General Affairs
GST Rollout To Create One Lakh Jobs In 3 Months, Says Minister
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Union Minister for Labour and Employment Bandaru Dattatreya on Saturday said with the rollout of the Goods and Services Tax (GST) across the nation, one lakh jobs will be created in the first three months.
In addition, around 60,000 persons would get employment in the accountancy sector, he told reporters.
Terming GST, which came into effect on Saturday, as a historic moment, he said it was like the nation achieving economic and tax freedom.
On the GST awareness campaign, Mr Dattatreya said the Union Finance Ministry with the association of different institutions conducted 1,118 workshops in Telangana and Andhra Pradesh states in the last six months for the benefit of the trading community and general public.
Around 150 GST Seva Kendras were set up and a manual which contains complete information was also made available to help the traders, he said.
The Minister claimed that with the roll out of GST, 17 types of taxes were abolished and tax system was integrated. There were nearly 1,500 slabs in the tax system, which has now been brought down to only four, he said.
Mr Dattatreya also said that from now onwards there will be no delays in the transport of goods as the check-posts situated at different state borders were removed.
With the GST rollout, the GDP growth will go up from seven per cent to 9 per cent and inflation will see a downward trend as the prices of essential commodities will come down, he added.
In addition, around 60,000 persons would get employment in the accountancy sector, he told reporters.
Terming GST, which came into effect on Saturday, as a historic moment, he said it was like the nation achieving economic and tax freedom.
On the GST awareness campaign, Mr Dattatreya said the Union Finance Ministry with the association of different institutions conducted 1,118 workshops in Telangana and Andhra Pradesh states in the last six months for the benefit of the trading community and general public.
The Minister claimed that with the roll out of GST, 17 types of taxes were abolished and tax system was integrated. There were nearly 1,500 slabs in the tax system, which has now been brought down to only four, he said.
Mr Dattatreya also said that from now onwards there will be no delays in the transport of goods as the check-posts situated at different state borders were removed.
With the GST rollout, the GDP growth will go up from seven per cent to 9 per cent and inflation will see a downward trend as the prices of essential commodities will come down, he added.
From President Pranab Mukherjee, A Warning On Incidents Of Mob Violence
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President Pranab Mukherjee on Saturday expressed concern over incidents of mob lynching around the country, saying that people must remain vigilant against challenges to the fundamental tenets of India's pluralist society.
"We have to ponder over, pause and reflect when we read in the newspaper or see in the television screen that an individual is being lynched because of some alleged violation or law or not. When mob frenzy becomes so high and irrational, uncontrollable we are to pause and reflect: are we vigilant enough? I am not talking of vigilantism - I'm talking of are we vigilant enough proactively to save the basic tenets of our country," President Mukherjee said at the launch of a commemorative edition of the Congress-run National Herald newspaper. "Citizen's vigilance, intellectuals vigilance, newspaper and media's vigilance can act as the biggest deterrent to the forces of darkness and backwardness," he said.
After a number of incidents of mob lynching, including the killing of a 16-year-old Muslim boy by men on a train who accused him of being a "cow-eater", PM Modi this week had said that the killing of people by cow vigilantes is unacceptable. An increasing number of attacks by self-declared gau rakshaks or cow vigilantes and violent crowds spurred nationwide protests this week under a campaign called "Not In My Name".
There have been at least 17 cow or beef-related attacks by crowds in the last 22 monthsalone. Incidents like the brutal killing of a police officer in Jammu and Kashmir last week have also added to concerns of rising instances of mob violence.
After a number of incidents of mob lynching, including the killing of a 16-year-old Muslim boy by men on a train who accused him of being a "cow-eater", PM Modi this week had said that the killing of people by cow vigilantes is unacceptable. An increasing number of attacks by self-declared gau rakshaks or cow vigilantes and violent crowds spurred nationwide protests this week under a campaign called "Not In My Name".
There have been at least 17 cow or beef-related attacks by crowds in the last 22 monthsalone. Incidents like the brutal killing of a police officer in Jammu and Kashmir last week have also added to concerns of rising instances of mob violence.
As GST Takes Off, PM Modi Presents Stats Of Crackdown On Black Money
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On a day after India's biggest tax reform came into force, Prime Minister Narendra Modi on Saturday vowed to continue the crackdown on black money and announced that the government cancelled registration of one lakh firms over the last 48 hours and was probing 37,000 shell companies on suspicions of funneling black money. Also, he said, 3 lakh other companies were under the scanner for suspicious transactions.
PM Modi patted his back for delivering on his promise to clean up the economy and cited recent statistics about the sharp decline in deposits by Indians in Swiss banks as one proof. "Those who have looted the poor will have to give back what they have looted," he said. But his 'I mean business' speech wasn't just aimed at the public at large outside, but the thousands of aspiring and practising chartered accountants gathered at the national capital's stadium as well.
He called them an important pillar of the Indian economy and appealed to their patriotism to nudge them not to help their clients fudge their accounts.
The prime minister said it required courage to act against a large number of companies as he had, and told them that this courage came from "desh bhakti", or patriotism. "Your patriotism is not less than mine," PM Modi told them. But, how is it possible that India had just 32 lakh taxpayers who declared an annual income of more than 10 lakh when there were 2 crore engineering and management graduates and 8 lakh doctors. When 2.18 crore people travelled abroad last year alone. That, he said, was India's bitter truth.
PM Modi asked his audience to take a pledge to bring people in the tax bracket rather than boasting about the number of clients they saved from paying taxes. It is said that a family which loses its house in a fire can stand on its feet, rebuild the house if they work together. But if one of them steals, there is no hope. The same principle applied for the economy too.
Holding a mirror to his hosts for the evening, the Institute of Chartered Accountants of India, PM Modi pulled out figures that showed just 25 chartered accountants (CA) had been penalised over the last 3 years for irregularities. And this, when over 1,400 cases have been pending for many years, he said.
