GST RATES
States are also cautious on GST rate cuts: FM Sitharaman
Finance Minister Nirmala Sitharaman remarked that states are cautious about implementing GST rate cuts, aiming to protect revenue without imposing additional burdens on people. Discussions on revising GST rates are expected to begin in the GST Council's meeting on September 9.
GST Council meet to discuss rate rationalisation on September 9, final decision later: FM
Finance Minister Nirmala Sitharaman announced that the upcoming GST council meeting will address the rationalisation of tax rates, including potential changes to taxes and slabs. The Group of Ministers recently discussed maintaining the existing GST slabs at 5, 12, 18, and 28 percent. The council will also consider the future of the compensation cess, which was extended till March 2026 to repay loans taken to compensate states for GST revenue loss.
GST rationalisation: Review going on, a rate reset may come by September end
GST rate rationalisation: The group of ministers has postponed restructuring tax slabs, but has continued to review rates for items in the 12% and 18% brackets. They are considering sectors like health insurance, restaurants, and some food products. Final decisions on specific goods and services are anticipated by the end of September.
GoM on GST rates favours retaining 4-slab structure
The Group of Ministers (GoM), after a meeting here on Thursday, tasked a committee of tax officials to look into the implication of carrying out changes to rates of some items and present it before the GST Council. The issue of GST on health and life insurance was also figured in the meeting and the GoM referred it to the fitment committee comprising central and state tax officers for further in-depth analysis.
Need to maintain balance between enforcement, ease of biz: Revenue Secy to GST officers
Revenue Secretary Sanjay Malhotra emphasized the need for balancing enforcement with ease of doing business while addressing GST evasion cases. He called for tracking masterminds behind fake input tax credits to ensure effective deterrence. This statement was made at the second National Conference of Enforcement Chiefs, held amid a nationwide drive to detect fake GST registrations, which started on August 16 and will run for two months.
GST Council set to meet on Sept 9, talks on rate rationalisation to kick off
As announced by finance minister Nirmala Sitharaman during the post-budget discussion in Parliament, the newly reconstituted group of ministers (GoM) on rate rationalisation will discuss the progress made by the earlier members on the issue. "There will be a presentation by the GoM irrespective of whether the report is draft... and then council will start the discussion on rate rationalisation in the next meeting," Sitharaman had said during the June 22 meeting.
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Mahindra Group companies run into 'brand' tax
Mahindra & Mahindra received a notice from the GST office regarding the use of the 'Mahindra' brand name by group companies, questioning why GST wasn't paid for the service between 2017-23. Tax officials believe GST should apply to the royalty or fees, raising concerns among corporate circles about the implications for numerous business houses.
A new discussion on GST begins after Gadkari's letter to Sitharaman strikes a chord with many
Approximately six months ago, a parliamentary standing committee led by Jayant Sinha also highlighted the need to reduce GST on health and term insurance. The current tax environment imposes significant levies not only on insurance but also on other essential services such as telecom, which also attracts an 18 per cent GST.
In preparation for GST rate rationalisation, product categories' fine-tuning begins
The Central Board of Indirect Taxes and Customs began revising product classifications under GST to simplify the system and reduce tax disputes. The goal is to fix ambiguities before rationalizing tax rates. A report is expected at the next GST council meeting. Examples show how small changes can impact tax slabs.
Rupee turns flat at 83.73 against US dollar in early trade
On Friday, the rupee remained flat at 83.73 against the US dollar, influenced by weak equity markets and rising crude oil prices. The softer dollar and foreign capital inflows into Indian equities provided support. The Reserve Bank of India's likely intervention contributed to limiting the rupee's weakness. Key economic data included GST collections and manufacturing sector performance.
Gadkari urges FM to withdraw 18% GST on life, medical insurance premiums
Nitin Gadkari, the Road Transport Minister, urged Finance Minister Nirmala Sitharaman to eliminate the 18% GST on life and medical insurance premiums. He highlighted concerns raised by the Nagpur Division Life Insurance Corporation Employees Union about the fairness of taxing premiums, arguing it penalizes individuals seeking to insure against life's uncertainties and their families' protection.
Withdraw 18% GST on life and medical insurance premium: Gadkari writes to FM Sitharaman
The Transport Minister noted that the Nagpur Divisional Life Insurance Corporation Employees Union urged the removal of GST on life and medical insurance premiums. They argued that taxing these premiums unfairly targets individuals seeking security for their families and hampers the growth of the medical insurance sector.
Feasible & prudent to have three GST slabs: CBIC chief
India's GST structure is set to move towards three tax rate slabs, according to CBIC chairman Sanjay Kumar Agarwal. The GST Council will finalize the plan in its next meeting. Customs duty overhaul is also planned, aiming for simplification and fewer disputes. The online gaming sector’s GST contribution is growing.
India to get a three-tiered GST regime in next few months?
India is planning to cut GST slabs from four to three to simplify tax classifications, Sanjay Agarwal, Central Board of Indirect Taxes and Customs Chairman, said. Presented on Tuesday, Finance Minister Nirmala Sitharaman's Budget speech highlighted potential GST reformation.
Budget Tax Targets: Sitharaman hopes to bump up tax revenues further in FY25
Budget Tax Collection Target: Finance Minister Nirmala Sitharaman proposed to increase gross tax collection in Budget 2024 to boost income and consumption, aiming for India to become the world’s third-largest economy. The government targets a gross tax revenue of Rs 38.40 lakh crore, with Rs 22.07 lakh crore from direct taxes and Rs 16.33 lakh crore from indirect taxes, crucial for fiscal stability and funding development initiatives. Personal income tax collections are projected to rise, with a deadline for filing returns by July 31.
