The GST Mitra

                        Lowering GST rate on cement next on agenda: Arun Jaitley Finance Minister Arun Jaitley on Thursday said the BJP-led NDA will continue with fiscal prudence and lower tax rates if elected back to power. He further said the GST (Goods and Services Tax) Council has cut tax rates on consumption items to 12 or 18 per cent from the highest slab of 28 per cent and lowering rate on cement is next on agenda. “I speak in terms of taxation policies… I’m quite clear in my mind that on two issues at least we had – a lot of good fiscal prudence and we brought the rates down, these are two areas, if we are in power we will continue the same glide path,” Jaitley said while addressing the CII AGM here. The general elections will be held in phases beginning April 11 and counting of votes will take place on May 23. Jaitley said India’s growth has stabilised between 7-7.5 per cent and irrespective of global trends, domestic consumption is going to increase. “We hav

Opinion | Congress’s promise on revenue   The Congress party in its poll manifesto has promised to overhaul India’s current goods and services tax (GST) classification, vowing to replace it with a simpler system “based on a single, moderate, standard rate of tax on all goods and services”. GST kicked in from July 1, 2017, but its impact on prices, businesses and government revenues continue to play out in an economy characterised by multiple pain points. Under the existing GST, all goods and services have been placed broadly under a four slab structure — 5, 12, 18 and 28 percent — along with a cess on luxury and demerit goods such as tobacco, pan masala and aerated drinks. The multiple tax structure has drawn criticism from traders, retailers and business leaders as many feel it will distort the system and go against the “one-nation, one-market” concept. Its rollout was also accompanied with frequent changes in rules, leading to confusion among businesses, few rounds of

                                        A gist of Congress’ ‘Theoretical’ GST The Congress election manifesto has called for a ‘single, moderate, standard rate’ of goods and services tax (GST). It might have theoretical appeal, but can hardly be a practical proposition in a large diverse economy, and could be regressive. Revenue collections under GST have reportedly added up to Rs 1.06 lakh crore for March, a credible 15.6% higher than collections in the same period last year. Yet, GST remains a work-in-progress. The two middle rates of 12% and 18% probably could be compressed and lowered, and the peak rate of 28% axed. The Congress manifesto promises to bring real estate, petroleum products, tobacco and liquor under the ambit of GST within two years, and adds that there would be a special rate of duty on demerit goods, which is unexceptionable. It does make perfect sense to extend GST to the entire real estate sector, and not limit it to under-construction housing, for tax ef

The GST regime seems to stabilising after rate rationalisation With the month of March seeing Goods and Services Tax (GST) rake in its highest mop-up since its inception, the new tax regime has ended financial year 2018-19 on a high note. Gross GST collections of  ₹ 1.06-lakh crore in March have helped the government close this fiscal year with  ₹ 11.77-lakh crore in the GST kitty, against revised estimates of  ₹ 11.47-lakh crore it set out in the Interim Budget, defying apprehensions of a significant shortfall. But despite this last-minute rise in collections, the Centre’s share of GST for the year at  ₹ 4.3-lakh crore hasn’t quite measured up to its revised estimate of  ₹ 5.03-lakh crore. With direct tax collections said to be falling short by a substantial  ₹ 60,000 crore for the year, the Centre’s ability to meet its fiscal deficit target of 3.4 per cent depends on whether it managed to scrounge up enough non-tax revenues to fill the gap. It is intriguing that GST collec