PM Modi's stress on the chartered accountants comes against the government's stress on expanding the tax base. The GST - that merges dozens of central and state indirect taxes into a single tax - that was launched yesterday is the latest tool. Government officials have told that GST would not only bring more traders under the tax net but would also be used to identify people who were making money but not declaring income tax.
The prime minister told the CAs that the Constitution and society placed a lot of trust in them. "Your signature is more powerful than that of the Prime Minister and the government also believes the accounts signed by you," he said. But you have to decide whose interests come first; your client or the country.
PM Modi patted his back for delivering on his promise to clean up the economy and cited recent statistics about the sharp decline in deposits by Indians in Swiss banks as one proof. "Those who have looted the poor will have to give back what they have looted," he said. But his 'I mean business' speech wasn't just aimed at the public at large outside, but the thousands of aspiring and practising chartered accountants gathered at the national capital's stadium as well.
He called them an important pillar of the Indian economy and appealed to their patriotism to nudge them not to help their clients fudge their accounts.
Holding a mirror to his hosts for the evening, the Institute of Chartered Accountants of India, PM Modi pulled out figures that showed just 25 chartered accountants (CA) had been penalised over the last 3 years for irregularities. And this, when over 1,400 cases have been pending for many years, he said.
PM Modi's stress on the chartered accountants comes against the government's stress on expanding the tax base. The GST - that merges dozens of central and state indirect taxes into a single tax - that was launched yesterday is the latest tool. Government officials have told that GST would not only bring more traders under the tax net but would also be used to identify people who were making money but not declaring income tax.
The prime minister told the CAs that the Constitution and society placed a lot of trust in them. "Your signature is more powerful than that of the Prime Minister and the government also believes the accounts signed by you," he said. But you have to decide whose interests come first; your client or the country.
Accounts Of 3 Lakh Registered Companies Under Scanner, Says PM At CA Event
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Prime Minister Narendra Modi called chartered accountants a "big pillar" of the Indian economy and urged them to bring technological innovations to meet global standards. Addressing Chartered Accountants at an event organised by the Institute of Chartered Accountants of India (ICAI), PM Modi said "You (CAs) take care of the economic health of the country and you are famous world over for your knowledge and financial skills. You are a big pillar of the Indian economy." Apart from PM Modi, the event is also being attended by Finance Minister Arun Jaitley and Revenue Secretary Hasmukh Adhia.
Here are the live updates:
- ICAI foundation day and India's new economic phase of GST both fall on the same day
- That is why it is such a big opportunity to be among you
- The CA community looks after the economic health of society
- You are a pillar of India's economy
- Health of the economic practices of India is looked after by you all
- GST has given you the right to differentiate between right and wrong, the Parliament has given that right to all of you yesterday
- Today I have the chance to start a new course for Chartered accountants
- A country where a select few loot, such a nation cannot scale new heights. These select few never want the nation to grow
- Our Government has taken a tough stand against those who have looted the nation
- Indian deposits at Swiss bank at record low. There has been a 45 per cent drop in Indians' deposits In Swiss banks
- Indian Chartered Accountants are recognised worldwide
- In 2 months time when we start receiving data from Swiss banks, it is going to be all the more difficult for the corrupt
- Demonetization the biggest step to counter corruption and black money
- Data is being collected to access the money that has come into banks post demonetisation
- We are checking the data on money deposited in banks. Where did the money come from, where did they go, what all happened after November 8
- Those who have looted the poor will have to give back what they have looted
- If you know anyone with black money, warn them that they would not be spared
- Post-demonetisation, data mining shows that over 3 lakh registered companies indulged in suspected dealings
- Government has cancelled registration of over 1 lakh companies and more than 37,000 shell firms have been identified for.
- The ability to shut down 1 lakh shell companies comes from the strength of being a patriotic Indian. Companies who break the law will be acted against more severely in the future
- People who do politics cannot take such decisions, only people who live for the nation can take such decisions. Some or the other person has to live for the nation
- Isn't it the need of the hour for you all to recognise and weed out those who helped such people/companies
- I want to ask you all, post demonetisation there must be someone who has helped these law breakers/companies
- Do you really think there are just 32 lakh whose income is above 10 lakh?
- There are over one crore engineers and management professionals, and over 8 lakh doctors in India. Which means we have many people who are in professions that are known to be respectable. But only 32 lakh people say their income is more than 10 lakh. How is this possible?
- What is reason that in our country there are only 32 lakh people who say that their income is over 10 lakh?
- Any tax payer will pay tax when the conditions are favourable to pay tax. But if a tax payer is surrounded by people who are advising him for all the wrong reason, then the tax payer will definitely shy away from paying taxes
- Do you think that no more than 25 CA's would have indulged in corruption? What is the reason that in the past 11 years there has been action against only 25 CA's?
- Like lawyers did during the freedom struggle, I urge chartered accountants to take lead in the journey towards India's economic growth
- Your signature carries immense faith, please do not break that trust that is placed on you
- People indulge in corruption only when they know they have someone backing their corruption
- If the Chartered Accountant become decisive then no one will be able to indulge in corruption
- Only that Tax that can be used for the benefit if the nation can be termed as 'tax return'
- ICAI foundation day and India's new economic phase of GST both fall on the same day
- That is why it is such a big opportunity to be among you
- The CA community looks after the economic health of society
- You are a pillar of India's economy
- Health of the economic practices of India is looked after by you all
- GST has given you the right to differentiate between right and wrong, the Parliament has given that right to all of you yesterday
- Today I have the chance to start a new course for Chartered accountants
- A country where a select few loot, such a nation cannot scale new heights. These select few never want the nation to grow
- Our Government has taken a tough stand against those who have looted the nation
- Indian deposits at Swiss bank at record low. There has been a 45 per cent drop in Indians' deposits In Swiss banks
- Indian Chartered Accountants are recognised worldwide
- In 2 months time when we start receiving data from Swiss banks, it is going to be all the more difficult for the corrupt
- Demonetization the biggest step to counter corruption and black money
- Data is being collected to access the money that has come into banks post demonetisation
- We are checking the data on money deposited in banks. Where did the money come from, where did they go, what all happened after November 8
- Those who have looted the poor will have to give back what they have looted
- If you know anyone with black money, warn them that they would not be spared
- Post-demonetisation, data mining shows that over 3 lakh registered companies indulged in suspected dealings
- Government has cancelled registration of over 1 lakh companies and more than 37,000 shell firms have been identified for.
