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The <keyword id="19994390" type="General" weightage="100" keywordseo="GST-Council" source="keywords">GST Council</keyword> on Monday is expected to deliberate on a host of issues, including <keyword id="20118944" type="General" weightage="20" keywordseo="taxation" source="keywords">taxation</keyword> of insurance premiums, GoM's suggestions on rate rationalisation, and a status report on <keyword id="19939772" type="General" weightage="20" keywordseo="online-gaming" source="keywords">online gaming</keyword>, sources said. Sources said the fitment committee, comprising Centre and state tax officials, will present a report on GST levied on life, health and reinsurance premiums and the revenue implications. The GST Council, chaired by Finance Minister Nirmala Sitharaman and comprising state ministers, will decide on whether to reduce the tax burden on <keyword id="19894985" type="General" weightage="20" keywordseo="health-insurance" source="keywords">health insurance</keyword> from the current 18% or exempt certain categories of individuals, like senior citizens. The deliberations will also happen with regard to the goods and services tax (GST) cut on <keyword id="23083492" type="General" weightage="20" keywordseo="life-insurance-premium" source="keywords">life insurance premium</keyword>. In 2023-24, the Centre and states collected Rs 8,262.94 crore through GST on health <keyword id="22612491" type="General" weightage="20" keywordseo="insurance-premium" source="keywords">insurance premium</keyword>, while Rs 1,484.36 crore was collected on account of GST on health reinsurance premium. The issue of taxation on insurance premium figured in Parliament discussions with opposition members demanding that health and life insurance premiums be exempt from GST. Even Transport Minister Nitin Gadkari wrote to Sitharaman on the issue. Finance Minister Nirmala Sitharaman in her reply to discussion on the Finance Bill had said 75% of the GST collected goes to states and opposition members should ask their state finance ministers to bring the proposal at the GST Council. West Bengal Finance Minister Chandrima Bhattacharya had raised the issue in the meeting of the Group of Ministers (GoM) on rate rationalisation last month and the matter was referred to the fitment committee for further data analysis. The GoM had opined against any tinkering of four-tier GST slab of 5, 12, 18, and 28 % for the time being. The panel, however, had asked the fitment committee to look into any scope for rationalisation of rates of goods and services. With regard to online gaming, Centre and state tax officers will present a "status report" before the GST Council. The report would include <keyword id="20053837" type="General" weightage="20" keywordseo="GST-revenue" source="keywords">GST revenue</keyword> collection from the online gaming sector before and after October 1, 2023. From October 1, 2023, entry-level bets placed on online gaming platforms and casinos were subject to 28% GST. Prior to that, many online gaming companies were not paying 28% GST, arguing that there were differential tax rates for games of skill and games of chance. The GST Council in its meeting in August 2023 had clarified that online gaming platforms were required to pay 28% tax and subsequently, Central GST law was amended to make the taxation provision clear. Offshore gaming platforms were also mandated to register with GST authorities and pay taxes, failing which the government would block those sites. The council had then decided that the taxation on online gaming sector would be reviewed after six months of its implementation. Sources said the Council would deliberate on the status of taxation on the sector, and any change in tax rates is unlikely. Besides, the Council is likely to be apprised about the ongoing drive against fake registration, the success of the drive and action taken against such entities. The total amount of suspected GST evasion would also be presented before the Council. The drive, from August 16, 2024, to October 15, 2024, is aimed at detecting suspicious/fake GSTINs and to conduct requisite verification and further remedial action to weed out these fake billers. In the first drive between May 16, 2023 to July 15, 2023, against fake registration, 21,791 entities (11,392 pertaining to state tax jurisdiction and 10,399 pertaining to CBIC jurisdiction) having GST registration were discovered to be non-existent. An amount of Rs 24,010 crore (state - Rs 8,805 crore + centre - Rs 15,205 crore) of suspected tax evasion was detected during the special drive. Also, the Council would approve notifications, including that of the amnesty scheme, announced in the last council meeting. The council in June meeting took a host of taxpayer-friendly measures, including waiver of interest and penalty for demand notices issued in the first three years of GST -- 2017-18, 2018-19 and 2019-20 -- if the full tax demanded is paid by March 31, 2025. To reduce litigation, a monetary limit for tax officers, to file appeals before the GST Appellate Tribunal, the High Court and the Supreme Court was fixed at Rs 20 lakh, Rs 1 crore and Rs 2 crore, respectively, by the Council. It also recommended a reduction of the quantum of pre-deposit required to be paid by taxpayers for filing of appeals under goods and services tax (GST).

GST Council to deliberate on taxation of insurance premium, report on online gaming tomorrow

