Government reforms could benefit consumer durables firms in 2016
The new year could bring good tidings for companies making consumer durables if GST and the recommendations of the seventh pay commission are implemented. "The focus should be on demand generation. The cost of goods is not commensurate with income levels. GST could change that. In addition, supply chain and distribution mechanisms will have to evolve to improve operational inefficiencies. This, in turn, will impact pricing," said Manish Sharma, managing director of Panasonic India and South Asia and Consumer Electronics and Appliances Manufacturers Association.
Source: Business Standard dated 11 January 2016
Naidu positive of GST passage in Budget session
On M Venkaiah Naidu’s recent meeting with Congress chief Sonia Gandhi, he said, "We sought the Congress support to pass the GST Bill in the interest of the nation but not on political grounds. I clarified to Sonia Gandhi that the government has already incorporated a provision to cap the peak GST rate," he said. He also claimed that this was something the UPA's GST Bill did not have.
Source: The Times of India dated 10 January 2016
FM attacks Congress for stalling GST, says last laugh will be the best
Finance Minister Arun Jaitley attacked the Congress for the stalemate in Parliament, saying some people are getting "sadistic pleasure" by not allowing the GST Bill to be passed but it would eventually get through and the "last laugh would be the best”. The Constitutional Amendment Bill to roll out the GST is stuck in the Rajya Sabha because of the stiff opposition by the Congress party though several regional parties, including the JDU, RJD and BJD, were in favour of the new indirect tax regime.
Source: Business Standard dated 9 January 2016
Budget 2016: Healthcare sector demands exemption from GST
An apex body of the healthcare sector urged the government to exempt healthcare services from GST, increase the tax exemption on preventive health check-ups and set up healthcare infrastructure medical innovation funds. In its pre-budget recommendations, the Healthcare Federation of India said the exemption from GST will help in achieving the goal of universal healthcare coverage.
Source: The Economic Times dated 8 January 2016
Government says accepts Congress demands on GST Bill
The NDA government said it has agreed to accept demands set by the Congress party to back the GST Bill, a landmark tax reform, raising hopes that a political standoff blocking the measure throughout last year might be resolved. Parliamentary Affairs Minister Venkaiah Naidu also said the government was willing to bring forward the next Parliament session to pass the proposed GST if the Congress supports the measure.
Source: Business Standard dated 7 January 2016
Did you know?
As per the 122nd Constitutional Amendment Bill (GST Bill), the GST council could provide individual liberty to every state for ascertaining their own State GST (SGST) rate within a specified rate band but only above a specific floor rate for GST. Thus, every state could get the power to change its rate within the band limit provided by the GST council.