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Finance ministers from Congress-ruled states say they have alerted the Centre about the problems in GST for several months, but it is only now with the Gujarat assembly election around the corner that the Modi regime has started heeding these suggestions.
The benefits are common in many cases, but are also different in some other respects.
'It is necessary to have a person at the top who can make strict decisions without hesitation. Modiji has done that.'
The shift from 'one country, one tax' to four tax rates could dilute possible gains on GDP, warns T N Ninan.
The GST Council had given the option to real estate companies to either opt for old rates of 12% (for residential) and 8 per cent (affordable housing) with ITC benefits or the new tax rates of 5% for residential units and 1% for affordable housing without the benefit of adjusting the credit on inputs used during construction.
Common use products like hair oil, soaps and toothpaste will be charged with a single national sales tax or GST of 18 per cent instead of present 22-24 per cent
The time the companies have to get ready for GST is 6 to 12 months.
Even with the Rs 20,000 crore distributed among states, it will still be a fraction of what they have been demanding in financial support and clearance of pending dues.
"There will be some challenges" in the switchover to GST in the short term, Finance Minister Arun Jaitley has warned.
GST implementation could happen in September itself, with the next meeting of the Union Cabinet likely to take up the matter.
While the government has the option of ensuring the passage of these Bills as money Bills, there are voices within the government advising discretion on the GST roll-out by April 1.
Manufacturing taxes, VAT will come down, assures Jaitley
The GST Council on Saturday is expected to extend the date for IGST exemption and cess on imports
Industry had sought this 3-month extension, specifically for players struggling to collate the information that are required to be disclosed in the GST forms.
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 mop-up could have been much higher, but tax on imports fell 2 per cent y-o-y.
The cess collected on cars as also tobacco and coal will be used to compensate the revenue loss of states by implementing GST.
He died at AIIMS in New Delhi at 9.45 pm, hospital sources said.
The focus will be on tackling the unfinished agenda requiring immediate attention like tax structure for solar projects, uniform tax rate on state-organised and state-authorised lotteries, taxing non-potable alcohol besides certain changes in the law, extension for NAA and rate rationalisation.
The GST Council, headed by Jaitley and comprising representatives of all the states, is scheduled to meet in Srinagar on May 18-19 to finalise tax rates on different goods and services after unifying at least 10 indirect taxes into the Goods and Services Tax.
The GST Council, that includes representatives of all states, will meet again on November 3-4 to decide on the tax rates
As and when the GST comes in, Budget projections will have to be unbundled and revised. In fact, the pragmatic decision would be to present another Budget! This makes the passage of the Finance Bill with its multiple unrelated amendments seem even more dubious, says Devangshu Datta.
All goods and services have been put in slabs of 5%, 12%, 18% and 28%
Assembly elections coming up in November and December could offer a window of opportunity to the government to make GST attractive through rate cuts.
Options include raising both excise and service tax rates in FY16
The changes made in the revised GST draft throw up fresh issues but, overall, most of these look sensible, says T N C Rajagopalan.
If the government tries to bring in real estate under GST now, it will be a typical case of biting more than what one can chew, says Sukumar Mukhopadhyay.
The GST Council is scheduled to meet next on November 10 and may consider lowering tax rates on a host of goods such as handmade furniture, plastic products and daily use items like shampoo.
India moving in right direction on GST, says Panagariya.
A government report revealed that fake companies floated with fake addresses, issued fake GST invoices and generated fake e-way bills, with fake vehicle registration details without supplying any goods causing huge loss to the exchequer.
The Securities and Exchange Board of India (Sebi) might relax the disclosure norms around rumour verification to help smooth implementation and ease compliance amid pushback from India Inc, said people in the know. The rule has been notified following amendments to the Listing Obligations and Disclosure Requirements (LODR) by Sebi. However, its implementation has been deferred until February.
The final rate will be worked out by the GST Council, Finance Minister Arun Jaitley said on Wednesday.
Government strategists are trying to ensure that the requisite 16 of the 31 states ratify the Bill by the end of this month
"The industry is looking at a rate of 12-16 per cent. So, it entirely depends on how it gets. But the bigger concern is how the GST is applied," said R Chandrashekhar, president of Nasscom.
The GST rates for all but six items were finalised at the first day of the two-day meeting of the GST Council, headed by Union Finance Minister Arun Jaitley and comprising state representatives.
'There was a strong undercurrent of deprivation, and also frustration against misuse of power and authority.' 'This election was an opportunity for the manifestation of this discontentment.'
The net direct tax collection so far this fiscal rose 19.41 per cent to Rs 14.70 lakh crore, reaching about 81 per cent of the full-year target, the income tax department said on Thursday. "The provisional figures of Direct Tax collections up to January 10, 2024, continue to register steady growth," the Central Board of Direct Taxes (CBDT) said in a statement. Direct Tax collection, net of refunds, stood at Rs 14.70 lakh crore which is 19.41 per cent higher than the net collection for the corresponding period of last year.
Besides central cess, the Empowered Committee of State Finance Ministers has also recommended to keep purchase tax and octroi, which are collected at state and local levels, outside the GST framework.
Dispute between Centre and states over CST set to upset April 2012 deadline.
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