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July 1 date with GST looks set as council clears all bills

The council, which met in the national capital, approved the state GST (SGST) and the union territory GST (UTGST) bills.

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NEW DELHI: The GST Council on Thursday paved the way for rolling out the new tax regime from July, clearing all legislations required for one of the most ambitious reform measures since Independence.

The council, which met in the national capital, approved the state GST (SGST) and the union territory GST (UTGST) bills.

The bills will now have to be cleared by Parliament and state assemblies. “We will try and do that expeditiously,” finance minister Arun Jaitley said after Thursday’s meeting of the council, which has representatives from all states. Delhi deputy CM Manish Sisodia said a July rollout now looked feasible.
The GST Council has approved rules and regulations on registration, payments, refund, invoice and returns, but these may require minor corrections, Jaitley said. The council will meet again on March 31 to approve regulations on composition, valuation, input tax credit and transitions.

Plan to take up fitment of slabs after Mar 31: FM

The government is expected to seek cabinet approval for the central GST (CGST), integrated GST (IGST), UTGST and compensation bills next week and hopes to get it approved by Parliament in the ongoing Budget session. State cabinets will examine the SGST bill and seek approval of the respective assemblies.
Once the rules and regulations are approved by the council, the most crucial issue of assigning tax slabs to various commodities would be up for approval. “Once that is done, we will be ready for GST implementation We intend to immediately after March 31…take up the exercise of fitment of slabs,” Arun Jaitley said. “We will have a sufficient buffer in terms of time between the entire preparatory exercise and July 1 date fixed for implementation,” he said, adding that the progress was in the “right direction”.

GST has been identified as a top reform priority by the Modi government and its implementation, after having missed several deadlines, is expected to add to the government’s reform credentials and help raise the country’s attractiveness for foreign investors while cleaning up the messy indirect tax structure. GST has been in the works for over a decade but a consensus had eluded the Centre and the states.
“Now everything is in place,” J&K finance minister Haseeb Drabu said on Thursday.

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Tata, GE comes together to manufacture jet engine components

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Mumbai, Dec 14: Industrial conglomerates GE and the Tata Group have joined hands to manufacture “CFM International LEAP” engine components in India, for the global supply chain, a company statement said here on Thursday.

As per the statement, the two firms also evinced their intention to jointly pursue military engine and aircraft system opportunities for the Indian market, news agency IANS reported.

“We look forward to working with GE to build more expertise and strengthen India’s defence manufacturing capabilities,” stated N. Chandrasekaran, Chairman of Tata Sons.

“Tata group’s partnership with GE will help drive synergies in defence manufacturing and focus on innovation to support our armed forces,” he further added.

The strategic partnership indicates GE Aviation and Tata Sons’ subsidiary, Tata Advanced Systems Limited (TASL), in a bid to join forces for “manufacturing, assembling, integration and testing of aircraft components” IANS reported.

Adding to this, a new Centre of Excellence (COE) will be built to develop a robust ecosystem for aircraft engine manufacturing in India and establish related capabilities.

“Tata Group is a leader in the Indian defence and aerospace sector, and we look forward to working together to meet the growing demand for LEAP engines. Our collaboration in building innovative technologies will support the ‘Make in India’ vision of the Indian government,” said John L. Flannery, Chairman and CEO of GE.

The “LEAP” is one of the world’s leading jet engines known for its technological superiority, efficient fuel consumption and performance for powering single-aisle commercial jets.

Traditionally, GE military engines have had a intense history in India. At present, the company provides jet engines and marine gas turbines for many Indian military applications including the Light Combat Aircraft-Tejas Mk 1, Indian Navy P-8I aircraft and the P-17 Shivalik class frigates.

While on the other hand, TASL is focused on providing integrated solutions for aerospace, defence and security.

WeForNews 

 

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Remove ‘bail-in’ clause in FRDA Bill: Assocham

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Assocham's Secretary General D.S. Rawat
Assocham's Secretary General D.S. Rawat . (File Photo: IANS)

New Delhi, Dec 14 : Assocham on Thursday urged the government to remove a clause in the Financial Resolution and Deposit Insurance (FRDA) Bill that seeks to treat bank depositors as other creditors and shareholders for “bail-in”.

Assocham Secretary General D.S. Rawat said that in the Indian context, the concept of bail-in — especially by depositors — should be completely done away with and their money in the banks has to be protected at all costs.

“Otherwise, the trust in the banking system runs the risk of being eroded and the savings by the households would find way into unproductive avenues like real estate, gold, jewellery and even in unorganized and informal financial markets run by unscrupulous people,” said Rawat.

According to Assocham, panic has arisen among bank depositors largely due to “bail-in” clause in the Bill which was being tried for the first time in the Indian financial markets.

The industry body also sought the government’s assurance to protect depositors’ interest in case of a bank going down under. This should be clarified in the Bill, it said.

Rawat said middle class families, and especially pensioners and aged people, have no social security and thus bank deposits were the only financial security for their life-time savings.

“In any case, the rising cost of health, which is mostly available in the private sector, is hurting this class. Any move to copy the Western model of ‘bail-in’ must be avoided,” he added.

IANS

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Petroleum products could be taxed above GST: Bihar Deputy CM

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sushil modi
Bihar Finance Minister (File Photo)n

New Delhi, Dec 14: Even if petroleum products are brought under Goods and Service Tax regime, central and state governments will be free to levy taxes over and above the GST slabs, Bihar’s Deputy Chief Minister Sushil Modi said on Thursday.

“… I want to clarify one thing — in whichever country the petroleum products are part of the GST, they are in the highest tax slab, and the states and Centre are free to levy taxes over and above the GST rates. It is the case everywhere in the world,” said Modi, who is the Bihar Finance Minister and a member of the GST Council.

“People feel if petroleum products come under the GST, the highest tax will be 28 per cent. But since 40 per cent of the state and central revenues come from petroleum products, they will have the liberty to levy taxes over and above the GST rate,” Modi said at FICCI Annual General Meeting here.

He said the GST Council was discussing the issue of bringing electricity, real estate, and petroleum under the GST ambit in coming days.

The Bihar Deputy Chief Minister said that whenever the GST Council decided, petroleum products would become a part of the GST without any need for a constitutional amendment.

He said that revenue from petroleum products would not get reduced under the GST but “it would be around the same amount of taxation”.

“Yet, if they come under the GST, it will benefit the industry and the people,” Modi said.

IANS

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