National Anti-profiteering Authority (NAA)

On November 16, 2017, the Union Cabinet approved for the creation of posts of Chairman and Technical Members of the National Anti-profiteering Authority (NAA) under GST. What is Profiteering? Profiteering refers to making unfair profits by whatever means including unethical and illegal means such as manipulating prices during shortage, calamities, disasters etc. and due to […]

What is the role of GST in India’ increased rank in Ease in doing business?

GST’s incorporation provides another significant leap in the doing-business rankings for India It is to be noted that the latest Ease of Doing Business report by the World Bank did not take into account the implementation of the Goods and Services Tax GST) from July 1. Although passage of the GST Bill was clearly a […]

Ease of Business Ranking- 2018

India has jumped in the World Bank’s “Ease of Doing Business” index from 146 in 2014 to 100 in October, 2017. What is Ease of Doing Business Index? This index developed by World Bank on the basis of 10 parameters or 10 sub-indices. These include: Starting a business– Procedures, time, cost and minimum capital to […]

Impact of GST on Agriculture & Farmers

GST is hailed as one of the most transformational reforms carried out in India since 1991. GST is perceived to have mixed impact on agriculture. Impact on input-side Fertilisers which were subjected to a 0% to 8% VAT will henceforth attract 12% tax under GST. This will increase the prices of fertilisers by 5% to […]

Current Challenges to Implementation of GST

Currently, challenges to implementation of GST are as follows: Enactment of Constitution amendment bill needs consensus among ruling and opposition parties because ruling party is in minority in Rajya Sabha. Setting up IT infrastructure and an enabled centralised agency to settle the IGST claims and work as a clearing house. To estimate and formulate a […]

Implications of GST on Indian Economy

Till now, introduction of Value Added Tax (VAT) at the state level and CENVAT at central level are considered to be largest indirect tax reforms in the country and GST is the next logical step towards making India a unified market. The biggest advantage of GST is economic unification of India. It has potential to […]

GST and Concept of Supply of Goods

Under GST, the definition of goods has been replaced with the “supply of goods”. Under the present indirect tax regime in India various central and state levies are triggered by distinct taxes like service tax provision of services, VAT on sale of goods and excise duty on manufacture of goods. The GST proposes to subsume […]

GST Council

The GST bill seeks to set up a GST Council. The GST Council aims to develop a harmonized national market of goods and services. According the GST Bill, the President must constitute a GST Council within sixty days of this Act coming into force. The composition of the GST Council includes: The Union Finance Minister […]

Goods and Service Tax Network

A robust IT infrastructure is prerequisite to successful implementation of GST. The current status is as follows: For central taxes, the IT infrastructure is managed by the NIC and all the returns are filed through the ACES site. For states, the tax infrastructure is managed by the tax departments of respective states. There is a […]

GST and Revenue Neutral Rate

Because GST removes the problem of tax on tax and cascading effect of various taxes; and because GST is a value added tax, it is expected that tax collection would fall when it comes into effect. This implies that government tax revenue will come down when India moves to the GST regime. If the government […]