The all-powerful GST Council may consider lowering tax rates on a host of goods such as handmade furniture, plastic products and daily use items like shampoo, and simplify return filing rules in its meeting this week.

The Council, headed by Finance Minister&nbsp;<a href="http://indiatoday.intoday.in/people/arun-jaitley/19435.html">Arun Jaitley</a>, is scheduled to meet&nbsp;on November 10&nbsp;to consider lowering of the 28 per cent GST rate on certain common use items, government officials said.

In further relief to small and medium enterprises, the panel is likely to rationalise tax rate in sectors where the total incidence of taxation has gone up because the goods were earlier either exempt from excise or was attracted lower VAT rates in the previous indirect tax regime.

The Council has been meeting every month since the Goods and Services Tax (GST) regime, which amalgamated over a dozen central and state taxes, was introduced&nbsp;on July 1.&nbsp;

The meetings have resulted in an array of changes to ease compliance burden on businesses as well as provided relief to consumers.

&quot;A rationalisation of items in the 28 per cent tax bracket is expected. Most of the daily use items could be lowered to 18 per cent. Also tax rate on items like furniture, electric switches, plastic pipes could be relooked,&quot; an official said.

All types of furniture attract a 28 per cent tax under GST. Wooden furniture is handmade by unorganised sector artisans and is mostly used by middle class families and there have been demands for lowering tax incidence on them.

Also, some items of plastic attract 18 per cent GST but goods like shower baths, sinks, wash basins, bidets, lavatory pans, seats and covers, flushing cisterns and similar sanitary ware of plastics attract 28 per cent levy.

There is a need for rationalisation of tax rates on these items, officials said.

The plastic manufacturers in their representation to the revenue department had said that 80 per cent of the industry is in MSME category.

Besides, the GST rate on weighing machines, compressors may also be rationalised to 18 per cent from 28 per cent.

Officials said 90 per cent of the manufacturers are from small and medium industries who in the pre-GST era were exempt from excise duty on manufactured value of less than Rs 1.5 crore. Hence, such machines only attracted VAT of 14.5 per cent.

With regard to compressors, the total pre-GST incidence was 17.5 per cent (12.5 per cent excise duty and 5 per cent VAT), they said stressing on need to rationalise the tax incidence.

The GST Council, which comprises of representatives of all states, have already rationalised tax rates for over 100 items.

The Council has last month approved an Approach Paper to be followed by the fitment committee while deciding on future rate revisions.

Under GST various goods and services have been bracketed in 5,12,18 and 28 per cent.

GST has subsumed over a dozen taxes, including excise, service tax and VAT, and transformed India into a single market

The Council has been meeting every month since the GST regime, which amalgamated over a dozen central and state taxes, was introduced on July 1.

The all-powerful GST Council may consider lowering tax rates on a host of goods such as handmade furniture, plastic products and daily use items like shampoo, and simplify return filing rules in its meeting this week. The Council, headed by Finance Minister Arun Jaitley, is scheduled to meet on November 10 to consider lowering of the 28 per cent GST rate on certain common use items, government officials said. In further relief to small and medium enterprises, the panel is likely to rationalise tax rate in sectors where the total incidence of taxation has gone up because the goods were earlier either exempt from excise or was attracted lower VAT rates in the previous indirect tax regime. The Council has been meeting every month since the Goods and Services Tax (GST) regime, which amalgamated over a dozen central and state taxes, was introduced on July 1. The meetings have resulted in an array of changes to ease compliance burden on businesses as well as provided relief to consumers. "A rationalisation of items in the 28 per cent tax bracket is expected. Most of the daily use items could be lowered to 18 per cent. Also tax rate on items like furniture, electric switches, plastic pipes could be relooked," an official said. All types of furniture attract a 28 per cent tax under GST. Wooden furniture is handmade by unorganised sector artisans and is mostly used by middle class families and there have been demands for lowering tax incidence on them. Also, some items of plastic attract 18 per cent GST but goods like shower baths, sinks, wash basins, bidets, lavatory pans, seats and covers, flushing cisterns and similar sanitary ware of plastics attract 28 per cent levy. There is a need for rationalisation of tax rates on these items, officials said. The plastic manufacturers in their representation to the revenue department had said that 80 per cent of the industry is in MSME category. Besides, the GST rate on weighing machines, compressors may also be rationalised to 18 per cent from 28 per cent. Officials said 90 per cent of the manufacturers are from small and medium industries who in the pre-GST era were exempt from excise duty on manufactured value of less than Rs 1.5 crore. Hence, such machines only attracted VAT of 14.5 per cent. With regard to compressors, the total pre-GST incidence was 17.5 per cent (12.5 per cent excise duty and 5 per cent VAT), they said stressing on need to rationalise the tax incidence. The GST Council, which comprises of representatives of all states, have already rationalised tax rates for over 100 items. The Council has last month approved an Approach Paper to be followed by the fitment committee while deciding on future rate revisions. Under GST various goods and services have been bracketed in 5,12,18 and 28 per cent. GST has subsumed over a dozen taxes, including excise, service tax and VAT, and transformed India into a single market

Council to consider slashing GST on common use goods

Bihar Deputy Chief Minister Sushil Kumar Modi, who also heads a five-member panel on<a href="http://www.wionews.com/india-news/gst-will-further-boost-indias-ranking-in-ease-of-doing-23256" target="_blank"> Goods and Services Tax </a>Network, today suggested that the maximum retail price (MRP) of a product should always be inclusive of tax for the convenience of the consumers.

The deputy CM was interacting with businessmen at a function organised by Bihar Chamber of Commerce and Industries in association with a leading Hindi daily &#39;Hindustan&#39;.

&quot;We (GoM) have suggested the inclusion of GST in maximum retail price. It has been seen across the globe that consumers react when they have to pay tax in addition to a product&#39;s price but they usually do not mind paying the MRP when it is inclusive of tax,&quot; he said.

Sharing his experiences abroad, he said the situation was no different in Canada, Australia and Singapore.

&quot;Even in Canada, Australia and Singapore, consumers&#39; perception changed when they had to pay tax in addition to a product&#39;s price. The same consumers react differently when they were asked to pay a particular percentage of tax that had already been included in the price tag,&quot; he said.

GST is a gigantic reform and people may face teething problems for the first five to six months but things will get smoother in due course of time, he said.

Stating that a firm having a turnover of Rs 1.5 crore would now have to file quarterly returns instead of monthly, he said, &quot;We are making efforts to implement this process of quarterly returns for the businessmen. They will have to deposit tax every month but returns can be filed quarterly.&quot;

He said that he also wanted the form for filing returns to be simplified further.

Making it clear that no state was entitled to take a decision on its own regarding taxes, Sushil Modi said that he wanted the quantum of fee for filing returns late -Rs 200 per day with a maximum cap of Rs 5,000 -to be reduced.

He also heard suggestions and grievances of the traders, in the presence of Bihar Chamber of Commerce and Industries president P K Agrawal, central GST commissioner of Patna Ranjit Kumar, and appealed to the lawyers and the chartered accountants to rationally charge them.

The deputy CM said that he would hold sector-specific meetings with the businessmen before the next GST council meeting.

He said that he also wanted the form for filing returns to be simplified further

Bihar Deputy Chief Minister Sushil Kumar Modi, who also heads a five-member panel on Goods and Services Tax Network, today suggested that the maximum retail price (MRP) of a product should always be inclusive of tax for the convenience of the consumers. The deputy CM was interacting with businessmen at a function organised by Bihar Chamber of Commerce and Industries in association with a leading Hindi daily 'Hindustan'. "We (GoM) have suggested the inclusion of GST in maximum retail price. It has been seen across the globe that consumers react when they have to pay tax in addition to a product's price but they usually do not mind paying the MRP when it is inclusive of tax," he said. Sharing his experiences abroad, he said the situation was no different in Canada, Australia and Singapore. "Even in Canada, Australia and Singapore, consumers' perception changed when they had to pay tax in addition to a product's price. The same consumers react differently when they were asked to pay a particular percentage of tax that had already been included in the price tag," he said. GST is a gigantic reform and people may face teething problems for the first five to six months but things will get smoother in due course of time, he said. Stating that a firm having a turnover of Rs 1.5 crore would now have to file quarterly returns instead of monthly, he said, "We are making efforts to implement this process of quarterly returns for the businessmen. They will have to deposit tax every month but returns can be filed quarterly." He said that he also wanted the form for filing returns to be simplified further. Making it clear that no state was entitled to take a decision on its own regarding taxes, Sushil Modi said that he wanted the quantum of fee for filing returns late -Rs 200 per day with a maximum cap of Rs 5,000 -to be reduced. He also heard suggestions and grievances of the traders, in the presence of Bihar Chamber of Commerce and Industries president P K Agrawal, central GST commissioner of Patna Ranjit Kumar, and appealed to the lawyers and the chartered accountants to rationally charge them. The deputy CM said that he would hold sector-specific meetings with the businessmen before the next GST council meeting.

MRP should include GST, suggests Sushil Modi

Shiv Sena MP Sanjay Raut on Thursday said Congress vice-president Rahul Gandhi is capable of leading the country and stressed that the Narendra Modi wave has faded, a statement that is not likely to go down well with the BJP.

The anger among people in Gujarat against the implementation of the Goods and Services Tax (GST) is an indication that the BJP would face a stiff challenge in polls, scheduled to be held in December, he said.

Raut was addressing a discussion on a TV channel.

&quot;Congress leader Rahul Gandhi is capable of leading the country. It is wrong to call him &#39;Pappu&#39;,&quot; he said referring to the nickname used to mock the Congress vice-president by a section on social media.

State Education Minister and senior BJP leader Vinod Tawde was also present at the event.

&quot;The biggest political power in this country is people... the voters. &#39;Woh kisi ko bhi Pappu bana sakte hai&#39; (People can make anyone pappu),&quot; the Sena leader said in an apparent dig at the BJP which had secured a massive mandate in 2014 polls.

Sena, the oldest constituent of the NDA, shares a &#39;blow hot-blow cold&#39; relationship with its senior ally, the BJP, in the Centre and Maharashtra.

The Uddhav Thackeray-led party has been attacking Prime Minister Modi regularly and has often taken potshots at the BJP through editorials in the party mouthpiece &quot;Saamana&quot;.&nbsp;Raut&#39;s comments came a day after the schedule for Gujarat polls was announced.

Though Sena lacks any base in Gujarat, the home state of Modi, the party had extended its support to Patidar leader Hardik Patel who had met Uddhav Thackeray at the latter&#39;s residence in Mumbai earlier this year.

&quot;The Modi wave was there in 2014 general elections but now it seems to have faded away. The way people are marching on roads of Gujarat after GST was introduced, it seems they (BJP) are going to face a challenge,&quot; Raut added.

In 2015, Sena had said that even 100 Rahul Gandhis cannot match Prime Minister Narendra Modi&#39;s &quot;mega wave&quot; and had mocked the Congress vice president for his &#39;suit-boot ki sarkar&#39; jibe.

"Congress leader Rahul Gandhi is capable of leading the country. It is wrong to call him 'Pappu'," Sena MP said referring to the nickname used to mock the Congress vice-president by a section on social media.

Shiv Sena MP Sanjay Raut on Thursday said Congress vice-president Rahul Gandhi is capable of leading the country and stressed that the Narendra Modi wave has faded, a statement that is not likely to go down well with the BJP. The anger among people in Gujarat against the implementation of the Goods and Services Tax (GST) is an indication that the BJP would face a stiff challenge in polls, scheduled to be held in December, he said. Raut was addressing a discussion on a TV channel. "Congress leader Rahul Gandhi is capable of leading the country. It is wrong to call him 'Pappu'," he said referring to the nickname used to mock the Congress vice-president by a section on social media. State Education Minister and senior BJP leader Vinod Tawde was also present at the event. "The biggest political power in this country is people... the voters. 'Woh kisi ko bhi Pappu bana sakte hai' (People can make anyone pappu)," the Sena leader said in an apparent dig at the BJP which had secured a massive mandate in 2014 polls. Sena, the oldest constituent of the NDA, shares a 'blow hot-blow cold' relationship with its senior ally, the BJP, in the Centre and Maharashtra. The Uddhav Thackeray-led party has been attacking Prime Minister Modi regularly and has often taken potshots at the BJP through editorials in the party mouthpiece "Saamana". Raut's comments came a day after the schedule for Gujarat polls was announced. Though Sena lacks any base in Gujarat, the home state of Modi, the party had extended its support to Patidar leader Hardik Patel who had met Uddhav Thackeray at the latter's residence in Mumbai earlier this year. "The Modi wave was there in 2014 general elections but now it seems to have faded away. The way people are marching on roads of Gujarat after GST was introduced, it seems they (BJP) are going to face a challenge," Raut added. In 2015, Sena had said that even 100 Rahul Gandhis cannot match Prime Minister Narendra Modi's "mega wave" and had mocked the Congress vice president for his 'suit-boot ki sarkar' jibe.

Rahul Gandhi capable of leading the country: Shiv Sena

Finance Minister Arun Jaitley on Wednesday defended the multiple slabs under the Goods and Services Tax.&nbsp;

The GST -- which was meant to replace India&#39;s myriad indirect taxes with one single tax -- has come under severe criticism.