<ul><li>The <keyword id="2721952" type="General" weightage="20" keywordseo="crypto" source="Orion">crypto</keyword> industry has already been buckling under income tax and <keyword id="17506" type="General" weightage="100" keywordseo="tds" source="Orion">TDS</keyword>.</li><li>Trading volumes in India fell in April, right after the current set of taxes were brought into practice.</li><li>Politicians have asked for crypto to be treated under the same norms as lotteries and gambling.</li></ul>The crypto industry’s tax woes in India may get worse as the government looks to expand indirect taxes on the space in the coming days. According to reports from local media, the country is formulating methods to expand the ambit of these indirect taxes, specifically the goods and services tax (GST), to cover a larger section of the crypto space. The GST is an indirect tax that replaced many others in the country a year or two ago. It is levied on the supply of goods and services, including things like restaurant bills, e-commerce orders, and others. Some politicians have demanded the highest GST slab, which is levied at 28%, on the crypto industry. <cmsannotation type="cmsannotation" annotationid="Tough times ahead" comment="subhead" text="Tough times ahead">Tough times ahead</cmsannotation> According to a <a href="https://www.hindustantimes.com/india-news/gst-net-on-crypto-may-expand-to-include-their-sale-purchase-101652035581023.html">report</a> by the Hindustan Times, the tax proposals are to be analysed by the requisite law committees, which will recommend their views to the <keyword id="6355040" type="General" weightage="20" keywordseo="gst-council" source="Orion">GST Council</keyword>, which regulates matters related to this particular tax. It is chaired by the country’s finance minister, along with finance ministers of states. The 28% GST is usually reserved for luxury goods and others that aren’t considered to be essential items. For instance, it is applied to gambling and lotteries, which is what parliamentarians in the country are likening crypto to when demanding this tax. “Several MPs (members of Parliament) demanded to raise the GST on cryptocurrencies to 28% like gambling and lotteries. As Parliament is an apex body, their demands will also be examined by the law committee,” the report quoted sources as saying. <cmsannotation type="cmsannotation" annotationid="Taxing times for crypto" comment="subhead" text="Taxing times for crypto">Taxing times for crypto</cmsannotation> The GST is said to be in addition to the 30% income tax on earnings from virtual digital asset (VDA) transactions that the government announced during the Union Budget in February this year. It followed this up with a 1% tax deduction at source (TDS), which is levied on salaries and other incomes, of those selling cryptocurrencies. The two taxes together have already discouraged many users from crypto trading, and an addition of 28% GST might make things worse. Not only that, but <a href="https://wazirx.com/signup?invite=2kpah6gr&amp;utm_source=business-insider&amp;utm_medium=referral&amp;utm_campaign=article-editorial">crypto exchanges</a> in the country may also struggle to keep track of all the taxes that are to be levied on such transactions, as will the users. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/ril-tumbles-nearly-4-on-weaker-than-expected-profits-slowdown-in-retail-business-and-decline-in-jio-subscriber-additions/articleshow/91433432.cms">RIL tumbles nearly 4% on weaker than expected profits, slowdown in retail business and decline in Jio subscriber additions</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/campus-activewear-shares-debuts-at-21-premium-despite-weak-market-trends/articleshow/91430347.cms">Campus Activewear shares debuts at 21% premium despite weak market trends</a>

India may expand taxes on crypto beyond IT and TDS – government reportedly mulling 28% GST

Apart from the decision on the repo rate hike by the Reserve Bank of India's (<keyword id="30067" type="General" weightage="20" keywordseo="rbi" source="Orion">RBI</keyword>) Monetary Policy Committee (<keyword id="6369693" type="General" weightage="20" keywordseo="mpc" source="Orion">MPC</keyword>) at its upcoming meeting, one can also expect few more things post the discussions. Economic experts expect the <keyword id="15698737" type="General" weightage="20" keywordseo="mpc-to-hike-the-repo-rate" source="Orion">MPC to hike the repo rate</keyword> by 25-35 basis points (bps) with industry lobby body ASSOCHAM also urging the central bank to do the same. Further it will also be interesting to see whether there will be unanimity amongst the members of the MPC on the decisions taken at the ensuing meeting. Post MPC meeting, the RBI Governor Shaktikanta Das is expected to share what the bank has written to the central government as to the reasons for not controlling the inflation and the steps that are being taken to reign in the same. The MPC had met on November 3, to discuss what it would tell the central government on the reasons why it was not able to restrain the inflation. As per the Section 45ZN of the RBI Act, when the central bank fails to meet the inflation target, it shall send a report to the Central government listing: the reasons for failure to achieve the inflation target; remedial actions proposed to be taken by it; and an estimate of the time-period within which the inflation target shall be achieved pursuant to timely implementation of proposed remedial actions. The proceedings of the said MPC meeting have not been made public even though the law provides to the contrary. As per section 45ZK, the RBI shall publish, after the conclusion of every meeting of MPC, the resolution adopted by the said Committee. Further, as per the Section 45ZL of the RBI Act, the minutes of the MPC meeting has to be published on the 14th day after every meeting including: the resolution adopted at the meeting of the MPC; the vote of each member of the MPC, ascribed to such member, on resolutions adopted in the said meeting; and the statement of each member of the MPC under sub-section (11) of Section 45ZL on the resolutions adopted in the said meeting. On the issue of unanimity amongst the MPC members, at the September MPC meeting, Dr. Ashima Goyal voted against the resolution to hike the repo rate by 50 basis points to 5.90 per cent. Goyal was for a hike of 35 basis points and explaining his reasons voted against the resolution. However, the resolution was passed by a 5:1 majority. In India, the retail inflation rose to 7.41 per cent in September. At the same meeting, another member Prof. Jayanth R. Varma voted against the second part of the resolution on the withdrawal of accommodation to ensure inflation remains within the target. Varma said the MPC should now pause rather than focus on further tightening. On the issue of upward rate revision, he was for upward revision by 60 basis points instead of 50 basis points that was proposed. As the difference between the two was only marginal Varma voted in favour. Be that as it may, the expectation of the MPC meeting is that the repo rate hike will be a moderate one and range between 25-35 bps. The RBI has hiked the repo rate by 190 bps from four per cent to 5.90 per cent. Now MPC will take into account the gross domestic product (GDP) growth estimates, the foodgrain production estimates, inflation projection, global economic activity and other factors. "The RBI will be presenting the monetary policy against the backdro p of GDP growth slowing down as well as inflation being high above six per cent," Madan Sabnavis, Chief Economist, Bank of Baroda said. According to him, the MPC will continue with rate hikes this time though the magnitude will be lower - probably 25-35 bps, "More specifically we do believe that the terminal repo rate for th e financial year will be 6.5 per cent, which means there will be one more rate hike in February. It is unlikely to change the stance and the withdrawal of liquidity will continue," he added. "We expect a 35 bps rate hike in the upcoming meeting. The Consumer Price Index (CPI) inflation is likely to moderate further in the coming months and slip below six per cent by the end of the fiscal year," Rajani Sinha, Chief Economist, CARE Ratings told IANS. She also said the Wholesale Price Index (WPI) has also fallen sharply from 16 per cent in May/June to around eight per cent. "The fall in global commodity prices comes as a big relief. However, the concern is that core inflation in India still remains high above six per cent. Food inflation and specifically cereal inflation is also high," Sinha pointed out. This, in turn, will put upward pressure on household inflationary expectations which is already at a high of around 10 per cent. Hence, while there is some reprieve on the inflation front, RBI would remain vigilant, she added. On the growth front, high frequency economic indicators like auto sales, GST collection, e-way bill, PMI continue to indicate healthy recovery. However, some consumption indicators like IIP consumer durables and non-durables remain weak, Sinha said. Moreover, external demand is weakening as the global economy slows down, Sinha said. According to K. Joseph Thomas, Head Research, Emkay Wealth, as far as interest rates go, the trajectory of domestic inflation is of prime importance. "The pressure seems to be easing on the price level, but the comfor t that can be drawn from fuel prices is far from real. The upside risks in fuel prices continue to be a concern," he said. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/investment-intent-of-10-5-lakh-crore-received-at-odisha-biz-summit/articleshow/95974094.cms" style="">Investment intent of ₹10.5 lakh crore received at Odisha biz summit</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="http://businessinsider.in/stock-market/news/indian-markets-open-the-week-on-a-mixed-note-sbi-maruti-suzuki-inox-green-energy-among-stocks-in-focus/articleshow/95991254.cms" style="">Indian markets open the week on a mixed note – SBI, Maruti Suzuki, Inox Green Energy among stocks in focus</a>

