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SKP GST News
15 December 2015
Jaitley fears winter session washout
Finance Minister Arun Jaitley put on record what most already suspect — the winter session of Parliament, just like the preceding monsoon session, is threatened with a washout and is unlikely to pass the GST Bill. Both Jaitley and Parliamentary Affairs Minister M Venkaiah Naidu criticised the Congress for “inventing some excuse or another” to disrupt the Rajya Sabha.

Source: Business Standard dated 15 December 2015


Importers' profits to rise: Government to plug GST loophole that may hit 'Make in India'
The government is said to be devising a strategy to close off a loophole in the proposed GST that could hurt its Make in India initiative to turn the country into a manufacturing hub. Profit margins on imported goods are set to rise as GST would allow a larger share of input credit to importers compared to the current regulations.

Source: Economic Times dated 14 December 2015


Industry, traders to press politicos on early GST rollout
Traders and industry bodies, including the Federation of Indian Chambers of Commerce and Industry (FICCI), will come out with a joint campaign to appeal to the political fraternity for the safe and early passage of the GST Bill in Parliament, traders' body CAIT said. The Confederation of All India Traders (CAIT) and industry bodies such as FICCI, CII, Assocham and the 
PHD Chamber have joined hands for the first time to launch the campaign by holding a GST conference on 16 December in New Delhi which will be addressed by Finance Minister Arun Jaitley.

Source: Economic Times dated 13 December 2015


FM agrees to Chidambaram's demand on dispute resolution, rules out GST rate in Bill
Finance Minister Arun Jaitley said that the government has walked the extra mile to bring the Congress on board for the GST. He, however, ruled out incorporating GST rates in the Constitution Amendment Bill as sought by the opposition party. The Finance Minister also voiced concurrence with his predecessor's demand for a dispute redressal forum.

Source: Business Standard dated 12 December 2015

Sin tax: Coke says no option but to shut some plants
Makers of carbonated beverages are raising their pitch against the 40 percent GST proposed by Chief Economic Advisor Arvind Subramanian. They have said that imposing the tax would hurt the INR 150 billion industry. "It will lead to a sharp decline in consumer purchase, and for a demand-driven industry, it will mean a significant rationalisation of manufacturing capacity. In these circumstances, we will have no option but to consider shutting down certain factories," Coca-Cola India, which has 57 plants and factories in the country, said in a statement.

Source: Business Standard dated 12 December 2015

Did you know?
On 4 December 2015, a committee headed by Chief Economic Adviser Dr. Arvind Subramanian submitted the Revenue Neutral Rate (RNR) report to Finance Minister Arun Jaitley. The said committee recommended
an RNR of 15–15.5% and suggested a standard rate in the range of 16.9% to 18.9%. The following table summarises the RNR and the rate structure in both preferred and alternative scenarios as:
Summary of Recommended Rate Options (in percent)
  RNR Rate on precious metals "Low" rate (goods) "Standard" rate
(goods and services)
"High/Demerit" rate or Non-GST excise (goods)
Preferred
 
 
15
 
 
6 12 16.9 40
 
4 17.3
2 17.7
Alternative
 
 
15.5
 
 
6 12 18.0 40
 
4 18.4
2 18.9
Source: Committee’s calculations
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