The government has notified a host of procedural changes in the GST rules, including levy of interest for wrongful utilisation of ITC and turnover threshold for filing annual returns for the 2021-22 fiscal. The changes were vetted by the Goods and Services Tax (GST) Council at its meeting last week. With the amendments notified by the Central Board of Indirect Taxes and Customs (CBIC), businesses have also been allowed to make tax payments on the GSTN portal by using IMPS and UPI payment modes.
The GST will alter the very face of fiscal federalism in India.
From filing 37 returns a year when the Goods and Sales Tax was first introduced in July last year, the process has undergone major changes as the GST Council considered and implemented various models to ease the pain for assessees. Here's a recap of how the process has changed in 10 months.
All goods and services have been put in slabs of 5%, 12%, 18% and 28%
Bihar became the first non-NDA state and overall second after the BJP-ruled Assam to pass GST bill.
Although the markets could see a knee-jerk reaction, they rule out a sharp fall.
The passage of the bill will pave the way for setting up of a GST council that will decide the tax rate, cess and surcharges.
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.
Rahul Gandhi, who is scheduled to again visit poll-bound Gujarat from Saturday, said the government can't break the back of small and medium businesses, crush the informal sector and destroy millions of jobs.
New business premiums of life insurance companies dropped 5.2 per cent year-on-year (YoY) in August to Rs 30,959 crore, owing to a double-digit decline reported by state-owned Life Insurance Corporation (LIC), data from the Life Insurance Council showed. LIC recorded a 17 per cent YoY fall in new business premiums to Rs 16,023 crore during the month, while private life insurers reported a 12 per cent YoY increase to Rs 14,936 crore.
With less than five months left for the report of the Fifteenth Finance Commission to be submitted, its chairman N K Singh said the report will have fiscal road map for states, depending on their current situation.
In an attempt to get states to implement the Goods and Services Tax (GST) by next April, the Centre has softened its stance on most proposals in the draft Constitutional Amendment Bill that Finance Minister Pranab Mukherjee hopes to pilot in the monsoon session.
Parliament on Thursday cleared the decks for the rollout of the historic Goods and Services Tax from July 1 as it approved four supporting legislations to usher in the one-nation-one-tax regime.
The GST Bill, seen as single biggest tax reform in a long time, needs to be ratified by at least 15 state legislatures before the President can notify the GST Council which will decide the new tax rate and other issues
The government on Monday announced the implementation of a 5 per cent uniform IGST rate on all aircraft and aircraft engine parts to boost the industry. The decision, which comes into force with immediate effect, marks a significant milestone for the domestic Maintenance, Repair, and Overhaul (MRO) industry, aimed at making India a global aviation hub, an official release said. Earlier, IGST rates on all aircraft and engine parts were ranging from 5 per cent to 28 per cent.
The Centre is likely to introduce the Central GST and integrated GST bills in late November or early December in the ongoing session in the form of money Bills.
The price of ensuring no disruption after rolling out the GST seems to be an imperfect GST with many relaxations in its compliance norms, says A K Bhattacharya.
The cess collected on cars as also tobacco and coal will be used to compensate the revenue loss of states by implementing GST.
The Constitution should not encumber these choices, specially limiting them to second-best or third-grade options.
"This rationalisation is 3-4 month exercise," he said, adding that the GST Council decided on the rate cut on the recommendation of a Fitment Committee.
Following passage of the Constitution Bill, 2014, Dass and Finance Minister Himanta Biswa Sarma, who introduced it in the House, exchanged sweets.
A slew of challenges that are yet to be resolved include the lack of consensus between the Centre and states over the GST exemption threshold limit, dual control over scrutiny and assessment
Experts said the rate hike would improve working capital position of the manufactures as it would correct the inverted duty structure but may lead to increase in price of the finished goods.
The clarification comes amid reports that sweet shops have discontinued chocolate barfis and chocolate sandesh.
Additional solicitor-general says extra-neutral alcohol liable to new tax
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
This is the third time in current fiscal that GST collections have crossed the Rs one lakh crore-mark.
What has surprised the industry is that the Bill has been tabled without any consultation. Critics warn the ban on real-money gaming could fuel black markets, endanger 200,000 jobs and billions in tax revenue.
Jaitley said the Congress may be upset with the government for 'political reasons'
By doing away with the 1 per cent inter-state tax over and above the GST rate, the government has met one of the three key demands over which Opposition Congress has been blocking the Bill in the Upper House
As Centre cedes power to states in indirect tax, it wants to all ystaffers' worry of little work.
GST rates on under-construction houses maybe reduced from 12 pc with input tax credit to 5 pc without ITC. Similarly, the rate for under-construction affordable houses could come down to 3 per cent without input tax credit, from the current 8 per cent.
Jan Suraaj Party founder Prashant Kishor alleges Bihar Deputy Chief Minister Samrat Choudhary escaped a murder trial by falsely claiming to be a minor. He demands Choudhary's dismissal and threatens to expose further financial irregularities.
State governments have requested the Centre for export incentives, lifting of import duty in the case of cotton for the textile sector and GST exemptions.
Under the GST regime, most manufactured goods will turn cheaper.
Inter-state supply may come under GST composition
After the 2019 election, one thing is sure: GST will see a number of changes, explains Indivjal Dhasmana.
FM said a Constitution Amendment Bill for introduction of GST will be passed soon.
A future road map could be to work towards a single standard rate instead of two standard rates of 12 per cent and 18 per cent, he said.