RBI's MPC meeting could throw up a lot more than just a rate hike, say experts

In an effort to get the <keyword id="6359833" type="ORGANIZATION" weightage="80" keywordseo="Goods-and-Services-Tax">Goods and Services Tax</keyword> (GST) Bill passed, the Indian Government went ahead with its proposal to constitute a select committee of the Rajya Sabha, or Upper House of the Parliament, to examine it. 
 It also went ahead with a suggestion to form joint committee of both the Houses to examine the contentious <keyword id="408329" type="UNKNOWN" weightage="80" keywordseo="land-acquisition-bill">Land Acquisition Bill</keyword>. 
 As <keyword id="2558634" type="UNKNOWN" weightage="80" keywordseo="Prime-Minister-Narendra-Modi-led-government">Prime Minister Narendra Modi-led Government</keyword> lacks numbers in Rajya Sabha, it is banking on these committees to mull on both the bills and get them passed. 
 The Lok Sabha, or Lower House of the Parliament, passed the <keyword id="387846" type="UNKNOWN" weightage="80" keywordseo="GST-Bill">GST Bill</keyword> to put in place a single nationwide sales tax. 
 
Indian Finance Minister Arun Jaitley hailed it as the biggest reform in the country since independence in 1947. He had told lawmakers that the Bill, if passed, could add up to 2 percentage points to the growth of Asia's third-largest economy. 
 
Meanwhile, a 30-member joint committee of both the Houses will look into the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Amendment) Bill, 2015. 
The committee will be headed by SS Ahluwalia, who is a Bharatiya Janata Party MP from Darjeeling. 
 
It will have 20 members from the Lok Sabha and 10 from the Rajya Sabha. BJP will nominate 10 members from the Lower House and two from the Upper House to the joint committee. 
 
The land reform bill was passed in the Lok Sabha, however, the ruling Government failed to get it passed in the Rajya Sabha. Modi, last year, had issued an ordinance on land acquisition. 
 
This will be re-promulgated for the second time soon after the budget session ends on May 13, a Union minister told the Economic Times, accepting that Government plans to get these two crucial bills passed in the Budget Session did not see the light of day. 
 
