The GST pact must hold for this tax reform to work out
4 years, 3 months ago

The GST pact must hold for this tax reform to work out

Live Mint  

As India’s government reneges on compensating the states for GST shortfalls, there are murmurs of a sovereign default, constitutional crisis and breakdown of federalism. The constitutional trade-off with GST was that states would lose some more of their fiscal/federal autonomy in an already centripetal fiscal structure. The Modi government could now face a full-blown constitutional and federal crisis, with states tempted to break their commitments and let GST and non-GST tax rates proliferate. According to the 2020 Budget, expenditure estimates for all centrally- Funding the states will keep the Centre’s constitutional commitment and also give states more autonomy, which they desperately need to deal with covid.

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History of this topic

Towards a simple and rational GST
2 days, 15 hours ago

Towards a simple and rational GST

Hindustan Times  

Social media went pop over popcorn on Saturday, sharing details on the differential Goods and Services Tax rates on variants. But, two larger issues with India’s indirect tax regime need to be promptly addressed. The window for the rationalisation of the tax slabs has been extended, and it isn’t clear whether this will even happen The first has to do …

Arunachal committed to support GST reforms for economic growth: Deputy CM
2 days, 23 hours ago

Arunachal committed to support GST reforms for economic growth: Deputy CM

The Hindu  

Arunachal Pradesh Deputy Chief Minister Chowna Mein stated that the government is committed to support GST reforms for fostering economic growth and ease of compliance for all stakeholders in the State. Speaking at the 55th GST Council meeting at Jaisalmer in Rajasthan on Saturday, Mr. Mein, who also holds the Finance portfolio, said that the state government remained dedicated to …

Major reforms expected by key sectors in Budget 2024, will it deliver?
5 months ago

Major reforms expected by key sectors in Budget 2024, will it deliver?

New Indian Express  

With the first Union Budget after the Lok Sabha elections all set to be unveiled, there are great expectations regarding major policy and tax reforms. These expectations include: A new subsidy scheme similar to FAME II with a more comprehensive coverage; Streamlining policies towards R&D efforts in battery technology and grid integration for development of a widespread and reliable charging …

Lessons from India’s midnight tryst with fiscal destiny
5 months, 1 week ago

Lessons from India’s midnight tryst with fiscal destiny

New Indian Express  

At this point, Chidambaram passed a handwritten note to me and other finance ministry secretaries. This involved setting up the required technology systems, building a GST model that is revenue-neutral to the states, and achieving a grand bargain between states and the Centre to integrate divergent tax systems. It was known that the technology systems were not yet fully ready, …

GST dilemma: The burden of related party transactions
6 months ago

GST dilemma: The burden of related party transactions

New Indian Express  

Introduction: The Goods and Services Tax marks a pivotal transformation in the landscape of taxation, fundamentally altering the way taxes are assessed and collected. Delving into its intricacies, particularly concerning Related Party Transactions, holds paramount importance for businesses endeavouring to navigate the realms of regulatory compliance and financial prudence effectively. GST implementation & Objectives: Introduced in India in July 2017, …

10 years of Modi government: Tax reforms, challenges
7 months, 1 week ago

10 years of Modi government: Tax reforms, challenges

New Indian Express  

NEW DELHI: In the last 10 years of Modi government rule, India has undergone marked tax reforms focused on streamlining the tax framework, enhancing compliance, and fostering transparency. Key reforms common to Customs, GST, income tax, and corporate tax include digitisation for e-filing and digital payments, real-time data sharing to detect tax frauds, faceless assessment and appeals, dispute resolution schemes …

Next government must urgently fix ‘unnecessarily complex’, counter-productive GST: 13th Finance Commission chair
8 months, 2 weeks ago

Next government must urgently fix ‘unnecessarily complex’, counter-productive GST: 13th Finance Commission chair

