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If you have been thinking of revamping your wardrobe this Spring Summer, you ought to check upon your wallet because the introduction of GST (Goods and <keyword id="6355686" type="COMPANY" weightage="20" keywordseo="Service-tax">Service Tax</keyword>) may bump up the price of branded apparels. 
 
If the industry veterans are to be believed, there would be a 3-4% rise in the prices readymade apparels and other finished textile products. As of now, textile industry pays 8-9% of tax. However introduction of GST may make this tax almost 12%, if not the government starts following the 18% tax rate, which will make the prices dearer further. 
 
Industry experts, who spoke on condition of anonymity said, they are expecting a tax of 12% GST. But the duties they would now be paying at the manufacturers’ end will be quite high. For worse, the textile industry may witness inflation till third quarter of the financial year in 2017-18. 
 
The textile industry is making sure the tax slab remains limited within a neutral rate as they fear a little above will hit this market like anything. 
 
Garments industry as luxury 
There is a talk going on in the industry that textile is being seen as a luxury and is being planned to taxed accordingly. Putting a luxury tag will mean a t-shirt worth Rs 500 or a dress of Rs 5000 will have a higher tax slab because of the ‘branded’ label. 
 
And if that actually happens, the middle class buyers that form the major chunk of consumer would be affected the most. 
 
Breathing relief 
Well, tax experts say, in the long run GST would be beneficial for the industry. Currently as a value chain, in textile, too many inter-state transactions happen. This anyways bump ups the price. With GST the small and medium players would require to pay one tax and things may fell in place.

GST in Budget 2017 may make branded apparels expensive

Businesses can start uploading their sale and purchase invoices generated post July 1 on the <keyword id="6356840" type="UNKNOWN" weightage="100" keywordseo="GSTN">GSTN</keyword> portal from July 24, a top company official told PTI. The Goods and <keyword id="645517" type="COMPANY" weightage="20" keywordseo="services-tax">Services Tax</keyword> has kicked in from July 1 and so far, the GST Network, the company handling the IT backbone for new tax regime, has been facilitating registration of businesses. "We plan to launch the invoice upload utility on the portal on July 24 so that businesses can come forward and start uploading the invoices on a daily or weekly basis to avoid month-end rush," GSTN Chairman Navin <keyword id="6358442" type="COMPANY" weightage="20" keywordseo="Kumar">Kumar</keyword> told PTI. Generating invoices for dealings above Rs 200 and keeping invoice records in serial number even if maintained manually, are pre-requisites for claiming input tax credit under the GST regime. The GSTN had last month launched an offline Excel format for businesses to keep their invoice records and from July 24 this Excel shecan be uploaded on the portal. Kumar said GSTN would put up a video on its portal to assist businesses in uploading invoices. Besides, a call centre help desk has been set up to assist taxpayers regarding any query they might have about the new tax regime. "We have been reaching out to trade and industry associations telling them that those who have about 10,000 invoices a day, they should upload it on GSTN portal on a daily/weekly basis to avoid last moment rush," Kumar said. So far, over 69 lakh excise, VAT and <keyword id="6355686" type="COMPANY" weightage="20" keywordseo="Service-tax">Service Tax</keyword> assessees have migrated to the GSTN portal and nearly five lakh new registrations have happened under GST. Under GST, which is a single tax in place of multiple central and state levies like excise, service tax and VAT, businesses are required to upload on GSTN portal invoices of their trade every month. Kumar had earlier said that the offline Excel tool can upload 19,000 invoices data on GSTN portal at one go and the process takes just half a minute. So, if businesses which generate about 10,000 invoices a day upload the data on a daily or weekly basis, it would be less cumbersome for them. While uploading invoice on the GSTN portal, a business would need to mention the invoice number and date, customer name, shipping and billing address, customer and taxpayer's GSTIN, place of supply and <keyword id="6495954" type="COMPANY" weightage="20" keywordseo="HSN">HSN</keyword> code. Also, the taxable value and discounts and rates of CGST, <keyword id="6373967" type="ORGANIZATION" weightage="20" keywordseo="SGST">SGST</keyword> and IGST would have to be filled, along with item wise details like description, quantity and price.