(Image: Reuters)

2 of Modi’s biggest reforms have just hit a speed breaker. Know why

New Delhi, Feb 4 () The government is planning to introduce lottery offers between Rs 10 lakh and Rs 1 crore under the GST to encourage customers to take bills while making purchases.
 Central Board of Indirect Taxes and Customs (CBIC) member John Joseph said every bill under the goods and services tax (GST) regime will provide a chance to the customers to win a lottery and that would act as an incentive for them to pay the tax.
 "We have come with the new lottery system. Every bill under GST is supposed to be a price-winning lottery ticket. It will go for a draw and price are so high that people will say that by not saving 28 per cent, I have a chance of winning Rs 1 crore or Rs 10 lakh. It is a question of changing the consumer behaviour," Joseph said at an Assocham event here.
 As per the plan, the purchase bill would be uploaded on a portal and a draw would be held automatically and the winners would be informed.
 Under the four-tier GST, goods and services are taxed at 5, 12, 18 and 28 per cent. Besides, cess is levied on luxury, sin and demerit goods on top of the highest tax rate.
 The GST Council, chaired by Finance Minister Nirmala Sitharaman and comprising state counterparts, would vet the proposed lottery scheme.
 The Council would also decide on the minimum threshold for bills that would be included in the lottery. As per the plan, the money for the lottery would come from the consumer welfare fund, where the proceeds of anti-profiteering are transferred.
 To plug leakages in GST revenue, the government is considering various options in business-to-consumer deals, including lotteries and incentivising QR Code-based transactions.
 The government has constituted a committee of officers to suggest measures to augment GST revenue collections.
 The panel has been tasked to suggest systemic changes in GST, including checks and balances, to prevent misuse and measures to improve voluntary compliance.
 Also, it has been tasked to give inputs on measures for the expansion of the tax base.
 The committee, which made presentation before the GST Council on December 18, suggested pruning of exempt list for raising resources. JD HRS

Govt plans GST lottery offers of Rs 10 lakh-Rs 1 cr for encouraging customers to ask for bills

The <keyword id="1062299" type="ORGANIZATION" weightage="80" keywordseo="Rajya-Sabha-Select-Committee">Rajya Sabha Select Committee</keyword> on Wednesday endorsed most of the provisions of the <a href="http://www.businessinsider.in/Why-GST-is-a-crucial-litmus-test-for-the-government/articleshow/47248157.cms">Goods and Services Tax (GST) Bill</a> in the Parliament, while agreeing to demands of parties like TMC for providing five-year compensation to states. 
 
Headed by BJP's Bhupender Yadav, the panel in its report suggested changes in clauses pertaining to compensation and levy of 1% additional tax by states on inter-state supply of goods, reported news agencies. 
 
The report, however, is not liked by the <a href="http://www.businessinsider.in/RaGa-hibernates-Congress-waits/articleshow/46783239.cms">Congress</a>, AIADMK and Left parties. They have expressed their disapproval over the <keyword id="6354679" type="ORGANIZATION" weightage="100" keywordseo="GST">GST</keyword> Constitution Amendment Bill in the existing form. 
 
The bill has been approved by the <a href="http://www.businessinsider.in/Lok-Sabha-passes-GST-Amendment-Bill-paving-way-for-GST-Bill-in-Parliament-soon/articleshow/47174944.cms">Lok Sabha</a>. It will now have to be taken up in the <keyword id="122785" type="ORGANIZATION" weightage="80" keywordseo="Upper-house">Upper House</keyword> for its passage. As it is a Constitution Amendment Bill, the bill has to be approved by two-third members in the Rajya Sabha. 
 
The ruling <a href="http://www.businessinsider.in/BJP-to-follow-in-Congress-footsteps-for-a-change-Know-more/articleshow/47970564.cms">NDA government</a> does not enjoy majority in the <a href="http://www.businessinsider.in/Day-1-of-monsoon-session-Rajya-Sabha-proceedings-disrupted-over-Lalit-Modi-issue/articleshow/48158090.cms">Rajya Sabha</a> and will need support of regional parties and allies for passage of the bill. 
The committee has suggested that the provision in the bill that provided Centre "may" compensate states for a period up to five years for any revenue loss to be substituted by a commitment for compensation for five years. 
 
In a clause relating to levy of 1% additional tax by states, the panel recommended that the levy should only on "all forms of supply made for a consideration". 
 
It, however, retained the representation of the Centre and states at the proposed level at one-third and two-third despite demand to reduce Centre's representation to one-fourth. 
 The government plans to roll out a single-rate GST by April 1, 2016. The GST, which is being touted as the biggest reform in the indirect <keyword id="6383566" type="PERSON" weightage="60" keywordseo="Taxation">taxation</keyword> since independence, would subsume levies like excise, service tax, and other local levies. 
 
"Administratively we are taking all steps both Centre and states to meet April 2016 deadline. Effort would be to have reasonable rate of GST so that GST experience is a successful experience for the whole country," Revenue Secretary Shaktikanta Das told reporters here. 
 
(Image: Indiatimes)

Rajya Sabha panel gives thumb up to almost all the provisions of GST Bill

As parliament’s Winter Session will convene on November 26, the Prime Minister-led NDA government is confident of passage of crucial bills, including the <keyword id="387846" type="UNKNOWN" weightage="20" keywordseo="GST-Bill">GST bill</keyword>, which is pending in the Rajya Sabha. 
 India’s <keyword id="3148309" type="UNKNOWN" weightage="20" keywordseo="Parliamentary-Affairs-Minister-Venkaiah-Naidu">Parliamentary Affairs Minister Venkaiah Naidu</keyword> expressed confidence about Opposition's support for the GST bill. Naidu said he was in touch with members of some Opposition parties and would consider their suggestions too. 
 
Meanwhile, Modi has also called for BJP's parliamentary party's executive committee to zero on the strategy. 
 
Apart from the crucial GST bill, the Modi government will also take up three ordinance-related bills, including Negotiable Instruments (Amendment) Bill, 2015, dealing with cheque bounce cases, and the Commercial Division and Commercial Appellate Division of High Courts and Commercial Bill. 
 