The Hindu  

A key architect of India’s tax reforms and the chairman of the Thirteenth Finance Commission Vijay Kelkar has called upon the country’s next government to undertake urgent reforms in the “unnecessarily complex” Goods and Services Tax regime, such as switching to a single tax rate of 12% and sharing revenues with local governments and municipal corporations. Stating that a single …

GST Needs A Robust Dispute-Resolution Mechanism - News18
10 months ago

GST Needs A Robust Dispute-Resolution Mechanism - News18

News 18  

The Goods and Services Tax was introduced to rationalise the indirect tax system in India, thereby creating a common national market for goods and services. Disputes on an interpretation of the law, unsatisfactory advance ruling mechanism, and revenue-centric approach by tax authorities have led to an increase in litigation. For example, the ‘Sabka Vishwas Scheme 2019’ resolved around 49,534 pre-GST …

GST regime has ‘very efficiently’ brought tax rates down: FM
1 year, 1 month ago

GST regime has ‘very efficiently’ brought tax rates down: FM

The Hindu  

Finance Minister Nirmala Sitharaman said on Tuesday that the Goods and Services Tax regime has “very efficiently” brought tax rates down and consumers now pay lower levies than they did in the earlier indirect tax regime. Ms. Sitharaman also urged businesses staying out of the GST system to come within its fold or risk losing prospective customers, adding that such …

GST collection, devolution a success story in Northeast: Finance Minister Nirmala Sitharaman
1 year, 5 months ago

GST collection, devolution a success story in Northeast: Finance Minister Nirmala Sitharaman

The Hindu  

The northeastern States have scripted a success story in the collection and devolution of the Goods and Services Tax, Union Minister for Finance and Corporate Affairs Nirmala Sitharaman said, in Guwahati, on July 21. “According to the 2023 RBI report on State finances, the eight northeast States have registered a compounded annual GST hike of 27.5%,” she said. “Assam was …

GST Council to weigh tax cuts on select items
1 year, 5 months ago

GST Council to weigh tax cuts on select items

Live Mint  

The goods and services tax Council meeting next week will discuss tax relief on certain medicines, farm products, arthroplasty implants, and services such as satellite launches by private organizations, a person with direct knowledge of the matter said. A committee of officers that reviews proposals for tax rate changes, called the fitment committee, has recommended lowering the GST rates on …

6 years of GST: Tracing role of Atal Bihari Vajpayee, Vijay Kelkar, P Chidambaram, Arun Jaitley, and others
1 year, 5 months ago

6 years of GST: Tracing role of Atal Bihari Vajpayee, Vijay Kelkar, P Chidambaram, Arun Jaitley, and others

Hindustan Times  

With the implementation of a Goods and Services Tax on July 1 2017, India took a huge step towards modifying its indirect taxation system. A proposal for introducing a Modified Value Added Tax was initiated by the then Finance Minister Vishwanath Pratap Singh, aiming to streamline the indirect tax system. 2000: A meeting between Prime Minister Atal Bihari Vajpayee and …

GST helped increase revenue buoyancy of states as all-round benefit stands out 'exemplary': FM
1 year, 5 months ago

GST helped increase revenue buoyancy of states as all-round benefit stands out 'exemplary': FM

India TV News  

Goods and Services Tax: Union Finance Minister Nirmala Sitharaman on Saturday said Goods and Services Tax has strengthened the revenue buoyancy of states, and the all-around benefit stands out as "exemplary". Giving a comparison of the tax rates pre and post-GST, Sitharaman said, "GST has done justice to the consumers by bringing the rates down compared to the previous regime". …

GST has been a gamechanger for India’s economy
1 year, 5 months ago

GST has been a gamechanger for India’s economy

Live Mint  

Ahead of the launch of the goods and services tax on 1 July 2017, this newspaper on 6 June 2017 had published my piece titled ‘Indian GST: Unparalleled Tax Reform’ in which I had highlighted the unique features of India's GST regime such as the Dual GST structure; Integrated GST mechanism; invoice matching; single digital interface and the establishment of …