Traders say it is convoluted, the government&#39;s critics say it was a second &quot;shock&quot; (after demonetisation) to the economy, and economists question its multiple slabs.&nbsp;

Why would a single tax have multiple slabs they ask.&nbsp;

Jaitley told ANI Wednesday that bringing everything under 18% GST would help those buying luxury items.&nbsp;

And he took a potshot at the Congress, asking whether they wanted to make Mercedeses and BMWs cheaper?&nbsp;

&quot;Bringing everything under 18% (GST) is helping those who spend on luxury items. Does Congress want to make BMWs &amp; Mercedes cheaper?&quot; Jaitley asked.&nbsp;

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Bringing everything under 18% (GST) is helping those who spend on luxury items. Does Congress want to make BMWs &amp; Mercedes cheaper?: Jaitley <a href="https://t.co/ISYskznsd0">pic.twitter.com/ISYskznsd0</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/923108287553323008?ref_src=twsrc%5Etfw">October 25, 2017</a></blockquote>
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He took another potshot at the Congress&#39;s senior leaders, saying they knew little about the intricacies of the GST.&nbsp;

&quot;I think finance ministers of Congress states know about slabs of GST. National-level leaders of Congress speaking on it, perhaps know less about it,&quot; he said.&nbsp;

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Congress had adequate opportunity to be in power, and I cant recollect a single significant step that they ever took against black money: FM <a href="https://t.co/yTxZjvZlhB">pic.twitter.com/yTxZjvZlhB</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/923138919461396480?ref_src=twsrc%5Etfw">October 25, 2017</a></blockquote>
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He also took a potshot at the Congress over the condition of India&#39;s public sector banks.&nbsp;

&quot;This conditions of banks was given to us as inheritance and as a solution it was necessary to pump in funds,&quot; Jaitley said.&nbsp;

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<a href="https://twitter.com/hashtag/WATCH?src=hash&amp;ref_src=twsrc%5Etfw">#WATCH</a> Live: Finance Minister Arun Jaitley speaks to ANI on economy, Kashmir &amp; other issues. <a href="https://t.co/0SAQzFCBd2">https://t.co/0SAQzFCBd2</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/923119368535339009?ref_src=twsrc%5Etfw">October 25, 2017</a></blockquote>
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Jaitley&#39;s team had on Tuesday announced what they called an &quot;unprecedented&quot;&nbsp;recapitalisation of the country&#39;s public sector banks to boost the economy.&nbsp;

<a href="http://www.wionews.com/business-economy/india-approves-324-billion-state-bank-recapitalisation-plan-22838" target="_blank">Also read:&nbsp;Public sector banks to get Rs 2.11 lakh crores over next two years </a>

Jaitley and the government have copped a lot of flak of late over the health of the economy, with the critics blaming demonetisation and GST for its current health.&nbsp;

On Wednesday, Jaitley said a &quot;lot of relief&quot; had been given over GST.&nbsp;

&quot;Lot of relief has been given, from filing quarterly returns to 1% tax for turnover under 1 crore, a lot has been done for relief,&quot; he said.&nbsp;

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Lot of relief has been given, from filing quarterly returns to 1% tax for turnover under 1 Cr, a lot has been done for relief: FM <a href="https://twitter.com/hashtag/GST?src=hash&amp;ref_src=twsrc%5Etfw">#GST</a> <a href="https://t.co/JmJz0R35Ky">pic.twitter.com/JmJz0R35Ky</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/923114603495616513?ref_src=twsrc%5Etfw">October 25, 2017</a></blockquote>
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He also said the sops were in no way connected to the upcoming Gujarat elections. That&nbsp;they were long-term reforms.&nbsp;

 
&nbsp;

'Does Congress want to make BMWs & Mercedes cheaper?' Jaitley asked

Finance Minister Arun Jaitley on Wednesday defended the multiple slabs under the Goods and Services Tax. The GST -- which was meant to replace India's myriad indirect taxes with one single tax -- has come under severe criticism. Traders say it is convoluted, the government's critics say it was a second "shock" (after demonetisation) to the economy, and economists question its multiple slabs. Why would a single tax have multiple slabs they ask. Jaitley told ANI Wednesday that bringing everything under 18% GST would help those buying luxury items. And he took a potshot at the Congress, asking whether they wanted to make Mercedeses and BMWs cheaper? "Bringing everything under 18% (GST) is helping those who spend on luxury items. Does Congress want to make BMWs & Mercedes cheaper?" Jaitley asked. Bringing everything under 18% (GST) is helping those who spend on luxury items. Does Congress want to make BMWs & Mercedes cheaper?: Jaitley pic.twitter.com/ISYskznsd0 — ANI (@ANI) October 25, 2017 × He took another potshot at the Congress's senior leaders, saying they knew little about the intricacies of the GST. "I think finance ministers of Congress states know about slabs of GST. National-level leaders of Congress speaking on it, perhaps know less about it," he said. Congress had adequate opportunity to be in power, and I cant recollect a single significant step that they ever took against black money: FM pic.twitter.com/yTxZjvZlhB — ANI (@ANI) October 25, 2017 × He also took a potshot at the Congress over the condition of India's public sector banks. "This conditions of banks was given to us as inheritance and as a solution it was necessary to pump in funds," Jaitley said. #WATCH Live: Finance Minister Arun Jaitley speaks to ANI on economy, Kashmir & other issues. https://t.co/0SAQzFCBd2 — ANI (@ANI) October 25, 2017 × Jaitley's team had on Tuesday announced what they called an "unprecedented" recapitalisation of the country's public sector banks to boost the economy. Also read: Public sector banks to get Rs 2.11 lakh crores over next two years Jaitley and the government have copped a lot of flak of late over the health of the economy, with the critics blaming demonetisation and GST for its current health. On Wednesday, Jaitley said a "lot of relief" had been given over GST. "Lot of relief has been given, from filing quarterly returns to 1% tax for turnover under 1 crore, a lot has been done for relief," he said. Lot of relief has been given, from filing quarterly returns to 1% tax for turnover under 1 Cr, a lot has been done for relief: FM #GST pic.twitter.com/JmJz0R35Ky — ANI (@ANI) October 25, 2017 × He also said the sops were in no way connected to the upcoming Gujarat elections. That they were long-term reforms.

Jaitley defends multiple GST slabs, says single slab would make Mercs & BMWs cheaper

India&#39;s economy will likely grow at its slowest pace in four years this fiscal year, a Reuters poll showed, as a currency ban and the new goods and services tax (GST) have disrupted business activity and dampened consumer demand.

Asia&#39;s third-largest economy will grow at 6.7 per cent in the fiscal year ending March 2018, the slowest since the <a href="http://www.wionews.com/preview/article/22763">new methodology of measuring gross domestic product (GDP)</a> was introduced in the 2014-15 fiscal year, according to the latest poll of 30 economists.

The poll was taken on October&nbsp;12-24, closing just before India announced a<a href="http://www.wionews.com/preview/article/22820"> $32.43 billion plan to </a><a href="http://www.wionews.com/preview/article/22820">recapitalise</a><a href="http://www.wionews.com/preview/article/22820"> state banks,</a> a bid to tackle a major drag on the economy.

While the latest poll&#39;s number for this year matches the International Monetary Fund&#39;s toned-down forecast - that was 7.2 percent earlier - it is a sharp decline from 7.3 percent the July Reuters poll showed.

But despite the broad and marked slowdown expected in economic activity, India&#39;s projected growth rate will be second to the world&#39;s fastest-growing major economy - China - if predictions are met.

A majority of economists said the risk to their already lower outlook for Indian growth this fiscal year is skewed further to the downside as stressed corporate balance sheets prevent a recovery in private capital spending and mounting bad loans at Indian banks remain a burden.

All but three of 23 respondents who answered an extra question said the government had imposed too many sweeping changes for the economy in a short period of time, referring to demonetisation and the GST, and that has lowered growth expectations.

&quot;Demonetisation was unnecessary and had a huge disruptive effect. Even before the economy could recover from that shock, came (the) GST,&quot; said Kunal Kundu, vice president and India economist at Societe Generale.

&quot;More importantly, the government was not prepared adequately enough, thereby transmitting further shock to the slowing economy.&quot;

Prime Minister Narendra Modi&#39;s decision last November to scrap high-value old banknotes wiped out about 86 per cent of currency in circulation virtually overnight in an economy which is largely cash-based.

That has hurt consumer spending, which powers more than half of the $2 trillion economy.

But just when some improvement in data raised hopes that the impact of the cash clampdown had been absorbed, confusion among businesses on pricing goods and services after the July 1 implementation of GST has impacted activity.

The economy grew at 5.7 percent annually in the April-June quarter, its lowest level in more than three years and well below expectations.

However, nearly three-fourths of 23 respondents who answered an extra question said India does not need a stimulus package and instead should focus on fiscal discipline which is vital for investment from outside the country to flow in.

&quot;There is limited scope for any stimulus when the budget fiscal deficit projections will anyways be breached on account of revenue shortfall,&quot; said Abhishek Upadhyay, economist at ICICI Securities Primary Dealership.

Despite bleak growth expectations, the Reserve Bank of India is forecast to keep key policy rates on hold through mid-2019, focusing on anchoring inflation.

The latest Reuters poll predicted retail inflation to average 3.5 percent this fiscal year, unchanged from the July median but below the RBI&#39;s medium-term target of 4.0 per cent.

Inflation was expected to average 4.5 percent in 2018-2019, compared to 4.3 per cent in the previous poll.

&quot;With inflation trending up directionally and RBI&#39;s insistence on 4 percent target on a durable basis, a convincing case for a rate cut appears less plausible,&quot; said Madhavi Arora, economist at Kotak Mahindra Bank.

The poll was taken on Oct. 12-24, closing just before India announced a $32.43 billion plan to recapitalise state banks, a bid to tackle a major drag on the economy.

India's economy will likely grow at its slowest pace in four years this fiscal year, a Reuters poll showed, as a currency ban and the new goods and services tax (GST) have disrupted business activity and dampened consumer demand. Asia's third-largest economy will grow at 6.7 per cent in the fiscal year ending March 2018, the slowest since the new methodology of measuring gross domestic product (GDP) was introduced in the 2014-15 fiscal year, according to the latest poll of 30 economists. The poll was taken on October 12-24, closing just before India announced a $32.43 billion plan to recapitalise state banks, a bid to tackle a major drag on the economy. While the latest poll's number for this year matches the International Monetary Fund's toned-down forecast - that was 7.2 percent earlier - it is a sharp decline from 7.3 percent the July Reuters poll showed. But despite the broad and marked slowdown expected in economic activity, India's projected growth rate will be second to the world's fastest-growing major economy - China - if predictions are met. A majority of economists said the risk to their already lower outlook for Indian growth this fiscal year is skewed further to the downside as stressed corporate balance sheets prevent a recovery in private capital spending and mounting bad loans at Indian banks remain a burden. All but three of 23 respondents who answered an extra question said the government had imposed too many sweeping changes for the economy in a short period of time, referring to demonetisation and the GST, and that has lowered growth expectations. "Demonetisation was unnecessary and had a huge disruptive effect. Even before the economy could recover from that shock, came (the) GST," said Kunal Kundu, vice president and India economist at Societe Generale. "More importantly, the government was not prepared adequately enough, thereby transmitting further shock to the slowing economy." Prime Minister Narendra Modi's decision last November to scrap high-value old banknotes wiped out about 86 per cent of currency in circulation virtually overnight in an economy which is largely cash-based. That has hurt consumer spending, which powers more than half of the $2 trillion economy. But just when some improvement in data raised hopes that the impact of the cash clampdown had been absorbed, confusion among businesses on pricing goods and services after the July 1 implementation of GST has impacted activity. The economy grew at 5.7 percent annually in the April-June quarter, its lowest level in more than three years and well below expectations. However, nearly three-fourths of 23 respondents who answered an extra question said India does not need a stimulus package and instead should focus on fiscal discipline which is vital for investment from outside the country to flow in. "There is limited scope for any stimulus when the budget fiscal deficit projections will anyways be breached on account of revenue shortfall," said Abhishek Upadhyay, economist at ICICI Securities Primary Dealership. Despite bleak growth expectations, the Reserve Bank of India is forecast to keep key policy rates on hold through mid-2019, focusing on anchoring inflation. The latest Reuters poll predicted retail inflation to average 3.5 percent this fiscal year, unchanged from the July median but below the RBI's medium-term target of 4.0 per cent. Inflation was expected to average 4.5 percent in 2018-2019, compared to 4.3 per cent in the previous poll. "With inflation trending up directionally and RBI's insistence on 4 percent target on a durable basis, a convincing case for a rate cut appears less plausible," said Madhavi Arora, economist at Kotak Mahindra Bank.

