 crore as cess, including Rs 955 crore as import collection. Click to read more

GST Collections Cross Rs. 1 Lakh Crore Mark In October: Arun Jaitley

Revenue collections under the Goods and Services Tax (GST) crossed the Rs. 1 lakh crore mark in October, Finance Minister Arun Jaitley said on Thursday. This was a marked improvement over the September GST collection (for August) which stood at Rs. 94,442 crore.

Jaitley attributed the rise in the tax mop-up to lower tax rates and higher compliance. “GST collections for October 2018 have crossed Rs. 1 lakh crore. The success of GST is lower rates, lesser evasion, higher compliance, only one tax and negligible interference by taxation authorities,” he said in a tweet. Click to read more

GST collection crosses ₹1 lakh crore in Oct

Collection from Goods and Services Tax has crossed ₹1 lakh crore for the second time since the indirect tax regime was introduced in July last year.

GST mop-up had crossed the Rs 1 lakh crore mark for the first time in April.

A Finance Ministry statement, issued on Thursday, said the total gross GST revenue collected in October, was little over ₹1 lakh crore. Out of which CGST (Central Goods and Services Tax) was ₹16,464 crore while SGST (State Goods and Services) and IGST (integrated Goods and Services Tax) contributed ₹22,826 crore and ₹53,419 crore respectively. Total collection trough cess was ₹8,000 crore. Click to read more

Rs 100-cr ‘fake GST bills’ by Ludhiana operator

An operator working out of a single room on Gill Road in Ludhiana is suspected to have supplied fake GST bills worth Rs 100 crore to at least 100 companies in the largest trading city of Punjab, that is fast turning into a hub of tax fraud.

The trading firm issued bills for the huge sum despite seeming to have made only negligible purchases. Looking at the inexplicable figures, the Punjab Excise and Taxation Department has initiated an investigation into what it suspects to be a shell company floated to get input tax credit (ITC) by selling fake Goods and Services Tax (GST) bills. Click to read more

India One Of World Bank’s Top Reformers: Officials

At the same time, they cautioned that entering the top 50 bracket – a goal set by Prime Minister Narendra Modi in 2014 – is a tough nut to crack, even though at this point of time, it no longer seems to be impossible for India.

“India is one of our top reformers, one of our top 10 performers. It was also on the top 10 list last year.. two years in a row, which is sometimes very difficult to do,” Shanta Devarajan, the World Bank’s Senior Director for Development Economics and Acting Chief Economist, told PTI in an interview. Click to read more

Why Manohar Parrikar’s absence has left Goa’s economy in doldrums

Goa witnessed political uncertainty on a number of occasions in the 1990s when successive state governments survived for less than a year. Today, once again, the state is going through a phase of instability.

Goa is facing a deep economic and political crisis because chief minister Manohar Parrikar has been undergoing treatment for pancreatic cancer since February this year and governance has come to a virtual standstill. Click to read more

India jumps 23 places in global ease of doing business rankings

Sustained business reforms over the past several years helped India jump 23 places to move to 77th position in this year’s global ease of doing business rankings. India carried out six business reforms during the past year, earning the credentials of being a top global improver for a second consecutive year, says the World Bank Group’s Doing Business 2019: Training for Reform report, released on Wednesday. Last year India was ranked 100 in the list. Click to read more

LPG price hiked by Rs 2.94 per cylinder

Subsidised cooking gas (LPG) price Wednesday was hiked by Rs 2.94 per cylinder due to tax impact on the change in base price. A 14.2-kg subsidised LPG cylinder will cost Rs 505.34 from midnight tonight as against Rs 502.40 now, Indian Oil Corp (IOC), the nation’s biggest fuel retailer, said in a statement here.

This is the sixth straight monthly increase in rates since June. In all rates have gone up by Rs 14.13 per cylinder since then. All LPG consumers have to buy the fuel at market price. The government, however, subsidises 12 cylinders of 14.2-kg each per households in a year by providing the subsidy amount directly in bank accounts of users. Click to read more

The post GST Collections Cross Rs. 1 Lakh Crore Mark In October: Arun Jaitley appeared first on GST Ready India.