(Image: Indiatimes)

The GST will be a reality by January, that’s what the Parliamentary Affairs Minister believes

New Delhi, Mar 11 () The GST Council is likely to rationalise tax rates on five sectors, including mobile phones, footwear and textiles, and defer implementation of the new return filing system and e-invoicing in its meeting on March 14. The Council, chaired by Finance Minister Nirmala Sitharaman, would also discuss operational glitches on the GST Network portal and seek a resolution plan from Infosys, which has won the contract for managing back-end for GSTN in 2015, officials said. Further, ways to augment revenue collection would also be discussed as the Centre has made it clear to the states that it does not have money in compensation funds to pay off the states for loss in revenue due to the goods and services tax (GST) implementation. The Council would also discuss the integration of the GST e-way bill system with the NHAI's FASTag mechanism from April to help track movement of goods and check GST evasion, while also discuss preparedness for Aadhaar-based authentication of GST-registered taxpayers. The planned lottery scheme under GST, which is proposed to be launched from April 1, would also be discussed in the meeting, officials said. "The Council would discuss rationalisation of GST rate in sectors which see duty inversion, leading to high input credit refund claims," an official told . Currently, cellular mobile phones attract 12 per cent duty, while GST on some of its inputs are 18 per cent. With regard to footwear, the Council, in June last year, had lowered GST rate to 5 per cent on items worth up to Rs 1,000, while those above this value attract 18 per cent duty. However, inputs used by the sector attract GST rate in the range of 5-18 per cent. The textiles sector currently has a differential GST rate of 5, 12 and 18 per cent. This leads to difficulty in issuing and claiming of refunds by exporters. GST rate on chemical fertilisers is currently at 5 per cent, while inputs are taxed at 12 per cent. The committee of officers set up to suggest ways to augment revenue had earlier suggested several measures to remove anomalies such as inverted duty structure, which causes an annual revenue loss of Rs 20,000 crore. According to the panel, manufactured goods like fertilisers, mobile phones, footwear, renewable energy equipment, and man-made yarns attract GST of 5-12 per cent, thereby leading to an inverted duty structure, where GST on finished goods is less compared to the duty on inputs. The official further said that in view of Infosys failing to stabilise the GSTN software even after 30 months of its launch, the Council is likely to defer the new return filing system from the earlier envisaged date of April 1. Also, mandatory generation of e-invoice for business-to-business (B2B) transactions for businesses with a turnover of over Rs 100 crore is likely to be deferred by three months till July 1. Also, the Council will decide on lottery offers under GST from April 1 by conducting lucky draws every month for invoices of all business-to-customer (B2C) transactions. Launched on July 1, 2017, GST has subsumed over a dozen indirect taxes, like excise and service tax. However, revenues under the new indirect tax regime has not picked up as per expectations mainly on account of evasion. JD HRS

GST on cellphones, footwear, textiles to be rationalised on March 14

Congress defended its position on the long pending <keyword id="6354679" type="ORGANIZATION" weightage="100" keywordseo="GST">GSt</keyword> bill saying that the "real opposition" to the long-pending GST bill was coming from within the government at the Rajya Sabha today. It said it was ready to give full support to it provided its three key recommendations are accepted. Congress leader <keyword id="42332" type="PERSON" weightage="100" keywordseo="Jairam-Ramesh">Jairam Ramesh</keyword> also questioned the credibility of the current <keyword id="35050" type="CITY" weightage="100" keywordseo="gdp">GDP</keyword> growth figure of 7.6%, claiming that nobody believes these numbers as they are "suspicious". 

	The former minister asked the government to come out with "credible" GDP figures and suggesed setting up a committee under the chairmanship of BJP leader Subramanian Swamy.
 

	He also raked up the issue of alleged irregularities by Gujarat State Petroleum Corporation (GSPC) in its KG basin gas project and demanded a probe into it, while asking the government not be selective in investigating NPA cases.
 Participating in a debate on the <keyword id="123776" type="ORGANIZATION" weightage="100" keywordseo="Finance-Bill">Finance Bill</keyword>, Ramesh harped on '3 Gs' -- GST, GDP and Gas (of GSPC). 

	The Congress member insisted that his party wants GST and that it was ready to give full support to the government if its three suggestions are incorporated in the bill.
 

	"We have three suggestions. One is setting up of independent committee to adjudicate disputes, elimination of 1% tax and introduction of capping. If consensus on these three is arrived, we are ready to support," he said.
 

	The GST bill, which proposes to overhaul the indirect tax regime, has been pending in the Rajya Sabha for a number of years because of resistance mainly by the Congress which wants changes in it.
 

	On capping upper limit for GST, Ramesh said the government says this cannot be accepted as there is no provision in the Constitution for this purpose. But the Article 276 (2) provides for capping and "with creative use of language" the government can accomodate.
 

	Referring to a media report that said some section in the government believes that GST is undesirable, the former Minister said, "the real opposition to GST is not coming from the Congress, it is coming from within the government."
 

	He attacked the government for using Congress as "smoke screen" for the current situation of GST.
 

	Speaking about GDP growth figures, Ramesh said today nobody believes India's GDP figures. "Chief Economic Advisor, RBI Governor, London economists and WallStreet Journal do not believe our GDP numbers," he claimed.
 

	"Nobody is denying that ware having high growth rate. But the number put on GDP are highly suspicious. It (GDP growth) is somewhere between 5.9% and 6.5% and not 7.5%," he said.
 

