Tag: Goods and Services Tax

Revenue collection from GST touches Rs 94,700 cr: Reports

Revenue collection from GST touches Rs 94,700 cr: Reports

07/09/2017 17:01

The Indian Government has said that around six lakh more businesses have filed returns and paid taxes in last one week, taking maiden revenue collections from GST to about Rs 94,700 crore.

As per reports, Finance Minister Arun Jaitley had last week stated that 38.38 lakh businesses had filed their returns and paid Rs 92,283 crore in taxes for the month of July – the first month of implementation of independent India’s biggest tax reform, the GST.

Commenting on the issue, a Government Official told the media, “Since then the number of returns filed has gone up to 44 lakh and over Rs 2,500 crore more has come in as taxes. The collections so far are from 74 per cent of the total taxpayer base and more people are likely to come in when the final returns are filed in GSTR 1, 2 and 3.”

As per reports, the GST, which unifies more than a dozen central and state levies like excise duty, service tax and VAT, kicked in from July 1 and requires all tax payers to register on the new tax platform, GST Network.

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GST council may lower tax rate on high collections: Reports

GST council may lower tax rate on high collections: Reports

05/09/2017 12:04

A Government Official has said that the GST Council may consider lowering tax on items of common consumption if the high trajectory of collections continues over the next few months.

Commenting on the issue, a Government Official told the media, “The first-month collection under the new Goods and Services Tax (GST) regime has been encouraging and if the rising trend continues till December, it would make a case for reduction of tax rate.”

“The tax reduction could be either on items of common consumption or a cut in headline rate which will benefit consumers,” he added.

As per reports, India’s maiden GST revenue mop-up got off to a strong start with collection of Rs 92,283 crore in July from just 64.42 per cent of the total taxpayer base. Of this, as much as Rs 14,894 crore has come in from the Central GST (CGST), Rs 22,722 crore from State GST (SGST), Rs 47,469 crore from Integrated GST (IGST) and Rs 7,198 crore from compensation cess levied on demerit and luxury goods.

High GST may taper leasing industry growth

High GST may taper leasing industry growth

16/08/2017 11:11

The estimated Rs 5500 crore capital good leasing sector growing at 15-20 per cent may get tapered due to high Goods and Services Tax (GST) along with few other issues, reported PTI.

“The GST rate of 28 per cent is high for the leasing industry when compared to the earlier five to 15 per cent tax burden. Higher GST rates lead to requirement of higher working capital at any point of time. This results in increasing the cost of leasing an equipment,” Finance Industry Development Council director general Mahesh Thakkar told PTI.

“The government should actively consider not bracketing the capital goods in the same GST bracket as luxury goods and sin goods. A lower GST rate will help increasing share of leasing in gross capital formation,” he said.

The share of leasing in gross domestic capital formation in India is less than two per cent whereas the global average is 10 per cent, he said.

The same could also create hurdles for the foreign companies in India since they believe that leasing is the most preferred method of owing assets for operation, an NBFC official said.

Apart from GST rates, there are other issues like input tax credit, penal interest/charges for delayed remittance of EMI and sale of repossessed assets which needs to be corrected.

“Till now there is no response from the government on our representation,” he said.

Both pointed out that the issue will have a severe impact on capital-starved SME players who will face major hardship due to this.

Construction equipment, wagons, heavy machinery, car leasing among others are expected to face hurdles in new regime.

Leasing in India is just three per cent of global volumes and if taxation issues are not addressed, this will effectively be a death blow to leasing even before it makes a comeback in India, a equipment company official said.

7 states yet to pass GST laws even as rollout deadline nears

7 states yet to pass GST laws even as rollout deadline nears

06/06/2017 11:00

With less than a month left for GST rollout, seven states, including West Bengal, Tamil Nadu and Jammu & Kashmir, are yet to pass their legislations required for implementing the new indirect tax regime, said an official statement.

So far, 24 states and Union Territories, including Delhi, Odisha and Puducherry, have passed the State Goods and Services Tax (SGST) Act in their respective legislative assemblies.

However, seven states — Meghalaya, Punjab, Tamil Nadu, Kerala, Karnataka, Jammu & Kashmir and West Bengal — are yet to pass the SGST law. Baring Jammu & Kashmir where BJP is an alliance partner of PDP, all are non-BJP ruled states.

The government plans to roll out the Goods and Services Tax (GST), which will subsume 16 different taxes, from July 1. West Bengal wants the Centre to delay roll out of the GST by a month and the issue was raised by state Finance Minister Amit Mitra at the meeting of the GST Council last week.

Mitra said that implementation of the GST from July 1 will have “serious problems” as the IT infrastructure required to manage GST’s returns and invoice uploading are not in place”.