Cash ban, GST disruptions to pull down India's GDP growth: Poll

Rahul Gandhi had on Monday at his rally in Gandhinagar, Gujarat dubbed the GST &quot;Gabbar Singh Tax&quot;.&nbsp;

On Tuesday he took his formulation to Twitter, and then added some.&nbsp;

He first wrote Congress GST = Good and Simple Tax.&nbsp;

Then, Modiji GST = Gabbar Singh Tax.&nbsp;

And then added his coup de grace: Gabbar Singh Tax = Yeh Kamai Mujhe de de.&nbsp;

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Congress GST= Genuine Simple Tax 
 
Modi ji&#39;s GST= Gabbar Singh Tax =&#39;&#39;?? ???? ???? ?? ??&quot;
&mdash; Office of RG (@OfficeOfRG) <a href="https://twitter.com/OfficeOfRG/status/922695603380879360?ref_src=twsrc%5Etfw">October 24, 2017</a></blockquote>
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The Twitterati quickly took up the cue:&nbsp;

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What&rsquo;s your full form of GST?
&mdash; History of India (@RealHistoryPic) <a href="https://twitter.com/RealHistoryPic/status/922493120545284096?ref_src=twsrc%5Etfw">October 23, 2017</a></blockquote>
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And the answers poured in, including from former Jammu and Kashmir chief minister Omar Abdullah:&nbsp;&nbsp;

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Greatly Screwed-up Tax
&mdash; Omar Abdullah (@OmarAbdullah) <a href="https://twitter.com/OmarAbdullah/status/922496966642167808?ref_src=twsrc%5Etfw">October 23, 2017</a></blockquote>
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And Shashi Tharoor:&nbsp;

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GST being translated increasingly as Gayi Sarkar Tumhari! great idea ruined by wretched implementation <a href="https://t.co/ExBhNY351T">pic.twitter.com/ExBhNY351T</a>
&mdash; Shashi Tharoor (@ShashiTharoor) <a href="https://twitter.com/ShashiTharoor/status/922757994219167744?ref_src=twsrc%5Etfw">October 24, 2017</a></blockquote>
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&nbsp;

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Go Sell Tea
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Gayi Sarkar Tumhari
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Ghoom Saariduniya Tax
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GST and demonetisation are being blamed for the current state of the Indian economy.&nbsp;

And with Gujarat and Himachal going to the polls soon, Prime Minister Narendra Modi and the BJP have been trying to put some distance between them and the tax.&nbsp;

Modi has of late been saying GST was first the Congress&#39;s idea.&nbsp;

The Congress of course has been trying to do the opposite -- lay the blame squarely at the BJP&#39;s door.&nbsp;

&nbsp;

After Rahul Gandhi posted his formulation on Twitter, the Twitterati quickly took his cue

Rahul Gandhi had on Monday at his rally in Gandhinagar, Gujarat dubbed the GST "Gabbar Singh Tax". On Tuesday he took his formulation to Twitter, and then added some. He first wrote Congress GST = Good and Simple Tax. Then, Modiji GST = Gabbar Singh Tax. And then added his coup de grace: Gabbar Singh Tax = Yeh Kamai Mujhe de de. Congress GST= Genuine Simple Tax Modi ji's GST= Gabbar Singh Tax =''?? ???? ???? ?? ??" — Office of RG (@OfficeOfRG) October 24, 2017 × The Twitterati quickly took up the cue: What’s your full form of GST? — History of India (@RealHistoryPic) October 23, 2017 × And the answers poured in, including from former Jammu and Kashmir chief minister Omar Abdullah: Greatly Screwed-up Tax — Omar Abdullah (@OmarAbdullah) October 23, 2017 × And Shashi Tharoor: GST being translated increasingly as Gayi Sarkar Tumhari! great idea ruined by wretched implementation pic.twitter.com/ExBhNY351T — Shashi Tharoor (@ShashiTharoor) October 24, 2017 × Go Sell Tea — Uday Menon (@Uday47) October 23, 2017 × Gayi Sarkar Tumhari — Rachit Seth (@rachitseth) October 23, 2017 × Ghoom Saariduniya Tax — Razi (@raz0212) October 23, 2017 × GST and demonetisation are being blamed for the current state of the Indian economy. And with Gujarat and Himachal going to the polls soon, Prime Minister Narendra Modi and the BJP have been trying to put some distance between them and the tax. Modi has of late been saying GST was first the Congress's idea. The Congress of course has been trying to do the opposite -- lay the blame squarely at the BJP's door.

'Yeh kamai mujhe de de,' says Rahul after calling GST 'Gabbar Singh Tax'

The government on Tuesday waived penalty on delayed filing of initial GST returns for the months of August and September.

&quot;To facilitate taxpayers, late fee on filing of GSTR-3B for August and September has been has been waived,&quot; Finance Minister Arun Jaitley tweeted.

He said that the late fee which has been already charged to businesses will be credited back to taxpayers&#39; accounts.

The government had earlier waived late fee for delayed filing of the maiden returns for the month of July under the Goods and Services Tax (GST) regime.

Businesses have been demanding that the government waives penalty for delayed filing of 3B returns.

As per the data, 55.87 lakh GSTR-3B returns were filed for July, 51.37 lakh for August and over 42 lakh for September. Preliminary returns GSTR-3B for a month is filed on the 20th day of the next month after paying due taxes.

As per the data with the GST Network (GSTN), a huge chunk of businesses file their returns after the expiry of the due date.

While only 33.98 lakh July returns were filed till the due date, the number has now gone up to 55.87 lakh. Similarly for August 28.46 lakh returns were filed till the last date, but the figure went up to 51.37 lakh later.

Also for September while 39.4 lakh returns were filed by the due date, the number is rising and was over 42 lakh till yesterday.

The GST law provides for a nominal fee of Rs 100 per day on Central GST and an equivalent amount on State GST in case of late filing of returns and payment of taxes.&nbsp;

"To facilitate taxpayers, late fee on filing of GSTR-3B for August and September has been has been waived," Finance Minister Arun Jaitley tweeted.

The government on Tuesday waived penalty on delayed filing of initial GST returns for the months of August and September. "To facilitate taxpayers, late fee on filing of GSTR-3B for August and September has been has been waived," Finance Minister Arun Jaitley tweeted. He said that the late fee which has been already charged to businesses will be credited back to taxpayers' accounts. The government had earlier waived late fee for delayed filing of the maiden returns for the month of July under the Goods and Services Tax (GST) regime. Businesses have been demanding that the government waives penalty for delayed filing of 3B returns. As per the data, 55.87 lakh GSTR-3B returns were filed for July, 51.37 lakh for August and over 42 lakh for September. Preliminary returns GSTR-3B for a month is filed on the 20th day of the next month after paying due taxes. As per the data with the GST Network (GSTN), a huge chunk of businesses file their returns after the expiry of the due date. While only 33.98 lakh July returns were filed till the due date, the number has now gone up to 55.87 lakh. Similarly for August 28.46 lakh returns were filed till the last date, but the figure went up to 51.37 lakh later. Also for September while 39.4 lakh returns were filed by the due date, the number is rising and was over 42 lakh till yesterday. The GST law provides for a nominal fee of Rs 100 per day on Central GST and an equivalent amount on State GST in case of late filing of returns and payment of taxes.

Govt waives fine for delayed filing of August, September GST returns

Congress vice-president Rahul Gandhi has told Prime Minister Narendra Modi not to &quot;interfere&quot;&nbsp;in the Tamil film &quot;Mersal&quot;.&nbsp;

Union minister Pon Radhakrishnan had on Friday asked for a scene to be removed from the film.&nbsp;

The scene mentioned what Radhakrishnan called &quot;untruths&quot; about the Goods and Services Tax rolled out by the BJP-led NDA government on July 1.&nbsp;

&quot;The film producer should remove the untruths regarding the GST from the film,&quot; PTI quoted Radhakrishnan as having said.&nbsp;

The scene soon went viral on social media.&nbsp;

Watch the&nbsp;scene below:&nbsp;

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Scene that North Korean President Kim Jong-Un wants to delete from the Movie &quot;Mersal&quot;. (2017) <a href="https://t.co/suBoE1s0ea">pic.twitter.com/suBoE1s0ea</a>
&mdash; History of India (@RealHistoryPic) <a href="https://twitter.com/RealHistoryPic/status/921581172085334017?ref_src=twsrc%5Etfw">October 21, 2017</a></blockquote>
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&quot;Mr Modi, Cinema is a deep expression of Tamil culture and language. Don&#39;t try to demon-etise Tamil pride by interfering in Mersal,&quot; Gandhi said in a tweet.&nbsp;

The jibe was taken up by former fianance minister P Chidambaram.&nbsp;

&quot;BJP demands deletion of dialogues in &#39;Mersal&#39;. Imagine the consequences if &#39;Parasakthi&#39; was released today,&quot; Chidambaram tweeted.&nbsp;

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BJP demands deletion of dialogues in &#39;Mersal&#39;. Imagine the consequences if &#39;Parasakthi&#39; was released today.
&mdash; P. Chidambaram (@PChidambaram_IN) <a href="https://twitter.com/PChidambaram_IN/status/921568357874393088?ref_src=twsrc%5Etfw">October 21, 2017</a></blockquote>
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Parasakthi was a 1952 Tamil film critical of Brahmanism.

The movie was written by M Karunanidhi, who later went on to become chief minister of Tamil Nadu.&nbsp;

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Notice to film makers: Law is coming, you can only make documentaries praising government&#39;s policies.
&mdash; P. Chidambaram (@PChidambaram_IN) <a href="https://twitter.com/PChidambaram_IN/status/921568445526888448?ref_src=twsrc%5Etfw">October 21, 2017</a></blockquote>
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&quot;Notice to film makers: Law is coming, you can only make documentaries praising government&#39;s policies,&#39; Chidambaram further tweeted. 
&nbsp;

The movie Mersal, starring the popular Tamil actor Vijay, contains a scene which says unflattering things about the Goods and Services Tax

Congress vice-president Rahul Gandhi has told Prime Minister Narendra Modi not to "interfere" in the Tamil film "Mersal". Union minister Pon Radhakrishnan had on Friday asked for a scene to be removed from the film. The scene mentioned what Radhakrishnan called "untruths" about the Goods and Services Tax rolled out by the BJP-led NDA government on July 1. "The film producer should remove the untruths regarding the GST from the film," PTI quoted Radhakrishnan as having said. The scene soon went viral on social media. Watch the scene below: Scene that North Korean President Kim Jong-Un wants to delete from the Movie "Mersal". (2017) pic.twitter.com/suBoE1s0ea — History of India (@RealHistoryPic) October 21, 2017 × "Mr Modi, Cinema is a deep expression of Tamil culture and language. Don't try to demon-etise Tamil pride by interfering in Mersal," Gandhi said in a tweet. The jibe was taken up by former fianance minister P Chidambaram. "BJP demands deletion of dialogues in 'Mersal'. Imagine the consequences if 'Parasakthi' was released today," Chidambaram tweeted. BJP demands deletion of dialogues in 'Mersal'. Imagine the consequences if 'Parasakthi' was released today. — P. Chidambaram (@PChidambaram_IN) October 21, 2017 × Parasakthi was a 1952 Tamil film critical of Brahmanism. The movie was written by M Karunanidhi, who later went on to become chief minister of Tamil Nadu. Notice to film makers: Law is coming, you can only make documentaries praising government's policies. — P. Chidambaram (@PChidambaram_IN) October 21, 2017 × "Notice to film makers: Law is coming, you can only make documentaries praising government's policies,' Chidambaram further tweeted.

Rahul Gandhi: Mr Modi, don't try to 'demon-etise' Tamil pride by interfering in movie Mersal

The government launched the Goods and Services Tax (GST) in July this year after much resistance from opposition and some sections of public. But the heat has still not subsided; this year, traders in Allahabad are selling Diwali firecrackers with a message condemning the&nbsp;GST pasted on the boxes&nbsp;to express their unhappiness with the government&rsquo;s decision.

&quot;We have launched &#39;GST Bomb&#39;&nbsp;to increase our sales. All these firecrackers are of good quality,&quot; said Kadir, a trader in Allahabad.

But there is more. A range of &#39;anar&#39; (flower pots), one of the most popular Diwali firecrackers, has been named &#39;notebandi (note ban)&#39; -&nbsp;a&nbsp;jibe at government&rsquo;s decision last year to replace the old Rs 500 and 1000 notes with new currency.

These items are a hit in Allahabad market. They are scaling new peaks as far as the sale is concerned, much higher than personality-based firecrackers like &#39;Yogi crackers&#39;, &#39;Modi rocket&#39; and &#39;Rahul Anar&#39;, launched in the market keeping in view elections in Gujarat and Himachal Pradesh.

&quot;You can see&nbsp;the photos of many politicians&nbsp;on&nbsp;firecracker boxes here. I am here to buy firecrackers, and I&#39;m thrilled to see all this, how they capitalise on politicians&#39; names during election season,&quot; said Poonam, a resident of Allahabad.

The government has been claiming that GST will usher in a new unified tax regime&nbsp;and make it easier for companies to transact across state borders.

But many are finding that doing business is more complicated than ever.

Ambiguous rules under the new, multi-rate sales tax that went into effect on July 1 have left firms confused on how to price their products. The tax&rsquo;s complex structure - four main rates ranging from 5 to 28 per cent - has hurt sales and risks denting economic growth and government revenues in the months ahead.

Since the launch of the GST, there has been several meetings of the GST Council - a government panel headed by the finance minister - to revise the tax slabs. But traders aren&rsquo;t happy.

