On the first of April, several countries will implement new changes. These include tax reform in India, a visa fee hike in the US, and the legalisation of cannabis possession in Germany.

On the first of April, several countries will implement new changes. These include tax reform in India, a visa fee hike in the US, and the legalisation of cannabis possession in Germany. Here's a brief overview to help you keep track of all these new changes. India tax reform India on April 1 is set to change income tax rules with the new income tax law setting in as the default tax regime. However, Taxpayers will still be able to choose from the prior regime. This move intends to make the tax filing process simple alongside encouraging more people to apply for this regime. Earlier in February Finance Minister Nirmala Sitharaman announced this during her budget speech. The tax rebate limit will now be increased to ₹7 lakh from erstwhile ₹5 lakh. Moreover, investments in debt mutual funds will now be taxed as short-term capital gains depriving investors of the long-term tax benefits that they used to enjoy previously. Besides this, if physical gold is converted to an Electronic Gold Receipt (EGR) and vice versa there will not be any capital gain tax. For senior citizen savings schemes, the maximum deposit limit will be increased to ₹30 lakhs from ₹15 lakhs. The maximum deposit limit for the monthly income scheme will be increased to ₹9 lakhs from 4.5 lakhs for single accounts and ₹15 lakhs from ₹7.5 lakhs for joint accounts. US visa fee hike People applying for non-immigrant US visas like H-1B, L-1, and EB-5 will experience a major fee hike from April 1. The changes come ahead of the presidential election potentially impacting immigration policies and international relations. The H-1B visa application fee (form I-129) has increased from USD 460 (over ₹38,000) to USD 780 (over ₹64,000). H-1B registration fees would rise from USD 10 (₹829) to USD 215 (nearly ₹17,000) beginning next year. The fee for L-1 visas has been increased from USD 460 (over ₹38,000) to USD 1,385 (over ₹1,10,000). The L-1 visa is a non-immigrant visa category in the US that allows multinational companies to transfer certain employees from their foreign offices to work in the US temporarily. The fee for EB-5 visa also known as investors visa has jumped from USD 3,675 (over ₹3,00,000) to USD 11,160 (over ₹9,00,000). Through the EB-5 program, high-net-worth foreign investors can obtain a US visa by investing at least USD 5,00,000 in a US business that helps create 10 jobs for American workers. Germany cannabis legalisation Germany has joined the list of countries establishing legal adult access to cannabis for recreational use. Last week the country passed the bill legalising cannabis usage for leisure purposes by legal adults. It was passed with a huge majority in the lower house. With this development, over half a billion people will have access to cannabis for recreational use. The new law is coming into force on April 1. People can keep up to 25g of cannabis for personal use and up to 50g at home under the provisions of the law. Moreover, it will also allow requests to remove criminal records for past possession offenses. Alongside this, the law legalises home growing of up to three cannabis plants for personal use, and establishes a regulatory framework for not-for-profit associations within which cannabis can be grown and supplied to members.

India tax reform, US visa fee hike, Germany cannabis legalisation: All new changes happening from April 1

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

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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India tax reform, US visa fee hike, Germany cannabis legalisation: All new changes happening from April 1

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

Indian business braces for disruption ahead of GST