Page 6 - Tax

GST rate cut on tyres to bring down vehicle operating costs: ATMA

Automotive Tyre Manufacturers' Association on Thursday said the cut in GST rates on tyres will help bring down vehicle operating costs, which in turn reduces overall logistics expenses in the economy. Welcoming the GST Council's decision to reduce the rate on tyres to 18 per cent from 28 per cent, Automotive Tyre Manufacturers' Association (ATMA) also said the step will make tyres more affordable for users across all segments and contribute positively to road safety by encouraging timely tyre replacement and maintenance. "Lower GST on tyres will translate into more affordable mobility for millions of users - from farmers and small traders to transporters, motorists, and logistics operators. It will also help bring down vehicle operating costs, which in turn reduces overall logistics expenses in the economy," ATMA Chairman Arun Mammen said in a statement. The long-awaited move will make tyres more affordable for users across all segments and contribute positively to road safety by ..

Govt increases GST on exploration, production of oil and gas to 18%

Oil and gas exploration and production will cost more after the GST Council approved raising the tax on services rendered for the same to 18 per cent from the current 12 per cent. The new tax rates will be effective from September 22. Services relating to exploration, mining or drilling of petroleum crude or natural gas have been increased to 18 per cent with input tax credit (ITC), according to an official note. The same has also been done for support services to exploration, mining or drilling of petroleum crude or natural gas or both. The increase in GST "would lead to an increase in the cost of production of crude oil and natural gas," said Prashant Vasisht, Senior Vice President and Co-Group Head, Corporate Ratings, Icra Ltd. As crude oil and natural gas are outside the purview of GST, an increase in the cost of production without an offset available on the sale of these products will lead to stranded taxes, he said. "As oil and gas prices have moderated significantly since

Only two GST rates, cuts part of structural reforms: FM Sitharaman,

The GST Council on Wednesday took a decision to reduce the GST rates to just two, 5% and 18%, with many items also moving to a zero tax slab

GST Council begins work to rejig rates; Oppn states seek revenue protection

The work to overhaul the tangled goods and services tax (GST) began on Wednesday as the government looks to cut the tax rate on common-use items, ranging from butter to certain footwear and apparel, in an attempt to boost domestic spending and cushion the economic blow of US tariffs. The marathon 56th meeting of the GST Council, the apex decision-making body on indirect taxes, headed by Union Finance Minister Nirmala Sitharaman and comprising representatives of all states, discussed reducing GST on life and health insurance premiums and easing compliance rules for business on the first day of the two-day meeting. According to sources, the panel is likely to have discussed a three-way registration process for non-risky business and issuance of refunds, in case of exports, in seven days, among a host of measures to ease compliance burden. It also reviewed the final blueprint of simplifying the GST from the current four slabs - 5, 12, 18 and 28 per cent, to a two-rate structure - 5 and

India's net GST kitty increases 10.7% to ₹1.67 trillion in August

Gross GST collections in August, for transactions undertaken in July, stood at about Rs. 1.86 trillion, 4.8 per cent lower than the previous month

Gross GST mop-up rises 6.5% to ₹1.86 trillion in August, shows govt data

Gross GST collection increased 6.5 per cent to over Rs 1.86 lakh crore in August on higher domestic revenues, as per government data released on Monday. Gross Goods and Services Tax (GST) mop-up was Rs 1.75 lakh crore in August 2024. Last month, the collection was Rs 1.96 lakh crore. The gross domestic revenue grew 9.6 per cent to Rs 1.37 lakh crore, while tax from imports dipped 1.2 per cent to Rs 49,354 crore in August. GST refunds were down 20 per cent year-on-year to Rs 19,359 crore. Net GST revenue stood at Rs 1.67 lakh crore in August 2025, recording 10.7 per cent year-on-year growth. The data is released just two days before the meeting of the GST Council, comprising Centre and states, which will deliberate on rate rationalisation and reducing number of tax slabs.

Telangana may face ₹7,000 cr annual loss from GST reform: Deputy CM

With the proposed GST rate rationalisation, Telangana is estimated to lose nearly Rs 7,000 crore annually, Deputy Chief Minister Bhatti Vikramarka said on Friday, requesting the Centre to properly compensate states for the losses expected from the new tax measure. Addressing the media in the national capital, Vikramarka said Telangana's accumulated losses since the introduction of GST are estimated to be nearly Rs 80,000 crore. "Estimates are saying that Telangana alone may lose Rs 7,000 crore annually (after the GST rate rationalisation). So when a state is estimated to lose Rs 7,000 to Rs 10,000 crore, it would impact welfare and developmental programmes of the respective states. However, we welcome the rate rationalisation and request the Centre to properly compensate," Vikramarka said. In order to compensate states for the losses due to rate rationalisation, the Centre should channel the revenue collected from taxes or cess on sin and luxury products to the states, he opined. H

India's GST cuts risk delay as states demand safeguards for revenue loss

Gross GST collections hit a record ₹22.1 trillion in fiscal year 2025, 9.4 per cent higher than a year earlier