&quot;People are either overcharging or undercharging for their work,&quot;&nbsp;said Surinder Paul, who runs one workshop in South Delhi.

Billed as India&rsquo;s biggest tax reform since independence in 1947, the GST replaced more than a dozen federal and state levies and was meant to unify the country into a single market.

While teething troubles were expected, the ensuing chaos has some officials worrying about the repercussions for Asia&rsquo;s third-largest economy. Annual growth slowed in the July-September quarter to 5.7 per cent, its weakest pace in more than two years.

(With inputs from Reuters)

The government launched the Goods and Services Tax (GST) in July this year after much resistance from opposition and some sections of public. But the heat has still not subsided.

The government launched the Goods and Services Tax (GST) in July this year after much resistance from opposition and some sections of public. But the heat has still not subsided; this year, traders in Allahabad are selling Diwali firecrackers with a message condemning the GST pasted on the boxes to express their unhappiness with the government’s decision. "We have launched 'GST Bomb' to increase our sales. All these firecrackers are of good quality," said Kadir, a trader in Allahabad. But there is more. A range of 'anar' (flower pots), one of the most popular Diwali firecrackers, has been named 'notebandi (note ban)' - a jibe at government’s decision last year to replace the old Rs 500 and 1000 notes with new currency. These items are a hit in Allahabad market. They are scaling new peaks as far as the sale is concerned, much higher than personality-based firecrackers like 'Yogi crackers', 'Modi rocket' and 'Rahul Anar', launched in the market keeping in view elections in Gujarat and Himachal Pradesh. "You can see the photos of many politicians on firecracker boxes here. I am here to buy firecrackers, and I'm thrilled to see all this, how they capitalise on politicians' names during election season," said Poonam, a resident of Allahabad. The government has been claiming that GST will usher in a new unified tax regime and make it easier for companies to transact across state borders. But many are finding that doing business is more complicated than ever. Ambiguous rules under the new, multi-rate sales tax that went into effect on July 1 have left firms confused on how to price their products. The tax’s complex structure - four main rates ranging from 5 to 28 per cent - has hurt sales and risks denting economic growth and government revenues in the months ahead. Since the launch of the GST, there has been several meetings of the GST Council - a government panel headed by the finance minister - to revise the tax slabs. But traders aren’t happy. "People are either overcharging or undercharging for their work," said Surinder Paul, who runs one workshop in South Delhi. Billed as India’s biggest tax reform since independence in 1947, the GST replaced more than a dozen federal and state levies and was meant to unify the country into a single market. While teething troubles were expected, the ensuing chaos has some officials worrying about the repercussions for Asia’s third-largest economy. Annual growth slowed in the July-September quarter to 5.7 per cent, its weakest pace in more than two years. (With inputs from Reuters)

Firecracker traders take on government this Diwali with 'GST Bomb'

The Congress party&nbsp;on Monday&nbsp;downplayed Union Finance Minister Arun Jaitley`s assertion that world is praising India for demonetisation and Goods and Services Tax (GST) and said they are living in delusion.

Speaking to ANI, Congress leader Ranjeet Ranjan said, &quot;Jaitley ji is saying that world is praising India for demonetisation and GST. On that note, we should also not forget about the statements made by their own party leader Yashwant Sinha and Arun Shourie&quot;.

She added &quot;they are in a delusion that the world is impressed with India`s structural reforms. On what basis he is saying that all the countries across the world are praising India for these reforms? They are not even able to provide employment. Jaitley ji is senior advocate but not a Finance Minister.

&quot;The Union Finance Minister&nbsp;on Saturday&nbsp;said that countries across the world are lauding India for having the guts to bring in major structural reforms like demonetisation and Goods and Services Tax (GST).

In an exclusive interview with ANI, the Finance Minister, who was in the US to attend the annual meeting of the IMF and World Bank, said that the comments made by the experts worldwide on India`s structural reforms underline the country`s confident image.&nbsp;

<img src="https://ssl.gstatic.com/ui/v1/icons/mail/images/cleardot.gif" />

'They are in a delusion that the world is impressed with India`s structural reforms. On what basis he is saying that all the countries across the world are praising India for these reforms? They are not even able to provide employment', said the Congress leader

The Congress party on Monday downplayed Union Finance Minister Arun Jaitley`s assertion that world is praising India for demonetisation and Goods and Services Tax (GST) and said they are living in delusion. Speaking to ANI, Congress leader Ranjeet Ranjan said, "Jaitley ji is saying that world is praising India for demonetisation and GST. On that note, we should also not forget about the statements made by their own party leader Yashwant Sinha and Arun Shourie". She added "they are in a delusion that the world is impressed with India`s structural reforms. On what basis he is saying that all the countries across the world are praising India for these reforms? They are not even able to provide employment. Jaitley ji is senior advocate but not a Finance Minister. "The Union Finance Minister on Saturday said that countries across the world are lauding India for having the guts to bring in major structural reforms like demonetisation and Goods and Services Tax (GST). In an exclusive interview with ANI, the Finance Minister, who was in the US to attend the annual meeting of the IMF and World Bank, said that the comments made by the experts worldwide on India`s structural reforms underline the country`s confident image.

BJP living in delusion: Congress on Jaitley's remark on GST, demonetisation

Finance minister Arun Jaitley took questions from ANI on GST, demonetisation, and Jay Shah.&nbsp;

The government has of late been pilloried for its handling of the economy, the state of which critics says has been worsened by the twin &quot;shocks&quot; of demonetisation and GST.&nbsp;

Most of the blame for the state of the economy has fallen on Jaitley.&nbsp;

Watch video below:&nbsp; 

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<a href="https://twitter.com/hashtag/WATCH?src=hash&amp;ref_src=twsrc%5Etfw">#WATCH</a>: FM Arun Jaitley replies to question on issues like GST, Jay Shah and Demonetisation being raised in Gujarat polls. <a href="https://t.co/by6dMLCSo4">pic.twitter.com/by6dMLCSo4</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/919414072650506246?ref_src=twsrc%5Etfw">October 15, 2017</a></blockquote>
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Jaitley said demonetisation was necessary to get rid of black money.&nbsp;

On GST, he said the idea of the goods and services tax had been introduced by the Congress.&nbsp;

He added that the upcoming Gujarat polls would lay to rest all questions, and that they would be the surest barometer of whether people supported the Narendra Modi-led government&#39;s policies or not.&nbsp;

Jaitley was asked how those issues might affect the Gujarat elections

Finance minister Arun Jaitley took questions from ANI on GST, demonetisation, and Jay Shah. The government has of late been pilloried for its handling of the economy, the state of which critics says has been worsened by the twin "shocks" of demonetisation and GST. Most of the blame for the state of the economy has fallen on Jaitley. Watch video below: #WATCH: FM Arun Jaitley replies to question on issues like GST, Jay Shah and Demonetisation being raised in Gujarat polls. pic.twitter.com/by6dMLCSo4 — ANI (@ANI) October 15, 2017 × Jaitley said demonetisation was necessary to get rid of black money. On GST, he said the idea of the goods and services tax had been introduced by the Congress. He added that the upcoming Gujarat polls would lay to rest all questions, and that they would be the surest barometer of whether people supported the Narendra Modi-led government's policies or not.

WATCH: Arun Jaitley asked about GST, demonetisation, Jay Shah

Union Finance Minister Arun Jaitley on Saturday said that countries across the world are lauding India for having the guts to bring in major structural reforms like demonetisation and Goods and Services Tax (GST).

In an exclusive interview with ANI, the Finance Minister, who was in US to attend annual meeting of the IMF and World bank, said that the comments made by the experts worldwide on India&#39;s structural reforms underline the country&#39;s confident image.

&quot;The comments made by the experts here in US and other countries, on India&#39;s structural reforms, highlight our countries self-confidence. The economy of various countries was going through recession since past three years and that time India was comparatively in a better state. So, we took advantage of this and introduced various structural reforms including Insolvency and Bankruptcy Code, demonetisation and GST. It needs a lot of courage and guts to bring in structural reforms in the economy. What I gather here and what people from all parts of the world are saying is that &#39;it is laudable that India has courage to bring in such structural reforms,&quot; Jaitley said.

<a href="http://www.wionews.com/world/us-world-divide-spills-out-at-imf-world-bank-meetings-22450" target="_blank">Also read:&nbsp;Divide between US &amp; rest of world spills out at World Bank-IMF meetings in Washington</a>

The Finance Minister slammed the Congress party for criticizing the structural reforms introduced by the government and said that the opposition&#39;s criticism has no weightage.

&quot;The aim of demonetisation was to crack the backbone of shadow economy, which was running on black money. To curb the menace of black money was never Congress&#39; priority. So now they are tensed, and it is justified. Talking about GST, it was Congress&#39; proposal and now they are trying to change their stand. Finance ministers of all Congress run states back the GST but Congress being an opportunist party is opposing the uniform tax reform. So I think Congress&#39; criticism has no strength,&quot; he added.

Ever since the Centre has introduced demonetisation and GST, the Congress party has been critical of the reforms.(ANI)

'It needs a lot of courage and guts to bring in structural reforms in the economy,' the finance minister added

Union Finance Minister Arun Jaitley on Saturday said that countries across the world are lauding India for having the guts to bring in major structural reforms like demonetisation and Goods and Services Tax (GST). In an exclusive interview with ANI, the Finance Minister, who was in US to attend annual meeting of the IMF and World bank, said that the comments made by the experts worldwide on India's structural reforms underline the country's confident image. "The comments made by the experts here in US and other countries, on India's structural reforms, highlight our countries self-confidence. The economy of various countries was going through recession since past three years and that time India was comparatively in a better state. So, we took advantage of this and introduced various structural reforms including Insolvency and Bankruptcy Code, demonetisation and GST. It needs a lot of courage and guts to bring in structural reforms in the economy. What I gather here and what people from all parts of the world are saying is that 'it is laudable that India has courage to bring in such structural reforms," Jaitley said. Also read: Divide between US & rest of world spills out at World Bank-IMF meetings in Washington The Finance Minister slammed the Congress party for criticizing the structural reforms introduced by the government and said that the opposition's criticism has no weightage. "The aim of demonetisation was to crack the backbone of shadow economy, which was running on black money. To curb the menace of black money was never Congress' priority. So now they are tensed, and it is justified. Talking about GST, it was Congress' proposal and now they are trying to change their stand. Finance ministers of all Congress run states back the GST but Congress being an opportunist party is opposing the uniform tax reform. So I think Congress' criticism has no strength," he added. Ever since the Centre has introduced demonetisation and GST, the Congress party has been critical of the reforms.(ANI)

World praising India for reforms like demonetisation, GST: Arun Jaitley

Finance Minister Arun Jaitley, who is on a week-long visit to the US, said on Monday that India&#39;s transition to the Goods and Services Tax (GST) regime has been &quot;fairly smooth&quot; despite attempts by &quot;ill-informed&quot; Opposition leaders to derail its implementation.

The finance minister said the transition had been smooth because the government had introduced the lowest tax slab of five per cent which does not exist anywhere in the world so as to bring the non-compliant into the tax network.

&quot;So the lowest slab in India is five per cent, which doesn&#39;t exist anywhere in the world. That is because of the non-compliant tax character of the Indian society. You make it easy for people to enter the taxation system that you are able to expand. In the GST, for up to 10 million turnover we now have a scheme for them,&quot; he said.

&quot;We are trying to bring them into the tax net because the first two months data has shown that almost 95 per cent of the tax is just being paid by 400,000 accesses.&nbsp;

Therefore, it&#39;s very top heavy in terms of payment. And there&#39;s a need to continue to expand the tax base at the bottom itself,&quot; he said.

The finance minister said that governments in the Opposition-ruled states were not listening to their leaders since they knew that &quot;80 per cent of the money&quot; would come into the state coffers and they did not want revenues of their states to suffer.

&quot;Many attempts have been made by political groups to derail the GST, but I am glad that their own state governments are not listening to them because they know 80 per cent of the money is going to come to them so they don&#39;t have to appease an ill-informed central leader of the party and let the revenues of their own state suffer,&quot; Jaitley told an audience in New York.

&quot;So, the state governments are being wiser,&quot; Mr Jaitley said in response to a question during an event titled &#39;India&#39;s market Reforms: The Way Forward&#39; organised by the Confederation of Indian Industry in association with the US Chambers of Commerce.

The finance minister is in the US to attend the annual meetings of the International Monetary Fund and the World Bank.

He said that the GST Council was India&#39;s first genuine federal institution and met every month to review the monthly situation, take decisions, review rates and changes of rates which will take place in the times to come itself.

Arun Jaitley said the obvious problem in the GST was that the non-compliant were going to eventually come into the net because of which complaints were inevitable.

&quot;And therefore there are going to be different complaints -- some legitimate, some manufactured thrown up by the non-compliant how GST is creating a problem for them,&quot; he said. The finance minister emphasised that the government needs to have capacity to distinguish between a genuine and a manufactured complaint.

Arun Jaitley said the global integration of the Indian economy was happening at a time when other economies were becoming more protectionist.

He asserted that India was now a better place to do business with because of the series of steps being taken by the government in the last three years including simplifying proceedures, abolishing the Foreign Investment Promotion Board and enabling 95 per cent of the investments through the automatic route.