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GST: National Anti-profiteering Authority dying a natural death

Nearly a year after the National Anti-profiteering Authority (NAA) was set up, it has disposed of only eleven complaints and fined just four companies for paltry sums so far for not passing on the benefits of GST rate cuts or input tax credit to the consumers. The three-tier anti-profiteering mechanism is proving unequal to the costs and labour required to run it. While the government had set an initial two-year lifespan for the authority, it looks increasingly clear that it won’t get an extended term. Meanwhile, NAA’s constitutional validity is also being challenged.

The government was vocal at the start that NAA’s approach would be non-intrusive and that it would take up only such cases that have a ‘mass impact’. Click to read more

Will change GST structure if we come to power: Rahul Gandhi

Congress president Rahul Gandhi has said that his party will overhaul the Goods and Services Tax (GST) structure if it comes to power in 2019, and once again described GST as it currently exists as “Gabbar Singh Tax”.

Speaking at a gathering of business leaders and professionals in Indore Tuesday, Gandhi alleged that GST, championed by his party-led UPA when it was in power between 2004 and 2014, was introduced by the National Democratic Alliance (NDA) government in a haphazard manner. Click to read more

Commerce Ministry to take up exporters’ complaints on GST refund with FinMin

The Commerce Ministry has taken note of exporters’ complaints that the input duty refund under the duty drawback scheme claimed by some last year was much lower than the IGST (Integrated Goods & Services Tax) refunds due to them and it may ask the Finance Ministry to address the issue.

“Exporters have said that they are willing to pay back the drawback with interest and they should be instead given IGST refund which is a much higher amount. The DGFT is likely to take up the matter with the Customs Department,” a government official told BusinessLine. Click to read more

Ease of Doing Business 2019: GST, IBC big winners; list of reforms that put India among top 10 improvers

India has jumped 23 places to secure 77th rank on the World Bank Ease of Doing Business index on the back many business-friendly reforms, with the Goods and Services Tax (GST) and the Insolvency and Bankruptcy Code (IBC) emerging as big winners.

While India has not shown improvement in protecting minorities, the country continues to remain among the top 10 countries.

The World Bank noted that India improved on six of ten parameters as against eight last year, putting it among top ten improvers for the second time in a row. While last year too, India was praised for good accessibility to electricity, this year, the country made a noticeable improvement on ‘Getting Electricity’ parameter. Click to read more

Centre contemplating bringing petrol, diesel under GST: Athawale

The Narendra Modi government is contemplating to bring petrol and diesel under the ambit of Goods and Services Tax (GST), Union Minister Ramdas Athawale said here.

“We have done so much work, but there is some problem pertaining to petrol and diesel prices. The issue persists even though the prices have fallen a bit. But the Centre is contemplating to bring petrol and diesel under the ambit of GST,” the Union Minister of State for Social Justice and Empowerment said at a news conference here. Click to read more

GST payers to be divided into four categories for targeted approach

he Central Board of Direct Taxes (CBDT) has devised a new strategy to boost tax collection. Currently, the Board only has the stick for the evaders. Now, it is proposed to divide them into four categories and deal with them in different ways. This strategy was successfully used in Britain, Australia and Mexico to improve tax collection.

Between April and March in the current fiscal year, GST evasion to the tune of Rs 18,656 crore was detected in the country. This is about four times the corresponding figure (Rs 7,031) for the last year. Click to read more

India jumps 23 ranks on World Bank Ease of Doing Business; becomes South Asia leader

Repeating last year’s huge success, India, once again, made a huge jump of 23 places on World Bank’s Ease of Doing Business to secure 77th rank — indicating Prime Minister Narendra Modi’s commitment towards business-related reforms.