GSTN portal to be ready for invoice uploading from July 24

After writing to Union Minister of Finance on various occasions, Industry body <keyword id="6355001" type="CITY" weightage="100" keywordseo="FICCI">Ficci</keyword>'s National Committee on Infrastructure has taken the matter of <keyword id="6355686" type="COMPANY" weightage="100" keywordseo="Service-tax">service tax</keyword> collection for consultants right up to the Prime Minister's Office, calling for a review. 

	"The Ficci Infra Committee on various occasions has written to Union Minister of Finance, but to no avail. Our request to the Prime Minister is the service tax payable by the employer of a consultant should be collected by the government directly from the employer," the panel said in a statement.
 

	Under the current set-up, the consulting community pays service tax on behalf of the employer even before it receives its remuneration.
 

	"In case there is any difficulty in accepting our request for direct payment of service tax by the service receiver, Ficci urges the Prime Minister to restore provision of paying service tax within 30 days of receipt of payment," K K Kapila, Co-Chairperson, Ficci Infra Committee, told PTI.
 

	The consultant is supposed to pay service tax within 30 days of raising an invoice with the employer.
 

	"The employer, which in most cases is a government department, usually responds with a payment after a considerable delay ranging from 3-6 months. In the interim, the consultant who is technically not liable for service tax is expected to make the same within 30 days regardless of whether he has received the payment or not," the statement said.
 

	Also, in the case of payment delay, the consultant is "liable for penalties at 18 per cent for the first six months, 24 per cent for further six months and thereafter, 30 per cent, it said, adding that such a payment is linked to the value of invoice whereas actual payment by the employer to the consultant may be less than the value of the invoice raised.
 

	Ficci went further, saying the current procedure of collecting service tax has also posed cash flow difficulty for consultants as their role is merely that of a collector on behalf of the government.
 

	"We seek intervention of the Prime Minister... to ensure this long-standing demand of the consulting community is addressed in the forthcoming Budget. Such a step will be a genuine step in ensuring the ease of doing business," the statement said.

	 
	 
	(Image credits: indiatimes)

FICCI approaches PMO for review of service tax for consultants

New Delhi [India], December 13 (ANI): A bill to align provisions of the <keyword id="4797043" type="General" weightage="80" keywordseo="central-goods-and-services-tax-act" source="Orion">Central Goods and Services Tax Act</keyword> with the <keyword id="12034100" type="General" weightage="50" keywordseo="tribunal-reforms-act" source="Orion">Tribunal Reforms Act</keyword> to initiate the administrative process for operationalisation of the <keyword id="6359833" type="General" weightage="100" keywordseo="goods-and-services-tax" source="Orion">Goods and Services Tax</keyword> Appellate Tribunals was introduced in <keyword id="6355187" type="General" weightage="50" keywordseo="lok-sabha" source="Orion">Lok Sabha</keyword> on Wednesday. The Central Goods and Services Tax (Second Amendment) Bill, 2023 was introduced in Lok Sabha by Finance Minister <keyword id="129243" type="General" weightage="50" keywordseo="nirmala-sitharaman" source="Orion">Nirmala Sitharaman</keyword>. The Bill seeks to amend the Central Goods and Services Tax Act, 2017. According to the statement of objects and reasons of the Bill, Section 109 of the Central Goods and Services Tax Act, 2017 (12 of 2017) provides for Constitution of Goods and Services Tax Appellate Tribunal, which is the second appellate authority within the Goods and Services Tax framework for hearing appeals against the orders passed by the Appellate Authority under the Central Goods and Services Tax Act, 2017 and the State Goods and Services Tax Acts. It said that non-constitution of the Goods and Services Tax Appellate Tribunals is denying the taxpayers of second appellate remedy and consequently the taxpayers are seeking relief directly from the High Court, thereby burdening the High Courts. The amendments to sections 109 and 110 of the Central Goods and Services Tax Act, 2017 for enabling the creation of the Central Goods and Services Tax Appellate Tribunals were notified in July this year. "During the process of operationalisation of said Tribunal, it was observed that certain provisions of the Central Goods and Services Tax Act, 2017 need to be aligned with the Tribunal Reforms Act, 2021 (33 of 2021). The provisions of the Central Goods and Services Tax Act, 2017 are being aligned with the Tribunal Reforms Act, 2021, to initiate the administrative process for operationalisation of the Goods and Services Tax Appellate Tribunals at the earliest," it said. (ANI)

Bill to amend Central Goods and Services Tax Act introduced in Lok Sabha

Lot of money in <a href="http://www.businessinsider.in/searchresult.cms?query=service+tax+refunds">service tax refunds</a> is stuck, hurting the cash flow of companies. But, the issue won’t be there any longer as the government is going to expedite refunds. 
 