He said 99 per cent of tax queries were addressed online and states were being ranked on the ease of doing business.

He added that India was now capable of taking big decisions and implementing them on a large scale.

Mr Jaitley said as many as 250 highways projects were under construction and that India now had the surplus power and the capacity of Indian ports had been expanded.

Responding to a question on digital payments, the finance minister said the younger generation was taking on to modern payment methods in a big way.

He also said government benefits were linked directly to bank accounts. The government has introduced low-cost insurance policies to incentivise the bank holders, he 
said.

Jaitley also addressed American investors on recent economic reform initiatives.

He will address the Columbia University students today.

But before arriving in Washington DC for the annual IMF and World Bank meetings, the finance minister will travel to Boston and address the students of the Harvard University. He will also interact with the US business community in the city.

During his three day stay at Washington, the finance minister will hold a bilateral meeting with US Commerce Secretary Wilbur Ross.

He will also participate in an interactive seminar organised by the FICCI on -- &quot;India Opportunity Conference&quot; and attend the G-20 Finance Ministers and Central Bank Governors&#39; Working Dinner on October 12.&nbsp;

The finance minister said the Opposition's own state governments are not listening to them 'because they know 80 per cent of the money is going to come to them'

Finance Minister Arun Jaitley, who is on a week-long visit to the US, said on Monday that India's transition to the Goods and Services Tax (GST) regime has been "fairly smooth" despite attempts by "ill-informed" Opposition leaders to derail its implementation. The finance minister said the transition had been smooth because the government had introduced the lowest tax slab of five per cent which does not exist anywhere in the world so as to bring the non-compliant into the tax network. "So the lowest slab in India is five per cent, which doesn't exist anywhere in the world. That is because of the non-compliant tax character of the Indian society. You make it easy for people to enter the taxation system that you are able to expand. In the GST, for up to 10 million turnover we now have a scheme for them," he said. "We are trying to bring them into the tax net because the first two months data has shown that almost 95 per cent of the tax is just being paid by 400,000 accesses. Therefore, it's very top heavy in terms of payment. And there's a need to continue to expand the tax base at the bottom itself," he said. The finance minister said that governments in the Opposition-ruled states were not listening to their leaders since they knew that "80 per cent of the money" would come into the state coffers and they did not want revenues of their states to suffer. "Many attempts have been made by political groups to derail the GST, but I am glad that their own state governments are not listening to them because they know 80 per cent of the money is going to come to them so they don't have to appease an ill-informed central leader of the party and let the revenues of their own state suffer," Jaitley told an audience in New York. "So, the state governments are being wiser," Mr Jaitley said in response to a question during an event titled 'India's market Reforms: The Way Forward' organised by the Confederation of Indian Industry in association with the US Chambers of Commerce. The finance minister is in the US to attend the annual meetings of the International Monetary Fund and the World Bank. He said that the GST Council was India's first genuine federal institution and met every month to review the monthly situation, take decisions, review rates and changes of rates which will take place in the times to come itself. Arun Jaitley said the obvious problem in the GST was that the non-compliant were going to eventually come into the net because of which complaints were inevitable. "And therefore there are going to be different complaints -- some legitimate, some manufactured thrown up by the non-compliant how GST is creating a problem for them," he said. The finance minister emphasised that the government needs to have capacity to distinguish between a genuine and a manufactured complaint. Arun Jaitley said the global integration of the Indian economy was happening at a time when other economies were becoming more protectionist. He asserted that India was now a better place to do business with because of the series of steps being taken by the government in the last three years including simplifying proceedures, abolishing the Foreign Investment Promotion Board and enabling 95 per cent of the investments through the automatic route. He said 99 per cent of tax queries were addressed online and states were being ranked on the ease of doing business. He added that India was now capable of taking big decisions and implementing them on a large scale. Mr Jaitley said as many as 250 highways projects were under construction and that India now had the surplus power and the capacity of Indian ports had been expanded. Responding to a question on digital payments, the finance minister said the younger generation was taking on to modern payment methods in a big way. He also said government benefits were linked directly to bank accounts. The government has introduced low-cost insurance policies to incentivise the bank holders, he said. Jaitley also addressed American investors on recent economic reform initiatives. He will address the Columbia University students today. But before arriving in Washington DC for the annual IMF and World Bank meetings, the finance minister will travel to Boston and address the students of the Harvard University. He will also interact with the US business community in the city. During his three day stay at Washington, the finance minister will hold a bilateral meeting with US Commerce Secretary Wilbur Ross. He will also participate in an interactive seminar organised by the FICCI on -- "India Opportunity Conference" and attend the G-20 Finance Ministers and Central Bank Governors' Working Dinner on October 12.

India's transition to GST 'fairly smooth' despite Opposition attempts to derail it: Arun Jaitley

A big global corporate voice, the Indian-origin CEO of the US-based payments company Mastercard, Ajaypal Singh Banga, has come out in defence of the Indian government.&nbsp;

Banga told WION that one or two quarters of slow economic growth should not impact the pace of reforms.&nbsp;

Banga&#39;s comments come at a time when some of the Indian government&#39;s measures -- demonetisation and the goods and services tax -- have come under severe criticism, and are being blamed for slowing down the economy.&nbsp;

Banga also hailed the reforms undertaken by previous governments, but said the pace of reforms under the current establishment has been quicker. &nbsp;&nbsp;

&quot;India is going through an exciting phase. FDI, GDP, foreign reserves have gone up in the last two decades,&quot; he said. &nbsp;

&quot;Digitisation will give the next boost to the Indian economy,&quot; he said.&nbsp;

&quot;Change has actually accelerated in the last two years,&quot; he added.&nbsp;

Banga told WION that one or two quarters of slow economic growth should not impact the pace of reforms.?

A big global corporate voice, the Indian-origin CEO of the US-based payments company Mastercard, Ajaypal Singh Banga, has come out in defence of the Indian government. Banga told WION that one or two quarters of slow economic growth should not impact the pace of reforms. Banga's comments come at a time when some of the Indian government's measures -- demonetisation and the goods and services tax -- have come under severe criticism, and are being blamed for slowing down the economy. Banga also hailed the reforms undertaken by previous governments, but said the pace of reforms under the current establishment has been quicker. "India is going through an exciting phase. FDI, GDP, foreign reserves have gone up in the last two decades," he said. "Digitisation will give the next boost to the Indian economy," he said. "Change has actually accelerated in the last two years," he added.

WATCH: Not concerned by slowdown in Indian economy, says Mastercard CEO Ajay Banga

Three months after the rollout of the new indirect tax regime, the GST Council today made sweeping changes to give relief to small and medium businesses on filing and payment of taxes, eased rules for exporters and cut tax rates on more than two dozen items.

Businesses with annual turnover of up to Rs 1.5 crore, which constitute 90 per cent of the taxpayer base but pay only 5-6 per cent of total tax, have been allowed to file quarterly income returns and pay tax instead of the current provision of monthly filings.

Also, the turnover threshold for businesses to avail of the composition scheme that allows them to pay 1-5 per cent tax without going through tedious formalities, was raised to Rs 1 crore from current Rs 75 lakh.

&quot;Compliance burden of medium and small taxpayers in GST is being reduced,&quot; Finance Minister Arun Jaitley told reporters after the 22nd meeting of the Council.

Small and medium enterprises had complained of tedious compliance burden under the Goods and Services Tax (GST) that was supposed to be a simple indirect tax regime which replaced over a dozen Central and state taxes.

Jaitley said the Council also decided to cut GST rate on 27 common use items.

GST on unbranded namkeen, unbranded ayurvedic medicine, sliced dried mango and khakra has been cut to 5 per cent from 12 per cent, while the same on man-made yarn used in textile sector has been reduced to 12 per cent from 18 per cent.

Tax on stationery items, stones used for flooring (other than marble and granite), diesel engine parts and pump parts has been cut to 18 per cent from 28 per cent. GST on e-waste has been slashed to 5 per cent from 28 per cent.

Food packets given to school kids under Integrated Child Development Scheme (ICDS) will attract 5 per cent tax instead of 12 per cent.

Job works like zari, imitation, food items and printing items would attract 5 per cent tax instead of 12 per cent. Government contracts involving high amount of labour will be levied 5 per cent GST instead of 12 per cent in order to contain cost of those programmes, he said.

Exporters, who have been facing sluggish growth due to global slowdown, will get refunds for the tax paid by them on exports during July and August by October 18, he said.

For the remainder of the fiscal, they will operate under an exempted category paying a nominal 0.1 per cent GST, he said, adding from April 1 attempt would be made to launch an e-wallet facility for the exporters to provide liquidity.

Jaitley said big taxpayers, who contribute 94-95 per cent of the total taxes, will continue to file monthly returns and pay taxes on a monthly basis.

Also, a group of ministers has been asked to go into the issue of extending the composition scheme on inter-state sales as well as rationalising taxes on restaurants.

The switchover to quarterly tax filing for small and medium businesses would happen from October 1 and they will have to file monthly returns for the first three months of GST, which was implemented from July 1, he said.

With small businesses and traders complaining about the compliance burden the new Goods and Services Tax (GST) regime has put on them, the panel decided to give the option to taxpayers to avail of the so-called Composition Scheme if their turnover is less than Rs 1 crore as against the previous limit of Rs 75 lakh.

So far, over 15 lakh out of the 90 lakh registered businesses have opted for the composition scheme.

The tax rate for traders of goods in the composition scheme is 1 per cent, while it is 2 per cent for manufacturers and 5 per cent for suppliers of food or drinks for human consumption (without alcohol).

Service providers cannot opt for the composition scheme.

The scheme allows small businesses, including eateries, to pay 1-5 percent tax without having to deal with the three- stage filing process.

It allows small taxpayers to pay GST at a fixed rate of turnover and not go through the tedious GST formalities.

The scheme cannot be opted by supplier of services other than restaurant related services; manufacturer of ice cream, pan masala, or tobacco; casual taxable person or a non- resident taxable person; and businesses which supply goods through an e-commerce operator.

No input tax credit can be claimed by those opting for composition scheme.

Also, the taxpayer can only make intra-state supply (sell in the same state) and cannot undertake inter-state supply of goods. PTI&nbsp;

Small & medium traders, those with annual turnovers of less than Rs 1.5 crore, were earlier expected to file monthly returns

Three months after the rollout of the new indirect tax regime, the GST Council today made sweeping changes to give relief to small and medium businesses on filing and payment of taxes, eased rules for exporters and cut tax rates on more than two dozen items. Businesses with annual turnover of up to Rs 1.5 crore, which constitute 90 per cent of the taxpayer base but pay only 5-6 per cent of total tax, have been allowed to file quarterly income returns and pay tax instead of the current provision of monthly filings. Also, the turnover threshold for businesses to avail of the composition scheme that allows them to pay 1-5 per cent tax without going through tedious formalities, was raised to Rs 1 crore from current Rs 75 lakh. "Compliance burden of medium and small taxpayers in GST is being reduced," Finance Minister Arun Jaitley told reporters after the 22nd meeting of the Council. Small and medium enterprises had complained of tedious compliance burden under the Goods and Services Tax (GST) that was supposed to be a simple indirect tax regime which replaced over a dozen Central and state taxes. Jaitley said the Council also decided to cut GST rate on 27 common use items. GST on unbranded namkeen, unbranded ayurvedic medicine, sliced dried mango and khakra has been cut to 5 per cent from 12 per cent, while the same on man-made yarn used in textile sector has been reduced to 12 per cent from 18 per cent. Tax on stationery items, stones used for flooring (other than marble and granite), diesel engine parts and pump parts has been cut to 18 per cent from 28 per cent. GST on e-waste has been slashed to 5 per cent from 28 per cent. Food packets given to school kids under Integrated Child Development Scheme (ICDS) will attract 5 per cent tax instead of 12 per cent. Job works like zari, imitation, food items and printing items would attract 5 per cent tax instead of 12 per cent. Government contracts involving high amount of labour will be levied 5 per cent GST instead of 12 per cent in order to contain cost of those programmes, he said. Exporters, who have been facing sluggish growth due to global slowdown, will get refunds for the tax paid by them on exports during July and August by October 18, he said. For the remainder of the fiscal, they will operate under an exempted category paying a nominal 0.1 per cent GST, he said, adding from April 1 attempt would be made to launch an e-wallet facility for the exporters to provide liquidity. Jaitley said big taxpayers, who contribute 94-95 per cent of the total taxes, will continue to file monthly returns and pay taxes on a monthly basis. Also, a group of ministers has been asked to go into the issue of extending the composition scheme on inter-state sales as well as rationalising taxes on restaurants. The switchover to quarterly tax filing for small and medium businesses would happen from October 1 and they will have to file monthly returns for the first three months of GST, which was implemented from July 1, he said. With small businesses and traders complaining about the compliance burden the new Goods and Services Tax (GST) regime has put on them, the panel decided to give the option to taxpayers to avail of the so-called Composition Scheme if their turnover is less than Rs 1 crore as against the previous limit of Rs 75 lakh. So far, over 15 lakh out of the 90 lakh registered businesses have opted for the composition scheme. The tax rate for traders of goods in the composition scheme is 1 per cent, while it is 2 per cent for manufacturers and 5 per cent for suppliers of food or drinks for human consumption (without alcohol). Service providers cannot opt for the composition scheme. The scheme allows small businesses, including eateries, to pay 1-5 percent tax without having to deal with the three- stage filing process. It allows small taxpayers to pay GST at a fixed rate of turnover and not go through the tedious GST formalities. The scheme cannot be opted by supplier of services other than restaurant related services; manufacturer of ice cream, pan masala, or tobacco; casual taxable person or a non- resident taxable person; and businesses which supply goods through an e-commerce operator. No input tax credit can be claimed by those opting for composition scheme. Also, the taxpayer can only make intra-state supply (sell in the same state) and cannot undertake inter-state supply of goods. PTI

GST rates on 27 items cut, exporters get relief, small & medium traders to file quarterly returns

World Bank President Jim Yong Kim said the recent slowdown in India&#39;s economic growth is an &quot;aberration&quot; caused by temporary disruptions in preparation for the Goods and Service Tax (GST).

