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Gst Cess

GST Council has turned into a rate-cutting panel: Ex-CEA Arvind Subramanian

'India's GST system remains highly complex. There is a need of simplification'

GST Council has turned into a rate-cutting panel: Ex-CEA Arvind Subramanian
Updated On : 29 Nov 2024 | 11:12 PM IST

Ministers' group discusses merger of GST compensation cess into taxes

The group of ministers (GoM) on GST compensation cess, under Minister of State for Finance Pankaj Chaudhary, on Wednesday discussed merger of compensation cess into GST. States suggested that during the transition of cess, once it is decided to merge with taxes no new goods should be added to the list of luxury, sin and demerit goods. States were of the view that since the compensation cess ends in March 2026, the only way to restructure it is to merge the levy with the taxes and bring about separate tax rates for the items on which cess is levied currently. "GST compensation cess is coming to an end. A discussion needed to be done on what will be the future of the cess. Every state has given their views. This was the first meeting," Minister of State for Finance Pankaj Chaudhary said. Should it continue as cess or be converted to tax and whether there would be changes in luxury, demerit and sin goods items, Chaudhary said, "Discussion is going on". The next meeting of the GoM on

Ministers' group discusses merger of GST compensation cess into taxes
Updated On : 16 Oct 2024 | 3:58 PM IST

SUV makers hit with Rs 10,000 cr tax notices: Row over GST cess explained

The GST authorities have sent notices to most automakers for the alleged non-payment of the SUV sales cess between the financial years 2018 and 2022

SUV makers hit with Rs 10,000 cr tax notices: Row over GST cess explained
Updated On : 15 Oct 2024 | 3:34 PM IST

Rise in cess, surcharge shrinking states' share in pool of taxes: Kerala CM

Kerala Chief Minister Pinarayi Vijayan on Thursday said that the cess and surcharge levied by the Centre was showing a "rising trend" and resulting in "shrinkage" of states' share in the divisive pool of taxes. Vijayan said the rise in surcharges and cesses, which are not included in the divisive pool, was happening at a time when the Finance Commission has been recommending a higher share for the states from the net proceeds of the taxes collected by the Centre. Vijayan was speaking at a conclave of five non-BJP-ruled states organised by Kerala to discuss the key issues related to the 16th Finance Commission. He said that the 16th Finance Commission needs to factor in this rising trend in surcharges and cesses, when it recommends the prescribed share of the states from the net proceeds of taxes collected by the union government. The CM further said that the share of the states in the divisive pool needs to be increased further from the 41 per cent recommended by the last Finance .

Rise in cess, surcharge shrinking states' share in pool of taxes: Kerala CM
Updated On : 12 Sep 2024 | 1:18 PM IST

Nitin Gadkari asks state FM's to reduce GST on flex-fuel vehicles to 12%

Union Minister Nitin Gadkari on Monday said state finance ministers should consider reducing Goods and Services Tax (GST) on flex-fuel vehicles to 12 per cent. Addressing IFGE's India Bio-Energy & Tech Expo, Gadkari also said there is a need to reduce imports of fossil fuels and encourage the use of biofuel. "We need support from the finance ministers of different states. I asked Maharashtra's FM to attend the meeting and propose the reduction of GST on flex-fuel engine cars," he said. Flex-fuel-compatible cars can run on more than one type of fuel and also on a mixture. Typically, a blend of petrol and ethanol or methanol is used. The road transport and highways minister informed that he had requested Uttar Pradesh Chief Minister Yogi Adityanath to consider reducing taxes on flex-fuel vehicles. In a separate meeting with the Maharashtra Finance Minister Ajit Pawar, Gadkari suggested him attend a GST meeting with Union Finance Minister Nirmala Sitharaman on the issue. Gadkari als

Nitin Gadkari asks state FM's to reduce GST on flex-fuel vehicles to 12%
Updated On : 02 Sep 2024 | 2:58 PM IST

GST Council to reconstitute 3 GoMs as new ministers from 11 states join

The GST Council will have to reconstitute three Group of Ministers (GoM) under it as new ministers from 11 states joined the body on Saturday. Finance Minister Nirmala Sitharaman has said that in the 53rd GST Council meeting on Saturday, there were 11 new ministers from Andhra Pradesh, Bihar, Chhattisgarh, Haryana, Madhya Pradesh, Mizoram, Odisha, Rajasthan, Sikkim, Telangana and Tripura. The 52nd GST Council meeting was held on October 7, 2023. With new ministers joining the council, the reconstitution of three GoMs on analysis of revenue from GST, boosting the real estate sector under GST, and GST system reforms are on the cards. While the GoM on GST rate rationalisation has already been reconstituted in February, making Bihar Deputy Chief Minister Samrat Chaudhary its convenor, the reconstitution of the other three is yet to be notified. In the GoM on analysis of revenue from GST, the new finance minister from Odisha has to be inducted. The BJP won the assembly polls in Odis

GST Council to reconstitute 3 GoMs as new ministers from 11 states join
Updated On : 23 Jun 2024 | 2:16 PM IST

Centre anticipates Rs 70k crore GST cess surplus from 'sin' goods

The surprise surplus is attributed to impressive revenue generation from taxes on the so called "sin" goods like pan masala, cigarettes

Centre anticipates Rs 70k crore GST cess surplus from 'sin' goods
Updated On : 22 Jun 2024 | 5:09 PM IST

Instant flour mixes cannot be classified as sattu, to attract 18% GST

Instant mixes, including idli, dosa and khaman flour, cannot be classified as chhatua or sattu and 18 per cent GST should be levied on them, the Gujarat Appellate Authority for Advance Ruling (GAAAR) has ruled. Gujarat-based Kitchen Express Overseas Ltd had approached the AAAR against the ruling by the GST advance authority, saying that its seven 'instant flour mixes' are not 'ready to eat' but are required to undergo certain cooking procedures and can be termed 'ready to cook'. The company sells flour mixes of gota, khaman, dalwada, dahi-wada, dhokla, idli and dosa in powder form and pleaded that it is akin to Sattu and should attract Goods and Services Tax (GST) of 5 per cent. The GAAAR rejected the appellant's contention, saying that ingredients which go into the making of 'instant flour mixes" are not covered under the relevant GST rules as is the case with Sattu. According to a CBIC circular, small amounts of ingredients, which are mixed to make Sattu, are specified in the GST

Instant flour mixes cannot be classified as sattu, to attract 18% GST
Updated On : 09 Jun 2024 | 10:44 PM IST

GST cess as an opportunity

India's economy should benefit from an early termination of the compensation cess

GST cess as an opportunity
Updated On : 23 Jan 2024 | 10:07 PM IST

ICICI Lombard gets GST notice of over Rs 5.66 cr for alleged short payment

ICICI Lombard on Wednesday said it received a demand notice for alleged short payment of GST of over Rs 5.66 crore. In a regulatory filing, ICICI Lombard General Insurance Company said it has received an order from the Joint Commissioner CGST & Central Excise, Bhopal, Madhya Pradesh, raising a GST demand of Rs 5,66,02,264 and levying a penalty of Rs 56,60,226. