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The Goods and Services Tax (GST) will be launched on July 1 and will subsume a host of indirect levies like excise, service tax and VAT. Finance Minister Arun Jaitley today said people may have to face some difficulty initially as the GST is rolled out but in the long run the new indirect tax regime would help cut tax evasion and check price rise. He also said the GST Council will look at bringing real estate within the GST net by next year and revisit taxing of petroleum products under the new regime in 1-2 years. "To begin with, people could face some difficulties because any change over has its own problems. But it will settle down and the country will benefit from the new indirect tax regime," Jaitley said at an event organised by ABP News. The Goods and Services Tax (GST) will be launched on July 1 and will subsume a host of indirect levies like excise, service tax and VAT.While products like kerosene, naphtha and LPG will be under the ambit of GST, five items - cr

BSE 500 companies with high debt Switch to new standard may increase debts on books of infra & realty firms, leading banks to further trim loan exposure. The adoption of the new Indian Accounting Standards (IndAS) might compel banks to cut down on the quantum of loans they dole out to companies. IndAS will result in a change in the debt-to-equity ratios of companies as capital structures and financial instruments get reclassified, increasing debts and compelling banks to reassess the way they lend to companies, particularly in sectors such as power, infrastructure and real estate. “Banks and financial institutions will have to consider how IndAS has potentially changed the balance sheets of companies and relook at the way they review a loan application, test loan covenants and evaluate restructuring proposals,” said Ashish Gupta, director, Grant Thornton Advisory. According to Sai Venkateshwaran, partner and head-accounting advisory services at KPMG India, several companies in

The Supreme Court on Tuesday refused to pass an interim order against the Centre’s notification making Aadhaar mandatory for availing of benefits under social welfare schemes, with the government assuring the court that no citizen would be deprived of such benefits for want of the unique identity number. The earlier deadline of June 30 has been extended till September 30 for those who want to apply for Aadhaar. The SC observed that no interim order could be passed merely on the “apprehension” raised by the petitioners that somebody might be deprived of benefits. The Supreme Court on Tuesday refused to pass an interim order against the Centre’s notification making Aadhaar mandatory for availing benefits under social welfare schemes, with the government assuring the court that no citizen would be deprived of such benefits for want of the unique identity number.The earlier deadline of June 30 has been extended till September 30 for those who want to apply for Aadhaar. The apex court o

Sarvesh Kadiyan, a small-time textile manufacturer in the dusty industrial complex of Panipat, had an animated conversation with a chartered accountant (CA) last week. Kadiyan was looking for clarity on the goods and services tax (GST) set to roll out on July 1. The CA told the businessman to “wait till someone penalises you for non-payment of GST”. For a majority of the 1,500 odd manufacturing units in the area, finding the right guidance seems to be quite a task.“It was funny; my CA told me he does not know much. According to him, as the roll-out begins on July 1, a lot many people who are equally unaware would start getting fined by taxation authorities for non-compliance,’’ Kadiyan said. Once penalties are imposed, one would get clarity on what is allowed or not allowed in the new tax regime, he added. Panipat is the biggest centre for shoddy yarn in the world. Anything and everything related to textile is manufactured in this city, a base for the Rs 40,000-crore industry inclu

GST Network, the company providing the technology backbone for the new indirect tax regime, on Tuesday said it had completed all software trials and testings necessary to successfully roll-out GST from July 1. Over 6.6 million tax payers had enrolled on the GSTN portal, Chairman Navin Kumar said.“GSTIT system has undergone all mandatory tests and has been opened for new registrations and enrolments on June 25. Business Standard New Delhi, 28th June 2017

Regulator takes pre-emptive action for 761 essential medicines The goods and services tax (GST) is unlikely to be a very bitter pill for the pharmaceutical industry, which feared a substantial rise in drug prices under the new indirect tax regime. While around 80 per cent drugs were put in the 12 per cent GST bracket (up from the current 9 per cent slab), implying a sharp rise in prices, the National Pharmaceutical Pricing Authority (NPPA) has stepped in to keep medicines affordable after the GST roll-out on July 1. The pharma pricing regulator has notified the revised ceiling prices of 761 drugs which are part of the Schedule 1 of the Drug Price Control Order (DPCO) 2013. According to the revised list issued by the NPPA, prices of most drugs have come down. With this regulatory move, the price increase after the GST roll-out would be marginal as the base price has been lowered. Even as price revision is a continuous process, the latest order may serve to cool the nerves of the pha

Investors are willing to bear GST pain for long-term gains With introduction of the goods and services tax (GST) Bill round the corner, a levy that will have an impact on how the economy and corporate earnings shape up over the next few quarters, MAHESH NANDURKAR, executive director and India Strategist at CLSA,  What is your market outlook? One can easily expect around 10 per cent return from the markets over the next year. Though this might not appear very high in context of the over 20 per cent return we have seen in the last six months alone, one should not hope for a repeat of such super-normal returns. As we are in a relatively low-risk rate of return environment, we need to tone down our expectations as well. The current valuations will sustain and I don’t advise investors to sell just yet, though the market looks expensive. How will GST impact the economy and corporate earnings? The June quarter numbers will see an elevated impact. What we hear and understand