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'All issues resolved': GST in Parliament on Wednesday

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vgane

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Hope this bonhomie between NDA & UPA continues! Or is it too early to compliment?

'All issues resolved': GST in Parliament on Wednesday


August 01, 2016 16:07
29jaitley.jpg

The government will take up the GST constitutional amendment bill in Rajya Sabha on Wednesday.

On Monday, the Bharatiya Janata Party issued a whip to its 53 members in the upper house, wherein they will have to be present in the house for the next three days. The NDA is in a minority in the Rajya Sabha with just 72 MPs.

The passage of the bill is a significant test for the NDA's floor management skills and reaching out attempts made by the ruling alliance towards the opposition parties. Most of the non-Congress and non-NDA regional parties have already given an assurance to the government that they are ready to support the bill.

The government is aiming for 1 April 2017 as the date of implementation.


http://news.rediff.com/commentary/2...on-wednesday/f897f902accd6b94d261d6fcf2580599
 
This bill might get thru.

Who will gain by it let us see?

I am watching the share market closely.

That will give the right signal.

FMCG sector led by ITC and HUL is flaring up.

So good for consumption companies.

Equally good for logistics -sriram transport, etc
 
Come on Krish Sir...Are World Bank, IMF cooking data...If the answer is yes, I will agree with your contention! We are one of the largest economies experiencing a growth higher than China
 
We have changed the base year.

This has made a 4-5% growth as 7 -7.5%.

This is the base effect.

When we reported more than 7% growth last year there were lot of skeptics.

Similarly we changed from WPI to CPI . Rural inflation most agree is 2% more than urban inflation.

It again depends on what items we include an d what weightage we give to each item.

In real terms it is of course conceded more numbers are taken out of poverty. But the rich and poor gap has only widened.
 
I believe it will be a complex legislation with 80-90 amendments to what was passed in loksabha.

So it is not will of the elected people.

It is the will of congress supremo and bjp economists.

Not many will know what is getting passed.

The devil is in fine print.
 
Look forward to the landmark legislation...Hope goods get cheaper with passage of this..Hope my expectation is not misplaced!

As GST approaches the final hurdle, here's a look at India Inc's wish list

PTI | Aug 2, 2016, 09.40 PM IST



Highlights


  1. Looking forward to introduction of the GST Bill, India Inc said
  2. Government has dropped 1% additional tax
  3. It has also included provision for compensating states for revenue loss for 5 years


53510716.jpg
(
Reuters photo for representative use)

NEW DELHI: India Inc on Tuesday said it is looking forward to introduction of the much-awaited Goods & Services Tax (GST)+ , saying it would be a very significant step in the field of indirect tax reforms+ in India.

The government has circulated official amendments to the GST bill to drop 1 per cent additional tax+ and include a definite provision in the statute for compensating states for revenue loss for 5 years as it gears up to discuss the long-pending bill in Rajya Sabha+ on Wednesday.

The 2014 bill authorised GST Council to decide upon the modalities for resolution of disputes.

"While government has left no stone unturned to seek a consensus, the willingness and maturity of the key opposition party in terms of understanding the issues and straightening out the differences is indeed praiseworthy.

"Industry can now think of 'One India', which was truly pursued by all political parties in true letter and spirit, and hopefully the Bill will see the light of the day tomorrow," CII president Naushad Forbes+ said.

"From the consumer point of view, the biggest advantage would be in terms of a reduction in the overall tax burden on goods, which is currently estimated at 25 to 30 per cent. Introduction of GST would make Indian products competitive in the domestic and international markets. Studies show that this would instantly spur economic growth," Ficci said.

"By amalgamating a large number of Central and State taxes into a single tax, it would mitigate cascading or double taxation in a major way and pave the way for a common national market," it added.

However, Leader, Indirect Tax, BMR & Associates LLP, Rajeev Dimri said: "Irrespective of the bright side of upcoming GST, small and medium enterprises must be mindful of its accompanying challenges such as increase in compliance costs and alignment of IT systems with new processes. Thus, for the SMEs, GST throws a mix bag of opportunities and challenges to explore".

Under the modified provisions of GST Constitutional Amendment Bill circulated among the members on Tuesday, GST Council will be required to establish a mechanism for adjudication of disputes, which could arise between the Centre and states or among states themselves.

With these official amendments, the government has partially met the demands of the Congress party which has been blocking the bill in Rajya Sabha. One of the three demands of the Congress was to do away with the 1 per cent additional manufacturing tax.



