GST passage crucial to monsoon session success
The government is increasingly confident of the support of Tamil Nadu Chief Minister J Jayalalithaa-led All India Anna Dravida Munnetra Kazhagam (AIADMK) on the GST constitution amendment and the quid pro quo is likely to be in the shape of central assistance to the state government to help out with Tamil Nadu’s mounting power dues. The government is sure of the arithmetic in favour of the key reform legislation, hopeful that the AIADMK would not align forces with the Congress to oppose the GST Bill during the monsoon session of Parliament.
Source: Business Standard dated 30 June 2016
Kerala backs out of GST commitment, says Mitra
Kerala has backed out of its commitment to support the GST Bill said Chairman of the Empowered Committee of State Finance Ministers Amit Mitra. "Finance Minister of Kerala Thomas Issac had supported the bill in the recent meeting held in the city, but now they said they were trying to arrive at a consensus," said Mitra who is also West Bengal's Finance Minister during the State Assembly.
Source: Moneycontrol dated 28 June 2016
GST may stifle innovation in the e-commerce space: IAMAI
The GST Bill creates unnecessary confusion for e-commerce companies as it is boxing them in poorly-defined categories, said the Internet and Mobile Association of India (IAMAI) on 29 June 2016, the industry lobby group which represents companies like Flipkart, Snapdeal and Amazon. "The GST Bill gives due recognition to the e-commerce sector and helps resolve a long-standing challenge for the sector by clarifying that the first point of transaction will be the point of taxation," IAMAI said in a statement. "However, the chapter on e-commerce has some definitional problems that can lead to unnecessary confusion." This can have a detrimental impact on innovation in the e-commerce space.
Source: Business Standard dated 29 June 2016
GST will improve tax-to-GDP ratio: Subramanian
Chief Economic Adviser Arvind Subramanian has said that GST will help improve the tax-to-GDP ratio in the country while giving buoyancy to the government's tax collection efforts. He also termed the proposed tax system - along with strategic disinvestment and twin balance sheets - as the government's major pending agenda. Speaking at an international conference on Social Statistics in India, organised by the Asian Development Research Institute (ADRI) as part of their silver jubilee celebrations in Patna, Subramanian said, "We need to catch up on the tax-to-GDP front. I sincerely hope that GST would give some buoyancy to it."
Source: Business Standard dated 26 June 2016
GST coming in 6-8 months, J&K must participate: State FM
Predicting that the GST regime would come in 6-8 months, the Jammu and Kashmir government expressed its willingness to join it but said the state would have to protect its constitutional position which allows it to tax services in the state. Finance Minister Haseeb Drabu, who was speaking at the Legislative Council in the context of new industrial policy said, "..after 6-8 months, GST is coming" and the state will benefit greatly from it. "We must participate, but we shall do so protecting our constitutional position, especially the State Assets Act 1962 which gives us the power to tax services," Drabu said.
Source: Moneycontrol dated 24 June 2016
Did you know?
As per the recently released Model GST Law, a new tax collection concept has been introduced for e-commerce companies (i.e. Flipkart, Amazon, etc.) wherein these e-commerce portals will have to directly collect and deposit tax at source with the government and pass on the credit of the same to the ultimate seller (i.e. WS Retail) later on.