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Lower price hikes, coupled with market share gains from unorganised entities, would be key positives The Goods and Services Tax (GST) Council’s decision to lower rates on 66 items brought cheer to a host of companies in the jewellery, cinema and pharmaceutical sectors. Take jewellery companies. While a lower-than-expected rate of three per cent on gold was a positive, the earlier decision was to have 18 per cent (from two three per cent) on making jewellery from plain gold. This would have meant price increases by jewellery makers, which could have impacted their volume. Importantly, this would have further widened the price differential between jewellery sold by organised entities like Titan, PC Jeweller and TBZ, and their counterparts in the unorganised sector. With this rate now down to five per cent, the organised sector entities can take calibrated price hikes and still gain market share from the others, who will see elevated compliance-related costs with GST implementation. M

Days ahead of the July 1 goods and services tax (GST) rollout, rumours of a postponement of the uniform indirect tax have started doing the rounds.However, the government has denied any such move at the moment.Government officials as well as those with GST Network (GSTN) were inundated by phone calls from the industry and traders, all wanting to confirm the speculation."Since morning I have received at least 10 calls asking if the GST is being deferred.There is absolutely no such thought process in the government as of today.July 1 is the rollout date" said a government official involved with the GST´s implementation.Apparently, it all started with a Whats App forward that suggested an internal study of the government had found preparations for the GST rollout were still incomplete.Representatives of a few GST Suvidha Providers were seen calling up officials to know the authenticity of these rumours. Suvidha Providers are the ones which help businesses comply with the GST

Jaitley also says states offering farm loan waivers will have to generate funds from their own resources Union Finance Minister Arun Jaitley said on Monday that the Reserve Bank of India (RBI) was at “a fairly advanced stage” of preparing a list of borrowers from whom non-performing assets (NPAs) of public sector banks could be recovered under the Insolvency and Bankruptcy Code. The move, he said, would help be leaguered public sector banks (PSBs) recover part of their NPAs, estimated at over Rs 6 lakh crore. Jaitley´s remarks came after he,along with RBI and finance ministry officials, held a meeting with the heads of PSBs and took stock of problems affecting the lenders. “Under the new Ordinance issued, the RBI is atafairly advanced stage of preparing a list of those debtors where a resolution is required through the Insolvency and Bankruptcy Code (IBC) process.You will be shortly hearing about it,” he said. The Centre issued an Ordinance last month by amending the Banking Regula

Good Afternoon Everyone Have a good day to all of you Daily Update 12-June-2017 Economic Times • Airtel, Vodafone and Idea report sharp fall in AGR • Republic's viewership falls after TRAI's intervention • Karnataka discoms barred from buying more wind power • Quick installation, discounts boost large appliances' online sales • India finds factual errors in World Bank’s ease of business report Business Standard • French open 2017: Rafael Nadal outclasses Wawrinka to win 'La Decima' • Sikhs in US are not feeling safe, raise it with Trump: Amarinder to Swaraj • Jayalalithaa's split legacy leaves the field open in Tamil Nadu • Global warming will increase rainfall in Earth's tropical regions: NASA Mint • GST Council reduces tax rates on 66 items - Tax body also widens scope of concessional scheme for small businesses • Sebi board to consider cutting IPO listing time to four days • Petrol pump owners threaten to stop purchasing f

Experts check out whether the easing of rules will reduce transfer pricing litigation Too many riders for low value adding services The much awaited amendment to the Safe Harbour Rules (aprovision in a law or regulation that offers protection from liability or penalty under specific situations or if certain conditions are met) provides an avenue for taxpayers with lower thresholds of related party transactions pertaining to IT, ITeS, BPO/KPO/Contract R&D services, etc to pay taxes on a presumptive basis. While there could still be issues around the classification of a particular service inaparticular basket, the safe harbour margins are more or less in line with the expectations of industry.The APA programme also offers margins in a similar range. Therefore, from a dispute resolution stand point smaller tax payers can now go towards the safe harbour regime, rather than lining up in the APA programme. Further, low value adding services have also now been included in the safe har

Traders and businesses can opt for verification of their GST registration via emode, including a onetime password on their registered mobile number.This is in addition to the option of using banking channel or everification code, for everification of enrolment.The move comes after traders complained of facing problems in verifying their GST enrolment via digital signature for companies and Aadhaar for traders. Business Standard New Delhi, 12th June 2017

Micro, small and medium enterprises (MSMEs) will now be able file GST related grievances online, with the government putting in place a monitoring mechanism in this regard.The units can put forth their suggestions, complaints and seek guidance or information pertaining to the new indirect tax regime using the Internet Grievance Monitoring Mechanism established by the MSME ministry.The facility can be availed by MSMEs as well as their employees, associations, prospective entrepreneurs, individuals and others.The Internet Grievance Monitoring Mechanism is expected to smoothen the implementation of GST by MSME units, as the issues flagged by them using the online forum will be taken up by the government for redressal. Business Standard New Delhi, 12th June 2017