The government wants to start afresh for <a href="https://www.google.co.in/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=3&amp;cad=rja&amp;uact=8&amp;ved=0CCgQFjACahUKEwjOiPvLqsHIAhVIjo4KHVRIAuY&amp;url=http%3A%2F%2Fwww.businessinsider.in%2FGST-Means-India-Is-Keen-On-Adopting-Global-Practices%2Farticleshow%2F45757825.cms&amp;usg=AF">goods and services tax</a>. 
 For this, the apex indirect taxes body, <keyword id="6361265" type="ORGANIZATION" weightage="20" keywordseo="Central-Board-of-Excise-and-Customs">Central Board of Excise and Customs</keyword>, is also working on an overhaul of the refund mechanism for the <a href="http://www.businessinsider.in/searchresult.cms?query=BPO">BPO</a>, IT and ITES sectors. 
 
Reportedly, indirect tax collections shot up 35.8% to Rs 3.24 lakh crore in the first six months of the current financial year. 
 
This is over 50% of the budgeted estimate as the government expected Rs 6.47 lakh crore collections from indirect taxes in 2015-16. 
 
When <a href="http://www.businessinsider.in/searchresult.cms?query=Narendra+Modi">Narendra Modi-led government</a> stormed into power, it had promised a stable tax regime and keeping back refunds was against that spirit. 
 The <keyword id="888634" type="UNKNOWN" weightage="20" keywordseo="Service-tax-refunds">service tax refunds</keyword> that are stuck are hurting the cash flow of companies. 
 
Exporters can claim refunds on duties paid on imported inputs used to manufacture goods. 
 
"Very encouraging move...This would aid liquidity for exporters and thereby their business," said Ajay Sahai, Director General and CEO of the Federation of Indian Export Organisations. 
 
(Image: Indiatimes)

Government wants clean slate for GST, to end pending service tax refunds

New Delhi, The central government on Friday will seek the introduction and passage of the Central Goods and Services Tax (Amendment) Bill, 2023 and <keyword id="4742340" type="General" weightage="80" keywordseo="integrated-goods-and-services-tax" source="Orion">Integrated Goods and Services Tax</keyword> (Amendment) Bill, 2023 in the Lok Sabha. The union cabinet earlier this week had cleared the two bills. The amendment in the <keyword id="4797043" type="General" weightage="80" keywordseo="central-goods-and-services-tax-act" source="Orion">Central Goods and Services Tax Act</keyword> will allow introduction of a 28 per cent goods and services tax rate on horse racing, online gaming and casinos. Similarly, states too will have to amend their individual GST legislations separately. If the bill is passed in the day, the new tax system will become applicable from October 1, as was decided in the <keyword id="6355040" type="General" weightage="80" keywordseo="gst-council" source="Orion">GST council</keyword> meeting held earlier this month. It was decided in that meeting that 28 per cent levy on online gaming, casinos and horse racing will become applicable from October 1 onwards and will be reviewed for six months, and if need arises, changes could bemade in the tax structure after that. Friday being the last day of the monsoon session of Parliament, <keyword id="25455" type="General" weightage="80" keywordseo="finance" source="Orion">Finance</keyword> Minister <keyword id="129243" type="General" weightage="80" keywordseo="nirmala-sitharaman" source="Orion">Nirmala Sitharaman</keyword> will introduce the two bills and if the House business continues, then it will also seek to get the two bills passed. Considering the fact that the GST council had to meet twice within a month owing to continuous representations from the gaming industry, seeking to ease the 28 per cent tax slab on gaming, the bills are likely to be pushed for passing as the applicability of the new tax slab is October 1. --IANSans/dpb