- The ability to shut down 1 lakh shell companies comes from the strength of being a patriotic Indian. Companies who break the law will be acted against more severely in the future
- People who do politics cannot take such decisions, only people who live for the nation can take such decisions. Some or the other person has to live for the nation
- Isn't it the need of the hour for you all to recognise and weed out those who helped such people/companies
- I want to ask you all, post demonetisation there must be someone who has helped these law breakers/companies
- Do you really think there are just 32 lakh whose income is above 10 lakh?
- There are over one crore engineers and management professionals, and over 8 lakh doctors in India. Which means we have many people who are in professions that are known to be respectable. But only 32 lakh people say their income is more than 10 lakh. How is this possible?
- What is reason that in our country there are only 32 lakh people who say that their income is over 10 lakh?
- Any tax payer will pay tax when the conditions are favourable to pay tax. But if a tax payer is surrounded by people who are advising him for all the wrong reason, then the tax payer will definitely shy away from paying taxes
- Do you think that no more than 25 CA's would have indulged in corruption? What is the reason that in the past 11 years there has been action against only 25 CA's?
- Like lawyers did during the freedom struggle, I urge chartered accountants to take lead in the journey towards India's economic growth
- Your signature carries immense faith, please do not break that trust that is placed on you
- People indulge in corruption only when they know they have someone backing their corruption
- If the Chartered Accountant become decisive then no one will be able to indulge in corruption
- Only that Tax that can be used for the benefit if the nation can be termed as 'tax return'
India Again Asks Pakistan To Provide Consular Access To Kulbhushan Jadhav
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India today again asked Pakistan to grant full and early consular access to Indian national Kulbhushan Jadhav, sentenced to death by a Pakistani military court as the two countries exchanged a list of prisoners lodged in each other's jails.
According to the list Pakistan shared with India, at least 546 Indian nationals, including nearly 500 fishermen, are languishing in jails in that country.
"India again requested Pakistan to grant full and early consular access to the Indian nationals lodged in the custody of Pakistan, including Hamid Nehal Ansari and Kulbhushan Jadhav," the External Affairs Ministry said in a statement in Delhi.
Mr Jadhav was sentenced to death in April by a Pakistani military court on charges of espionage and sabotage activities. India had moved the International Court of Justice (ICJ) against the death penalty. The ICJ on May 18 had restrained Pakistan from executing Mr Jadhav.
Mr Ansari, a Mumbai-based engineer, was caught for illegally entering Pakistan from Afghanistan in 2012 reportedly to meet a girl he had befriended online and then went missing. He was later arrested and tried by a Pakistani military court, which pronounced him guilty of espionage.
In its list, the Pakistan foreign office said the Indian prisoners included "52 civilians and 494 fishermen".
The lists of prisoners were exchanged as per provisions of the bilateral agreement on consular access which was signed on May 21, 2008. As per the pact, lists of prisoners have to be exchanged twice each year, on January 1 and July 1. "India once again requests Pakistan for the early release and repatriation of Indian prisoners, missing Indian defence personnel and fishermen along with their boats whose nationality has been confirmed by India," the MEA said.
It said India remains committed to address on priority all humanitarian matters with Pakistan, including those pertaining to prisoners and fishermen.
"In this context, we await from Pakistan confirmation of nationality of those in India's custody who are otherwise eligible for release and repatriation," it said.
The Pakistan foreign office said 219 Indian fishermen were released on January 6 and added that Pakistan would release another 77 fishermen and one civilian on July 10.
According to the list Pakistan shared with India, at least 546 Indian nationals, including nearly 500 fishermen, are languishing in jails in that country.
"India again requested Pakistan to grant full and early consular access to the Indian nationals lodged in the custody of Pakistan, including Hamid Nehal Ansari and Kulbhushan Jadhav," the External Affairs Ministry said in a statement in Delhi.
Mr Ansari, a Mumbai-based engineer, was caught for illegally entering Pakistan from Afghanistan in 2012 reportedly to meet a girl he had befriended online and then went missing. He was later arrested and tried by a Pakistani military court, which pronounced him guilty of espionage.
In its list, the Pakistan foreign office said the Indian prisoners included "52 civilians and 494 fishermen".
The lists of prisoners were exchanged as per provisions of the bilateral agreement on consular access which was signed on May 21, 2008. As per the pact, lists of prisoners have to be exchanged twice each year, on January 1 and July 1. "India once again requests Pakistan for the early release and repatriation of Indian prisoners, missing Indian defence personnel and fishermen along with their boats whose nationality has been confirmed by India," the MEA said.
It said India remains committed to address on priority all humanitarian matters with Pakistan, including those pertaining to prisoners and fishermen.
"In this context, we await from Pakistan confirmation of nationality of those in India's custody who are otherwise eligible for release and repatriation," it said.
The Pakistan foreign office said 219 Indian fishermen were released on January 6 and added that Pakistan would release another 77 fishermen and one civilian on July 10.
Business Affairs
Market regulator SEBI toughens rules for credit rating agencies
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India's market regulator on Friday set tougher rules for the country's ratings agencies, including mandating them to more closely monitor whether issuers are meeting their debt obligations and increasing disclosure requirements.
Regulators and market participants argue the agencies were slow to adjust ratings of some companies that defaulted.
Each of the big three global agencies - Standard & Poor's, Fitch Ratings and Moody's Investors Service - are majority owners of firms in India which operate independently of their parent companies with different rating standards.
Under existing rules, ratings agencies operating in India are already required to "continuously monitor" the securities they rate and disseminate any changes "promptly."
But the Securities and Exchange Board of India (SEBI) regulator said they would henceforth have to track whether debt issuers were meeting payments for each rated instrument and be alert for any deterioration of financial conditions.
Credit agencies would also need to review ratings after every "material event" and request monthly "no default statements" from issuers, SEBI added.
SEBI has threatened to impose tougher rules since the agencies were perceived to have responded slowly to changing conditions in several companies that defaulted, including Amtek Auto.
Shriram Subramanian, founder of shareholder advisory firm InGovern, said the rules would put the onus on agencies to more closely supervise the ratings they assigned.
"These new guidelines makes it obligatory for rating agencies to provide closer monitoring," he said, noting they would also encourage issuers to be "more transparent" with the agencies.
India's market regulator on Friday set tougher rules for the country's ratings agencies, including mandating them to more closely monitor whether issuers are meeting their debt obligations and increasing disclosure requirements.
Regulators and market participants argue the agencies were slow to adjust ratings of some companies that defaulted.
Each of the big three global agencies - Standard & Poor's, Fitch Ratings and Moody's Investors Service - are majority owners of firms in India which operate independently of their parent companies with different rating standards.
Under existing rules, ratings agencies operating in India are already required to "continuously monitor" the securities they rate and disseminate any changes "promptly."
But the Securities and Exchange Board of India (SEBI) regulator said they would henceforth have to track whether debt issuers were meeting payments for each rated instrument and be alert for any deterioration of financial conditions.
Credit agencies would also need to review ratings after every "material event" and request monthly "no default statements" from issuers, SEBI added.
SEBI has threatened to impose tougher rules since the agencies were perceived to have responded slowly to changing conditions in several companies that defaulted, including Amtek Auto.
Shriram Subramanian, founder of shareholder advisory firm InGovern, said the rules would put the onus on agencies to more closely supervise the ratings they assigned.
"These new guidelines makes it obligatory for rating agencies to provide closer monitoring," he said, noting they would also encourage issuers to be "more transparent" with the agencies.
Gross NPAs rise to 9.6 per cent in March 2017
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The gross non-performing advances (GNPAs) ratio of scheduled commercial banks (SCBs) rose from 9.2 per cent in September 2016 to 9.6 per cent in March 2017, according to the Financial Stability report released by the Reserve Bank India today.
The net non-performing advances ratio of SCBs increased marginally from 5.4 per cent in September 2016 to 5.5 per cent in March 2017.
However, the stressed advances ratio declined marginally from 12.3 per cent to 12.0 per cent due to fall in restructured standard advances.
According to the report, there was a fall in stressed advances ratio in agriculture, services and retail sectors. This ratio in the industry, however, rose from 22.3 per cent to 23.0 per cent mainly on account of subsectors such as cement, vehicle, mining & quarrying and basic metals.
Accretion of new NPAs from restructured standard advances declined in 2016/17
Large borrowers, defined as those with aggregate fund-based and non-fund based exposure of Rs 50 million and more, accounted for 56 per cent of gross advances and 86.5 per cent of GNPAs of SCBs. Top 100 large exposures accounted for 15.2 per cent of gross advances.
Non-performing accounts within top 100 exposures contributed to 25.6 per cent of GNPAs of SCBs. While the level of GNPAs of large borrowers increased between September 2016 and March 2017, their restructured standard advances declined during the same period resulting in reduction of total stressed advances by 1.8 per cent.
The gross non-performing advances (GNPAs) ratio of scheduled commercial banks (SCBs) rose from 9.2 per cent in September 2016 to 9.6 per cent in March 2017, according to the Financial Stability report released by the Reserve Bank India today.
The net non-performing advances ratio of SCBs increased marginally from 5.4 per cent in September 2016 to 5.5 per cent in March 2017.
However, the stressed advances ratio declined marginally from 12.3 per cent to 12.0 per cent due to fall in restructured standard advances.
However, the stressed advances ratio declined marginally from 12.3 per cent to 12.0 per cent due to fall in restructured standard advances.
According to the report, there was a fall in stressed advances ratio in agriculture, services and retail sectors. This ratio in the industry, however, rose from 22.3 per cent to 23.0 per cent mainly on account of subsectors such as cement, vehicle, mining & quarrying and basic metals.
Accretion of new NPAs from restructured standard advances declined in 2016/17
Large borrowers, defined as those with aggregate fund-based and non-fund based exposure of Rs 50 million and more, accounted for 56 per cent of gross advances and 86.5 per cent of GNPAs of SCBs. Top 100 large exposures accounted for 15.2 per cent of gross advances.
Non-performing accounts within top 100 exposures contributed to 25.6 per cent of GNPAs of SCBs. While the level of GNPAs of large borrowers increased between September 2016 and March 2017, their restructured standard advances declined during the same period resulting in reduction of total stressed advances by 1.8 per cent.
J&K likely to clear GST by July 6
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Jammu and Kashmir, the only state which failed to meet the June 30 timeline for the GST rollout, is likely to clear the legislation on the indirect tax regime by July 6, its Finance Minister Haseeb Drabu said here today.
Union Finance Minister Arun Jaitley had on Monday written a letter to Chief Minister Mehbooba Mufti, saying that failure of the state to implement the GST would lead to "adverse impact" of price rise and put the local industry at a disadvantage.
