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Budget 2025: Gems, jewellery sector urges govt to reduce GST to 1%

The gems and jewellery sector has urged the government for a reduction in goods and services tax (GST) to 1 per cent on revenue equivalence ratio to ease the cost burden on the industry in the upcoming Budget. "We seek rationalisation of taxes and availability of finance to support business," the All India Gem and Jewellery Domestic Council (GJC) Chairman Rajesh Rokde said in a statement on Tuesday. With the continuously increasing gold rates, the current rate of GST is increasingly becoming a burden for the industry and end customers, he said. Therefore, GJC is urging for a reduction in GST from the current 3 per cent to 1 per cent in the upcoming Budget, which will encourage compliance, Rokde said. The tax reduction will enhance affordability for consumers, especially in rural areas, and most importantly, improve revenue collection by increasing the size of the formal economy, he added. The industry apex body said there is a need to introduce a concessional GST rate for lab-grow

MHI backs SIAM proposal for reducing GST on CNG-powered two wheelers

Ministry of Petroleum and Natural Gas (MoPNG) along with other key ministries also endorse the proposal

Gujarat HC provides relief, says no GST on transfer of state land leases

The court's decision not only alleviates the financial strain on affected businesses but also addresses long-standing concerns regarding double taxation

MSME bodies seek audit exemption for firms below Rs 5 crore turnover

In budget recommendations, FISME emphasised that SMA framework should go beyond merely identifying stressed accounts and halting banking operations to include guidelines for reviving these accounts

EEPC India proposes 'faceless' GST audit system to boost ease of doing biz

The Engineering Export Promotion Council (EEPC), India on Sunday proposed the introduction of a faceless GST audit system to boost ease of doing business in the country. The apex engineering exports promotion body's proposal comes following the successful implementation of faceless assessment' by the Income Tax department. The faceless GST audit system, by using technology and ensuring anonymity, will reduce compliance costs. A faceless system will streamline procedures allowing MSMEs to focus on growth and innovation," said Pankaj Chadha, chairman of EEPC India. The proposal is a part of EEPC India's Budget 2025 recommendation. By introducing a faceless GST audit system, India can further improve its ranking in the Ease of Doing Business index, making it a more attractive destination for foreign investors, it said. It also proposed that Reverse Charge Mechanism (RCM) related liabilities should be eligible for the Amnesty Scheme' to address challenges faced by exporters, who may b

Social media flooded with memes over 18 per cent GST on caramelised popcorn

Memes flooded the internet as the GST Council confirmed an 18 per cent tax on caramelised popcorn. Here are some of the most hilarious memes

How to tax popcorn? FM's formula sparks outrage against GST system

A finance ministry spokesperson, the GST Council Secretariat and a spokesman for the ruling Bharatiya Janata Party did not respond to requests for comment on the controversy

Priynaka slams BJP for GST on exam forms, says 'turning dreams to income'

Congress MP Priyanka Gandhi Vadra on Monday attacked the BJP over levying GST on examination forms, saying the government had turned the dreams of parents who saved every penny to prepare their children for exams into a source of income. The Congress general secretary shared an examination form of the Kalyan Singh Super Speciality Cancer Institute, Sultanpur, that showed 18 per cent GST was being charged. "The BJP cannot provide jobs to youngsters but it is definitely rubbing salt on the wounds by charging 18 per cent GST on examination forms. GST is being charged on every government job form, including Agniveer," Priyanka Gandhi said in a post in Hindi on X. "After filling the form, if the paper is leaked due to the failure of the government or if there is corruption, then this money of the youngsters is wasted," she said. Parents sacrifice their lives and save every penny to educate their children and prepare them for the exams but the BJP government has turned their dreams into

Separate rate for caramelised popcorn draws criticism from economists

"This is a national tragedy, violating the spirit of the Good & Simple Tax the GST was meant to be," says former chief economic adviser Arvind Subramanian

States not in favour of bringing aviation turbine fuel under GST: FM

Finance Minister Nirmala Sitharaman on Saturday said that states did not agree on bringing aviation turbine fuel under the ambit of Goods and Services Tax. "States did not feel comfortable. They didn't want the ATF because they saw it as part of the crude petroleum diesel basket, and therefore they said that it alone cannot be taken out, and therefore that continues to remain where it is today," she said while briefing media on the outcome of 55th GST Council meeting here. Besides, she said, no decision was taken with regard to reduction in GST on insurance premiums as the Group of Ministers (Go) needed more time to study the issue. Many inputs are awaited including the one from insurance regulator IRDAI, she said. She further said that the GST Council has also deferred the decision with regard to rate rationalisation as more time is required by the GoM for a comprehensive study. However, the Council made suggestions with regard to GST rate revision on various items including ...