On the demand for a Supreme Court judge-headed panel for resolving GST disputes, the official amendments say that the GST Council will establish a mechanism for solving disputes.

With regard to the demand for putting a GST rate cap in the Constitution, the government has not mentioned anything in the official amendments.

http://timesofindia.indiatimes.com/...India-Incs-wish-list/articleshow/53510738.cms
 
Petrol and Diesel are not under its preview. As such it is not set to make much impact on price rise front. Each upward revision in oil prices puts pressure on prices of daily consumables, it doesn't reverse the effect when the oil prices are reduced though.
 
Petroleum, electricity, alcohol & basic food articles are excluded from GST...Overall manufactured goods are likely to get cheaper while services including travel, insurance, restaurants are going to be expensive
 
[h=1]GST Bill: AIADMK moves last minute amendments, govt banks on Modi-Jayalalithaa chemistry[/h]
Despite a broadly perceived parliamentary consensus on the single biggest tax reform bill — the GST — the AIADMK has put a last minute spanner on the day Rajya Sabha is to debate and discuss the landmark piece of legislation. The party, which has 13 MPs in Rajya Sabha, moved six amendments to be considered by the government when it comes for voting and passage in the Upper House later Wednesday.

However, the government is unlikely to yield to the amendments moved by Tamil Nadu Chief Minister J Jayalalithaa's party. Some of the amendments moved like imposition of 4 percent additional tax in interstate trade and give the collected money from that 4 percent additional tax to the state from where goods originate sounds unrealistic and would amount to redrafting of the GST Bill. Other demands made by the AIADMK would not be a problem. Jayalalithaa wants that petroleum products, crude oil, tobacco to be out of GST purview. The Modi government has already agreed to keep petroleum, liquor and tobacco products to be out of it.

Senior ministers are in touch with AIADMK leaders and hope to find a resolution to the subject by the time it comes for voting in the evening. Even if they don't reach to a mutually acceptable outcome, the, 122nd Constitutional Amendment Bill is all set to be passed. Given a broad understanding on various issues and excellent personal rapport between Prime Minister Narendra Modi and AIADMK chief J Jayalalithaa, it is understandable that even in case the two parties don't reach to a settlement, the AIADMK would not push things too far and vote against the bill. The party would at best lodge their protest and walk out of Rajya Sabha, which would effectively mean half support.


Read more at: http://www.firstpost.com/politics/g...s-on-modi-jayalalithaa-chemistry-2932294.html
 
GST legislation is finally passed! Congrats to both NDA & UPA for coming together to pass this historic legislation!

Rajya Sabha passes GST Amendment Bill: The Goods and Services Tax, India's biggest tax reform, was passed in parliament on Wednesday as the Rajya Sabha cleared the constitutional amendment.

The Constitution (122nd Amendment) Bill, 2014 was approved by the Upper House with 203 votes in favour and none against, after a seven-hour debate during which a rare bonhomie was witnessed among the ruling and the opposition parties.


http://news.rediff.com/commentary/2...endment-bill/5df23e69acfe93b508b9a6647856aa3c
 
[h=1]GST bill passed: Here are the winners and losers[/h]The goods and services tax will undoubtedly give India a facelift on the taxation front

The goods and services tax (GST) will undoubtedly give India a facelift on the taxation front. Of course, the suspense over the rate at which GST will be levied remains.

While it is difficult to quantify the impact on various sectors until the government announces the final GST rate, analysts and economists are assuming a standard rate of 17-18%.

If that happens, then companies in the manufacturing sector are expected to benefit, while those in the services sector stand to lose.

Read more at: http://www.livemint.com/Money/En30E...l-passed-Here-are-the-winners-and-losers.html
 




13880284_1105821392820165_5171245112661156292_n.jpg


GST - A Glance

Goods & Service Tax. ( GST )

What is Goods and Services Tax (GST) ?

The Goods and Services Tax (GST), the biggest reform in India’s indirect tax structure since the economy began to be opened up 25 years ago, at last looks set to
become reality.

The Constitution (122nd) Amendment Bill comes up in

Rajya Sabha today.

Stage 1

Imagine a manufacturer of, say, shirts.

He buys raw material or inputs — cloth, thread, buttons, tailoring equipment — worth Rs 100, a sum that includes a tax of Rs 10.

With these raw materials, he manufactures a shirt.