Not only has India made remarkable progress but has also become the highest ranked economy in South Asia, leaving Bhutan behind. India’s huge stride towards becoming a business-friendly nation has come in the last two years, with a total jump of 53 places. Click to read more

Centre, states apportion Rs 32,000 crore IGST in October

As much as Rs 32,000 crore lying in the integrated goods and services tax (IGST) pool has been apportioned between the centre and states in the month of October.

The states’ share would be over Rs 15,000 crore, the official said.

The apportionment would add to the goods and services tax (GST) revenue of both the centre and states for October. The total revenue collection figures for the month would be released on November 1.

This is the fifth time that IGST funds have been divided between the centre and states.

As much as Rs 29,000 crore was settled in September, Rs 12,000 crore in August, Rs 50,000 crore in June and Rs 35,000 crore in February this year. Click to read more

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GST Council met 30 times, took 918 decisions in 2 years: Finance Ministry

The all-powerful GST Council, chaired by Finance Minister Arun Jaitley, has met 30 times and taken 918 decisions related to laws, rules and rates for the new tax regime within a span of just over two years, the Finance Ministry said Sunday.

The Goods and Services Tax (GST) Council, which comprises state finance ministers and Union Minister of State in charge of Revenue as members, was set up on September 15, 2016, as the country’s first ‘federal institution’. Click to read more

GST Council Took More Than 900 Decisions Since Its Constitution

Till date, the Goods and Services Tax (GST) Council has taken 918 decisions related to GST laws, rules, rates, compensation and taxation threshold etc. More than 96% of the decisions have already been implemented through 294 Notifications issued by the Central Government and the remaining are under various stages of implementation. Almost equal number of corresponding SGST Notifications have been issued by each State.

The GST Council Members under the Chairpersonship of the Union Finance Minister have spent long hours discussing the broad contours as well as the nitty-gritty of the new GST regime in a harmonious and collaborative spirit. Click to read more

GST council took 918 decisions in 30 meetings in 2 years, 96% already implemented

The all-powerful GST Council, chaired by Finance Minister Arun Jaitley, has met 30 times and taken 918 decisions related to laws, rules and rates for the new tax regime within a span of just over two years, the Finance Ministry said Sunday.

The Goods and Services Tax (GST) Council, which comprises state finance ministers and Union Minister of State in charge of Revenue as members, was set up on September 15, 2016, as the country’s first ‘federal institution’.

“Till date, GST Council has taken 918 decisions related to GST laws, rules, rates, compensation, taxation threshold etc. More than 96 per cent of the decisions have already been implemented through 294 notifications issued by the Central Government,” the ministry said in a statement. Click to read more

CBIC to focus on behavioural patterns of taxpayers to improve GST compliance

Soon, GST officers will study the behavioural pattern of certain taxpayers to nudge them to comply with tax laws, in a departure from the current practice of focussing only on deterrent action to check evasion.

The Central Board of Indirect Taxes and Customs (CBIC) has set up a ‘Nudge Team’ to formulate a strategy on studying behavioural patterns of taxpayers and use segmented approach to encourage them to pay taxes, an official said. Click to read more

GST Intel Wing Unearths Rs 80 Crore ‘Fraud’ in Pune, Says Could be ‘Tip of the Iceberg’

The Directorate General of GST Intelligence’s (DGGI’s) Pune zonal unit has unearthed a Rs 80 crore “fraud” which is suspected to have been perpetuated through procurement of “bogus invoices” from markets and arrested one person from Mumbai.

Modsingh Padamsingh Sodha was arrested on Friday and found to be operating over 10 dummy companies that had issued fraudulent invoices worth Rs 415 crores, the DGGI Pune zonal unit said in a release here Sunday. Click to read more

India likely to have 3 GST rates in future: PMEAC Chairman

Government of India is likely to reduce the current four-slab GST rate structure to three as the process of rationalizing India’s new indirect tax regime proceeds further, said Prime Minister’s Economic Advisory Council (PMEAC) Chairman Bibek Debroy.

