Consumption behaviour, populism behind GST rate cuts

Consumption behaviour, populism behind GST rate cuts

Over the last 13 months, the goods and services tax (GST) Council has effected tax cuts on 384 goods and 68 services under the indirect tax system. The total estimated revenue loss to the exchequer from the rate cuts was pegged at ₹ 70,000 crores, according to the government.  Consumption patterns The rate cuts reflect the changing consumer behavior. Items that were earlier considered a luxury, such as refrigerators and washing machines, are now a necessity for middle-class households. Fearing…

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Download Free – HSN Classification under GST E-Book

Download Free – HSN Classification under GST E-Book

Under Indirect Tax Laws, classification is the categorization of goods or services crucial to ascertain whether a subject matter is exigible to tax, exemption, the rate of tax etc. In GST regime, classification of goods has to be in accordance with Customs Tariff Act which is based on the Harmonized System of Nomenclature (HSN). The classification of services is based on the service code (tariff). Classification of goods or services is a complex procedure of ascertaining whether goods or services…

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GST regime brings in nearly 50 lakh new taxpayers

GST regime brings in nearly 50 lakh new taxpayers

The Goods and Services Tax (GST) regime has seen a significant change in the assessee segmentation compared to the pre-GST era when VAT and Central excise were in place. There are fewer assessees now in the lowest and highest slabs while all the other slabs have seen an increase. As on July 25, a total of 63.7 lakh taxpayers migrated from the old system, while 49.53 lakh new taxpayers became part of the indirect tax system taking the total number…

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GST rate cut: Companies need to show new rates on old stock also

GST rate cut: Companies need to show new rates on old stock also

Consumer durables companies and sanitary napkin makers will have to clearly show new prices even on old stocks lying with their distribution channels after new goods and services tax (GST) rates came into effect from Thursday midnight. The government will soon issue a directive to this effect. “A directive will be issued by consumer affairs ministry shortly,” a senior government official said. Consumer Affairs ministry will issue a directive under the Legal Metrology Act permitting companies to affix pasting or…

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MSME Sector: GST Council to take up further relief

MSME Sector: GST Council to take up further relief

The GST Council would exclusively consider issues related to micro, small and medium enterprises (MSME) taxpayers at its 29th meeting scheduled for August 4, a finance ministry official said.The field formations of the indirect tax department have been asked to prepare a list of grievances and suggestions from small taxpayers, and send the same to the Central Board of Indirect Taxes and Customs (CBIC) by Friday. Officials said that finance minister Piyush Goyal would hold a meeting with the tax…

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Income Tax department seeks GST and GAAR details in new audit form

Income Tax department seeks GST and GAAR details in new audit form

The Income Tax department has changed a form in the tax audit report, seeking details of the goods and services tax (GST), the general anti-avoidance rules (GAAR) and secondary adjustments in transfer pricing from companies and professionals. The form — 3CD — has to be filled by all auditable companies and professionals. In other words, companies whose turnover is above Rs 10 million and professionals whose gross receipts are over Rs 5 million a year have to file this form…

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Mumbai: 8,000 to lose registration, over 84,000 traders didn’t file GST returns

Mumbai: 8,000 to lose registration, over 84,000 traders didn’t file GST returns

As many as 84,176 traders in Maharashtra have not filed their Goods and Services Tax 3B returns (GSTR-3B) since last October and more than 10 per cent of these defaulters now stand to lose their registration, according to the data received from the state GST department. Over 8,800 traders, who remain untraceable, were served notices that their GST registration would be cancelled for defaulting on returns. Without a GST number, these traders will not be able to continue with their…

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Six lakh new traders registered in Maharashtra state as taxpayers under GST

Six lakh new traders registered in Maharashtra state as taxpayers under GST

OVER 6 lakh new traders have registered themselves as taxpayers under the Goods and Services Tax (GST) in Maharashtra so far. These traders were earlier out of the tax net under the Value Added Tax (VAT) and excise duty system. The GST, a comprehensive indirect tax system, was rolled out on July 1, 2017, and was expected to bring many new industries into the tax fold. Data from the state GST department shows that most of the new traders registered…

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28th GST Council Meeting- Key Highlights & Rate Changes

28th GST Council Meeting- Key Highlights & Rate Changes

GST council came up with new changes in GST tax rules after 28th GST council meeting held on Saturday 21st on July 2018. The best and most accepted change is an exemption of GST on sanitary napkins. It brings a lot of happiness & joy for women as now they won’t have to pay more for napkins. Before it was the biggest discussion that why Govt is imposing GST on napkins, whereas they promote women empowerment. So, here are some changes announced in…

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GST rate cut impact: Synthetic textiles to be 5-7% cheaper from August

GST rate cut impact: Synthetic textiles to be 5-7% cheaper from August

Synthetic manufacturers are planning to cut the prices of their products by at least 5 per cent from August following the government’s decision to reduce the effective GST (goods and services tax) rate on its raw materials by 7 per cent from July 27. The GST Council in its meeting held on Saturday had decided to allow input credit on manmade fabric equivalent to 7 per cent. This will provide a level-playing field to synthetic textile manufacturers through a uniform…

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