In the process of creating the shirt, the manufacturer adds value to the materials he started out with.

Let us take this value added by him to be Rs 30.

The gross value of his good would, then, be Rs 100 + 30, or Rs 130.

At a tax rate of 10%, the tax on output (this shirt) will then be Rs 13.

But under GST, he can set off this tax (Rs 13) against the tax he has already paid on raw material/inputs (Rs 10).

Therefore, the effective GST incidence on the manufacturer is only Rs 3 (13 – 10).

Stage 2

The next stage is that of the good passing from the manufacturer to the wholesaler.

The wholesaler purchases it for Rs 130, and adds on value (which is basically his ‘margin’) of, say, Rs 20.

The gross value of the good he sells would then be Rs 130 + 20 — or a total of Rs 150.

A 10% tax on this amount will be Rs 15.

But again, under GST, he can set off the tax on his output (Rs 15) against the tax on his purchased good from the manufacturer (Rs 13).

Thus, the effective GST incidence on the wholesaler is only Rs 2 (15 – 13).

Stage 3

In the final stage, a retailer buys the shirt from the wholesaler.

To his purchase price of Rs 150, he adds value, or margin, of, say, Rs 10.

The gross value of what he sells, therefore, goes up to Rs 150 + 10, or Rs 160.

The tax on this, at 10%, will be Rs 16.

But by setting off this tax (Rs 16) against the tax on his purchase from the wholesaler (Rs 15), the retailer brings down the effective GST incidence on himself to Re 1
(16 –15).

Thus, the total GST on the entire value chain from the raw material/input suppliers (who can claim no tax credit since they haven’t purchased anything themselves) through the manufacturer, wholesaler and retailer is, Rs 10 + 3 +2 + 1, or Rs 16.

How it would be in a non-GST regime?

In a full non-GST system, there is a cascading burden of “tax on tax”, as there are no set-offs for taxes paid on inputs or on previous purchases.

Thus, if we consider the same example as above, the manufacturer buys raw materials/inputs at Rs 100 after paying tax of Rs 10.

The gross value of the shirt (good) he manufacturers would be Rs 130, on which he pays a tax of Rs 13.

But since there is no set-off against the Rs 10 he has already paid as tax on raw materials/inputs, the good is sold to the wholesaler at Rs 143 (130 + 13).

With the wholesaler adding value of Rs 20, the gross value of the good sold by him is, then, Rs 163.

On this, the tax of Rs 16.30 (at 10%) takes the sale value of the good to Rs 179.30.

The wholesaler, again, cannot set off the tax on the sale of his good against the tax paid on his purchase from the manufacturer.

The retailer, thus, buys the good at Rs 179.30, and sells it at a gross value of Rs 208.23, which includes his value addition of Rs 10 and a tax of Rs 18.93 (at 10% of Rs 179.30).

Again, there is no mechanism for setting off the tax on the retailer’s sale against the tax paid on his previous purchase.

The total tax on the chain from the raw material/input suppliers to the final retailer in this full no-GST regime will, thus, work out to Rs 10 + 13 + 16.30 + 18.93 = Rs 58.23.

For the final consumer, the price of the good would then be Rs 150 + 58.23 = Rs 208.23.

Compare this Rs 208.23 — with a tax of Rs 58.23 — to the final price of Rs 166, which includes a total tax of Rs 16, under GST.

Source: Anantha Narayanan/ Face book





 
Last edited by a moderator:
Who are the losers?

Firstly lower middle class and the poor.-Who might end up paying more for food, rail tickets, bus tickets,eating in restaurants, power bill hikes[service tax hike]

Though GST rate is lowered for goods, discounts on MRP will cease as GST is on MRP irrespective of discounts.Buyers of discretionary consumer goods will be badly

hurt as no one will advertise discounts.

the share of direct taxes which well off pay should be rationalised for lower slabs instead of higher slabs. Direct taxes account for 39% of total taxes, Indirect taxes

with GST on goods and services contribute about 60% . Poor ,lower income groups also pay indirect taxes. So we are robbing the poor to aid the rich unless GST is

brought down to 15% or so with a cap.

Only the rich industrialists are going ga ga about GST.Others can only get hurt with the vulnerable being brought into tax net.

Admk was sensible to walk out during voting.

Amma understands that tamilnadu will be badly hurt.

It is a blow on federalism with tamilnadu having to beg centre for its welfare programs. As a manufacturing state , it will suffer.She did right in opposing GST.
 