Addressing the gathering at the launch of “GST: Explained for Common Man” written by former Central Board of and Excise and Customs Chairman Sumit Dutt Majumder, the PMEAC Chairman noted that only very few countries that have implemented GST follow the principle of “dual GST” (Goods and Services Tax) whose “terminal role from an economists point of view is to have a single tax structure.” Click to read more

GST Rate 5% or 18%? Solar Sector Continues to Live with Uncertainty

Passed on 1st July 2017, India’s Goods and Services Tax (GST) is an indirect tax imposed on goods and services, and replaces existing state and central taxes of a similar nature. The goal of the GST is to simplify the indirect tax for the country as a whole.

“It has now been well over a year since the GST came into effect and there is still no clarity which has been a drag on solar installations in the country.  States are also issuing their own interpretations, adding to the confusion. Solar companies are still struggling to figure out the GST rates applicable on various goods and services that go into the development of a solar project,” said Raj Prabhu, CEO of Mercom Capital Group. Click to read more

GST relief for oil companies on outsourced work

In what could come as urgent relief for oil companies, revenue authorities have allowed refineriesNSE 0.00 % to pay GST only on value addition done by job workers against on the total valuation.

Many oil refineries outsource some of the processes to job workers. These refineries provide the raw material to the job worker and a final product is then delivered. There were concerns that the tax authorities would impose GST on the total valuation of the final product against value addition by the job worker. Click to read more

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Dual jurisdiction under GST opens door for traders’ harassment: CAIT

Traders’ body CAIT Friday warned that allowing central as well as state tax administrations to initiate action against any taxpayer irrespective of jurisdiction would lead to harassment of traders and complicate the tax system.

Seeking Finance Minister Arun Jaitley’s intervention in the matter, the CAIT in a letter claimed that the decision of the GST Council allowing jurisdiction to central as well as state tax administration over assesses “not only allows overlapping of jurisdiction and harassment of traders but will also complicate the taxation system” Click to read more

GST Audit: Are You Ready?

The government introduced two eagerly-awaited Goods and Services Tax compliance forms in September: GST Annual Return (GSTR-9) and GST Audit (GSTR-9C). For the 2017-18 financial year, both are due on Dec. 31, 2018.

The concept of an audit by professional accountants is not new to Indian indirect tax laws. Under the erstwhile regime too, state-level value-added tax laws required the submission of a chartered accountant-certified VAT audit report at the end of each financial year, within the prescribed timelines. Such audit compliances were introduced in VAT laws, as a step that would aid tax officers in expediting their verification process. With similar intent and as a measure to aid stronger tax governance, under the GST regime as well. Click to read more

Statistics ministry seeks GST data to improve national accounts

The statistics ministry has sought quarterly goods and services tax (GST) data and information on tax paying units to improve the quality of both National Accounts Statistics and state-level accounts.

The ministry of statistics and programme implementation (MoSPI) has reached out to the finance ministry for GST data on tax collections along with summary information on units, classification-wise, that have paid taxes for use in compilation of national and state-level accounts, officials familiar with the development told ET. Click to read more

Deadline for availing GST input tax credit remains October 20: Govt

The Finance Ministry on Thursday allayed fears among businesses about reconciliation of returns and said the deadline to avail input tax credit (ITC) for last financial year (FY18) will remain October 20.

Businesses had expressed concern about the October 20 deadline for availing ITC for July 2017-March 2018 period, saying their returns cannot be reconciled with the returns filed by vendors. Such a concern arose after the last date for filing final sales return GSTR-1 has been set as October 31. Click to read more

Why GST’s anti-profiteering law is pinching businesses?

The Delhi High Court on Tuesday admitted a writ petition challenging the constitutional validity of anti-profiteering law under the Goods and Services Tax (GST). Filing the petition, the petitioner argued that in absence of a mechanism to determine the quantum of profiteering, vagueness and arbitrariness come in the anti-profiteering orders.