Centre seeks to amend GST Act to levy 28% tax on online gaming, casinos

New Delhi, <keyword id="45663" type="ORGANIZATION" weightage="20" keywordseo="Revenue">Revenue</keyword> from <keyword id="6359833" type="UNKNOWN" weightage="20" keywordseo="Goods-and-services-tax">Goods and Services Tax</keyword> (GST) stood at over ₹1.04 lakh crore in November as against ₹1.05 lakh crore collected in the previous month, <keyword id="1549446" type="COMPANY" weightage="20" keywordseo="The-Finance-Ministry">the Finance Ministry</keyword> said in a statement. This is the second straight month in the current fiscal when GST revenue has topped ₹1 lakh crore. The collection in November 2020 is 1.4 per cent higher than in November 2019 when the GST mop-up was ₹1,03,491 crore. "In line with the recent trend of recovery in the GST revenues, the revenues for the month of November 2020 are 1.4 per cent higher than the GST revenues in the same month last year. "During the month, revenues from import of goods were 4.9 per cent higher and the revenues from domestic transaction (including import of services) are 0.5 per cent higher than the revenues from these sources during the same month last year," the ministry said in a statement. The gross GST revenue collected in November 2020 is ₹1,04,963 crore, of which Central GST is ₹19,189 crore, <keyword id="3517717" type="COMPANY" weightage="20" keywordseo="state-gst">State GST</keyword> is ₹25,540 crore, IGST is ₹51,992 crore (including ₹22,078 crore collected on import of goods) and Cess is ₹8,242 crore (including ₹809 crore collected on import of goods), the Finance Ministry said. GST revenue had topped ₹1 lakh crore in 8 out of 12 months of 2019-20. However, in the current fiscal, the revenue has taken a hit due to the lockdown and the consequent slowdown in the economy. Revenue in April was ₹32,172 crore, May (₹62,151 crore), June (₹90,917 crore), July (₹87,422 crore), August (₹86,449 crore), September (₹95,480 crore), October (₹1,05,155 crore) and November (₹1,04,963 crore). SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/kunal-shah-cred-raises-80-million-valuation-doubles-to-800-million-for-the-just-two-year-old-startup/articleshow/79502864.cms">Kunal Shah’s CRED raises $80 million – valuation doubles to $800 million for the just two-year old startup</a> <a href="https://www.businessinsider.in/science/space/news/new-technology-to-create-fuel-and-oxygen-on-mars-could-help-humans-explore-the-deep-sea-here-on-earth/articleshow/79504876.cms">New technology to create fuel and oxygen on Mars could help humans explore the deep sea here on Earth</a>

November GST collection stands at ₹1.04 lakh crore

<keyword id="4943720" type="General" weightage="20" keywordseo="GST-collection" source="Orion">GST collection</keyword> in May rose 12% to Rs 1.57 lakh crore, the finance ministry said on Thursday. The gross <keyword id="2484610" type="General" weightage="20" keywordseo="good-services-tax" source="Orion">Good &amp; Services Tax</keyword> (GST) revenue collected in the month of May, 2023 is Rs 1,57,090 crore of which Central GST is Rs 28,411 crore, State GST is Rs 35,828 crore, Integrated GST is Rs 81,363 crore (including Rs 41,772 crore collected on import of goods) and cess is Rs 11,489 crore (including Rs 1,057 crore collected on import of goods). "The revenues for the month of May 2023 are 12 per cent higher than the GST revenues in the same month last year," the ministry said in a statement. During the month, revenue from import of goods was 12 per cent higher and the revenues from domestic transactions (including import of services) are 11 per cent higher than the revenues from these sources during the same month last year. <keyword id="6359833" type="General" weightage="80" keywordseo="goods-and-services-tax" source="Orion">Goods and Services Tax</keyword> (GST) collection in May last year was about Rs 1.41 lakh crore. Last month, GST collection was at a record high of Rs 1.87 lakh crore. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/auto/news/tvs-motor-hikes-prices-of-ev-scooter-by-17000-22000/articleshow/100677697.cms">TVS Motor hikes prices of EV scooter by ₹17,000 - ₹22,000</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/google-to-shut-3rd-party-notes-lists-integration-on-assistant-app/articleshow/100678872.cms">Google to shut 3rd-party Notes, Lists integration on Assistant app</a>

GST collection rises 12% to ₹1.57 lakh crore in May

The government cleared the common misconception of thousands who thought that service charges collected by restaurants/hotels/eateries are ‘<keyword id="6355686" type="COMPANY" weightage="100" keywordseo="Service-tax">service tax</keyword>’ imposed by the government. It is not. "Some restaurants/hotels/eateries besides charging for the food and beverages are also charging 'service charges' in their bills. The proceeds of the 'service charges' are retained by the restaurants/hotels/eateries," a <keyword id="156153" type="ORGANIZATION" weightage="100" keywordseo="Ministry-of-Finance">Ministry of Finance</keyword> press release said. 