But why did the DMK support the Bill...Going with the Congress I guess...Read to jump into a well if its partner jumps, I guess
 
V.Balasubramani said:




13880284_1105821392820165_5171245112661156292_n.jpg


GST - A Glance

Goods & Service Tax. ( GST )

What is Goods and Services Tax (GST) ?

The Goods and Services Tax (GST), the biggest reform in India’s indirect tax structure since the economy began to be opened up 25 years ago, at last looks set to
become reality.

The Constitution (122nd) Amendment Bill comes up in

Rajya Sabha today.

Stage 1

Imagine a manufacturer of, say, shirts.

He buys raw material or inputs — cloth, thread, buttons, tailoring equipment — worth Rs 100, a sum that includes a tax of Rs 10.

With these raw materials, he manufactures a shirt.

In the process of creating the shirt, the manufacturer adds value to the materials he started out with.

Let us take this value added by him to be Rs 30.

The gross value of his good would, then, be Rs 100 + 30, or Rs 130.

At a tax rate of 10%, the tax on output (this shirt) will then be Rs 13.

But under GST, he can set off this tax (Rs 13) against the tax he has already paid on raw material/inputs (Rs 10).

Therefore, the effective GST incidence on the manufacturer is only Rs 3 (13 – 10).

Stage 2

The next stage is that of the good passing from the manufacturer to the wholesaler.

The wholesaler purchases it for Rs 130, and adds on value (which is basically his ‘margin’) of, say, Rs 20.

The gross value of the good he sells would then be Rs 130 + 20 — or a total of Rs 150.

A 10% tax on this amount will be Rs 15.

But again, under GST, he can set off the tax on his output (Rs 15) against the tax on his purchased good from the manufacturer (Rs 13).

Thus, the effective GST incidence on the wholesaler is only Rs 2 (15 – 13).

Stage 3

In the final stage, a retailer buys the shirt from the wholesaler.

To his purchase price of Rs 150, he adds value, or margin, of, say, Rs 10.

The gross value of what he sells, therefore, goes up to Rs 150 + 10, or Rs 160.

The tax on this, at 10%, will be Rs 16.

But by setting off this tax (Rs 16) against the tax on his purchase from the wholesaler (Rs 15), the retailer brings down the effective GST incidence on himself to Re 1
(16 –15).

Thus, the total GST on the entire value chain from the raw material/input suppliers (who can claim no tax credit since they haven’t purchased anything themselves) through the manufacturer, wholesaler and retailer is, Rs 10 + 3 +2 + 1, or Rs 16.

How it would be in a non-GST regime?

In a full non-GST system, there is a cascading burden of “tax on tax”, as there are no set-offs for taxes paid on inputs or on previous purchases.

Thus, if we consider the same example as above, the manufacturer buys raw materials/inputs at Rs 100 after paying tax of Rs 10.

The gross value of the shirt (good) he manufacturers would be Rs 130, on which he pays a tax of Rs 13.

But since there is no set-off against the Rs 10 he has already paid as tax on raw materials/inputs, the good is sold to the wholesaler at Rs 143 (130 + 13).

With the wholesaler adding value of Rs 20, the gross value of the good sold by him is, then, Rs 163.

On this, the tax of Rs 16.30 (at 10%) takes the sale value of the good to Rs 179.30.

The wholesaler, again, cannot set off the tax on the sale of his good against the tax paid on his purchase from the manufacturer.

The retailer, thus, buys the good at Rs 179.30, and sells it at a gross value of Rs 208.23, which includes his value addition of Rs 10 and a tax of Rs 18.93 (at 10% of Rs 179.30).

Again, there is no mechanism for setting off the tax on the retailer’s sale against the tax paid on his previous purchase.

The total tax on the chain from the raw material/input suppliers to the final retailer in this full no-GST regime will, thus, work out to Rs 10 + 13 + 16.30 + 18.93 = Rs 58.23.

For the final consumer, the price of the good would then be Rs 150 + 58.23 = Rs 208.23.

Compare this Rs 208.23 — with a tax of Rs 58.23 — to the final price of Rs 166, which includes a total tax of Rs 16, under GST.

Source: Anantha Narayanan/ Face book
Click to expand...

Most of the channels showed cost of Ready made dresses, Services, packed foods etc going to rise where as price of consumer durables are set to fall. Don't know which version is correct. Lets wait for more clarity.
 
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