Abhishek Rastogi, partner, Khaitan & Co, who filed the petition on behalf of Pyramid Infratech against an order of the National Anti-profiteering Authority (NAA), says that Section 171 of Central GST which deals with anti-profiteering talks only about two factors (to determine profiteering) — input and output taxes. “Our point is these two are relevant factors but they are not the only factors,” he says. Click to read more

Composition scheme biz need not file purchase details while filing GST quarterly returns

Businesses opting for composition scheme under GST need not file details of purchases made from their vendors at the time of filing quarterly return GSTR-4, the Finance Ministry said Wednesday.

In a clarification, the ministry said there have been doubts regarding the manner of filing the quarterly return by composition dealers in Form GSTR-4 in the absence of auto-population of the details of inward supplies received from registered suppliers. Click to read more

Hry to form State Bench of GST Appellate Tribunal

Haryana Government has decided to constitute State Bench of Goods and Services Tax Appellate Tribunal in Hisar for speedy settlement of matters related to Goods and Services Tax (GST).

Giving details, Excise and Taxation Minister, Capt Abhimanyu on Thursday said that in this regard, the Chief Minister Manohar Lal has accorded his approval to a proposal.

He said that Haryana is a very big state in terms of economy and revenue. Under GST, so far, there are 4.25 lakh registered taxpayers in the state, who are contributing tax of over Rs 4,600 crore every month.

Earlier in the Value Added Tax (VAT)  system, the state had 2.25 lakh active registered dealers and there was a Sales Tax Tribunal for the state which is still working. Thus, the state requires a State bench of Goods and Services Tax Appellate Tribunal, the Minister said. Click to read more

GST Is Softly Killing Sub-Optimal Firms, Boosting Formalisation And Impacting Short-Term Jobs Growth

If Narendra Modi is asked what is his achievement in jobs, he should talk quality rather than quantity. New evidence in job creation indicates that the National Democratic Alliance (NDA) government’s game-changing shift relates more to jobs formalisation than any significant quantum leap in net job creation.

According to a study of hiring trends in 1,610 companies by CARE Ratings, over the last two years (2016-17 and 2017-18) big companies created net new jobs while smaller companies destroyed them. A report in Business Standard. Click to read more

The post Deadline for availing GST input tax credit remains October 20: Govt appeared first on GST Ready India.

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Composition scheme biz need not file purchase details while filing GST quarterly returns

Businesses opting for composition scheme under GST need not file details of purchases made from their vendors at the time of filing quarterly return GSTR-4, the Finance Ministry said Wednesday.

In a clarification, the ministry said there have been doubts regarding the manner of filing the quarterly return by composition dealers in Form GSTR-4 in the absence of auto-population of the details of inward supplies received from registered suppliers. Click to read more

How GST benefited the consumers

The Indirect taxes on essential commodities has been reduced substantially due to the implementation of Goods and Services Tax (GST). Indeed, a boon for end-consumer, especially, middle-class people in India.

The indirect tax on essential consumer goods such as soap, toothpaste, hair oil, razors,shampoo and deodorant has been reduced from 26 per cent (excise+VAT) to 18 per cent. Notably, tax on footwear reduced by 50 per cent, i.e., from 10 to 5 per cent. Click to read more

Dealers in Bengaluru reverse Rs 17 cr claims made on fake GST invoices

Sections of dealers in Bengaluru have reversed their input tax credit (ITC) claims worth Rs 17.45 crore after realising that they made their claims based on fake GST invoices, Karnataka Commercial Taxes Commissioner M.S.Srikar said.

The sustained drive by the Commercial Taxes department against fake ITC claims and a spate of recent arrests have created fear in errant businessmen. Those who have made ITC claims either by mistake or with an intention to cheat the government are reversing them fearing that we will get at them with use of technology and physical inspections, Srikar told ET. Click to read more

Last resting point of GST yet to arrive

he chairman of 15th Finance Commission opined that the last resting point of Good and Services Tax (GST) in the country has not yet arrived as the regime is in process of implementation. He said that the Uttarakhand Government has raised the issue of shortfall in its revenue, post-GST. Singh reminded that the GST is not within the prerogative of the commission and the State Government should raise the issue at the GST council of which the Finance Minister of Uttarakhand is also a member.