	Stating that India is growing and the country should grow much faster, Ramesh said, "For the first time, the credibility of GDP numbers are questioned. It has served the government purpose. I urge the government to pause a bit and come out with credible set of figures.
 

	Raising the GSPC issue, Ramesh, whose term as Rajya Sabha
 

	member is ending tomorrow, said the country is concerned about non-performing assets (NPAs) of banks and the government cannot be "selective" in investigating NPAs be it private or public companies.
 

	"I am speaking about misappropriation in the Appropriation bill. I am forced to use this route the notice for discussion on GSPC issue was not considered by the Chair," he said.
 The government is investigating loan default of Rs 9,000 crore by industralist <keyword id="14678" type="PERSON" weightage="100" keywordseo="Vijay-Mallya">Vijay Mallya</keyword> and the government should also probe irregularities at public-owned GSPC. 

	The Congress leader said, "What about a company (GSPC) which has taken loan of about Rs 20,000 crore and has to pay Rs 8,000 crore annually, while its income is only Rs 80 crore. Is it not a fit case of NPA?"
 

	Ramesh demanded a probe into the lending of Rs 19,700 crore loan to GSPC when gas reserves had come down to one trillion cubic feet in offshore KG-basin gas project from 20 trillion gas discovery announced in 2005 by then Gujarat CM.
 

	"Yes, UPA was in power but the company was GSPC. Bank loan increased from zero to Rs 19,700 crore. Why did this happen? Investigate this aspect. How was this loan given at a time when reserves were cut by GSPC itself? What did GSPC do? What was this money used for? " he sought to know.
 

	"There can be no selective in its drive to bring down NPAs, misuse of funds and diversion of funds. The Finance Minister should investigate this," Ramesh said.
 

	He also mentioned that the state-run firm had signed two contracts -- one each with 'Geoglobal' and 'Tough Drilling', which were not key players in the oil exploration business.
 

	Referring to a Petroeleum Minister's interview in which he said ONGC was talking with GSPC for buying stake, Ramesh said the government is asking ONGC to buy 60% stake in GSPC which is a sick company and owes Rs 19,700 crore to banks. 
	 
	(Image credits: indiatimes)

GST will get full support from Congress only after their 3 key recommendations are accepted

The Good and Service Tax has been rolled out. Finance Minister Arun Jaitley had stated that those food items which were imposed an average of 12.5% under the VAT laws will subsequently be cut-down to 5% under the new GST regime. As per the GST law, all items falling under its regime will be imposed tax rates at 5%, 8%, 18% and 28%. GST will not have any impact on the list of products and services which come below the term ‘Essential’, and this list will have zero tax rate. A survey by All India ITR shows that personal care products, entertainment activities and household items under GST will become cheaper than its current rate. However, many of the services such as mobile phone services, healthcare services as well as transportation charges are expected to attract a tax rate of 18%, which is 3% more than its current 15% tax rate. Once the new rates will come into action, your monthly household budget will also be impacted. The analysis shows that entertainment tax rate under GST will successively be reduced to a 28% tax rate as against its current 30% tax rate. The effect of GST on the current tax rate To keep a surveillance of the goods manufacturers and service providers, the GST council has also taken the resolution to form an anti-profiteering committee. This committee will be the authority responsible for taking care of the grievances to ensure that the benefit of GST upon the lower tax rates doesn't get tampered. It has been declared that the committee will be formed by officials of the central and state revenue departments. <table> <tbody><tr> <td> Goods and Services </td> <td> The Impact of GST </td> </tr> <tr> <td> GST Tax Rate on Automobiles: </td> <td> The GST rate will be higher for SUVs (55% to 43%) as compared to smaller cars (30% to 29%). </td> </tr> <tr> <td> GST Tax Rate on Beauty and Makeup Products: </td> <td> The current tax rate of 26% on these items will increase to 28% (applicable on items like perfumes, skin care products, shampoos etc.). </td> </tr> <tr> <td> GST Tax Rate on Gold Ornaments: </td> <td> The tax rate on gold metal will be 3% while 5% rate will be imposed on making charges. </td> </tr> <tr> <td> GST Tax Rate on Hotel Stay: </td> <td> GST is not applicable for hotel rooms that cost below Rs. 1,000, any cost above this will be taxed progressively, however, all room charges above Rs. 5000 will be charged a whopping 28% tax rate. </td> </tr> <tr> <td> GST Tax Rate on Refined Cooking Oil: </td> <td> Edible oil will be taxed at 5%, a subsequent decrease from its current tax rate. </td> </tr> <tr> <td> GST Tax Rate on Air Travel </td> <td> An economy-class air ticket which is currently taxed at 5.6% will decrease to 5%. While business class travelers will have to shell out a lot more than which is currently charged since it will increase from 8.4% to 12%. </td> </tr> <tr> <td> GST Tax Rate on Telecom </td> <td> The existing tax rate of 15% on telecom services will increase to 18% as these services will not benefit much input tax credit. </td> </tr> <tr> <td> GST Tax Rate on Eating Out </td> <td> Non-AC eateries will charge 12% against GST on your total bill. But, you will have to pay the price of eating out at a 5-star restaurant as 28% in GST will be the tax rate (an increase from the existing 18%). </td> </tr> </tbody></table> A List of Items Exempted from GST Here are a few commonly utilized goods and services which have been exempted from the GST regime. Unprocessed cereals (rice, wheat etc.) Unprocessed proteins (milk, vegetables, meat, fish etc.) Train travel via local and sleeper class. Education. Healthcare (exclusive of medicines). Hotel stay or lodges with room rented at less than Rs. 1,000. Kid’s Stationery items (color pencils, crayons, drawing books etc.) Bindis, sindoor, bangles etc. All India ITR summarizes that the upcoming GST Law will have its own sets of pros and cons - many necessities will get cheaper but in the meanwhile, the rest of the necessities that falls under the higher GST tax rate bracket will ultimately cause a discomfort in the household budget. <keyword id="6360118" type="UNKNOWN" weightage="20" keywordseo="GST-Rates">GST rates</keyword> will also bring about a bigger tax burden on the use or purchase of goods and services which are deemed as luxurious. (This article has been written by Vikas Dahiya, founder, and CEO of <a href="https://www.allindiaitr.com/">All India ITR</a>)