Reform reluctance: On the 49th GST council meeting
1 year, 10 months ago

Reform reluctance: On the 49th GST council meeting

The Hindu  

Meeting in person after nearly eight months, the Goods and Services Tax Council last Saturday reached a broad consensus on establishing GST Appellate Tribunals to resolve disputes under the tax regime launched in July 2017. This raises hopes of quicker disposal of GST disagreements that are adding to courts’ caseloads, but the reason for delaying this vital cog of the …

A case for reassigning GST to States
1 year, 11 months ago

A case for reassigning GST to States

The Hindu  

The Union government is endowed with more tax powers than the States, while the States are assigned more expenditure responsibilities than the Union government. For instance, if we consider the withdrawal of the Union government’s plan grants and loans to the States and their effect on States’ combined budget, the VFI ratio increased for the same period to 0.594 from …

Goods and Services Tax: Faulty by design
2 years, 5 months ago

Goods and Services Tax: Faulty by design

The Hindu  

Published : Jul 10, 2022 18:00 IST Five years ago, India began its tryst with a brand new tax, one that promised deliverance to all Indians. The GST design revolves around the concept of a single unified tax replacing two sets of taxes in force until then: one was sacrificed by the Centre and the other by the States. Studies …

GST 5 years: The journey of indirect tax regime so far
2 years, 5 months ago

GST 5 years: The journey of indirect tax regime so far

India TV News  

Highlights GST drastically altered India's tax administration and compliance GST regime made it easier to do business by doing away with multiple taxes Centre and states come together in GST Council to discuss modalities for smooth functioning of GST GST 5 years: The Goods and Services Tax, which completely redesigned the nation's indirect tax system and drastically altered tax administration …

Critics are wrong, GST has strengthened federalism
2 years, 5 months ago

Critics are wrong, GST has strengthened federalism

Live Mint  

Today, 1 July 2022, marks five years since India’s introduction of the goods and services tax. The second good feature is that, contrary to media hype, the GST has strengthened the Indian federation by enabling seamless input tax credit even when supply chains cross state borders. The narrative that it has weakened the federation by imposing an authoritarian Centre on …

GST Council bites the bullet
2 years, 5 months ago

GST Council bites the bullet

Hindustan Times  

Decisions taken in the 47th Goods and Services Tax Council meeting are on expected lines. The five-year window for guaranteed revenue compensation to states, which was a part of the original federal agreement on GST, has not been extended. While the argument might not be palatable to state governments, especially those ruled by the Opposition, phasing out the guaranteed compensation …

Why is GST compensation important for states even after 5 years of new tax regime?
2 years, 5 months ago

Why is GST compensation important for states even after 5 years of new tax regime?

India Today  

It has been five years since the Goods and Services Tax was implemented in India and the government’s expected time for full transition into the new tax regime is now over. “Until the GST implementation, producing or exporting states besides collecting VAT used to collect central sales tax up to two per cent on the inter-state sales. After the GST …

Strengthening the GST regime
2 years, 5 months ago

Strengthening the GST regime

Hindustan Times  

The two-day meeting of the Goods and Services Tax Council that starts on Tuesday is the 47th of the body – but it is likely the most important to date. When the GST law was passed in 2017, states were assured they would be compensated for the potential loss of revenue on account of moving to the GST regime. The …

A new road for India’s fiscal federalism
2 years, 7 months ago

A new road for India’s fiscal federalism

The Hindu  

On May 19, in Union of India vs Mohit Minerals, the Supreme Court of India delivered a ruling which is likely to have an impact far wider than what the Centre might have imagined when it brought the case up on appeal. It held, for instance, that both Parliament and the State legislatures enjoy equal power to legislate on Goods …