He, however, added that the commission would review the data submitted by the State on revenue shortfall, post-GST, and take appropriate compensatory measures. Click to read more

Companies rush to match input tax credit with vendor returns

Indian companies are scrambling to retain hundreds of crores of input tax credit for last financial year under the Goods and Services Tax (GST) regime that it could lose if it fails to substantiate the claim with vendor returns.

The deadline to file this claim is October 20, while vendors can file their sales return till October 31. This has created a situation where vendor returns are not available for reconciliation.

Industry associations have represented to the government seeking an extension of the deadline. Click to read more

GST council meet: Government to constitute 7-member GoM to discuss Kerala cess proposal

Several key decision were taken at the 30th Goods and Services Tax (GST) Council meet chaired by Union Finance Minister Arun Jaitley in the national capital on Friday (September 28). Jaitley, after the meeting, said that a 7-member Group of Ministers would be formed to look into Kerala Finance Minister Thomas Issac’s proposal that an additional cess be imposed for a limited period of time so that the additional funds raised can be used to rehabilitate flood-hit Kerala. Click to read more

Govt may extend term of GST anti-profiteering watchdog

The government may extend the term of the National Anti-profiteering Authority (NAA) beyond its original two-year mandate, with policymakers arguing that the watchdog needs to function for a longer period in light of the frequent rate changes in the goods and services tax (GST) and the unfinished task of bringing petroleum products under the new indirect tax regime.

Policy makers believe that the benefit of tax rate cuts on 178 items from 28% to 18% announced last November in one of the biggest rounds of tax rate reductions in the GST regime have not been fully passed on to consumers. This has forced the NAA to step up efforts. Click to read more

The post Companies rush to match input tax credit with vendor returns appeared first on GST Ready India.

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GST & Pre-EMI Setback For Under Construction Projects

A ministerial panel on levying calamity cess on Monday said the NDRF fund was not sufficient to meet relief work expenses in the wake of natural calamities and decided to seek states’ views on whether a state-specific or a nationwide ‘disaster tax’ should be levied under the GST.

Bihar Deputy Chief Minister Sushil Modi, who heads the seven-member group of ministers (GoM), said the panel would also seek comments from the Attorney General on the legality of levying a ‘disaster cess’ or a ‘disaster tax’ to help states hit by natural calamities. Click to read more

Calamity tax under GST: Panel gives states 3 options to raise extra funds

A panel, headed by Bihar Deputy Chief Minister Sushil Modi, on Monday put on table three options to raise additional funds under the goods and services tax (GST) to help Kerala and other states in their post-disaster relief and rehabilitation work.

The levy could either be a state-specific tax levied as state GST, or there could be a supplementary disaster response fund, parallel to the existing national disaster response fund (NDRF). As a third option, the group of ministers (GoM) would consider strengthening the existing NDRF. Click to read more

GST: FMs’ panel to seek States’ views on calamity cess

A group of States’ Finance Ministers has decided to seek opinion from all the States on ways and means to raise additional resources to meet expenditure on account of natural calamity or disaster. It also plans to get advice from the Attorney General (AG) on the issue.

The group met here on Monday under the convenor-ship of the Deputy Chief Minister and Finance Minister of Bihar, Sushil Kumar Modi. While the Finance Minister of Kerala TM Thomas Isaac, Finance Minister of Punjab Manpreet Badal and Finance Minister of Odisha Sashi Bhusan Behera attended the meeting, two others Finance Ministers, Sudhir Mungantiwar (of Maharashtra) and Prakash Pant (of Uttarkhand) could not attend the meeting. Click to read more

Goods and services tax: GoM to seek states’ views on ‘disaster cess’

The Group of Ministers (GoM) formed to examine modalities for revenue mobilisation for natural calamities and disasters on Monday decided to seek views of all states on whether the cess should be state-specific or nationwide as panel members were of the view that NDRF funds are insufficient for disaster relief measures.

