Skip to main content

States divided on GST threshold

By
Chairman to be selected at next meet
The proposed national goods and services tax ( GST) continues to face obstacles, as seen on Friday, barely a week before Parliament is to begin its winter session where the constitutional amendment to enable it is to come up. At a meeting of the empowered committee of state finance ministers ( EC) on the tax, there were clear divisions on the threshold above which a GST should apply.
A committee chaired by the governments chief economic advisor, Arvind Subramanian, is to soon give its recommendation on the GST rate. The finance ministry has said a high rate would be counter- productive.
At the EC meeting, many felt the rate could be fixed at 18 per cent. Some such as Punjab, Chhattisgarh and Delhi were agreeable to the Union government proposal for the threshold at Rs.25 lakh annual turnover of a company; others wanted Rs.10 lakh. " There was divided opinion," Delhis deputy chief minister and finance minister, Manish Sisodia, told reporters after the meeting.
He was elected chairman for the day -- K M Mani, the chairman till now, has resigned as finance minister of Kerala over corruption charges.
Sisodia said Finance Minister Arun Jaitley would select the next chairman at the next meeting, expected next month. Sisodia decided asub- committee should be formed to have enough data on threshold levels, so that a decision could be based on facts, not " states prejudices". The sub- panel is expected to give its report before the next EC meeting.
Punjab finance minister P SDhindsa said those favouring Rs.25 lakh of turnover argued that the cost of administration would go up if lowered to Rs.10 lakh. While 60 per cent more assessees would come under the net, revenues would go up by only four to eight per cent. He said there was also no unanimity over a threshold for a composite GST. Punjab wanted it at Rs.75 lakh a year but many want it at Rs.25 lakh.
Later, economic affairs secretary Shaktikanta Das said a high GST rate would be counter- productive. Sisodia said simple rules and administration was more important than just low rates. A sub- panel of the EC had earlier suggested close to a 27 per cent GST rate. This was referred to the National Institute of Public Finance and Policy. Later, the Subramanian panel was formed. Fixing the rate is actually for the proposed GST Council, to be set up once the Constitutional amendment is passed. The government is much short of the needed votes in the Rajya Sabha.
Asked whether a GST would be implemented from the coming April, when the next financial year begins, Sisodia evaded a direct reply. "It is hard for me to say when the bill is yet to be cleared by Parliament," he said."
Business Standard, New Delhi, 21st Nov. 2015

Comments

Post a Comment

Popular posts from this blog

Credit card spending growth declines on RBI gaze, stress build-up

By
  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the...
Post a Comment
Read more

SFBs should be vigilant, proactive to mitigate risks: RBI deputy guv

By
  The Reserve Bank of India’s Deputy Governor Swaminathan J on Friday instructed the directors of small finance banks (SFBs) to be vigilant and proactive in identifying emerging risks in the sector.Speaking at a conference for directors on the boards of SFBs, Swaminathan highlighted the role of governance in guiding SFBs towards sustainable growth with stability. He also emphasised the importance of sustainable business models.Additionally, he highlighted the need for strengthening cybersecurity to protect the entities against digital threats and urged for a stronger focus on financial inclusion, customer service, and grievance redressal to ensure a broader reach of banking services.Executive Directors S C Murmu, Rohit Jain, and R L K Rao, along with other senior officials representing the Supervision, Regulation, and Enforcement Departments of the RBI, also participated in the conference.   -  Business Standard  30 th  September, 2024
Post a Comment
Read more

Brigade Hotel Ventures files draft papers with Sebi for Rs 900 crore IPO

By
  Brigade Hotel Ventures Ltd, owner and developer of hotels in South India, has filed draft papers with capital markets regulator Sebi to raise Rs 900 crore through an initial public offering (IPO).The proposed IPO is entirely a fresh issue of equity shares with no Offer-for-Sale (OFS) component, according to the draft red herring prospectus (DRHP).Proceeds from the issue to the tune of Rs 481 crore will go towards payment of debt, Rs 412 crore will be allocated to the company and Rs 69 crore to its material subsidiary, SRP Prosperita Hotel Ventures Ltd.Additionally, Rs 107.52 crore will be used to purchase an undivided share of land from the Promoter, BEL, and the remaining funds will support acquisitions, other strategic initiatives, and general corporate purposes.The company may raise up to Rs 180 crore through a Pre-IPO Placement.   If the placement is undertaken, the issue size will be reduced.Brigade Hotel Ventures Ltd is a wholly-owned subsidiary of Brigade Enterprises ...
Post a Comment
Read more