He asserted that it will get corrected in the near future.

Kim while responding to questions on the slowdown in India`s growth in the first quarter said GST is going to have a positive impact on the Indian economy.

&quot;There&#39;s been a deceleration in the first quarter, but we think that`s mostly due to temporary disruptions in preparation for the GST, which by the way is going to have a huge&nbsp;positive impact on the economy,&quot; Kim told the media during a conference ahead of the annual meeting of the International Monetary Fund and the World Bank here.

&quot;We think that the recent slowdown is an aberration which will correct in the coming months, and the GDP growth will stabilise during the year. We`ve been watching carefully, as Prime Minister (Narendra) Modi has really worked on improving the business environment, and so, we think all of those efforts will pay off as well,&quot; he added.

Further responding on India and human capital, Kim praised the &quot;commitment&quot; of Prime Minister Narendra Modi to sanitation issues, and said &quot;Swachh Bharat&quot;&nbsp;is one of the most effective programmes anywhere.

&quot;I know that Prime Minister Modi himself personally is very committed to improving opportunities for all of India. But, India has a lot of challenges. We look at some of the educational outcomes, we`ve looked at some of the health outcomes, and India has room to improve, like most other countries,&quot; he said.

&quot;Our job is to take the political will and commitment that Prime Minister Modi has clearly demonstrated and has communicated to everyone, and then bring to India the most effective intervention that will, as quickly as possible, improve the stock of human capital,&quot; Kim said.

Finance Minister Arun Jaitley would be leading a delegation to the annual meeting next week.

India`s GDP grew 5.7 per cent during the April-June period. During the previous quarter (January-March) the GDP had grown by 6.1 per cent.

<a href="http://www.wionews.com/india-news/watch-not-concerned-by-slowdown-in-indian-economy-says-mastercard-ceo-ajay-banga-21060" target="_blank">WATCH: Not concerned by slowdown in Indian economy, says Mastercard CEO Ajay Banga</a>

Also read:&nbsp;<a href="http://www.wionews.com/photos/forbes-list-mukesh-ambani-added-153-billion-last-year-485#photo-26301" target="_blank">Economy slows but India&#39;s richest 100 </a><a href="http://www.wionews.com/photos/forbes-list-mukesh-ambani-added-153-billion-last-year-485#photo-26301" target="_blank">get</a><a href="http://www.wionews.com/photos/forbes-list-mukesh-ambani-added-153-billion-last-year-485#photo-26301" target="_blank"> richer by 26%: Forbes list</a>

World Bank President Jim Yong Kim said the recent slowdown in India's economic growth is an 'aberration' caused by temporary disruptions in preparation for the Goods and Service Tax

World Bank President Jim Yong Kim said the recent slowdown in India's economic growth is an "aberration" caused by temporary disruptions in preparation for the Goods and Service Tax (GST). He asserted that it will get corrected in the near future. Kim while responding to questions on the slowdown in India`s growth in the first quarter said GST is going to have a positive impact on the Indian economy. "There's been a deceleration in the first quarter, but we think that`s mostly due to temporary disruptions in preparation for the GST, which by the way is going to have a huge positive impact on the economy," Kim told the media during a conference ahead of the annual meeting of the International Monetary Fund and the World Bank here. "We think that the recent slowdown is an aberration which will correct in the coming months, and the GDP growth will stabilise during the year. We`ve been watching carefully, as Prime Minister (Narendra) Modi has really worked on improving the business environment, and so, we think all of those efforts will pay off as well," he added. Further responding on India and human capital, Kim praised the "commitment" of Prime Minister Narendra Modi to sanitation issues, and said "Swachh Bharat" is one of the most effective programmes anywhere. "I know that Prime Minister Modi himself personally is very committed to improving opportunities for all of India. But, India has a lot of challenges. We look at some of the educational outcomes, we`ve looked at some of the health outcomes, and India has room to improve, like most other countries," he said. "Our job is to take the political will and commitment that Prime Minister Modi has clearly demonstrated and has communicated to everyone, and then bring to India the most effective intervention that will, as quickly as possible, improve the stock of human capital," Kim said. Finance Minister Arun Jaitley would be leading a delegation to the annual meeting next week. India`s GDP grew 5.7 per cent during the April-June period. During the previous quarter (January-March) the GDP had grown by 6.1 per cent. WATCH: Not concerned by slowdown in Indian economy, says Mastercard CEO Ajay Banga Also read: Economy slows but India's richest 100 get richer by 26%: Forbes list

India's economy will be back on track soon: World Bank

The Nifty rose 0.7 per cent on Monday to close above 10,000 points for the first time in more than a month, as automakers such as Maruti Suzuki Ltd gained after an increase in the goods and services tax was less wide-ranging than expected.

The BSE Sensex climbed 0.61 per cent to 31,882.16, while the broader NSE Nifty rose 0.72 per cent to 10,006.05, closing above the 10,000 level for the first time since August 7.

Shares of Maruti Suzuki closed 2.15 per cent higher. Meanwhile, IndusInd Bank Ltd rallied 5.6 per cent after saying it had entered into exclusive talks with Bharat Financial Inclusion Ltd for a potential merger.

Automakers such as Maruti Suzuki Ltd gained after an increase in the goods and services tax was less wide-ranging than expected.

The Nifty rose 0.7 per cent on Monday to close above 10,000 points for the first time in more than a month, as automakers such as Maruti Suzuki Ltd gained after an increase in the goods and services tax was less wide-ranging than expected. The BSE Sensex climbed 0.61 per cent to 31,882.16, while the broader NSE Nifty rose 0.72 per cent to 10,006.05, closing above the 10,000 level for the first time since August 7. Shares of Maruti Suzuki closed 2.15 per cent higher. Meanwhile, IndusInd Bank Ltd rallied 5.6 per cent after saying it had entered into exclusive talks with Bharat Financial Inclusion Ltd for a potential merger.

Nifty closes at over one-month high

Former finance minister P Chidambaram has said the Goods and Services Tax -- with its many rates -- is &quot;very, very imperfect&quot;.&nbsp;

And that since it has seven or more rates, it cannot be called &quot;one nation, one tax&quot;.&nbsp;

That has been one of the main criticisms of the GST -- that it has too many rates.&nbsp;

&quot;It is a mockery of the GST. When we have rates such as 0.25, 3, 5, 12, 18, 28 and 40, and possibly more because of the discretion vested with state governments, how can we call this a &#39;one nation, one tax&#39; regime,&quot; said Chidambaram.&nbsp;

The main aim of the GST had been to replace India&#39;s many indirect taxes with one single tax, turning the country into a single market.&nbsp;

A single tax would allow for the seamless and faster flow of goods from one state to another.&nbsp;

Chidambaram also said that both authorities and businesses were &quot;unprepared or under-prepared&quot; for GST and that it should have been put on a trial run.&nbsp;

He also added that experts feared GST might be inflationary in the short run, but that his party would welcome any measure taken to contain inflation. 
&nbsp;

'When we have rates such as 0.25, 3, 5, 12, 18, 28 and 40, and possibly more because of the discretion vested with state governments, how can we call this a 'one nation, one tax' regime,' said Chidambaram

Former finance minister P Chidambaram has said the Goods and Services Tax -- with its many rates -- is "very, very imperfect". And that since it has seven or more rates, it cannot be called "one nation, one tax". That has been one of the main criticisms of the GST -- that it has too many rates. "It is a mockery of the GST. When we have rates such as 0.25, 3, 5, 12, 18, 28 and 40, and possibly more because of the discretion vested with state governments, how can we call this a 'one nation, one tax' regime," said Chidambaram. The main aim of the GST had been to replace India's many indirect taxes with one single tax, turning the country into a single market. A single tax would allow for the seamless and faster flow of goods from one state to another. Chidambaram also said that both authorities and businesses were "unprepared or under-prepared" for GST and that it should have been put on a trial run. He also added that experts feared GST might be inflationary in the short run, but that his party would welcome any measure taken to contain inflation.

Chidambaram: GST, with its many rates, 'very, very imperfect'

Nearly 1,000 cinema halls in Tamil Nadu have cancelled movie screenings to protest the imposition of a 30 per cent local body tax along with an additional levy under the new Goods and Services Tax regime.&nbsp;

<a href="https://www.wionews.com/south-asia/pm-modi-48-hours-before-gst-1-lakh-cos-lost-registration-for-post-demonetisation-irregularities-17513">Also Read: 48 hours before GST, 1 lakh cos lost registration for post-demonetisation irregularities, says PM Modi</a>

This is the first major protest since the rollout of the GST on July 1.&nbsp; 
&nbsp; 
An additional tax of eight per cent under GST over the 30 per cent local body tax has inflated the total taxes&nbsp;to over 60 per cent for a state where ticket prices were capped until now.&nbsp; 
&nbsp; 
The Tamil Nadu government had pegged&nbsp;ticket prices for single-screen halls at Rs 50 and for multiplexes at Rs 120. 
&nbsp; 
The GST council has fixed tax rates for movie tickets at 18 per cent for those priced at less than Rs 100 and 28 per cent for those costing over Rs 100.&nbsp; 
&nbsp; 
&ldquo;Though the Tamil Nadu Film Exhibitors Association had decided on Friday to cancel shows from July 3, many theatres shut down yesterday itself,&rdquo; president of the association, Abirami Ramanathan told PTI.

&ldquo;If we screen movies, we have to pay local body taxes immediately as it came into force from yesterday. We are closing since there is no other way out,&rdquo; he said.

Ramanathan claimed it is only in India that movie halls have no right to fix ticket prices. 
&nbsp; 
&ldquo;We cannot increase prices for big-ticket movies,&rdquo; he said, adding they could not lower it for small budget films. 
&nbsp; 
According to Ramanathan, about 10 lakh persons are dependent on the film industry to make a living. 
&nbsp; 
&nbsp; 
&nbsp;

The Tamil Nadu government had until now pegged?ticket prices for single-screen halls at Rs 50 and for multiplexes at Rs 120

Nearly 1,000 cinema halls in Tamil Nadu have cancelled movie screenings to protest the imposition of a 30 per cent local body tax along with an additional levy under the new Goods and Services Tax regime. Also Read: 48 hours before GST, 1 lakh cos lost registration for post-demonetisation irregularities, says PM Modi This is the first major protest since the rollout of the GST on July 1. An additional tax of eight per cent under GST over the 30 per cent local body tax has inflated the total taxes to over 60 per cent for a state where ticket prices were capped until now. The Tamil Nadu government had pegged ticket prices for single-screen halls at Rs 50 and for multiplexes at Rs 120. The GST council has fixed tax rates for movie tickets at 18 per cent for those priced at less than Rs 100 and 28 per cent for those costing over Rs 100. “Though the Tamil Nadu Film Exhibitors Association had decided on Friday to cancel shows from July 3, many theatres shut down yesterday itself,” president of the association, Abirami Ramanathan told PTI. “If we screen movies, we have to pay local body taxes immediately as it came into force from yesterday. We are closing since there is no other way out,” he said. Ramanathan claimed it is only in India that movie halls have no right to fix ticket prices. “We cannot increase prices for big-ticket movies,” he said, adding they could not lower it for small budget films. According to Ramanathan, about 10 lakh persons are dependent on the film industry to make a living.

GST fallout: Cinema halls shut in Tamil Nadu to protest against taxes on tickets

As many as 22 states have done away with checks post within three days of the implementation of the Goods and Services Tax, PTI reported.&nbsp;

It added that a few states were in the process of doing so.&nbsp;

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One of the key aims of the GST was to transform India into a single market within which goods and services can flow without hindrance.&nbsp;

The state border check posts check for local tax compliance, but they also lead to delays.&nbsp;

PTI reported that the states which have done away with check posts include Delhi, UP, Bihar, Maharashtra, and Tamil Nadu.

A few states are in the process of doing so

As many as 22 states have done away with checks post within three days of the implementation of the Goods and Services Tax, PTI reported. It added that a few states were in the process of doing so. One of the key aims of the GST was to transform India into a single market within which goods and services can flow without hindrance × One of the key aims of the GST was to transform India into a single market within which goods and services can flow without hindrance. The state border check posts check for local tax compliance, but they also lead to delays. PTI reported that the states which have done away with check posts include Delhi, UP, Bihar, Maharashtra, and Tamil Nadu.