Jammu and Kashmir is the only state which has not taken a call yet on the implementation of the new tax regime which came into force in the country from midnight tonight.
"Jammu and Kashmir (assembly) is likely to pass the GST bill by July 6 in the state," said Drabhu, who was here to attend the midnight launch of the GST in the central hall of Parliament.
Earlier this evening, the J&K finance minister attended the meeting of GST Council convened by Jaitley.
In view of differences among the political parties, the state government had set up an all-party consultative group to find a common ground.
The consultative group held its second meeting yesterday after which the government claimed that the parties were in agreement on extension of the new tax regime but with safeguards to protect the fiscal autonomy of the state.
"There was a general consensus in the meeting that non- implementation of the GST regime would trigger economic and financial chaos in the state with the inter-state trade vis- a-vis J&K taking a big hit," an official spokesman said here.
A few days back, Drabu had said the Mehbooba Mufti government is "genuinely interested" in building a consensus because the GST is a regime that would last for the next 30-40 years.
"We will take a final call on the GST implementation once we get the full sense of the all-party meeting. I do not want to preempt anybody. Let us understand what their views are," he had said.
Drabu said the state government has reached out to the opposition parties of the state and sent them all the relevant documents.
He said a perception has been created that the GST would impact the special status and the fiscal autonomy of the state, but there is no compromise on Article 370.
"The government is trying to build a consensus. This is a very fragile society. We are going through difficult times.... the way things are happening around us, the way things have been dehumanized, anything can spark off. You do not want to create social chaos.
"So, it is in the interest of the society of J&K, not just the economy, to build a certain political as well as legislative consensus," he said.
The consultative committee meeting held threadbare discussions over the legal, legislative, financial, economic and administrative aspects of the Goods and Services Tax (GST) regime with the chairman explaining in detail the nuances of the new tax regime.
Making a U-turn, the Jammu and Kashmir Congress had said yesterday that it was not against the implementation of the GST in the state, nearly two weeks after terming it as "unacceptable".
The party accused the government for the "current chaos, confusion and uncertainty" and said a "proper mode" should be adopted for implementation of the GST in the state in view of its special status.
"As far as the Congress is concerned, it has never been against implementation of GST, which is its brain child. But it is the government which had to adopt the proper mode and manner of implementation of the same in J&K," state Congress Committee spokesperson Ravinder Sharma said here today.
A statement issued after a meeting of the JKPCC executive panel here under the chairmanship of party unit chief G A Mir said, "It is the duty of the government to take steps to ensure the timely implementation of the GST, if they are sincere.
Jammu and Kashmir, the only state which failed to meet the June 30 timeline for the GST rollout, is likely to clear the legislation on the indirect tax regime by July 6, its Finance Minister Haseeb Drabu said here today.
Union Finance Minister Arun Jaitley had on Monday written a letter to Chief Minister Mehbooba Mufti, saying that failure of the state to implement the GST would lead to "adverse impact" of price rise and put the local industry at a disadvantage.
Jammu and Kashmir is the only state which has not taken a call yet on the implementation of the new tax regime which came into force in the country from midnight tonight.
"Jammu and Kashmir (assembly) is likely to pass the GST bill by July 6 in the state," said Drabhu, who was here to attend the midnight launch of the GST in the central hall of Parliament.
Earlier this evening, the J&K finance minister attended the meeting of GST Council convened by Jaitley.
In view of differences among the political parties, the state government had set up an all-party consultative group to find a common ground.
The consultative group held its second meeting yesterday after which the government claimed that the parties were in agreement on extension of the new tax regime but with safeguards to protect the fiscal autonomy of the state.
"There was a general consensus in the meeting that non- implementation of the GST regime would trigger economic and financial chaos in the state with the inter-state trade vis- a-vis J&K taking a big hit," an official spokesman said here.
A few days back, Drabu had said the Mehbooba Mufti government is "genuinely interested" in building a consensus because the GST is a regime that would last for the next 30-40 years.
"We will take a final call on the GST implementation once we get the full sense of the all-party meeting. I do not want to preempt anybody. Let us understand what their views are," he had said.
Drabu said the state government has reached out to the opposition parties of the state and sent them all the relevant documents.
He said a perception has been created that the GST would impact the special status and the fiscal autonomy of the state, but there is no compromise on Article 370.
"The government is trying to build a consensus. This is a very fragile society. We are going through difficult times.... the way things are happening around us, the way things have been dehumanized, anything can spark off. You do not want to create social chaos.
"So, it is in the interest of the society of J&K, not just the economy, to build a certain political as well as legislative consensus," he said.
The consultative committee meeting held threadbare discussions over the legal, legislative, financial, economic and administrative aspects of the Goods and Services Tax (GST) regime with the chairman explaining in detail the nuances of the new tax regime.
Making a U-turn, the Jammu and Kashmir Congress had said yesterday that it was not against the implementation of the GST in the state, nearly two weeks after terming it as "unacceptable".
The party accused the government for the "current chaos, confusion and uncertainty" and said a "proper mode" should be adopted for implementation of the GST in the state in view of its special status.
"As far as the Congress is concerned, it has never been against implementation of GST, which is its brain child. But it is the government which had to adopt the proper mode and manner of implementation of the same in J&K," state Congress Committee spokesperson Ravinder Sharma said here today.
A statement issued after a meeting of the JKPCC executive panel here under the chairmanship of party unit chief G A Mir said, "It is the duty of the government to take steps to ensure the timely implementation of the GST, if they are sincere.
GST comes into force after 17 years of debate
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The Goods and Services Tax (GST) -- Indias biggest tax reform since independence -- tonight came into force after 17 tumultuous years of debate, unifying more than a dozen central and state levies but doubts remained if the transition to a national sales tax will be without any glitch. The new tax regime was ushered in at a late night event in the historic Central Hall of Parliament, reminiscent of the midnight tryst with destiny in 1947.