GST Council advice not final: SC
2 years, 7 months ago

GST Council advice not final: SC

Deccan Chronicle  

New Delhi: In a major verdict on the Goods and Services Tax regime, the Supreme Court on Thursday ruled that the decisions of the GST Council are only recommendatory in nature and not binding on the Centre and the states, as Parliament and the state legislatures possess equal powers to legislate on GST. Holding that the recommendations of the GST …

GST Council Recommendations Not Binding, Centre & States Have Simultaneous Powers to Legislate: SC
2 years, 7 months ago

GST Council Recommendations Not Binding, Centre & States Have Simultaneous Powers to Legislate: SC

News 18  

The Supreme Court on Thursday held that the recommendations of the GST Council are not binding on the Union and state governments, saying the Parliament intended that the recommendations of the body will have persuasive value. The apex court also ruled that the Centre and states have simultaneous powers to legislate on the Goods and Services Tax and the council …

Goods and Services Tax as an unfinished agenda
3 years ago

Goods and Services Tax as an unfinished agenda

The Hindu  

GST, or Goods and Services Tax, an institutional tax innovation intensively marketed in many countries by the International Monetary Fund and the World Bank, was wrapped in a “one nation one tax” package, and was accepted by India on the midnight of July 1, 2017. While the States have forgone a substantial part of their own tax revenue, they were …

101st Constitutional Amendment That Introduced GST Is A Watershed Moment In Evolution Of Cooperative Federalism: Supreme Court
3 years, 3 months ago

101st Constitutional Amendment That Introduced GST Is A Watershed Moment In Evolution Of Cooperative Federalism: Supreme Court

Live Law  

In its judgment delivered on Monday, the Supreme Court observed that One Hundred and First Amendment to the Constitution, which introduced Goods and Service Tax regime, is a watershed moment in the evolution of cooperative federalism.It brought about a significant merger by contemplating a fiscal umbrella comprehending GST, the bench comprising Justices DY Chandrachud and MR. The court observed that …

Four Years On, India's GST Has Not Met Its Fundamental Purpose
3 years, 5 months ago

Four Years On, India's GST Has Not Met Its Fundamental Purpose

The Quint  

One reason for this lies in the overall complicatedness of the system. But that’s not the point, given that one of the aims of any new tax should be to expand the tax base and for that to happen, the tax system needs to be simple, which GST is not. It can take the GST that has been paid on …

GST regime is in crisis
3 years, 6 months ago

GST regime is in crisis

Hindustan Times  

The Goods and Services Tax Council will meet on May 28 after a gap of seven months. Many state governments, which are ruled by parties opposed to the Bharatiya Janata Party, have demanded a GST waiver on various kinds of medicinal supplies being used for treating Covid-19. Using GST Council meetings to tweak GST rates on various commodities – Gujarati …

Rahul Gandhi assures revisiting GST when Congress is voted to power at Centre
3 years, 11 months ago

Rahul Gandhi assures revisiting GST when Congress is voted to power at Centre

India TV News  

Congress leader Rahul Gandhi on Saturday said the his party is committed to reconceptualising the Goods and Services Tax regime if voted to power at the Centre and assured ushering in a 'One tax, minimum tax.' He assured restructuring the GST to pave the way for 'one tax, minimum tax," if his party was voted to power at the Centre. …

Traders urge Finance minister, GST council to modify new GST notification
3 years, 11 months ago

Traders urge Finance minister, GST council to modify new GST notification

India TV News  

Trading community on Sunday urged Union Finance Minister Nirmala Sitharaman and Goods and Goods and Services Tax Council to withdraw certain provisions of the new GST notification issued a few days back. In a memorandum, Federation of All India Vyapar Mandal- a national body of small traders - advocating for a single-point GST collection, urged for certain changes in the …

Economic anarchy being spread by Central govt: Sonia on GST compensation cess
4 years, 2 months ago

Economic anarchy being spread by Central govt: Sonia on GST compensation cess

Live Mint  

Congress president Sonia Gandhi on Sunday hit out at Prime Minister Narendra Modi led union government over the recent compensation controversy in the GST Council and said that its denial will impact the functioning of state governments. Taking a strong stance, Gandhi said that this could be the ‘first example of economic anarchy’ being spread by the union government. Gandhi’s …