22 states remove check posts after GST

By Sumit Chaturvedi 
 
Starting at midnight tonight, business in India will change forever as the long-awaited and long-debated Good and Services Tax (GST) rolls out.

Claimed to be the biggest and most far-reaching tax reform India has ever seen, the GST will subsume most of the indirect taxes currently levied and simplify taxation.

The GST is a destination-based tax levied on consumption, and it will replace all other indirect taxes. Like the other taxes, the GST will also be levied and paid when a consumer buys something. It will be levied on every transaction in the supply of goods and services, barring certain exempted items.

The tax levied at one stage can be set off or deducted from the tax to be paid at the next stage as well.

One tax, one nation

The GST will be a one-tax, one-nation regime where all goods and services will be taxed at 0 per cent, 5 per cent, 12 per cent, 18 per cent and 28 per cent wherever they are purchased. &nbsp;

There is higher tax called a &quot;sin&quot; tax on goods like aerated drinks.

GST also reduces the tax burden on the final consumer since it ends the tax-on-tax phenomenon, also known as cascading effect. Now, a tax paid at one stage can be deducted from the tax paid at the next stage, reducing the overall tax incidence on the item.

But not all items will be subject to GST. &nbsp;Alcoholic drinks, electricity and five petroleum products crude, petrol, diesel, natural gas and aviation turbine fuel will not be under GST and will continue to attract Value Added Tax (VAT) and central excise.

Dual GST

India will have a dual GST. This means that the single rate set for a good or service has two components &ndash; Central GST (CGST) and a State GST (SGST). So nine&nbsp;per cent of an 18 per cent GST goes to the centre and the other 9 per cent goes to the state.

There is also an Integrated GST (iGST) on the interstate supply of goods and services, which can be set off against CGST and SGST that is to be paid.

GST will replace all central taxes including central excise and additional duties of excise, service tax, countervailing duty in the case of customs duty, central surcharges and cesses.

Also, GST will replace all state taxes including state vat, central sales tax, luxury tax, all forms of entry tax, entertainment and amusement tax, taxes on advertisements, purchase tax, tax on lotteries, betting and gambling, state surcharges and cesses.

Will GST trigger inflation or bring down prices?

Normally, GST would have pushed up inflation and that is what happened in most countries that switched to GST.

The inflation spike lasted from between six months to two years. But in India, the state and central GST acts have a provision which mandates that manufacturers and service providers have to pass on any benefits from a reduction in tax rate or availing of input tax credit to consumers in the form of lower prices.

This provision was introduced at quite a late stage because of fears that companies may not lower prices even if it is warranted and trigger inflation. there are stiff penalties for companies not passing on the benefits, which includes companies losing their central GST registration. &nbsp;

&nbsp;

Business in India will change forever as the long-awaited and long-debated GST rolls out

By Sumit Chaturvedi Starting at midnight tonight, business in India will change forever as the long-awaited and long-debated Good and Services Tax (GST) rolls out. Claimed to be the biggest and most far-reaching tax reform India has ever seen, the GST will subsume most of the indirect taxes currently levied and simplify taxation. The GST is a destination-based tax levied on consumption, and it will replace all other indirect taxes. Like the other taxes, the GST will also be levied and paid when a consumer buys something. It will be levied on every transaction in the supply of goods and services, barring certain exempted items. The tax levied at one stage can be set off or deducted from the tax to be paid at the next stage as well. One tax, one nation The GST will be a one-tax, one-nation regime where all goods and services will be taxed at 0 per cent, 5 per cent, 12 per cent, 18 per cent and 28 per cent wherever they are purchased. There is higher tax called a "sin" tax on goods like aerated drinks. GST also reduces the tax burden on the final consumer since it ends the tax-on-tax phenomenon, also known as cascading effect. Now, a tax paid at one stage can be deducted from the tax paid at the next stage, reducing the overall tax incidence on the item. But not all items will be subject to GST. Alcoholic drinks, electricity and five petroleum products crude, petrol, diesel, natural gas and aviation turbine fuel will not be under GST and will continue to attract Value Added Tax (VAT) and central excise. Dual GST India will have a dual GST. This means that the single rate set for a good or service has two components – Central GST (CGST) and a State GST (SGST). So nine per cent of an 18 per cent GST goes to the centre and the other 9 per cent goes to the state. There is also an Integrated GST (iGST) on the interstate supply of goods and services, which can be set off against CGST and SGST that is to be paid. GST will replace all central taxes including central excise and additional duties of excise, service tax, countervailing duty in the case of customs duty, central surcharges and cesses. Also, GST will replace all state taxes including state vat, central sales tax, luxury tax, all forms of entry tax, entertainment and amusement tax, taxes on advertisements, purchase tax, tax on lotteries, betting and gambling, state surcharges and cesses. Will GST trigger inflation or bring down prices? Normally, GST would have pushed up inflation and that is what happened in most countries that switched to GST. The inflation spike lasted from between six months to two years. But in India, the state and central GST acts have a provision which mandates that manufacturers and service providers have to pass on any benefits from a reduction in tax rate or availing of input tax credit to consumers in the form of lower prices. This provision was introduced at quite a late stage because of fears that companies may not lower prices even if it is warranted and trigger inflation. there are stiff penalties for companies not passing on the benefits, which includes companies losing their central GST registration.

Goods and Services Tax: India's 'biggest' tax reform explained

The Centre on Friday questioned the Congress Party and the Trinamool Congress&#39;s (TMC) over its U-turn on the Goods and Service Tax (GST) and asked why they weren&#39;t supporting the government now when they backed the uniform tax regime in the Parliament.

Opposition parties, led by the Congress, have dismissed the event as a &quot;publicity gimmick&quot;.&nbsp;

The exceptions are the Sharad Pawar-led Nationalist Congress Party and former PM HD Dewe Gowda&#39;s Janata Dal Secular, who have said they will attend the event, which will also be attended by celebrities including actor Amitabh Bachchan and industrialist Ratan Tata.

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India deserves a <a href="https://twitter.com/hashtag/GST?src=hash">#GST</a> rollout that does not put crores of its ordinary citizens, small businesses &amp; traders through tremendous pain &amp;anxiety
&mdash; Office of RG (@OfficeOfRG) <a href="https://twitter.com/OfficeOfRG/status/880718731340591104">June 30, 2017</a></blockquote>
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&nbsp;

&quot;GST is the most important economic change after India&#39;s Independence. It is a historic day and after the rolling out of GST it will be easy to do business. Through this people will gain from the indirect benefits. In Lok Sabha and Rajya Sabha Congress and TMC supported this. They should support in even now,&quot; Minister of State for Finance and Corporate Affairs Arjun Ram Meghwal said.

The minister was reiterating Finance Minister Arun Jaitley&#39;s statement yesterday that the GST had been formed with the consensus of the states and a consideration of their suggestions.

Minister of State (Development Ministry) Jitendra Singh said GST would be a &quot;gamechanger in India&#39;s economic road map for the future.&quot;

&quot;It is not a mere economic reform, but it is a game changer in India&#39;s economic road map for the future. But at the same time it is also going to be a new values addition to the character of India Republic. It is an occasion of celebration and rededicating ourselves to the service of nation by each and every citizen of India,&quot; he said.

Earlier on Friday, Union Information and Broadcasting Minister M Venkaiah Naidu urged the Congress Party to &quot;realise and rethink&quot; their stand and join the government for the midnight Parliament session.

&quot;It&#39;s really unfortunate because they are distancing themselves from the process of reformation in the country. I hope they (Congress) realise by evening and re-think and join us in the Central Hall,&quot; Naidu said.

&quot;I still appeal to the Congress and other parties boycotting GST event to reconsider. It&#39;s not a party function,&quot; he added.

The Congress Party yesterday said that it would boycott the midnight meeting on the GST roll-out, dismissing it as a publicity stunt.

Congress leader Mallikarjun Kharge pointed out that previous governments had not celebrated landmark the passing of landmark reforms in Parliament including the Right to Information Act, the Food Security Act and the MNREGA.

&quot;We are boycotting this midnight celebration. In UPA government; Right to Information (RTI) Act, Food Security Act, MNREGA, Right to Education laws were passed which were beneficial for people. But, we never made celebration for such things in central hall. The BJP is doing publicity only in which they are master,&quot; Mallikarjun Kharge said.

Apart from the Congress, the Trinamool Congress (TMC), the Rashtriya Janata Dal (RJD), Samajwadi Party, the Left, and the DMK have also decided to boycott&nbsp;a special sitting of the two parliament chambers -- to be held by Prime Minister Narendra Modi when the tax takes effect at midnight on Friday.

Bihar Chief Minister Nitish Kumar will not attend the event. State minister Vijendra Yadav will represent the Janata Dal (United) on his behalf.

The GST, which rolls out at midnight today, will bring the Indian economy under a single tax bracket.&nbsp;

There have only been three previous midnight sittings in India&#39;s history, to mark India&#39;s independence in 1947 and the 25th and 50th anniversaries.&nbsp;

Congress said the nationalist government was &quot;insulting the very memory of India&#39;s freedom struggle and the sacrifices associated with it&quot;.

Rashtriya Janata Dal party spokesman Manoj Kumar Jha said the party would &quot;boycott this mega spectacle of optical illusion&quot;.

&quot;Though we have been in favour of GST, we believe there are pressing concerns, particularly among the small- and medium-level traders and manufacturing units, which remain unaddressed,&quot; he said.

The Nationalist Congress Party (NCP) on Friday backed the GST and questioned, why political parties were creating a fuss over its launch when they unanimously passed the tax reform in the Parliament. 
 
The GST is to be rolled out Saturday even as businesses complain they are ill-prepared for the massive changes about to ripple through India&#39;s unwieldy economy.

Watch WION&#39;s Kartikeya Sharma on GST rollout:&nbsp;

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&nbsp;

Union Information and Broadcasting Minister M Venkaiah Naidu urged the Congress Party to 'realise and rethink' their stand and join the government for the midnight Parliament session

The Centre on Friday questioned the Congress Party and the Trinamool Congress's (TMC) over its U-turn on the Goods and Service Tax (GST) and asked why they weren't supporting the government now when they backed the uniform tax regime in the Parliament. Opposition parties, led by the Congress, have dismissed the event as a "publicity gimmick". The exceptions are the Sharad Pawar-led Nationalist Congress Party and former PM HD Dewe Gowda's Janata Dal Secular, who have said they will attend the event, which will also be attended by celebrities including actor Amitabh Bachchan and industrialist Ratan Tata. India deserves a #GST rollout that does not put crores of its ordinary citizens, small businesses & traders through tremendous pain &anxiety — Office of RG (@OfficeOfRG) June 30, 2017 × "GST is the most important economic change after India's Independence. It is a historic day and after the rolling out of GST it will be easy to do business. Through this people will gain from the indirect benefits. In Lok Sabha and Rajya Sabha Congress and TMC supported this. They should support in even now," Minister of State for Finance and Corporate Affairs Arjun Ram Meghwal said. The minister was reiterating Finance Minister Arun Jaitley's statement yesterday that the GST had been formed with the consensus of the states and a consideration of their suggestions. Minister of State (Development Ministry) Jitendra Singh said GST would be a "gamechanger in India's economic road map for the future." "It is not a mere economic reform, but it is a game changer in India's economic road map for the future. But at the same time it is also going to be a new values addition to the character of India Republic. It is an occasion of celebration and rededicating ourselves to the service of nation by each and every citizen of India," he said. Earlier on Friday, Union Information and Broadcasting Minister M Venkaiah Naidu urged the Congress Party to "realise and rethink" their stand and join the government for the midnight Parliament session. "It's really unfortunate because they are distancing themselves from the process of reformation in the country. I hope they (Congress) realise by evening and re-think and join us in the Central Hall," Naidu said. "I still appeal to the Congress and other parties boycotting GST event to reconsider. It's not a party function," he added. The Congress Party yesterday said that it would boycott the midnight meeting on the GST roll-out, dismissing it as a publicity stunt. Congress leader Mallikarjun Kharge pointed out that previous governments had not celebrated landmark the passing of landmark reforms in Parliament including the Right to Information Act, the Food Security Act and the MNREGA. "We are boycotting this midnight celebration. In UPA government; Right to Information (RTI) Act, Food Security Act, MNREGA, Right to Education laws were passed which were beneficial for people. But, we never made celebration for such things in central hall. The BJP is doing publicity only in which they are master," Mallikarjun Kharge said. Apart from the Congress, the Trinamool Congress (TMC), the Rashtriya Janata Dal (RJD), Samajwadi Party, the Left, and the DMK have also decided to boycott a special sitting of the two parliament chambers -- to be held by Prime Minister Narendra Modi when the tax takes effect at midnight on Friday. Bihar Chief Minister Nitish Kumar will not attend the event. State minister Vijendra Yadav will represent the Janata Dal (United) on his behalf. The GST, which rolls out at midnight today, will bring the Indian economy under a single tax bracket. There have only been three previous midnight sittings in India's history, to mark India's independence in 1947 and the 25th and 50th anniversaries. Congress said the nationalist government was "insulting the very memory of India's freedom struggle and the sacrifices associated with it". Rashtriya Janata Dal party spokesman Manoj Kumar Jha said the party would "boycott this mega spectacle of optical illusion". "Though we have been in favour of GST, we believe there are pressing concerns, particularly among the small- and medium-level traders and manufacturing units, which remain unaddressed," he said. The Nationalist Congress Party (NCP) on Friday backed the GST and questioned, why political parties were creating a fuss over its launch when they unanimously passed the tax reform in the Parliament. The GST is to be rolled out Saturday even as businesses complain they are ill-prepared for the massive changes about to ripple through India's unwieldy economy. Watch WION's Kartikeya Sharma on GST rollout:

As midnight launch boycotts increase, government questions U-turn on GST

As the Goods and Services Tax (GST) becomes a reality in India after a long wait of 17 years, laptops and desktops are set to become costlier when the landmark tax reform comes into effect.&nbsp;

The GST council has kept laptops and desktops in the 18 per cent slab, compared to the current levy of 14-15%. However, products such as monitors and printers will be taxed at 28%.

