All posts tagged: Goods and Services tax (GST)

Rahul Gandhi says Centre pursuing ‘failed economic policy’

Rahul Gandhi says Centre pursuing ‘failed economic policy’

Senior Congress leader Rahul Gandhi had met representatives of the trader community and discussed the challenges faced by small businesses and micro, small and medium enterprises (MSMEs), accusing the Union government, under Prime Minister Narendra Modi, of pursuing what he described as a “failed economic policy”. Rahul Gandhi met with representatives of the trader community and discussed the challenges faced by small businesses and micro, small, and medium enterprises (MSMEs).(ANI) Sharing a video of the interaction on social media on Wednesday, Gandhi said small traders, MSMEs and the manufacturing sector had been systematically weakened as the government “gave free rein” to monopolies. “The government has given free rein to monopolies, and shackled small and medium traders with the chains of bureaucracy and flawed policies like incorrect GST. This is not just a policy failure – it is a direct assault on production, employment and India’s future,” Gandhi wrote on X. During the meeting, trader representatives raised concerns over the implementation of the goods and services tax (GST), which they described as having turned into a …

A ‘smoke’screen? Higher GST on tobacco can improve societal health

A ‘smoke’screen? Higher GST on tobacco can improve societal health

Imagine a big, vibrant joint family filled with young, ambitious members, who dream of education, better opportunities, and a healthy life. The family head prioritises essential needs like food, clothing, education, health and life insurance to safeguard their future. To afford these, he would naturally cut back on non-essential or harmful expenses. Interestingly, this common-sense approach is exactly what the Group of Ministers (GoM), set up by the GST Council, has proposed for the country’s tax structure. It has recommended a major revision of taxes, aligning them more closely with the critical and essential priorities of the common person. Essential items like bottled water, bicycles, and exercise books will see reduced levies. Simultaneously, there is momentum to reduce the GST on health and life insurance premiums, making these essential services more affordable. High-value luxury goods, including tobacco products, will face higher GST rates. Just as a family prioritises investments for the well-being of its members, this proposal reflects a national vision for a healthier, more equitable India. Using tobacco products like cigarettes, bidis and gutka …

GST compensation cess may end before March 2026 deadline | Latest News India

The Goods and Services Tax (GST) compensation cess levied on products such as automobiles, liquor, cigarettes, aerated water and coal could end earlier than the March 31, 2026 deadline on the back of robust GST collections every month, two officials with direct knowledge of the matter said. GST compensation cess may end before March 2026 deadline States have been already given “the entire provisionally admissible compensation” amounting to ₹9.14 lakh crore for their revenue shortfalls in the transition period of five years ended June 2022, but the cess has been continued to retire the loan of ₹2.69 lakh crore that was taken during the Covid pandemic for this purpose, they added, requesting anonymity. Hindustan Times – your fastest source for breaking news! Read now. While launching the new indirect tax regime, the GST law assured states of a 14% increase in their annual revenue for the five-year period from July 1, 2017 to June 30, 2022. The GST law also guaranteed to meet their revenue shortfall, if any, through a compensation cess levied on luxury …

How to make GST less taxing

Also by G Natarajan The GST regime will complete seven years in July. There has been a substantial increase in the number of show-cause notices and other recovery proceedings in the last few years. The timelines have been extended for the passing of orders and there has been an avalanche of orders just before the expiry of the timelines, creating various demands on issues such as mere reconciliation, return mismatches, input tax credit (ITC) denials for suppliers’ defaults, time-barred ITC claims and ITC on account of blocked credit. Further, there are classification disputes arising out of differential rates of tax because of multiple notifications, many not fully aligned with customs tariff. Unfortunately, most of the demands pertaining to denial of ITC are based on a comparison of GSTR-3B and GSTR-2A which is not even legally permissible before January 1, 2022. A large number of disputes have also arisen because of a lack of understanding of the new law and procedures, numerous amendments and the impact of frequent portal glitches. In many cases, the First Appellate …