IT companies see this as a huge opportunity.
After 17 tumultuous years, a nationwide Goods and Services Tax (GST) will rollout from midnight of June 30, overhauling India's convoluted indirect taxation system and unifying the $2 trillion economy with 1.3 billion people into a single market.
Modi said officers must fix clear targets to improve the country's tax administration by 2022, the 75th anniversary of Independence.
The final rate will be worked out by the GST Council, Finance Minister Arun Jaitley said on Wednesday.
Higher reliance on GST receipts for revenue reduces states' autonomy as these receipts depend on tax rates decided by the GST Council, a report by Delhi-based non-profit, PRS Legislative Research shows.
Small scale and cottage industries which are labour intensive will be severely hit.
GST impact: Higher lease payouts may hit airlines, cab aggregators.
The government will have to get projects moving.
GST implementation could happen in September itself, with the next meeting of the Union Cabinet likely to take up the matter.
Jaitley promised the states that they would be fully compensated for any loss of revenue arising from implementation of GST.
Several exemptions have been given to reduce the cost of raw materials.
Service companies such as Infosys, Tata Consultancy Services and Airtel, among others, would be particularly hit.
It is immediately not clear how GST will impact the mass car market. Experts, however, say the level of tax on smaller cars will have to be at a differential to the sedans.
Experts share their views on the steps that will help businesses become GST-ready.
He also said GST will take about a year to stabilise.
'The role reversal of those in favour of GST and those opposing it is troubling.'
Since the present law threatens to unleash an avalanche of litigation over a period of time, it makes sense to replace it with a simpler law and build complexities as more experience is gained, says T N C Rajagopalan.
The finance minister has labelled about 65 per cent of the fuel excise revenue as cess, including the restructured road and infrastructure cess
The governments of Karnataka, Uttar Pradesh and Rajasthan want a lower limit of Rs 100,00,00 gross annual turnover.
GST reform has been hanging fire since 2006-07.
Attributing the stock market crash to global turbulence, Finance Minister Arun Jaitley on Monday said the government and RBI were watching the situation and hoped that things will stabilise once the transient impact is over.
The cess collected on cars as also tobacco and coal will be used to compensate the revenue loss of states by implementing GST.
The clarification comes amid reports that sweet shops have discontinued chocolate barfis and chocolate sandesh.
The key proposals from the IT industry that were not addressed included removal of dual levies on software products
India has been able to attract 40 global smartphone makers to the country -- creating at least 50,000 jobs. But GST could hurt that, discovers Ayan Pramanik.
While the Centre is criticised for not cutting excise duty on petroleum products, it is the states which gain more from the rise in their prices
Govt may not announce any new concessions in excise duty
'GST is imperative for India's success.' 'Without GST India will be a less competitive country.'
The Centre would need the concurrence of 20 states out of 29 to impose a GST on petroleum
Online companies would look forward to an integrated and uniform approach for tax laws and regulatory policies
As many as 30 sub-groups and committees worked tirelessly to devise rules and laws as well as fix tax rates for over 1,200 goods and services.
The FAQ also clarified that companies, including Titan, which supplies watches and jewels through their own websites will not be considered as e-commerce operators
'If my understanding is correct, one has to file not less than 37 returns per year for every ordinary business, and that too per state.' 'If you are doing businesses in Chennai, Bangalore and Hyderabad, you have to file 37x3 returns every year!' 'The consequence of GST will be chaos, confusion and possibly economic crisis.'
Central Board of Excise and Customs Chairperson Vanaja Sarna said there will be genuine errors due to lack of understanding in the initial days. "CBEC has enforcement authorities and I have specifically said that the first three to six months are a go-slow.... I don't want small cases to be made," Sarna said at a CII event.
'Perhaps GST was too complex a system for the Indian economy at its present stage of development,' argues T N Ninan.
Oil explorer ONGC again emerged as the highest profit-making PSU of the country during 2012-13 while telecom major BSNL turned out to be the biggest loss-making enterprise, says the Economic Survey.
Apart from Modi, Jaggi Vasudev to address 2-day tax officers' conference
Customs sleuths will be posted in London, Hong Kong, Dubai and Brussels in an effort to check trade-based money-laundering among others.
5 commodities namely crude oil, natural gas, petrol, diesel, and aviation turbine fuel (ATF) were kept out of GST's purview given the revenue dependence of state governments on these sectors.
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