Mobile phones, which fall in the 12 per cent&nbsp;slab, may get costlier by four to five per cent. Basic phone prices may increase while&nbsp;imported smart phones are likely to get cheaper.

Though taxes have been simplified with service tax, excise duty and VAT subsumed under a single tax bracket of 12 per cent, the domestic industry (Make in India) can be an area of concern.

To counter this, a 10 per cent differential customs duty may be levied on imported phones. A final decision in this regard is yet to be taken.

&quot;The prices of desktops or laptops are going to be fairly neutral. Currently India has an excise duty which is nearly 12% of the retail prices, 5% VAT and 2% central sales tax which applies on transaction between importer and distributor. The total tax comes to roughly about 17% on laptops and desktops, the government has made it 18%. However, taxes on the multi functional printer and monitor will go up to around 28% which is currently 24%.&quot; says Priyajit Ghosh, partner at KPMG, India.

Priya Suman owns two electronic stores in Nehru Place (Asia&#39;s second largest IT market). She explains, &quot;The fear in the mind is unknown because it is happening for 
the first time and the fact that some people anticipate that the prices might go up. It&#39;s lack of knowledge I would say, especially about products such as laptop and mobile phones.&quot;

These reforms will also provide a level playing field to online and offline retailers of products. Till now, the brick and mortar stores incur a lot of services and end up 
paying VAT and service tax which they couldn&#39;t cut off earlier.

Many consumers are participating in pre-GST sales as they believe the prices would go up after GST is rolled out in the country. &ldquo;I have not been able to understand the whole concept of GST so far, everybody explains it differently. However, most of the shops and online retaliers are claiming that they are providing upto 50% discount on laptops so I am here to buy one before July 1.&rdquo;

Indian industry is concerned that the inverted duty structure that made it cheaper to import than manufacture domestically may return post GST regime.

Clarity is awaited on GST in services and treatment of area-based exemptions. Clarity is also required on differential duty on imports and local manufacturing to see the full impact of GST.

&nbsp;

Computers will be taxed at 18% under GST. Peripherals such as monitors and printers will be taxed at 28%

As the Goods and Services Tax (GST) becomes a reality in India after a long wait of 17 years, laptops and desktops are set to become costlier when the landmark tax reform comes into effect. The GST council has kept laptops and desktops in the 18 per cent slab, compared to the current levy of 14-15%. However, products such as monitors and printers will be taxed at 28%. Mobile phones, which fall in the 12 per cent slab, may get costlier by four to five per cent. Basic phone prices may increase while imported smart phones are likely to get cheaper. Though taxes have been simplified with service tax, excise duty and VAT subsumed under a single tax bracket of 12 per cent, the domestic industry (Make in India) can be an area of concern. To counter this, a 10 per cent differential customs duty may be levied on imported phones. A final decision in this regard is yet to be taken. "The prices of desktops or laptops are going to be fairly neutral. Currently India has an excise duty which is nearly 12% of the retail prices, 5% VAT and 2% central sales tax which applies on transaction between importer and distributor. The total tax comes to roughly about 17% on laptops and desktops, the government has made it 18%. However, taxes on the multi functional printer and monitor will go up to around 28% which is currently 24%." says Priyajit Ghosh, partner at KPMG, India. Priya Suman owns two electronic stores in Nehru Place (Asia's second largest IT market). She explains, "The fear in the mind is unknown because it is happening for the first time and the fact that some people anticipate that the prices might go up. It's lack of knowledge I would say, especially about products such as laptop and mobile phones." These reforms will also provide a level playing field to online and offline retailers of products. Till now, the brick and mortar stores incur a lot of services and end up paying VAT and service tax which they couldn't cut off earlier. Many consumers are participating in pre-GST sales as they believe the prices would go up after GST is rolled out in the country. “I have not been able to understand the whole concept of GST so far, everybody explains it differently. However, most of the shops and online retaliers are claiming that they are providing upto 50% discount on laptops so I am here to buy one before July 1.” Indian industry is concerned that the inverted duty structure that made it cheaper to import than manufacture domestically may return post GST regime. Clarity is awaited on GST in services and treatment of area-based exemptions. Clarity is also required on differential duty on imports and local manufacturing to see the full impact of GST.

GST fall-out: Laptops, computers set to become costlier

India is bracing for upheaval as it storms ahead with its most ambitious reform in decades -- transforming the world&#39;s fastest growing major economy into a single market for the first time.

The long-awaited goods and services tax (GST) rolls out Saturday even as businesses complain they are ill-prepared for the massive changes about to ripple through India&#39;s unwieldy, $2 trillion economy.

The government promises the new regime will not just simplify trade by replacing more than a dozen levies with one tax, but combat corruption and enrichen state coffers by bringing the informal economy into the digital era.

Most economists agree the reform -- first proposed in 2006 -- is necessary and long overdue, but warn the initial shock to the economy is likely to drag, rather than stoke, growth in the short term as businesses adjust.

There are already signs the transition could be rocky.&nbsp;

Industries are on strike, others are facing an avalanche of paperwork, while some retailers remain unclear about what to charge just days before the taxes take effect.

&quot;There are different rates for a mobile set, charger and headphones -- all of which come in one box,&quot; said Praveen Khandelwal, secretary general of Confederation of All India Traders, pointing to one such example.

&quot;What tax rate will be applicable in such a scenario? We don&#39;t know yet.&quot;

It took more than a decade to get the GST through parliament and political bickering over the particulars now means there are four tax rates instead of one as originally envisioned.

A slew of basic staples like fresh vegetables and milk are exempted, along with less obvious items like temple offerings, the national flag and human hair.

So-called &quot;sin&quot; goods like tobacco will be slapped with extra levies, while states will still be allowed to separately tax some products including alcohol, petrol and aviation fuel.

Some industries have suddenly discovered their products elevated to a higher tax bracket.&nbsp;

Fireworks manufacturers are protesting over crackers being taxed at the maximum of 28 per cent, while garment and textile workers are crying foul over heightened imposts.

Ayushi Gudwani, who runs online fashion startup Fable Street, supports the creation of a common market but was shocked to learn her taxes had more than doubled.

&quot;Our profitability will be hit,&quot; she told told AFP.

Costs are also mounting at India&#39;s largest logistics firm Safexpress, which has hired 40 new staff to process a mountain of new paperwork.

Under the new regime, companies must file a tax return in every state they pass through -- a nightmare for a trucking company shipping goods nationwide. 
For Safexpress, that means instead of filing two annual tax returns they must submit 1,400, said managing director Rubal Jain.

&quot;It&#39;s going to be a lot of confusion and chaos and back and forth for the next three months, because no one knows what will happen,&quot; he told AFP.

&quot;It&#39;ll be great in the long run, but transition will be a pain.&quot;

All but the smallest businesses will now be required to declare their earnings online, an effort to broaden India&#39;s woefully small tax base, digitise the economy and flush out cash hoarders.

But training employers to log tax information online presents immense challenges in India, where most small and informal businesses don`t own computers, let alone access the internet, the trade association said.

Safexpress cannot file its own returns until drivers upload their monthly invoices -- a huge ask for truckers used to delivering goods, not paperwork, Jain said. 
Gudwani meanwhile worries her suppliers -- mostly tiny businesses -- will struggle to get the hang of issuing receipts and wind up losing contracts.

India has one of the lowest tax-to-GDP ratios in the world and these changes, though initially painful, will have a &quot;significant impact&quot; on compliance, said Neelkanth Mishra, managing director at Credit Suisse.

&quot;India is like a house under renovation. While the new parts are being built, no one will be happy,&quot; he told AFP.

The sweeping reforms comes less than a year after Prime Minister Narendra Modi devalued India`s largest banknotes in a sudden move designed to outmanoeuvre tax cheats, but was blamed for a crippling cash shortage and slowing growth.

To avoid a similarly rough landing, the government has trained 60,000 tax bureaucrats and run sessions with private accountants to ensure everyone is up to speed on the finer points of the GST.

A GST Council has spent months thrashing out the final legislation, which was blocked in parliament for a year until an amended version was approved. 
&quot;This is a tax reform that was needed,&quot; said Sunil Sinha, principal economist at Fitch India.

&quot;We came into existence as a nation in 1947 but never had a common Indian market. GST will make India one.&quot;

 
&nbsp;

Industries are on strike, others are facing an avalanche of paperwork, while some retailers remain unclear about what to charge just days before the Goods and Services Tax rolls out on July 1

India is bracing for upheaval as it storms ahead with its most ambitious reform in decades -- transforming the world's fastest growing major economy into a single market for the first time. The long-awaited goods and services tax (GST) rolls out Saturday even as businesses complain they are ill-prepared for the massive changes about to ripple through India's unwieldy, $2 trillion economy. The government promises the new regime will not just simplify trade by replacing more than a dozen levies with one tax, but combat corruption and enrichen state coffers by bringing the informal economy into the digital era. Most economists agree the reform -- first proposed in 2006 -- is necessary and long overdue, but warn the initial shock to the economy is likely to drag, rather than stoke, growth in the short term as businesses adjust. There are already signs the transition could be rocky. Industries are on strike, others are facing an avalanche of paperwork, while some retailers remain unclear about what to charge just days before the taxes take effect. "There are different rates for a mobile set, charger and headphones -- all of which come in one box," said Praveen Khandelwal, secretary general of Confederation of All India Traders, pointing to one such example. "What tax rate will be applicable in such a scenario? We don't know yet." It took more than a decade to get the GST through parliament and political bickering over the particulars now means there are four tax rates instead of one as originally envisioned. A slew of basic staples like fresh vegetables and milk are exempted, along with less obvious items like temple offerings, the national flag and human hair. So-called "sin" goods like tobacco will be slapped with extra levies, while states will still be allowed to separately tax some products including alcohol, petrol and aviation fuel. Some industries have suddenly discovered their products elevated to a higher tax bracket. Fireworks manufacturers are protesting over crackers being taxed at the maximum of 28 per cent, while garment and textile workers are crying foul over heightened imposts. Ayushi Gudwani, who runs online fashion startup Fable Street, supports the creation of a common market but was shocked to learn her taxes had more than doubled. "Our profitability will be hit," she told told AFP. Costs are also mounting at India's largest logistics firm Safexpress, which has hired 40 new staff to process a mountain of new paperwork. Under the new regime, companies must file a tax return in every state they pass through -- a nightmare for a trucking company shipping goods nationwide. For Safexpress, that means instead of filing two annual tax returns they must submit 1,400, said managing director Rubal Jain. "It's going to be a lot of confusion and chaos and back and forth for the next three months, because no one knows what will happen," he told AFP. "It'll be great in the long run, but transition will be a pain." All but the smallest businesses will now be required to declare their earnings online, an effort to broaden India's woefully small tax base, digitise the economy and flush out cash hoarders. But training employers to log tax information online presents immense challenges in India, where most small and informal businesses don`t own computers, let alone access the internet, the trade association said. Safexpress cannot file its own returns until drivers upload their monthly invoices -- a huge ask for truckers used to delivering goods, not paperwork, Jain said. Gudwani meanwhile worries her suppliers -- mostly tiny businesses -- will struggle to get the hang of issuing receipts and wind up losing contracts. India has one of the lowest tax-to-GDP ratios in the world and these changes, though initially painful, will have a "significant impact" on compliance, said Neelkanth Mishra, managing director at Credit Suisse. "India is like a house under renovation. While the new parts are being built, no one will be happy," he told AFP. The sweeping reforms comes less than a year after Prime Minister Narendra Modi devalued India`s largest banknotes in a sudden move designed to outmanoeuvre tax cheats, but was blamed for a crippling cash shortage and slowing growth. To avoid a similarly rough landing, the government has trained 60,000 tax bureaucrats and run sessions with private accountants to ensure everyone is up to speed on the finer points of the GST. A GST Council has spent months thrashing out the final legislation, which was blocked in parliament for a year until an amended version was approved. "This is a tax reform that was needed," said Sunil Sinha, principal economist at Fitch India. "We came into existence as a nation in 1947 but never had a common Indian market. GST will make India one."

Indian business braces for disruption ahead of GST

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