Page 4 - Goods And Services Tax

GST revamp may trim revenue but fiscal impact limited, says BofA Securities

GST Council approves two-slab system from September 22; BofA Securities says impact on GDP and government finances will be small, while consumption may get a boost

GST on lifesaving drugs reduced to nil: Check full list of tax on medicines

GST Council meet outcome: GST on various medical apparatus and devices used for medical, surgical, dental or veterinary usage has been reduced to 5% from 12%

GST relief aids insurers; HDFC Life, Star Health among winners, says JM Fin

While the market was anticipating a cut in GST rates for term and health policies, analysts at JM Financial said, the exemption on savings-oriented life products came as a positive surprise.

Farm machinery, tractors, fertilisers now attract 5% GST: Check full list

GST Council meet: GST on farm machinery, tractors, fertilisers and other agri items cut to 5 per cent from higher rates, giving relief to farmers

GST Council clears 2-slab system: Full list of items under 5% and nil rates

Under the two-slab system, the GST Council has scrapping 12 per cent and 28 per cent rates. Now, essential items like food, medicines, and books fall under zero and 5 per cent rates

New GST rates to come into effect from Sept 22: Your top questions answered

The GST Council's 56th meeting has notified sweeping changes effective September 22, impacting goods and services from milk and medicines to cars, coal and casinos

Two-rate GST structure approved; new rates to kick-in from Sept 22: FM

GST on buses, trucks, and ambulances has been reduced to 18% from 28%. Uniform rate of 18% on all auto parts has been decided

Rollout of GST reforms to bring transparent economy: FM Sitharaman

The 56th GST Council meeting, scheduled for September 3-4 in New Delhi, is set to discuss one of the biggest tax overhauls since the GST regime was rolled out in 2017

A GST reset: Simplify the tax structure to boost revenue collection

Prime Minister Narendra Modi had announced in his Independence Day address that the GST system would be rationalised

Next gen GST reforms will set economy open and transparent: Sitharaman

The next generation GST reforms would 'absolutely' set an economy open and transparent with further reduction in compliance burden and benefiting small businesses, Union Finance Minister Nirmala Sitharaman said on Tuesday . She was speaking at the 120th Foundation Day celebrations of Tamil Nadu-based City Union Bank, where President Droupadi Murmu was the chief guest. Sitharaman said Prime Minister Narendra Modi recently announced the creation of a Task Force for next generation reforms with a clearer mandate to simplify regulations, lower compliance costs and also build a more enabling ecosystems for startups, Micro, Small and Medium enterprises and entrepreneurs. "Complementing this, the planned roll out of the next generation GST reforms with the planned Council meeting tomorrow and day after, will set an economy absolutely open and transparent in the coming months and with further reduction in compliance burden, making it easier for small businesses to thrive" Sitharaman said.

GST 2.0 should pave way towards single nationwide tax rate: Report

The long-term success of Goods and Services Tax (GST) lies in moving towards a single nationwide tax rate, and that GST 2.0 must act as the stepping stone by keeping to just two slabs 5 per cent and 18 per cent while capping the peak rate firmly at 18 per cent, not 40 per cent, a report said. "Creating a 40 per cent slab, even for a narrow set of sin or luxury goods, will set a precedent for creeping expansion. Over time, more items will be drawn into this category, undermining the very purpose of simplification," Think Change Forum, a think tank, said in a report on Monday. The report titled 'GST 2.0: Two Slabs Today, One Rate Tomorrow', strongly recommended pegging the peak indirect tax rate, including cesses, to 18 per cent. This will in one stroke remove anomalies such as inverted duty structures, cut down grey and illegal markets, reduce litigation and compliance burdens, and restore credibility to the GST system, it said. It is noted that the high-powered GST Council, chair

GST Council meet should promote federalism, not just grab headlines: Cong

Opposition-ruled states have extended their support to cut the number of GST rate slabs and the rates for mass consumption items, while demanding a mechanism to ensure the benefits get passed on to consumers, Congress leader Jairam Ramesh said on Saturday. He also said the Congress hopes that next week's GST Council meeting would not be just a "headline-grabbing exercise so typical of the (Narendra) Modi government". According to Ramesh, the eight opposition-ruled states have also demanded compensation to all states for a period of five years, with 2024-25 as the base year, since their revenues are bound to be adversely impacted by the rate cuts. They have demanded additional levies on 'sin' and luxury goods over and above the proposed 40 per cent be fully transferred to states, he said. "Eight Opposition-ruled states -- Karnataka, Himachal Pradesh, Jharkhand, Kerala, Punjab, Tamil Nadu, Telangana, and West Bengal -- have extended their support to the reduction in the number of GST

Stock market declines for 2nd month as US tariffs weigh on sentiment

Sensex and Nifty fell for a second month as US tariffs hit sentiment, though GST reform hopes and rating upgrade cushioned the slide

Oppn states demand compensation for revenue loss due to GST reform proposal

Opposition-ruled states on Friday said the Centre's proposal for GST rate rejig could result in a revenue loss of about Rs 1.5 crore to Rs 2 lakh crore and demanded compensation for the losses incurred by them. Finance ministers from eight states -- Himachal Pradesh, Jharkhand, Karnataka, Kerala, Punjab, Tamil Nadu, Telangana and West Bengal -- decided to present their proposal to the GST Council at the next meeting on September 3 and 4. Their proposal for balancing rate rationalisation and revenue neutrality suggests levying an additional duty on sin and luxury goods in addition to the proposed 40 per cent rate to maintain the current tax incidence. The proceeds from this levy should be distributed among states, the opposition-ruled states demanded. Briefing reporters after a meeting of the eight states, Karnataka Finance Minister Krishna Byre Gowda said each state is expected to lose 15-20 per cent from its current Goods and Services Tax (GST) revenue. "The 20 per cent GST reven

Festival season cheer on hold as auto buyers await GST relief and discounts

Festival offers are already running with benefits between ₹1.5 lakh and ₹2 lakh on some models

Private capex now substantial in order book: L&T chief S N Subrahmanyan

L&T eyes growth with record orders, rising private capex, $100 bn valuation, global projects, and a new strategy focusing on services, tech, and financial businesses

States rejig policies, seek Centre's help to counter Trump tariffs

From Andhra to TN and Gujarat, states fear heavy biz losses

GST 2.0 could boost consumption, but does little to fix deeper weaknesses

GST 2.0 may cushion consumers against US tariffs, but like the 2019 corporate tax cut, it risks being another tactical fix rather than a structural growth strategy

GoM backs GST rejig; states flag risk to revenue ahead of Council meet

The GoM of state finance ministers endorsed the Centre's proposal for a two-tier GST structure with 5 and 18 per cent slabs and a 40 per cent levy on sin and luxury goods

Auto firms split over GST rejig impact on car and two-wheeler sales

Maruti Suzuki India Chairman R C Bhargava said that GST on cars is currently 28 per cent, with a cess on larger cars pushing the total burden to 40-45 per cent