	"It is further clarified that effective service tax rate in respect of services provided in relation to serving of food or beverage by a restaurant, eating joint or mess having the facility of air-conditioning or central air-heating in any part of the establishment is 5.6% (14% of 40%) of the total amount charged," the release added. 
 

	The new service tax rate of 14 per cent came into effect from June 1, a move that made eating out in restaurants, insurance and phone bills expensive, among many other things.
 In his <keyword id="117156" type="UNKNOWN" weightage="100" keywordseo="Budget-speech">Budget speech</keyword>, <keyword id="25455" type="ORGANIZATION" weightage="100" keywordseo="finance">Finance</keyword> Minister <keyword id="42575" type="PERSON" weightage="100" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> had said that to facilitate a smooth transition to levy of tax on services by both the Centre and the States, "it is proposed to increase the present rate" of service tax plus education cess from 12.36 per cent to a consolidated rate of 14 per cent. 

	Service tax is levied on all services, except a small negative list. 
 

	Advertising, air travel, services of architect, certain type of constructions, credit card, even management, and tour operator are some of the important services which attract tax.

	 
	 
	(Image credits: thisisbeirut.wordpress)

Service charges at restaurants are not government service tax

Service providers like <a href="http://www.businessinsider.in/searchresult.cms?query=oyo+rooms">Oyo Rooms</a>, Foodpanda and Airbnb received a ‘friendly’ query on whether they were paying service tax. 
 
Letters were sent to these aggregators to see if these firms were registered with the tax department. 
 
The Indian government wishes a non-adversarial tax regime that's more welcoming to investors. 
 
One of the officials told ET that most entities had registered themselves and some had sought further clarifications on procedures and processes as the provision dealing with this particular area is fairly new. 
 
Foodpanda confirmed the news. “We did receive a query from the service tax department," a spokesperson said, adding “the authorities have conducted an extensive review of our accounts and have found no irregularities so far. We are registered and duly pay our taxes.” 
 
All aggregators have to pay tax of 14%, excluding the Swachh Bharat cess, which will be levied soon. 
 
As per reports, the service tax revenue has risen 26% in the first seven months of the current fiscal from the year earlier. 
 
As per the government’s provision, any aggregator that has office in India has to pay service tax if the service is so provided using the brand name of the aggregator in any manner.

Service providers like Airbnb, Foodpanda and Oyo Rooms get tax queries

<keyword id="19896016" type="General" weightage="20" keywordseo="new-delhi" source="keywords">New Delhi</keyword>, <keyword id="20791743" type="General" weightage="20" keywordseo="gross-goods-and-services-tax" source="keywords">Gross Goods and Services Tax</keyword> (<keyword id="19951327" type="General" weightage="20" keywordseo="gst" source="keywords">GST</keyword>) revenue collections for February rose by a robust 12.5 per cent year-on-year in February to Rs 1,68,337 crore, according to figures released by the <keyword id="19900485" type="General" weightage="20" keywordseo="finance-ministry" source="keywords">Finance Ministry</keyword> on Friday. The growth was driven by a 13.9 per cent rise in GST from domestic transactions and 8.5 per cent increase in GST from import of goods. GST revenue net of refunds for February 2024 is Rs 1.51 lakh crore which is a growth of 13.6 per cent over that for the same month last year. As of February 2024, the total gross GST collection for the current fiscal year stands at Rs 18.40 lakh crore, which is 11.7 per cent higher than the collection for the same period in FY 2022-23. The average monthly gross collection for FY 2023-24 works out Rs 1.67 lakh crore, exceeding the corresponding figure of Rs 1.5 lakh crore for the previous year. GST revenue net of refunds as of February 2024 for the current fiscal year is Rs 16.36 lakh crore which is a growth of 13.0 per cent over that for the same period last year. Breakdown of February 2024 Collections: *Central Goods and Services Tax (CGST): Rs 31,785 crore *State Goods and Services Tax (SGST): Rs 39,615 crore *Integrated Goods and Services Tax (IGST): Rs 84,098 crore, including Rs 38,593 crore collected on imported goods *Cess: Rs 12,839 crore, including Rs 984 crore collected on imported goods.