India in stalemate on borrowing to help out pandemic-hit states
4 years, 2 months ago

India in stalemate on borrowing to help out pandemic-hit states

Live Mint  

5hit economy is likely to face delays after the federal government and some states on Monday failed to agree who should borrow to cover revenue shortfalls. India's Goods and Services Tax Council, comprising federal and state finance ministers, last week extended a surcharge on luxury goods including cars and tobacco products beyond 2022 to help states repay loans raised to …

Entire GST compensation owed to states will be honoured: Union government
4 years, 3 months ago

Entire GST compensation owed to states will be honoured: Union government

Live Mint  

The entire sum of compensation owed to states on account of shortfall in collections of Goods and Services Tax will be “honoured”, the union government said on Monday. The clarification by the union government just ahead of the GST Council meeting on 19 September, could potentially defuse the ugly face off witnessed in the last meeting between the centre and …

GST is not a tax system, it is an attack on India’s poor, says Rahul Gandhi
4 years, 3 months ago

GST is not a tax system, it is an attack on India’s poor, says Rahul Gandhi

The Hindu  

Continuing his attack on the Narendra Modi government’s economic policies, former Congress president Rahul Gandhi said that the “ GST is not a tax system, it is an attack on India’s poor”. Speaking on the GST in the third edition of the video series on economy, Mr. Gandhi said that GST was the second major attack on the unorganised economy. …

States feel the pinch of giving up sovereignty for unified GST
4 years, 3 months ago

States feel the pinch of giving up sovereignty for unified GST

Live Mint  

State governments are now feeling the pinch of having sacrificed their sovereignty for a national goods and services tax, which subsumed 17 central and state indirect taxes and left little room for states to raise revenue on their own. In an interview with Mint, Delhi deputy chief minister Manish Sisodia said that there is a limit to raising taxes on …

Why the GST framework is in trouble
4 years, 3 months ago

Why the GST framework is in trouble

Hindustan Times  

The switch to the Goods and Services Tax in July 2017 was a historic moment in India’s fiscal trajectory. The Union has not paid the constitutionally mandated ₹1.5 lakh crore of GST compensation to states for the months of April-July in the current fiscal year. It also expects that the total shortfall in GST compensation to the states will be …

GST Compensation: Centre Could Borrow to Pay States as Raising Taxes May be Counter-productive
4 years, 4 months ago

GST Compensation: Centre Could Borrow to Pay States as Raising Taxes May be Counter-productive

News 18  

The GST compensation due with the Centre for four months are enough to pay salaries to all Punjab government employees for two months, said the state’s finance minister Manpreet Singh Badal. He was responding to Union Food Processing Minister Harsimrat Kaur Badal over her assertion that the Centre has cleared the entire pending GST compensation amount for the state by …

GST faces challenge to meet higher revenue expectations
4 years, 5 months ago

GST faces challenge to meet higher revenue expectations

Hindustan Times  

The Goods and Services Tax was passed in a joint session of parliament on 1 July, 2017. This change was expected to cut red tape, facilitate movement of goods and services across state borders and widen the tax base by bringing erstwhile evaders into the system via the input tax credit radar. The Goods and Services Tax was passed in …

Taxes need to be simplified for a self-reliant India: Nirmala Sitharaman
4 years, 5 months ago

Taxes need to be simplified for a self-reliant India: Nirmala Sitharaman

Live Mint  

Finance minister Nirmala Sitharaman on Wednesday said that taxation, especially Goods and Services Tax, needs to be further simplified to make life easier for tax payers, a critical requirement for a self-reliant nation. Sitharaman’s promise about simplifying the tax administration comes a day after Prime Minister Narendra Modi thanked tax payers along with farmers for strengthening the government’s hands in …

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