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Says input credit benefit not enough to fully compensate higher tax The cellular operators have approached the government for a reduction in the 18% GST rate, saying the benefit of input credit is not enough to fully compensate the higher tax incidence in the new regime. The telcos under industry body Cellular Operators Association of India (COAI) have emphasised that reduction in Goods and Services Tax or GST rate is important given that the industry is already suffering from “poor financial health.“ “...We request that the applicable GST rate for the telecom industry, which is already suffering from poor financial health, is reduced, so as not to increase the burden from the current levels,“ COAI has said in a letter to the Revenue Secretary. The letter comes just days before the meeting of the GST Council on June 11, in which the Centre and states will review demands by industries of lowering the proposed tax rates on certain goods and services. The finance ministry has already

Prime Minister Narendra Modi Monday reviewed the preparations for the roll-out of the goods and services tax regime from 1 July and said it will be “a turning point” in the country’s economy. Describing it as an “unprecedented” moment in the country’s history, he said the creation of the one-nation, one-market and one-tax system would greatly benefit the common man. Mint New Delhi,06th June 2017

The proposed tax structure for footwear under the goods and services tax (GST) has manufacturers unhappy.While the 18 per cent tax bracket for footwear priced over Rs 500 could lead to an increase in product prices, the ´dual taxation´ structure will add to their woes, as pricing will get more complex, they say. GST, many fear, could hit growth prospects of the Rs 30,000 crore domestic industry, already under margin pressure. Signs of worry began to appear soon after the Council announced on Saturday that footwear priced below Rs 500 would be taxed at 5 per cent and the rest at 18 per cent. Dual taxation has left “scope for distortion” for organised players, says Adesh Gupta, chairman of the Council for Footwear, Leather and Accessories (CFLA) and chief executive officer of Liberty Shoes.“A dual tax structure usually creates confusion and increases complexity. Also, we were expecting a 12 per cent tax rate at most.While we are still assessing the impact, additional burden will even

Clearing the air on audit of the firm providing the information technology(IT) backbone for the goods and service tax (GST), Finance Minister Arun Jaitley (pictured) on Monday said the Comptroller and Auditor General of India will audit the goods and services tax network (GSTN). In are buff of party colleague Subramanian Swamy, he defended the equity structure of the GSTN, saying he did not find any thing wrong in the government holding 49 percents take in the company. Swamy has repeatedly questioned the share holding pattern in the GSTN, terming it “a shady organisation” and was a“grave security” issue. Business Standard New Delhi, 06th June 2017

Universal minimum wage for all industries and workers, including those getting monthly pay higher than Rs 18,000, would soon be a reality, according to senior officials. The proposed code on wages providing for these “proworker provisions” is likely to be placed before the Cabinet this month for approval, so that it could be pushed for passage in the forth coming monsoon session of Parliament, they said.“The ministerial panel on labour issues headed by Finance Minister Arun Jaitley has already approved the code on wages. It has already been sent to the law ministry for vetting after which it would be placed before the Cabinet for approval,”a source said. The labour ministry is keen to push the Bill for passage in the next session of Parliament expected to begin next month. The Wage Code Bill seeks to empower the Centre to set a minimum wage across all sectors and states will have to maintain that. However, states will be able to provide for higher minimum wage in their jurisdiction

Daily Update 06-June-2017 Economic Times • Tata AutoComp systems eyes more foreign acquisitions in quest to expand • Bharti Airtel in talks with Google for WiFi hotspots • Adani power urges Gujarat government to bail out Mundra power plant • AAP to launch agitation for farmers' cause this week • 'India First' policy shuts China bidders out of Gail pipeline projects worth Rs 3,000 cr Business Standard • Modi expresses satisfaction at readiness for July 1 implementation • ICICI Bank, Fairfax to shed stake in ICICI Lombard via IPO • RBI will take 'lot of time' to count old note deposits, says Arun Jaitley • CBI raids home of NDTV's Prannoy Roy for 2008 deals with ICICI Bank • Japan arrests 14-year-old for creating ransomware similar to WannaCry Mint • Isro scripts history with GSLV Mark III launch - Launch of India’s heaviest rocket will reduce Isro’s dependence on foreign space agencies • Grasim-Nuvo merger gets NCLT clea

India on Saturday finalised some pending rules and finalised the goods and services tax (GST) rates for items such as gold, packaged foods, biscuits, foot wear and solar panels, paving the way for the country’s biggest tax reform from July 1. The GST Council has tried to keep the tax rates lower for most items as the Narendra Modi government wants to keep a lid on inflation and nurture economic growth that has slipped to 7.1% in 2016-17 from 8% a year ago. The GST Council will meet on again June 11 to complete all the processes required for smooth roll-out of the new regime that will have four slabs of 5%, 12%, 18% and 28%, with an aim to unify the nation into a single market. Union finance minister Arun Jaitley said the rate for packaged food has been fixed at 5% and biscuits at 18%. Gold will be taxed at 3% as against the current tax incidence of 2-6% varying across states while it will be 0.25% for rough diamonds, said Jaitley after a meeting of the GST Council. “Gold, which cur