After the first meeting held on Monday, the panel’s head and Bihar Deputy Chief Minister, Sushil Modi, said that the panel would also seek view of the Attorney General of India on the legality of levying a cess or a tax to fund states hit by natural calamities. “The GoM (Group of Ministers) has decided that the GST Council will prepare a questionnaire and send to states for response. Click to read more

GST Council agrees funding from NDRF and SDRF are not sufficient

The Group of Ministers (GoM) formed by the GST Council on Monday agreed that funding from the national and state disaster response funds — NDRF and SDRF — are not sufficient in case of disasters and a new mechanism to raise funds is required.

“We had a preliminary discussion and the members felt SDRF and NDRF are not sufficient to compensate the states in case of natural calamities and disasters,” GoM Convener and Bihar Finance Minister Sushil Kumar Modi said after the group’s first meeting here. Click to read more

Rahul Gandhi says one-slab GST to be implemented if Congress elected at Centre; claims tax has ‘ruined’ small shopkeepers

Congress president Rahul Gandhi said on Monday that a one-slab Goods and Services Tax (GST) will be implemented if his party is elected to power at the Centre.

The Gandhi scion lambasted the present multi-slab GST, saying it has “ruined” the small shopkeepers in the country.

“How much money did this Gabbar Singh Tax take away from your pockets? After this meeting, you should go to a small shopkeeper and ask him whether the GST benefited him or resulted in a loss,” Gandhi said at a public meeting in Madhya Pradesh’s Dabra. Click to read more

Accused of profiteering from GST rate cuts, Nestle says ‘had taken appropriate measures to pass on commensurate benefits

The Director General of Anti-Profiteering (DGAP) has alleged that the fast moving consumer goods (FMCG) major Nestle has deprived customers of goods and services tax (GST) cuts of Rs 98 crore, according to sources. The DGAP last week submitted the investigation report to the National Anti-Profiteering Authority (NAA), the apex anti-profiteering body functioning under Ministry of Finance. The NAA will now hear the parties and come up with a final order in three months.

On its part, Nestle India spokesperson, in an e-mail reply, said “While the company had taken appropriate measures to pass on commensurate benefits to our consumers, in situations where the benefit could not be passed on instantly by reduction in maximum retail price or increase in grammage, the amount was set aside to be subsequently passed on and was not reckoned either in sales or in profit”. Click to read more

CERC Gives Relief to Solar Project Developers by Accepting GST as ‘Change in Law

The Central Electricity Regulatory Commission (CERC) has issued an order to compensate solar power developers (SPD) by giving them an upfront lumpsum payment, which they would have incurred as an additional capital expenditure after the introduction of GST Law.

CERC has also asked the government agencies to make adjustments in the quoted tariff because of the additional operating and recurring expenditure that will incur for the entire term of the project.

CERC was responding to a petition filed by leading solar project developers Azure power and ACME. Click to read more

The post GST: FMs’ panel to seek States’ views on calamity cess appeared first on GST Ready India.

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Franchise owners will have to pay GST on free IPL tickets: AAR

Free or complementary tickets given by franchise owners for IPL matches will attract Goods and Services Tax (GST), the Authority for Advance Ruling (AAR) said.

In response to an application filed by K P H Dream Cricket Pvt Ltd, which owns and operates IPL cricket team Kings XI Punjab, the Punjab bench of the AAR has ruled that providing complementary tickets free of charge would be considered supply of service and therefore leviable to tax.

The GST rate on sale of IPL tickets is 18 per cent. Click to read more

GST: 1 year on, firms yet to set up infra for compliance

Corporates are now realising that coming to terms with GST means a more drastic change to their tax infrastructure than the basic compliance-related changes they have made so far, Vishal Parekh, regional head, South Asia, Thomson Reuters said in an interview.

