Union Minister for Finance and Corporate Affairs Arun Jaitley with MoS Santosh Gangwar and Chief Economic Adviser Arvind Subramanian at the17th GST Council Meeting at Vigyan Bhawan in New Delhi yesterday.
GST Council relaxes return filing rules for July-Aug
The GST Council yesterday relaxed return filing rules for businesses for the first two months of the roll-out of the new indirect tax regime even as it stuck to the July 1 launch date. The industry has been pushing for deferment of the tax implementation. As per the revised return filing timeline decided by the Council, for July, the sale returns will have to be filed by September 5 instead of August 10. Companies will have to file sale invoice for August with the GST Network by September 20 instead of September 10 earlier.
"To obviate any lack of preparedness, a slight relaxation of time for two months - July-August -- has been given. From September, strict adherence to time will go on," Finance Minister Arun Jaitley said yesterday.
In relief for AC hotels, the Council decided to raise the threshold for the 28% tax to RS 7,500 from Rs 5,000 at present. This would mean that an 18% GST will be levied on bills of Rs 2,500-7,500.
The Council decided to tax lotteries in two segments -- with state-run ones attracting 12% GST and the state- authorised 28%. Additionally, it has cleared six rules, including anti- profiteering. "I hope we are not compelled to use it (anti- profiteering)," Jaitley added.
"A number of companies and trade have been raising the issue of lack of preparedness. We don't have the luxury of time to defer GST implementation," Jaitley made it clear.
India Inc prepared for GST rollout from July 1: CII
Industry body CII yesterday said India Inc is ready for the GST implementation from July 1, as the new indirect tax regime will contribute significantly towards economic growth, job creation and exports expansion.
"GST has been finalised after a collaborative and consultative approach and we look forward to its introduction," Confederation of Indian Industry Director General Chandrajit Banerjee said.
"...GST is the most significant indirect tax reform introduced in the country since independence," he added.
The industry body is organising over 100 workshops across the country to enable enterprises to comply with the new regulations. The workshops are expected to reach out to around 5,000 enterprises. Further, a helpline has been established where participants can request for clarifications.
An awareness campaign has also been launched to inform industry about the processes related to Goods and Services Tax (GST).
Trade worried over stock, losses in run-up to GST: Durables industry
Consumer durables makers say the run up to GST implementation has caused 'discomfort' among their trade partners who are busy clearing old stock to avoid losses before the new indirect tax regime kicks in next month.
The manufacturers expect normalisation of operations to take at least 2-3 months after the GST implementation. "GST has caused a sense of discomfort amongst the traders as they are worried over the cash flow that might occur during GST implementation therefore, consumer-centric offers are being introduced," Panasonic India Head-Channel Operations Ajay Seth told PTI.
Explaining the current situation in the industry value chain, Godrej Appliances Business Head and Executive Vice President Kamal Nandi said that if distributors were to carry carry forward stocks to the GST regime from VAT regime, they would lose around 3-4% margin. "Right now they are liquidating their stock. If they do not have any stock, they are purchasing it. They are not upstocking anything," he added.
According to the Consumer Electronics and Appliances Manufacturers Association (CEAMA), the situation could take up to three months to normalise after the implementation of GST. "Business will be normalised over the next two-three months of operations," CEAMA President Manish Sharma.