GST Council postpones decision on slashing tax on life, health insurance

The 55th GST Council meeting which is expected to decide on reducing tax rate on health and life insurance, besides considering rate rejigs on 148 items began here on Saturday. The GST Council, chaired by Union Finance Minster Nirmala Sitharaman and comprising her state counterparts, is also expected to deliberate on bringing Aviation Turbine Fuel (ATF) in Goods and Services Tax fold. One of the major items on the agenda of the Council is to decide the GST rate on health and life insurance. A Group of Ministers (GoM) set up by the Council under Bihar Deputy Chief Minister Samrat Chaudhary, in its meeting in November had agreed on exempting insurance premiums paid for term life insurance policies from GST. Also premium paid by senior citizens towards health insurance cover has been proposed to be exempted from the tax. Besides, GST on premiums paid by individuals, other than senior citizens, for health insurance with coverage of up to Rs 5 lakh is proposed to be exempted. However,

Law committee calls for simplification of GST registration structure

As per GSTN data, more than 98 per cent of applicants for new registration under GST either do not pass on ITC or pass on ITC within a limit of Rs 500,000 per month

GST authority imposes Rs 1 cr fine on Cipla for inadmissible credit claim

Pharma major Cipla Ltd on Friday said a fine of over Rs 1 crore has been imposed on the company by GST authority for alleged inadmissible credit claim. The company has received an order dated December 18, 2024 passed by the GST authority, imposing a penalty of Rs 1,11,94,324 under applicable provisions of the Central Goods and Services Tax Act, 2017, Cipla said in a regulatory filing. "The order has been passed by GST Authority on the contention that the company has availed inadmissible TRAN-1 credit. The GST Authority has ordered for recovery of the same along with applicable interest and penalty," it added. Cipa said based on assessment of facts and prevailing law, it is "of the view that the penalty levied is arbitrary and unjustified". "The company will file necessary appeals with the appellate authority in this regard. There is no material impact on the company's financials or operations due to the said order," it added.

SOGI urges 28% GST on platform fees and not deposits, for gaming firms

Real money gaming firms-backed Skill Online Games Institute (SOGI) has demanded that the government levy 28 per cent GST on platform fees instead of on deposit for gaming companies in India, to prevent offshore platforms from taking advantage of significant tax arbitrage. The demand comes ahead of the 55th meeting of the GST Council in Jaisalmer, Rajasthan on Saturday. In an interview with PTI, Amrit Kiran Singh, President of SOGI, said the online gaming industry is in a nascent stage and the government and industry need to work together to harness the full positives of this industry for the economy and country. "SOGI has approached the Indian government to put forward its recommendations that will allow India to harness the full potential of this huge industry for creating jobs and contributing to its GDP while simultaneously mitigating negative aspects of such as addiction," he said. Starting October 1, 2023, deposits on online gaming platforms and casinos attracted 28 per cent G

GST on betting: Indian gaming industry faces tax demands by Feb 2025

While some firms have already received tax demands, gaming industry bodies are lobbying to prevent aggressive enforcement actions until the Supreme Court resolves the matter

SJM dubs proposal to introduce 35% GST on 'sin goods' as bad idea

Swadeshi Jagran Manch (SJM) has dubbed the proposal to introduce 35 per cent GST on "sin goods" like aerated beverages and tobacco products as a "bad idea" as it would lead to smuggling and loss of revenue for the country. Besides, other bodies like All India Consumer Products Distributors Federation (AICPDF) and Indian Sellers Collective -- an umbrella body of trade associations and sellers across the country -- have raised concerns on the recommendations of the GoM on GST rate rationalisation. Earlier this month, the Group of Ministers (GoM) recommended a special rate of 35 per cent on sin goods like aerated beverages, cigarettes, tobacco and related products. The GoM headed by Bihar Deputy Chief Minister Samrat Chaudhary also suggested rationalisation of tax rates on apparel. "Another slab in GST, in the name of luxury and sin goods is primarily a bad idea, which will defeat the very efficiency principle of taxation. Already, a need is being felt among economists that the present

Life insurers adjust term premiums ahead of business end of financial year

While some companies are increasing rates, others are slashing them, and still others have made no change; GST changes on premium taxation may change outlook

Retailers urge FinMin and GST Council not to go for higher 35% tax rate

Indian Sellers Collective, an umbrella body of trade associations and sellers across the country, has urged the finance minister and the GST Council not to accept some of GST rate rationalisation suggestions, including the proposal for inclusion of a special rate of 35 per cent on some products. The sellers body is of the view that a fifth GST slab of 35 per cent on demerit goods such as aerated beverages, cigarettes and tobacco, and pricing-based rate structure will materially and fundamentally alter the country's GST framework with devastating outcomes. These recommendations violate both the letter and the spirit that it will be a 'good and simple tax', Indian Sellers Collective said in a statement on Thursday ahead of the 55th GST Council meeting to be held on December 21, 2024 at Jaisalmer, Rajasthan. "On the contrary, it will hurt the profit margins of the retailers, lead to compliance nightmares and fuel a parallel economy. This move will primarily benefit Chinese producers wh

Logistics cost in India to come down to 9% in next 2 years: Nitin Gadkari

Union minister Nitin Gadkari on Wednesday said the logistics cost in India will come down to 9 per cent within two years. Speaking during bauma Conexpo India, the Road Transport and Highways Minister said that "presently our logistics cost is 14-16 per cent... I assure you that within two years... our logistics cost will be 9 per cent. So we will be more competitive in the international market." In China, the logistics cost is 8 per cent and in the US and European countries it is 12 per cent, the minister said. The minister further said the automobile industry is one of the important industries that is giving maximum revenue as part of GST to the state governments and the Centre. The role of the automobile industry is very important to make India a USD 5 trillion economy, he said. The construction equipment, he said, is also part of this automobile industry. The government is developing infrastructure of international standards, he said, adding that water, power, transport and ..

Vedanta faces Rs 1.71 crore penalty in FY18 GST dispute over cenvat credit

Vedanta plans to challenge GST orders as it disputes penalties over transitional credit from FY18