Prime Minister Narendra Modi termed the new levy as "good and simple tax" that marks economic integration of India.
"There are 500 types of taxes that play their roles. Today we are getting rid of them," Modi said. "From Ganganagar to Itanagar and Leh to Lakshadweep, it is one nation, one tax."
The day marks a decisive turning point in determining the future course of the country, he said, adding GST would ensure one nation, one tax.
The GST, he said, is simple and transparent tax that will help curb corruption and check generation of black money.
President Pranab Mukherjee, who had as finance minister in the UPA government in 2011 piloted a constitutional amendment bill to bring in the GST, said the new indirect tax regime is a "disruptive change". "It is similar to the introduction of VAT when there was initial resistance. When a change of this magnitude is undertaken, however positive it may be, there are bound to be some teething troubles and difficulties in the initial stages.
"We will have to solve these with understanding and speed to ensure that it does not impact the growth momentum of the economy. Such of such major changes always depend on their effective implementation," he said.
The launch was however boycotted by principal opposition parties like the Congress which termed it as "tamasha" (gimmick) saying it was being rushed in a "half-baked" manner as a "self-promotional spectacle".
Besides Modi and Mukherjee, the starry midnight launch was attended by Vice-President Hamid Ansari, Lok Sabha Speaker Sumitra Mahajan and former prime minister H D Deve Gowda.
Mukherjee and Modi pressed a button in a specially crafted box at the stroke of midnight to launch the new tax regime which overnight replaced the messy mix of more than a dozen state and central levies built up over seven decades. The one national GST unifies the countrys USD 2 trillion economy and 1.3 billion people into a common market, an exercise that took 17 tumultuous years.
Modi said GST will eliminate the compounding effect of the current multi-layered tax system as well as the cross- state tax heterogeneity by fixing the final tax rate.
It will reduce cost and save money, he said.
While the measure is billed as making doing business easier by simplifying the tax structure and ensuring greater compliance, businesses particularly small traders have been a bit nervous about the new tax filing system.
A train was stopped by traders in Uttar Pradesh and commercial establishments and wholesale commodity markets in some cities remained closed today in protest against the "hasty" rollout of GST.
While a general strike by traders in Kashmir has been called tomorrow, Uttar Pradesh and Madhya Pradesh witnessed sporadic bandhs. West Bengal, Andhra Pradesh and Telangana also witnessed protests.
TMCs Mamata Banerjee feared it would bring back the dreaded "Inspector Raj".
But the NCP, the JD-U and the JD-S broke ranks with opposition parties to attend the launch ceremony. Besides the Congress, other parties that boycotted the event included RJD, DMK and Left parties. Unlike the last midnight event held in 1997 on the occasion of golden jubilee of the Independence at a special session of Parliament, it was a gala event at the circular -shaped hall that had been loaned for the launch of the historic reform.
The government promises that the transition to a single, nationwide tax on goods and services will streamline business and boost the economy by tearing down barriers between 31 states and union territories. It is estimated to add 0.4 per cent to 2 per cent to GDP growth.
But some businesses are still figuring out how it will work as they race against time to adopt or upgrade cash registers and computer systems so they are able to file monthly tax returns to comply with the new tax regime.
Hours before the midnight launch, the GST Council - the highest decision making body that formulated the rules and tax rates, met for the 18th time. Prime Minister Narendra Modi joined the council members briefly.
For some businesses, the GST is complex with four broad tax categories of 5, 12, 18 and 28 per cent, and myriad exceptions, as opposed to a simpler, flatter and broader sales taxes in other countries. Switchover to the GST has added to the worries of businesses that are still recovering from the November 8 shock decision to remove 86 per cent of currency from circulation.
One of the things that is keeping companies occupied ahead of the launch is calculation of input tax credit, which allows them to claim refunds on tax paid on inputs and pay tax on the value adds only. From soft drink makers to automobile firms, companies are busy calculating final consumer price to be charged from July 1.
The government, however, defends the decision saying enough time was given to businesses to adapt to the new regime.
Notwithstanding this, the government will take a lenient view for tax returns filed in the initial period.
First proposed in 2003, the idea of GST was bogged down for years in bipartisan debate, with political parties in government trying to push it and those in opposition dragging it down. Before Modi came to power three years ago, his party was not particularly in favour of the GST.
Over 1,200 items, from shampoo to tea to automobiles, have been put in four broad tax categories.
Unbranded food staples including vegetables, milk, eggs and flour will be exempt from GST, along with health and education services. Tea, edible oils, sugar, textiles and baby formula will attract a 5 per cent tax.
The Goods and Services Tax (GST) -- Indias biggest tax reform since independence -- tonight came into force after 17 tumultuous years of debate, unifying more than a dozen central and state levies but doubts remained if the transition to a national sales tax will be without any glitch. The new tax regime was ushered in at a late night event in the historic Central Hall of Parliament, reminiscent of the midnight tryst with destiny in 1947.
Prime Minister Narendra Modi termed the new levy as "good and simple tax" that marks economic integration of India.
"There are 500 types of taxes that play their roles. Today we are getting rid of them," Modi said. "From Ganganagar to Itanagar and Leh to Lakshadweep, it is one nation, one tax."
The day marks a decisive turning point in determining the future course of the country, he said, adding GST would ensure one nation, one tax.
The GST, he said, is simple and transparent tax that will help curb corruption and check generation of black money.
President Pranab Mukherjee, who had as finance minister in the UPA government in 2011 piloted a constitutional amendment bill to bring in the GST, said the new indirect tax regime is a "disruptive change". "It is similar to the introduction of VAT when there was initial resistance. When a change of this magnitude is undertaken, however positive it may be, there are bound to be some teething troubles and difficulties in the initial stages.
