Category: GST

Constitutional amendment bill on GST come by the year end

Union min­is­ter of state for com­merce and indus­try said that the Cen­tral Govt was close to resolv­ing the long pend­ing issue on Goods and Ser­vices Tax (GST). “The finance min­is­ter has held sev­er­al meet­ings with the chief min­is­ter and state finance min­is­ters. It…

States demanding a portion of the Centre’s revenue from GST on interstate trade

The Cen­tre is learnt to have turned down a key demand from min­er­al-rich, grain-pro­duc­ing and man­u­fac­tur­ing states that they must be giv­en a por­tion of the Centre’s rev­enue from GST on inter­state trade to off­set their per­ceived rev­enue loss to “con­sump­tion states” in the GST regime. It has also reject­ed a pro­pos­al from all states that the man­date of dis­pute res­o­lu­tion should not be giv­en to the pro­posed GST Coun­cil, which is meant to have a con­sti­tu­tion­al role. These demands were made by respec­tive states as a pre­con­di­tion for their adop­tion of the supe­ri­or tax sys­tem that would avoid cas­cad­ing of tax­es and reduce the mul­ti­plic­i­ty of indi­rect tax­es.

FE had ear­li­er report­ed that states like.….

World Bank Advised for reforms including implementation of GST

The World Bank on Mon­day mar­gin­al­ly scaled  up its esti­mate of India’s eco­nom­ic growth to 5.6 per cent  for 2014–15 from its ear­li­er one of 5.5 per cent, made in  June. How­ev­er, the mul­ti­lat­er­al insti­tu­tion advised the gov­ern­ment to go for struc­tur­al reforms,  includ­ing…

The GST zero rate bait

What is the polit­i­cal com­pul­sion for keep­ing GST on petro­le­um prod­ucts at zero ini­tial­ly? States are appre­hen­sive of los­ing their auton­o­my over rais­ing tax rev­enue by tweak­ing VAT on petro­le­um prod­ucts once the pro­posed new indi­rect tax regime is intro­duced.…