Here's how GST rates will impact your monthly household budget

New Delhi, Feb 14 () GST Network CEO Prakash Kumar on Friday said e-invoicing and the new format for filing GST will help improve the ease of doing business and reporting for the indirect taxes. "E-invoicing is a step towards improving ease of doing business and reporting for GST. Manual data entry leads to transcription errors and wrong entries," Kumar said while addressing an event on 'E-invoicing and New GST Return Format' organised by the PHD Chamber of Commerce and Industry. There is a need for standard to ensure complete interoperability, he said. "The economies in the high-income group OECD are at the forefront of invoice digitisation," he said. The GSTN CEO said that in India, the aim is to make digitisation part of business process of taxpayers and eliminate all manual reporting. N K Gupta, chairman (indirect taxes committee) of PHD Chamber, said e-invoicing is the new system through which business-to-business (B2B) transactions are authenticated electronically by GSTN. This is a major step towards the push for a digital economy, he said and lauded that GSTN is improving every day and GST is digitised to a great extent. Sanjay Aggarwal, senior vice-president of PHD Chamber, said e-invoice is the future means of electronic billing. It has been adopted by many governments internationally. It has been implemented in a staggering manner over a period of time, initially launched for B2B and B2G (business-to-government), he added. KPM HRS

New GST filing format, e-invoicing to help in ease of doing biz, reporting for taxes: GSTN CEO

<keyword id="42575" type="PERSON" weightage="20" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> is back. After a three-month hiatus due to a kidney transplant surgery, Jaitley was re-assigned the responsibility of the <keyword id="25455" type="ORGANIZATION" weightage="20" keywordseo="finance">finance</keyword> ministry on 23 August. While he was recovering, <keyword id="6355222" type="PERSON" weightage="20" keywordseo="piyush-goyal">Piyush Goyal</keyword>, the minister for Railways, was asked by Prime Minister Modi to step into the role of interim finance minister. Leading the finance ministry is said to be one of the busiest jobs in the Indian <keyword id="26362" type="ORGANIZATION" weightage="20" keywordseo="Government">government</keyword> and Goyal’s stint was no different. He completed a number of tasks and took a lot of important decisions over the course of the summer. Here is a rundown of what he did: Reduction of <keyword id="6354679" type="DEFINITION" weightage="20" keywordseo="gst">GST</keyword> rates on certain items In Jaitley’s absence, Goyal presided over the 21 July meeting of the GST Council. After the meeting, he announced a rate cut on a number of items such as sanitary pads, which were made fully exempted of tax, toiletries, lithium batteries, vacuum cleaners, washing machines, water heaters and hair dryers as well as raw materials like marble, wood and ethanol. The cuts were meant to benefit middle-class consumers and small business owners. Goyal added that rates on more items would be reduced as tax compliance increases in the future. In the 4 August meeting of the GST Council, he also decided to form a special sub-committee to focus on the problems of micro, small and medium-sized enterprises in the country. Withdrawal of FDRI Bill After a minor furore was caused last year over the safety of Indians’ bank <keyword id="6496248" type="UNKNOWN" weightage="20" keywordseo="deposits">deposits</keyword>, the government finally withdrew the contentious the Financial Resolution and Deposit Insurance (FRDI) Bill under Goyal’s leadership this July. The bill was introduced in the Lok Sabha in the Monsoon Session in 2017. The bill had come under criticism for its “bail-in” clause which suggested that the deposits of bank account holders could be used to capitalise banks in the event of their failure and subsequent resolution. The ensuing panic caused deposit-holders to withdraw their cash from banks in states like Andhra Pradesh and Telangana. During the Monsoon session of Parliament, Goyal wrote to the the Chairman of the Joint Parliamentary Committee and called for the bill’s withdrawal. Reacting to the move, Goyal said that the government was taking public concerns into account. Amendment to the bankruptcy law Earlier this month, the Parliament approved an amendment to the Insolvency and Bankruptcy Code (IBC) that was introduced by Goyal. The amendment comprised a clause that allowed homeowners to be classified as financial creditors and another that allowed the owners of small businesses facing bankruptcy to bid for their own firms. The amendment replaced an ordinance that was approved by India’s President Ram Nath Kovind in June. The main goal of the amendment was to empower homebuyers, who up until then, did not have a say in the resolution process of real estate developers and construction companies, as well as small-business owners. The new bill also reduced the minimum percentage of votes required to approve a resolution plan for 75% of creditors to 66%. This was done to ensure the quick resolution of cases, especially smaller ones, as opposed to liquidation. Approval of LIC’s takeover of IDBI At the beginning of August, Goyal approved a bailout of struggling public sector lender IDBI Bank by Life Insurance Company Corp (LIC), a government-owned insurer. Speaking to the press, Goyal termed LIC’s acquisition of a 51% stake in IDBI as a “<a href="https://twitter.com/PiyushGoyal/status/1024913992878313472">win-win situation</a>” for both parties. The deal, which will likely involve the deployment of policyholders funds, will see LIC pump around ₹130 billion into the bank in order to provision for <keyword id="142154" type="PERSON" weightage="20" keywordseo="bad-loans">bad loans</keyword> and support credit growth. As a result, the government’s share in IDBI will come down to around 45%. Launch of Project Sashakt to tackle bad loans After meeting with the leaders of various Indian banks in early July, Goyal announced “<a href="https://www.businessinsider.in/india-wants-to-establish-a-mega-asset-manager-to-tackle-its-bad-loan-problem/articleshow/64838159.cms">Project Sashakt</a>” - a programmed aimed at the resolution of stressed assets at public sector banks. Under the scheme, a number of independent asset management companies will be established to purchase non-performing accounts from banks, including a specialised agency to deal with accounts above ₹5 billion. It also involves an intercreditor agreement - signed by the banks - for the resolution of accounts between ₹500 million and ₹5 billion. The agreement dictates that the resolution plan prepared by the lead creditor only requires 66% approval from all creditors to be passed.

