Revenue body asks FM not to implement GST in hurry; threatens legal action

Latest News - Claiming that demonetisation has affected country's growth, a major central revenue body has asked Finance Minister Arun Jaitley not to implement Goods and Services Tax (GST) in a hurry and threatened to take legal recourse in case their concerns are not addressed.

It termed as "illegal" certain decisions taken by Jaitley-headed GST Council and demanded a correction. It also sought that the officer's body be consulted before any final decision is taken.

The council in its meeting on January 16, had agreed to give states the powers to levy tax on economic activity within 12 nautical miles of territorial waters.

Also, it was decided that the states will have powers to assess and administer 90 per cent of the (Read More)

Tax rationalisation, digitisation key areas for Budget: HSBC

Latest News - Among the key expectations from the ensuing Budget are a new fiscal policy framework, corporate tax rationalisation, higher rural capex and focus on efficient social sector spending, says a HSBC report.

According to the global financial services major, the government should continue with its fiscal consolidation in a "practical fashion" and stick to the 3 per cent pre-announced fiscal deficit for 2016-17, but give itself headroom for compensating States for revenue losses once GST is in place.

"In our view, a balancing act would be to stick to the 3 per cent of GDP target for the core fiscal deficit, and, if necessary, use extra headroom of strictly under 0.3 per cent of GDP for compensating States for (Read More)

GST now set for July 1 roll-out, dual control hurdle finally over

Latest News - The Goods and Services Tax (GST) Council on Monday broke a deadlock over issues of administrative control over assessees and broadly agreed to roll out the GST from July 1, instead of the earlier deadline of April 1. 

Whether a state or the Centre will assess an entity would be decided by a computer programme. The Council also resolved a logjam over the right to tax economic activities within 12 nautical miles from India’s coasts.

Against the earlier proposals of reserving administration of assessees up to Rs 1.5 crore in annual turnover for states, or of allowing both the Centre and states to jointly administer these, the Council decided to blend the two suggestions. The entire tax base would be shared between the (Read More)