Govt implements uniform 5% tax for all aircraft, aircraft engine parts
India has implemented a uniform 5% tax on all imports of aircraft components and engine parts starting immediately, replacing varying rates that previously ranged from 5% to 28%. The decision, recommended by India's GST Council in June, aims to streamline tax rates for items like aircraft parts, testing equipment, tools, and tool-kits.
Budget 2024 needs to take steps to address lower than expected growth in consumption: Godrej & Boyce CEO
BUDGET: Godrej & Boyce CEO Anil G Verma urges the government to review personal income tax slabs in the upcoming Union Budget to boost private consumption and investment. He commended the interim budget's focus on infrastructure, fiscal prudence, and welfare, and called for measures to optimize GST rates, reassess interest rates, and promote innovation and sustainable practices.
Budget 2024: Travel agents body demands industry status, GST rate rationalization for tourism sector
Union Budget 2024: On Monday, the Travel Agents Association of India (TAAI) called for several measures to support the domestic travel and tourism sector. These include streamlined visa requirements, promoting visa-free entry for tourists, rationalising GST rates and GST credit, and granting industry status to all stakeholders. The sector contributes 5.8 percent to India's GDP and has an ambitious target of reaching USD 1 trillion by 2047.
Law amendments approved by GST Council to be incorporated in the Finance Bill: CBIC Chief
CBIC Chairman Sanjay Kumar Agarwal announced that decisions from the recent GST Council meeting, such as an amnesty scheme for initial GST rollout years and a sunset date for profiteering complaints, will be included in the upcoming Finance Bill to be presented alongside the Budget later this month. Speaking at the NACIN-Bhopal's GST flagship programme, Agarwal highlighted that the Council's 53rd meeting proposed rate rationalization for goods and services and issued clarifications where needed.
8th year of GST: Friendlier, simpler regime ahead? What the future likely holds
It would be unreasonable to expect very quick results. While concrete outcomes on this agenda are likely to be backloaded within the financial year, clear timelines and a glide path of transition may well emerge sooner.
GST simplified compliance, improved tax buoyancy; fake ITC generation still a challenge
Introduced seven years ago, the Goods and Services Tax (GST) has streamlined compliance and boosted tax revenues, but challenges persist with fake invoices and fraudulent registrations causing tax evasion concerns. Despite this, GST has simplified the tax regime, increased taxpayer numbers, and improved tax buoyancy and state revenues. However, efforts to combat evasion are ongoing, with the need for further measures such as operationalizing the GST appellate tribunal.
GST Council needs to reconstitute three GoMs as new ministers from 11 states join
Finance Minister Nirmala Sitharaman has said that in the 53rd GST Council meeting on Saturday, there were 11 new ministers from Andhra Pradesh, Bihar, Chhattisgarh, Haryana, Madhya Pradesh, Mizoram, Odisha, Rajasthan, Sikkim, Telangana and Tripura.
Intention of Centre to levy GST on petrol, diesel; states will have to decide on rate: FM Nirmala Sitharaman
Sitharaman mentioned the ongoing taxation of petrol and diesel through excise duty and VAT, urging states to collaborate in the GST Council to decide on the tax rate.
GST Council Meeting: Sin goods windfall, tax relief talks, and more ahead of budget buzz
GST Council Meeting: The upcoming 53rd meeting of GST Council is poised to discuss several key measures that could pave the way for significant tax reforms ahead of the government's first full budget. Among the agenda items are -- the use of approximately Rs 70,000 crore collected from GST compensation cess on products like pan masala and cigarettes. Discussions may also cover the potential waiver of interest or penalties on tax notices issued between 2017 and 2020, excluding cases of deliberate default.
GST Council likely to deliberate on online gaming tax, Par panel recommendation on fertiliser
The GST Council is set to discuss various issues in its upcoming meeting, including taxation on online gaming and the recommendation to lower tax on fertilisers by the Parliamentary standing committee. The current GST rate on fertilisers is 5%, while raw materials like Sulphuric Acid and Ammonia face a higher rate of 18%. The council will also review the decision to levy 28% GST on the full value of bets for online gaming companies, which came into effect on October 1, 2023.
GST rate rationalisation panel reconstituted, Bihar Dy CM Samrat Chaudhary appointed convenor
Bihar Deputy Chief Minister Samrat Chaudhary appointed as convenor of GoM on GST rate rationalisation. Panel includes members like UP Finance Minister Suresh Kumar Khanna and Goa Transport Minister Mauvin Godinho.
Must evolve to eased, 3-tier GST rate format: CII Prez Sanjiv Puri
India needs to transition towards a three-tier rate structure in goods and services tax over time, according to Confederation of Indian Industry president Sanjiv Puri. Puri suggests creating a GST Council-like structure for pushing reforms, some of which are in states' domain. India's economy is doing well in a stressed global environment due to policy instruments deployed by the government over the past years.
Need to moderate rate, widen tax base to make India developed economy by 2047: Experts
Experts emphasise the necessity of transitioning from high tax rates to a revenue-focused approach through moderate rates and broadening the tax base to attain 'Viksit Bharat' by 2047. They suggest a simplified tax structure for businesses and individuals, along with a streamlined GST system to boost formal sector participation and address challenges like tax evasion and classification issues, ultimately enhancing tax to GDP ratio for economic development.
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