"We will have to solve these with understanding and speed to ensure that it does not impact the growth momentum of the economy. Such of such major changes always depend on their effective implementation," he said.
The launch was however boycotted by principal opposition parties like the Congress which termed it as "tamasha" (gimmick) saying it was being rushed in a "half-baked" manner as a "self-promotional spectacle".
Besides Modi and Mukherjee, the starry midnight launch was attended by Vice-President Hamid Ansari, Lok Sabha Speaker Sumitra Mahajan and former prime minister H D Deve Gowda.
Mukherjee and Modi pressed a button in a specially crafted box at the stroke of midnight to launch the new tax regime which overnight replaced the messy mix of more than a dozen state and central levies built up over seven decades. The one national GST unifies the countrys USD 2 trillion economy and 1.3 billion people into a common market, an exercise that took 17 tumultuous years.
Modi said GST will eliminate the compounding effect of the current multi-layered tax system as well as the cross- state tax heterogeneity by fixing the final tax rate.
It will reduce cost and save money, he said.
While the measure is billed as making doing business easier by simplifying the tax structure and ensuring greater compliance, businesses particularly small traders have been a bit nervous about the new tax filing system.
A train was stopped by traders in Uttar Pradesh and commercial establishments and wholesale commodity markets in some cities remained closed today in protest against the "hasty" rollout of GST.
While a general strike by traders in Kashmir has been called tomorrow, Uttar Pradesh and Madhya Pradesh witnessed sporadic bandhs. West Bengal, Andhra Pradesh and Telangana also witnessed protests.
TMCs Mamata Banerjee feared it would bring back the dreaded "Inspector Raj".
But the NCP, the JD-U and the JD-S broke ranks with opposition parties to attend the launch ceremony. Besides the Congress, other parties that boycotted the event included RJD, DMK and Left parties. Unlike the last midnight event held in 1997 on the occasion of golden jubilee of the Independence at a special session of Parliament, it was a gala event at the circular -shaped hall that had been loaned for the launch of the historic reform.
The government promises that the transition to a single, nationwide tax on goods and services will streamline business and boost the economy by tearing down barriers between 31 states and union territories. It is estimated to add 0.4 per cent to 2 per cent to GDP growth.
But some businesses are still figuring out how it will work as they race against time to adopt or upgrade cash registers and computer systems so they are able to file monthly tax returns to comply with the new tax regime.
Hours before the midnight launch, the GST Council - the highest decision making body that formulated the rules and tax rates, met for the 18th time. Prime Minister Narendra Modi joined the council members briefly.
For some businesses, the GST is complex with four broad tax categories of 5, 12, 18 and 28 per cent, and myriad exceptions, as opposed to a simpler, flatter and broader sales taxes in other countries. Switchover to the GST has added to the worries of businesses that are still recovering from the November 8 shock decision to remove 86 per cent of currency from circulation.
One of the things that is keeping companies occupied ahead of the launch is calculation of input tax credit, which allows them to claim refunds on tax paid on inputs and pay tax on the value adds only. From soft drink makers to automobile firms, companies are busy calculating final consumer price to be charged from July 1.
The government, however, defends the decision saying enough time was given to businesses to adapt to the new regime.
Notwithstanding this, the government will take a lenient view for tax returns filed in the initial period.
First proposed in 2003, the idea of GST was bogged down for years in bipartisan debate, with political parties in government trying to push it and those in opposition dragging it down. Before Modi came to power three years ago, his party was not particularly in favour of the GST.
Over 1,200 items, from shampoo to tea to automobiles, have been put in four broad tax categories.
Unbranded food staples including vegetables, milk, eggs and flour will be exempt from GST, along with health and education services. Tea, edible oils, sugar, textiles and baby formula will attract a 5 per cent tax.
India's GST highest in the world: Here's what some other countries charge
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France was the first country to implement GST to reduce tax-evasion. Since then, more than 140 countries have implemented GST with some countries having Dual-GST, for example Brazil and Canada.
India has chosen the Canadian model of dual GST as it has a federal structure where the Centre and states have the powers to levy and collect taxes.
European countries have one rate of GST as they do not have poor families, unlike in India, where families cannot be burdened with the same tax as the rich.
All around the world, GST has the same concept. In some countries, VAT is the substitute for GST, but conceptually, it is a destination based tax on consumption of goods and services. That still needs to be resolved among the different governance in the world is the GST rate.
Some are still struggling to rationalise an adopted rate structure. While there were strong differences at the time of introduction of GST due to political divisions in Canada, GST sustained despite the opposition. The Government of Canada has reduced the GST rate a couple of times since it was introduced.
However, some others countries which started with very low rates have been forced to increase the rates very soon after introduction to raise more resources.
Earlier in the week, Revenue secretary Hasmukh Adhia said that the ultimate goal of the government should be to move to a single or dual-rate goods and services tax regime.
"Ideally like all other advanced countries, we should have got one GST which is levied by one government only, and not a dual GST and also a GST in which there is a uniform rate.
In our country, where there are different strata of society to be looked after, it's not possible to have an ideal GST. We are in a good direction. We will prefer to have a single GST rate but after sometime. That should be the ultimate goal - instead of having too many complicated rates, at least one or two rates should be there," Adhia said during a panel discussion on Doordarshan News.
Canada 13 to 15%
France 20%
UK 20%
New Zealand 15%
Malaysia 6%
Singapore 7%
France was the first country to implement GST to reduce tax-evasion. Since then, more than 140 countries have implemented GST with some countries having Dual-GST, for example Brazil and Canada.
India has chosen the Canadian model of dual GST as it has a federal structure where the Centre and states have the powers to levy and collect taxes.
European countries have one rate of GST as they do not have poor families, unlike in India, where families cannot be burdened with the same tax as the rich.