GST reform to offset growth drag from 50% US reciprocal tariff: BMI

The proposed GST reforms, which would lower tax rates on common man items, will boost consumption and could cancel out the impact of 50 per cent US tariffs, BMI, a Fitch Solutions Company, said on Thursday. Since its inception, Goods and Services Tax (GST) has grown to be the second-largest source of fiscal revenue after income tax, amounting to around 30 per cent of total revenue and 2.5 per cent of GDP in FY2024-25. However, the fiscal impact of the reform will probably be mild, BMI said. Goods and services are currently charged under a four-tier system with rates ranging from 5 per cent to 28 per cent. GST reform, proposed by the Centre, says that most goods will be charged at either 5 per cent or 18 per cent. Durables such as washing machines, air conditioners and refrigerators will be among the goods charged lower rates under the new GST regime. The GST Council, chaired by Union Finance Minister and comprising ministers from all states and UTs, will meet on August 3 and 4 to

Getting gifts at your child's wedding? It could trigger a tax headache

Wedding gifts are tax-free for the bride and groom, but not for their parents. They need to watch limits, paperwork and rules, or risk a surprise tax bill.

Guaranteed return, tax breaks key benefits of retirement-focused insurance

Remember that their internal rate of return could be low, and unlike annuities, they do not make payments for life

CII suggests reforms in GST; trade policy, jobs to achieve 'Viksit Bharat'

Industry lobby CII on Sunday unveiled a reform roadmap to accelerate India's economic transformation, pitching for a simplified GST structure, expanded coverage to petroleum and real estate, rationalised tariff structure, national employment and gig economy policies. The Confederation of Indian Industry (CII) in its report "Policies for a Competitive India", presents over 250 actionable recommendations across 14 critical reform areas. Developed through wide-ranging consultations with industry leaders, economists, and policy experts, the blueprint is aligned with the government's Viksit Bharat vision, it said. CII President Rajiv Memani said, "These recommendations are closely aligned with the government's reform trajectory and are in support of the Prime Minister's call for bold and transformative change. As a live document, policies for a Competitive India will continue to evolve, bringing fresh ideas to support policymakers." The reform areas include fiscal prudence, inflation ..

Transfer-pricing cases under MAP take longer to resolve in India

OECD data shows higher timelines and heavier volumes than peer economies

Tax relief on inherited shares: Sebi floats proposal for smoother transfer

Sebi steps in to clear tax confusion over inherited shares, proposing a fix to stop nominees from being wrongly taxed before passing assets to heirs

GST tweaks may impact electric vehicle demand, near-term car sales

Move likely to benefit smaller cars which have been under pressure

Traders likely to keep input tax credit on old stocks in GST revamp

The GST Council is also likely to update the tax administration system to ensure a smooth transition and shield businesses from additional costs

New Income Tax Bill does not entail too many changes in tax planning

It will, however, make income tax laws easier to comprehend and adhere to for the lay taxpayer

Sebi proposes standard code for smooth transfer of securities to heirs

Capital markets regulator Sebi on Tuesday proposed the introduction of a standard reason code to streamline the transfer of securities from nominees to legal heirs and ensure appropriate tax treatment for such transactions. In a consultation paper, Sebi suggested introducing a specific reason code 'TLH' (Transmission to Legal Heirs) to be used by registrars, depositories and other reporting entities while intimating the Central Board of Direct Taxes about such transmissions. The move seeks to enable proper application of the provisions of the Income Tax Act, 1961. Currently, transmission of securities from nominee to legal heir of the original holder, some transactions are being treated as normal sale of securities. This has resulted in capital gains tax being levied on nominees, even though clause (iii) of Section 47 of the Act does not consider such transmissions as "transfers" for tax purposes, Sebi said. The regulator noted that the nominee merely acts as a trustee for the ben

India's GCCs too big to bill lightly: Backend hubs face tax claims

The big question: Are these companies paying their fair share of taxes in India? That question has triggered a series of tax disputes between foreign firms and Indian authorities

Tax arrears worth ₹54.53 trillion pending as on June 30: Govt tells RS

Total direct and indirect tax arrears stood at over Rs 54.53 lakh crore as of June 30, Parliament was informed on Tuesday. In a written reply to a question in the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary said, "The total amount of tax arrears pending as on June 2025, under indirect taxes is over Rs 7.01 lakh crore and under direct taxes is over Rs 47.52 lakh crore." Cumulatively, direct and indirect tax arrears stood at Rs 54.53 lakh crore as of June 30. Of the total indirect tax arrears, over Rs 2.66 lakh crore pertain to those where pending taxes in individual cases is above Rs 10 crore as of June 2025. In case of direct taxes, tax arrears above Rs 10 crore as on June 2025 totalled about Rs 35.48 lakh crore. Further, of the Rs 7.01 lakh crore pending tax arrears under indirect tax, over Rs 3.71 lakh crore is pending due to litigation at various stages. Similarly, for direct taxes out of total Rs 47.52 lakh crore arrears due, an amount of over Rs 31.26 lakh cr