“In the last several months, we have had discussions with CFOs and tax heads, and post one year of GST, there is a very different mood around tax and finance,” Mr. Parekh said. Click to read more

Finance ministry rubbishes charge of stuck GST claims worth Rs 23,000 crore

The finance ministry on Friday dismissed as “exaggerated” and “inaccurate” exporters’ contention that about Rs 23,000 crore of goods and services tax-related refund claims are stuck with the government.

“A large number of exporters have been granted refunds so far while a few claims are still pending owing to deficiencies found in the claims,” the ministry said in a statement a day after exporters again raised refunds issues.

The Federation of Indian Export Organisations (FIEO) had claimed that input tax credit (ITC) refund worth Rs 15,000 crore and at least Rs 8,000 crore of integrated GST refunds are stuck with the government. Click to read more

Pyramid Infra goes to court over GST anti-profiteering mechanism

A real estate company has dragged the government to court over the constitutional validity of the antiprofiteering mechanism under the goods and services tax.

The anti-profiteering provision requires companies to pass on the benefits of a cut in the GST rate to customers.

Pyramid Infrastructure filed a writ petition in the Delhi High Court on Friday, claiming the anti-profiteering mechanism lacks clarity and violates the fundamental rights of citizens such as freedom of speech and equality. Click to read more

Nestlé found to have profiteered Rs 98 crore from GST rate cuts

The Director General of Anti-Profiteering (DGAP) has charged the fast moving consumer goods (FMCG) major Nestle with profiteering. The company has been found to have deprived its customers of goods and services tax (GST) cuts of Rs 98 crore by not revising the prices of chocolates, baby food items and Maggi noodles among other products in line with the new rates, sources said. The DGAP last week submitted the investigation report to the National Anti-Profiteering Authority (NAA), the apex anti-profiteering body functioning under Ministry of Finance. The NAA will now hear the parties and come up with a final order in three months. Click to read more

GST’s latest in word cascade

Last Tuesday, the Union finance ministry issued two notifications, amending the provisions for granting refunds to exporters. One with retrospective effect from October 23 last year and the other with effect from October 9 this year.

When the Goods and Services Tax (GST) was introduced, exporters were entitled to claim refund of Integrated GST (IGST) paid on goods shipped out. Subject mainly to two conditions — one that IGST had been paid and the other that the goods had been exported. On January 23 this year, Rule 96 (10) of the Central GST Rules, 2017, was introduced retrospectively. Click to read more

Group Of Ministers To Consult States On Disaster Relief Cess On GST

A group of ministers headed by Sushil Modi will consult states to decide if a disaster relief cess should be levied on the goods and services tax to meet demand for funds after a calamity strikes.

That’s because most of the cesses levied on commodities that contributed to the National Disaster Relief Fund were subsumed under GST, Modi, deputy chief minister of Bihar, said after the meeting of the group. Also, collections from National Calamity Contingent Duty, a major contributor of NDRF, declined from Rs 6,450 crore in 2016-17 to Rs 3,660 crore in 2017-18.

A questionnaire will be sent to states on whether a state-specific or a pan-India cess should be levied and what should be its mechanism, Modi said. Click to read more

Jewellery sales in India see a drop on high base effect after GST rollout: Evgeny Agureev

Diamond miner Alrosa, a Russian partially state-owned company that accounts for over 29 per cent of the global diamond production, had opened an India office in April this year with an aim to increase its presence in the diamond and jewellery market here. India currently accounts for $700 million or over 16 per cent of Alrosa’s $4.2-billion global sales. Evgeny Agureev, Director of the United Selling Organization of Alrosa — the company’s sales division — in an interview with ANIL SASI said that while in the first half of 2018, rough diamond sales to Indian companies touched almost $400 million, sales of decorative jewellery increased in all of the world’s key regions, except for India. Click to read more

The post Franchise owners will have to pay GST on free IPL tickets: AAR appeared first on GST Ready India.

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