GST collections in February rise 12.5% to cross ₹1.68 lakh crore

<keyword id="176732" type="COMPANY" weightage="20" keywordseo="State-governments">State governments</keyword> will get a period of one year to implement the provisions of <keyword id="6359833" type="ORGANIZATION" weightage="20" keywordseo="Goods-and-Services-Tax">goods and services tax</keyword> (<keyword id="6354679" type="ORGANIZATION" weightage="20" keywordseo="GST">GST</keyword>) after it comes into effect from April 2016. GST is meant to replace all indirect taxes levied on goods and services by both, the Central and state governments, and create a <keyword id="2664438" type="UNKNOWN" weightage="20" keywordseo="single-tax-system">single tax system</keyword> across the country. 
 
“The one-year grace period is only a transitory provision and all states will have to finally implement it. States are on board. This would “take care of any inconsistency which may arise with respect to any law relating to tax on goods or services or on both in force in any State on the commencement of the provisions of the Act,” a senior official said. 
 
Some states like West Bengal and TamilNadu are against the imposition of GST without agreement on revenue neutral rates, compensation methodology etc. 
 
As far as the compensation to states to make up for loss of revenue, if any, due to GST, the Centre will provide 100% compensation in the first three years, 75% in the fourth year and 50% in the fifth year. 
 
Image: thinkstock

State Govts Will Get One Year To Implement GST

The <a href="http://www.businessinsider.in/searchresult.cms?query=Indian+government&amp;sortorder=effectivedate">Indian Government</a> is planning to introduce all kinds of taxes for <a href="http://www.businessinsider.in/searchresult.cms?query=tobacco&amp;sortorder=effectivedate">tobacco </a>products under <a href="http://www.businessinsider.in/searchresult.cms?query=GST&amp;sortorder=effectivedate">Goods and Services Tax</a> (<keyword id="6354679" type="ORGANIZATION" weightage="20" keywordseo="GST">GST</keyword>) regime. 
 The government wants to you to consume less <keyword id="6361871" type="ORGANIZATION" weightage="20" keywordseo="tobacco">tobacco</keyword> products and in this regard, the government might introduce 28% tax all such products, including bidis. 
 
The<a href="http://www.businessinsider.in/searchresult.cms?query=arun+jaitley&amp;sortorder=effectivedate"> Arun </a><a href="http://www.businessinsider.in/searchresult.cms?query=arun+jaitley&amp;sortorder=effectivedate">Jaitley</a>-led <keyword id="47209" type="ORGANIZATION" weightage="20" keywordseo="Finance-Ministry">Finance Ministry</keyword> has already put aerated drinks, tobacco products, luxury cars and pan masala in the 'demerit goods' category, which is attract higher taxes in GST. The health ministry suggested the cess levied under the GST should be high enough to make these products unaffordable over a period of time. 
 
The health ministry, in its memorandum, suggested that exemptions from the high taxation norms should not be extended to industries with low turnover such as bidi manufacturers as this will allow them to manipulate norms. 
 
"Taking advantage of this exemption, bidi manufacturers closed bigger units and started producing on small scale under different names in a clandestine manner, resulting in huge tax evasions," the memorandum said. 
 
As per government estimates, merely the health cost on account of tobacco consumption is pegged at over Rs 10,40,500 crore in 2011 for people aged between 35 to 69 years. Every year, about 10 lakh Indians die from tobacco-related diseases.

Government wants you to ditch tobacco by making it costlier

The <keyword id="152443" type="ORGANIZATION" weightage="100" keywordseo="Internet-Mobile-Association-of-India">Internet &amp; Mobile Association of India</keyword> (<keyword id="149966" type="COMPANY" weightage="100" keywordseo="IAMAI">IAMAI</keyword>) has termed a proposal to re-impose <keyword id="6355686" type="COMPANY" weightage="100" keywordseo="Service-tax">service tax</keyword> on online and mobile advertising as "regressive." The industry body, which has Google India and Facebook among its members, said the move might lead to increase in cost and hamper growth of the industry. 
 IAMAI said the sector was kept under the negative list of service tax two years ago as "a gesture of support to this fledgling industry". But Finance Minister <keyword id="42575" type="PERSON" weightage="100" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> has proposed to bring online and mobile advertising under the service tax net. 
 