Here are the 5 major decisions that interim Finance Minister Piyush Goyal took while Arun Jaitley was away

<keyword id="6354512" type="CITY" weightage="100" keywordseo="Infosys">Infosys</keyword> has beaten big names in the IT sector to get the high-profile contract to develop and operate the technology platform for the proposed <a href="http://www.businessinsider.in/searchresult.cms?query=goods+and+services+tax+%28GST%29" target="_BLANK￿￿￿￿">goods and services tax (GST)</a>. 
 
The Bengaluru-based company has bagged the contract with a bid of Rs 1,380 crore. 
 The <keyword id="6354679" type="ORGANIZATION" weightage="100" keywordseo="GST">GST</keyword> IT system will provide a standard interface for the taxpayer including registration, filing of returns and payment of tax and a common and shared IT infrastructure between the centre, states and other bodies such as the <a href="http://www.businessinsider.in/searchresult.cms?query=Reserve+Bank+of+India+%28RBI%29" target="_BLANK￿￿￿￿">Reserve Bank of India (RBI).</a> 
 It is true that Infosys has bagged the contract and will develop the system and operate it for five years, informed <keyword id="185277" type="PERSON" weightage="40" keywordseo="Navin-Kumar">Navin Kumar</keyword>, chairman of the Goods and <keyword id="645517" type="COMPANY" weightage="100" keywordseo="services-tax">Services Tax</keyword> Network (GSTN), which was incorporated in March 2013 as a not-for-profit, non-government, private limited company. 
 
However<a href="http://www.businessinsider.in/searchresult.cms?query=Infosys" target="_BLANK￿￿￿￿">, Infosys</a>, India's second-largest software exporter has declined to comment over the development. 
 
Bigger rival <a href="http://www.businessinsider.in/searchresult.cms?query=Tata+Consultancy+Services" target="_BLANK￿￿￿￿">Tata Consultancy Services</a>, Wipro and <keyword id="43217" type="CITY" weightage="40" keywordseo="Tech-Mahindra">Tech Mahindra</keyword> were also said to be in the race for the prestigious contract, which entails designing, developing and maintaining the GST system. 
 
The central government holds 24.5% equity in GSTN and all states, including Delhi and Puducherry, and the Empowered Committee of state finance ministers together hold another 24.5%. The remaining 51% equity is with non-government financial institutions. 
 GST, hailed as a comprehensive reform of indirect taxes that could lift country's GDP by 1-2%, is stuck with the main opposition <keyword id="1575" type="ORGANIZATION" weightage="60" keywordseo="Congress">Congress</keyword> stalling the Constitutional amendment bill in the upper house of Parliament, where the ruling NDA doesn't enjoy a majority. 
 
The proposed GST would replace a plethora of indirect taxes at the central and state levels with a single levy and create a unified national market in the country from April 1, 2016, a deadline that may be missed if the Congress continues to oppose the bill. 
 
Tax experts are of the opinion that the award of this contract displays the government's intent to push the new tax. 
 "GST can only be successful if the technology backbone is strong. Recent experience in <keyword id="8695" type="COUNTRY" weightage="60" keywordseo="Malaysia">Malaysia</keyword>, which implemented GST from April this year, further amplifies it," said <keyword id="191474" type="PERSON" weightage="40" keywordseo="Pratik-Jain">Pratik Jain</keyword>, a partner at <a href="http://www.businessinsider.in/searchresult.cms?query=KPMG+" target="_BLANK￿￿￿￿">KPMG</a> in India. 
 
He said the award of the contract in the face of the delayed passage of the bill shows the government is serious about implementing the new tax as early as possible. 
 
"With ongoing work on drafting of GST law, this further gives assurance to the industry that GST is not far away. One would hope that the GST network would be ready for testing in time," he said. 
 
All states will use common IT processes under the GST and most are revamping their systems. Registrations on the portal are expected to begin from January. 
 
(Image: Indiatimes)

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