All around the world, GST has the same concept. In some countries, VAT is the substitute for GST, but conceptually, it is a destination based tax on consumption of goods and services. That still needs to be resolved among the different governance in the world is the GST rate.
Some are still struggling to rationalise an adopted rate structure. While there were strong differences at the time of introduction of GST due to political divisions in Canada, GST sustained despite the opposition. The Government of Canada has reduced the GST rate a couple of times since it was introduced.
However, some others countries which started with very low rates have been forced to increase the rates very soon after introduction to raise more resources.
Earlier in the week, Revenue secretary Hasmukh Adhia said that the ultimate goal of the government should be to move to a single or dual-rate goods and services tax regime.
"Ideally like all other advanced countries, we should have got one GST which is levied by one government only, and not a dual GST and also a GST in which there is a uniform rate.
In our country, where there are different strata of society to be looked after, it's not possible to have an ideal GST. We are in a good direction. We will prefer to have a single GST rate but after sometime. That should be the ultimate goal - instead of having too many complicated rates, at least one or two rates should be there," Adhia said during a panel discussion on Doordarshan News.
Canada 13 to 15%
France 20%
UK 20%
New Zealand 15%
Malaysia 6%
Singapore 7%
France 20%
UK 20%
New Zealand 15%
Malaysia 6%
Singapore 7%
General Awareness
GST comes into force after 17 years of debate
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Goods and Services Tax (GST) regime officially came into force from July 1, 2017. Government launched the Goods and Services Tax (GST) at a special midnight meeting in Central Hall of Parliament.
Highlights of GST Launch Ceremony:
President Pranab Mukherjee and PM Modi pressed a button in a specially crafted box at the stroke of midnight and formally launched GST.
- Besides, President Pranab Mukherjee and Prime Minister Narendra Modi, Vice – President Hamid Ansari, Lok Sabha Speaker Sumitra Mahajan, Former Prime Minister H D Deve Gowda and Union Cabinet Ministers including Finance Minister Arun Jaitley were present at the launch ceremony.
- It is to be noted that members of Congress, RJD, DMK and Left parties boycotted the launch ceremony, whereas members of NCP, the JD-U and the JD-S broke ranks with opposition parties to attend the launch ceremony.
- President Pranab Mukherjee, who had as finance minister in the UPA government in 2011 piloted a constitutional amendment bill to bring in the GST, said the new indirect tax regime is a “disruptive change”.
- PM Modi said the indirect tax reform is a result of combined efforts of various political parties at different points of time. PM Modi referred to GST as “good and simple tax” that marks economic integration of India.
July 1 to be observed as GST Day
As per an order issued by Central Board of Excise and Customs (CBEC), July 1 will be known as ‘GST Day’ and will be celebrated in all offices of CBEC just as Central Excise Day and International Customs Day.
- On July 1, 2017, all the offices of the Central Board of Excise and Customs (CBEC) have been instructed to remain open as a trade facilitation measure.
- In order to facilitate smooth switchover to GST, Government has asked tax offices to convert into GST Seva-Kendras for providing all assistance to tax payers.
- Apart from giving guidance to GST assessees, GST Seva Kendras should render assistance to taxpayers in migration, registration as well as filing of returns.
- A guidance manual for such GST Seva Kendras too has been circulated to all offices in a bid to standardise quality taxpayer services.
- CBEC will be putting up of banners welcoming members of the trade and industry for any facilitation at all field offices.
- In addition to this, name board of the field offices will be re-named as Central GST Zone/ Commissionrate/ Division/ Range and the logo ‘One Nation, One Tax, One Market’ will be displayed prominently on the name boards/banners/office letterheads.
Goods and Services Tax (GST) regime officially came into force from July 1, 2017. Government launched the Goods and Services Tax (GST) at a special midnight meeting in Central Hall of Parliament.
Highlights of GST Launch Ceremony:
President Pranab Mukherjee and PM Modi pressed a button in a specially crafted box at the stroke of midnight and formally launched GST.
- Besides, President Pranab Mukherjee and Prime Minister Narendra Modi, Vice – President Hamid Ansari, Lok Sabha Speaker Sumitra Mahajan, Former Prime Minister H D Deve Gowda and Union Cabinet Ministers including Finance Minister Arun Jaitley were present at the launch ceremony.
- It is to be noted that members of Congress, RJD, DMK and Left parties boycotted the launch ceremony, whereas members of NCP, the JD-U and the JD-S broke ranks with opposition parties to attend the launch ceremony.
- President Pranab Mukherjee, who had as finance minister in the UPA government in 2011 piloted a constitutional amendment bill to bring in the GST, said the new indirect tax regime is a “disruptive change”.
- PM Modi said the indirect tax reform is a result of combined efforts of various political parties at different points of time. PM Modi referred to GST as “good and simple tax” that marks economic integration of India.
July 1 to be observed as GST Day
As per an order issued by Central Board of Excise and Customs (CBEC), July 1 will be known as ‘GST Day’ and will be celebrated in all offices of CBEC just as Central Excise Day and International Customs Day.
- On July 1, 2017, all the offices of the Central Board of Excise and Customs (CBEC) have been instructed to remain open as a trade facilitation measure.
- In order to facilitate smooth switchover to GST, Government has asked tax offices to convert into GST Seva-Kendras for providing all assistance to tax payers.
- Apart from giving guidance to GST assessees, GST Seva Kendras should render assistance to taxpayers in migration, registration as well as filing of returns.
- A guidance manual for such GST Seva Kendras too has been circulated to all offices in a bid to standardise quality taxpayer services.
- CBEC will be putting up of banners welcoming members of the trade and industry for any facilitation at all field offices.
- In addition to this, name board of the field offices will be re-named as Central GST Zone/ Commissionrate/ Division/ Range and the logo ‘One Nation, One Tax, One Market’ will be displayed prominently on the name boards/banners/office letterheads.
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