"Imposition of service tax at this stage will escalate costs and have a negative growth impact on the fledgling industry. While we have been brought under the positive list of service tax, print Media, which is evolved, is kept in the negative list," IAMAI president Subho Ray said. 
 
Keeping in mind Prime Minister Narendra Modi's commitment to the growth of Internet and mobile industry, IAMAI hopes Finance Ministry will take cognizance of the issue and take corrective measures, he added. 
 
Jaitley said it was necessary to trim the negative list and exemptions in order to broaden the tax base in service tax. "Accordingly, negative list has been reviewed and service tax leviable currently, on sale of space or time for advertisements in broadcast media, is being extended to cover such sales on other segments like online and mobile advertising," he added. 
 
"We would appeal to the finance minister to withdraw the announcement at the earliest," Ray said.

Re-imposing Service Tax On
Online Ads “Regressive”: IAMAI

<keyword id="6359833" type="General" weightage="20" keywordseo="goods-and-services-tax" source="Orion">Goods and Services Tax</keyword> (<keyword id="6354679" type="General" weightage="100" keywordseo="gst" source="Orion">GST</keyword>) <keyword id="2298" type="General" weightage="20" keywordseo="collections" source="Orion">collections</keyword> in February, 2023 stood at Rs 1,49,577 crore, lower than Rs 1,55,922 crore collected in January. Out of the Rs 1,49,577 crore collected through GST revenue in February, CGST was Rs 27,662 crore, SGST was Rs 34,915 crore and <keyword id="6360947" type="General" weightage="50" keywordseo="igst" source="Orion">IGST</keyword> was Rs 75,069 crore (including Rs 35,689 crore collected on import of goods) while cess was Rs 11,931 crore (including Rs 792 crore collected on import of goods). February's GST collections were marginally higher than December 2022 collections, which were Rs 1,49,507 crore. Monthly GST <keyword id="6398283" type="General" weightage="20" keywordseo="revenues" source="Orion">revenues</keyword> have been more than Rs 1.4 lakh crore for 12 straight months in a row. The government has settled Rs 34,770 crore to CGST and Rs 29,054 crore to SGST from IGST as regular settlement. The total revenue of the Centre and the states after regular settlements in the month of February 2023 is Rs 62,432 crore for CGST and Rs 63,969 crore for the SGST. In addition, the Centre had also released a balance GST compensation of Rs 16,982 crore for the month of June 2022 and Rs 16,524 crore to States/UTs which have sent AG-certified figures for the previous period. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/the-love-for-ready-to-move-in-homes-is-going-up-says-basic-home-loan-survey/articleshow/98332513.cms">The love for ready-to-move-in homes is going up says Basic Home Loan Survey</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/the-lifestyle-of-the-super-rich-rare-whiskey-handbags-watches-amp-more/slidelist/98334667.cms">The lifestyle of the super rich: Rare whiskey, handbags, watches &amp; more</a>

You Searched For "Service tax" and got 15 results

GST in Budget 2017 may make branded apparels expensive

Suchayan Mandal

GSTN portal to be ready for invoice uploading from July 24

BI India Bureau

FICCI approaches PMO for review of service tax for consultants

BI India Bureau

Bill to amend Central Goods and Services Tax Act introduced in Lok Sabha

ANI

Government wants clean slate for GST, to end pending service tax refunds

BI India Bureau

Centre seeks to amend GST Act to levy 28% tax on online gaming, casinos

IANS

November GST collection stands at ₹1.04 lakh crore

PTI

GST collection rises 12% to ₹1.57 lakh crore in May

PTI

Service charges at restaurants are not government service tax

BI India Bureau

Service providers like Airbnb, Foodpanda and Oyo Rooms get tax queries

BI India Bureau

GST collections in February rise 12.5% to cross ₹1.68 lakh crore

IANS

State Govts Will Get One Year To Implement GST

BI India Bureau

Government wants you to ditch tobacco by making it costlier

BI India Bureau

Re-imposing Service Tax On Online Ads “Regressive”: IAMAI

BI India Bureau

GST collections slide month-on-month to ₹1.49 lakh crore in February

IANS

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