GST Council – Decisions taken till now

With the President’s seal of approval on the 122nd Constitutional amendment bill, the GST council was promulgated. It comprised of the union finance minister as its head, the union minister of state for finance, and state finance ministers as the prominent members. The GST council is expected to take decisions on a number of critical[…]

GST Council – to thrash out the GST rate

GST Council in place: After the President of India Mr Pranab Mukherjee approved the 122nd constitutional amendment bill on the 8th of September; the 101st Constitution Act 2016 was notified. The Article 279A of the amended constitution required the GST council to be formulated by the President within 60 days. The Article 279A was made[…]

Subramanian panel report recommends RNR for GST at 15~15.5%

Contrary to the rumours of a high GST revenue neutral rate, the recommendations from the committee headed by Chief Economic Advisor Arvind Subramanian are very reasonable. The 15~15.5 % revenue neutral rate recommendation means that at this level the tax revenue would be in line with what the government is earning at present.  The government[…]

Impact of GST on goods and services

The GST bill is expected to have wide ranging ramifications for the complicated taxation system in the country. It is likely to improve the country’s tax to GDP ratio and also inhibit inflation. However, the reform is likely to benefit the manufacturing sector but may make things difficult for the services sector. Though there are[…]

GST Select Committee

SELECT COMMITTEE ON GST BILL – AN UPDATE During a debate in the Lok Sabha, the Finance Minister Shri Arun Jaitley earlier rejected opposition demand for sending the GST Constitutional Amendment Bill to Standing Committee on grounds that the move would unduly delay the GST rollout scheduled on April 1, 2016. The Constitution (122nd Amendment)[…]

Global GST Rate and Structure

Currently, around 160 countries have adopted the GST or similar taxation system. It is interesting to note that there are over 40 models of GST currently in force, each with its own peculiarities. The best GST systems across the world use a single GST while India has opted for a dual-GST model. Dual GST is a type of GST in which both center[…]