The goods and services tax (GST), rolled out on July 1, 2017, cut marginal tax rates–the real, effective tax a business pays, technically the difference between the pre-tax and post-tax rate of return on an investment–on businesses in India in all sectors, except electricity, which is exempt from the new tax regime, according to a new study.
The fall in marginal tax rates was in the range of 1-23 percentage points across sectors, according to estimates by Gaurav S. Ghosh, senior manager, EY, a global consultancy, and Jack Mintz, director of the school of public policy at the University of Calgary, Canada.
Marginal tax is the rate businesses end up paying on each new unit of investment after considering the effect of all statutory taxes levied. A higher marginal tax rate means businesses have lower incentives for increasing investment and vice versa, the authors explained.
At 23.2%, the transport sector saw the largest drop in marginal tax rate. At 0.9%, agriculture saw the read more
The District Consumer Disputes Redressal Forum in Chandigarh has once again ruled that shops cannot charge extra value added tax (VAT) on items sold on discounted price, saying that by doing so they are “indulging in unfair trade practice”.
Penalising Benetton India Private Ltd, the forum, presided by Rajan Dewan, observed: “The act of Benetton in charging VAT on discounted product clearly proves deficiency in service, having indulged into unfair trade practice on their part, which certainly had caused immense mental and physical harassment.”
The four-page order, signed on September 25, clearly mentioned that a similar question arose earlier for the determination of VAT before this commission twice — first in 2015 and later in the read more
The Income Tax Department raids on Cafe Coffee Day(CCD) retail chain since Thursday found Rs 650 crore concealed income from the documents seized, said an official on Sunday.
“Documents seized from the search operations at 25 places of Cafe Coffee Day and its group companies in Karnataka, Mumbai and Chennai have revealed concealed income of over Rs 650 crore,” a senior tax official told IANS here.The search and seize operations, which began on September 21, concluded on Sunday evening in the offices of the group involved in coffee, tourism, IT and other areas.
“The searches concluded with the group’s officials admitting to concealed income exceeding Rs 650 crore and the detection of undisclosed income, which is expected to be a much higher figure,” said another tax official in an e-mail to IANS.
The offices and residence of CCD’s founder-owner read more
The small and medium enterprises in Uttar Pradesh have pilloried the Yogi Aditya nath
government for purportedly breaching the spirit of ‘One Nation, One Tax’ theme of the Goods and Services Tax
(GST) by mandating e-Way Bill for goods of smaller value.
E-Way Bill is an electronic bill required for the movement of goods above the value of Rs 50,000 under GST. However, the Yogi government has mandated it even for transporting goods of the value of Rs 5,000 and above, which the entrepreneurs claim violated the GST rules, since the threshold is 10 times less than as provided under relevant rules.
Claiming that the e-Way Bill decision had been taken in haste, Micro, Small and Medium Enterprises (MSME) chamber, Indian Industries Association (IIA) has asserted it would hit the state’s small and medium businesses hard, while impairing their competiveness as well.
IIA has submitted its representations to the GST Council chairman, Centre, UP finance ministers, UP Tax department etc seeking the rollback of the decision for providing succour to the sector.
The MSME space in UP is estimated at over 4 million units and the sector contributes almost READ MORE
Under the VAT and Service Tax regime, TIN number and Service Tax Registration Number were issued by the state and the Centre. However, under the Goods and Services Tax
(GST) regime, all taxation will get consolidated into a single platform and taxpayers will be registered under a single authority.
All the taxpayers who migrate and register under GST will receive a GSTIN — Goods and Service Tax Identification Number. Here is what the GSTIN
format looks like-
Under the GST regime, every business providing goods and services with a turnover exceeding Rs 20 lakh is required to register as a normal taxpayer. This registration is important because only a registered business can avail benefits like the seamless flow of Input Tax Credit (ITC) on their raw material purchases.
The GST registration process has been reopened from June 25 and will continue for the next 3 months
How to get a GSTIN
2. Go to ‘Register Now’ and fill in Part A of the application with your name, e-mail ID and mobile number
3. The portal will verify your details by sending an OTP to your mobile and email
4. Once the verification process is completed, you will receive the Application Reference Number (ARN) via mobile or email
Now you can fill Part B of the application using the ARN. The documents you will require READ MORE
Implementation of the GST is a step towards corruption free nation and will end the shadow economy, Union minister Arjun Ram Meghwal said today.
Meghwal was addressing representatives of various business organisations, central and state officials in an event on the Goods and Services Tax.
The Union government is committed to tax reforms and to speed up the economic growth, Meghwal said while assuring that the GST will benefit people from all sectors.
The central government has directed officials and ministers to tour to different parts of the country to educate people about GST and address problems post its implementation, the minister of state for finance said.
Change is the sign of development and the technical transformation is heading the country towards progress, Meghwal said, adding that India would soon be the country with strong economy in the world.
The minister also said that five petroleum products that are out of GST would also be put up in the GST Council to gradually bring those under the new tax regime, read more