So far, GSTN has been able to do test drive on 200-300 companies in each state. Forms and rules have been changed in May.

The Union Finance Minister has to decide whether it should go ahead with the biggest fiscal reform when the IT preparedness is not 100 per cent,” Mitra said.

As per the GST Constitutional amendment, all states have to pass SGST bills by September 15, 2017, failing which they will lose their taxation powers.

GST Bill passed in Maharashtra Assembly

GST Bill passed in Maharashtra Assembly

22/05/2017 15:02

The Maharashtra Assembly on Monday passed the Goods and Services Tax (GST) Bill in a session of its lower house.

The Goods and Service Tax (GST) which will come in force from July 1st, will unify the country’s economy into a common market and eliminate a string of central and state levies.

The act is significant as the BMC gets a considerable share of its revenue through octroi, which will now be scrapped with the introduction of the GST regime.

Earlier, the Rajya Sabha passed four GST Bills without amendments setting the stage for the government for the launch on July 1.

Union Finance Minister Arun Jaitley had said that the GST would lead to new tax regime.

The four bills passed on April 6 – the Central GST bill, the Integrated GST bill, the Union Territories GST bill and the compensation law – have already been cleared by the Lok Sabha, where the government enjoys majority.

Centre to get greater chunk in residual GST compensation fund

27/03/2017 15:31

The Centre will have a greater share of the residual amount in the compensation fund at the end of the 5-year period as the GST Bill now provides for equal sharing of the amount as against the earlier formula which favoured states, reported PTI.

According to the Goods and Services Tax (Compensation to States) Bill, as introduced in the Lok Sabha, they will receive provisional compensation bi-monthly from the Centre for loss of revenue from implementation of GST. The draft law had provided for payment of compensation every quarter.

Tweaking the provision of the draft, which was made public in November 2016, the GST Compensation Bill said that “any residual amount left in the Compensation Fund after five year compensation period shall be shared equally between the centre and the states”.

As per the earlier draft, any excess amount after the end of five year tenure in the ‘GST Compensation Fund’ were to be divided between Centre and states as per the specified formula under which 50 per cent of the excess amount was to be devolved between Centre and States as per statute.

The remaining 50 per cent would have to be given to the states in the ratio of their total revenues from SGST in the last year of the transition period.

The bill, as cleared by the GST Council, has simplified the structure for sharing of the residual amount in the Compensation Fund.

The GST Council, comprising Union Finance Minister and state representatives, had decided to set up a compensation fund by levying cess on demerit and luxury goods. The proceeds from the fund would be utilised to compensate the states for revenue loss in the initial five years of GST roll out, which is likely from July 1.

The bill also provides for audit of accounts relating to Compensation Fund by the Comptroller and Auditor General. Also the final adjustment of compensation to be paid to the states would be done after audit of accounts of the year by the CAG.

The Bill also stipulates that the base year for calculating the revenue of a state would be 2015-16 and a secular growth rate of 14 per cent would be used for calculating the revenue of each state in the first five years of implementation of GST.

The loss of revenue to a state will be the difference between the actual realisation to a state under Goods and Services Tax (GST) regime and the tax revenue it would have got under the old indirect tax regime after considering a 14 per cent increase over the base year of 2015-16.

It also provides that in case of the 11 special category states, the revenue foregone on account of exemption of taxes granted by states shall be counted towards the definition of revenue for the base year 2015-16.

The revenues of states that were not credited to the Consolidated Fund of the states but were directly devolved to “mandi” or “municipalities” would also be included in the definition of ‘revenue subsumed’, the bill said.

FPIs inject over Rs 5,700 crore in capital markets in Sep

19/09/2016 12:54

Overseas investors pumped in a massive Rs 5,790 crore into capital markets of Asia’s third biggest economy in the month of September 2016 thus far, as improved macro-economic outlook amid hopes of an RBI interest rate cut bolstered risk taking appetite.

Foreign Portfolio Investors (FPIs) made a net investment of Rs 2,122 crore in Indian equities in the period September 1-16, while in debt markets; they net invested Rs 3,668 crore, resulting in a total inflow of Rs 5,790 crore, latest data from the depositories show.

FPIs had made a net investment of Rs 25,904 crore in two months of July and August.

The total investment made by overseas investors in equities this year thus far stands at Rs 42,972 crore, while they withdrew Rs 3,680 crore from the debt market, resulting in a net flow of Rs 39,292 crore.

A better monsoon has bolstered hopes of a pickup in domestic consumption while the nod to the much anticipated Goods and Services Tax (GST) bill and higher domestic passenger vehicle sales also buoyed sentiment.

Meanwhile, a retreat in consumer inflation, the RBI’s benchmark price gauge, to the lowest level in five months at 5.05 per cent in August has also raised hopes of a near-term cut in interest rates.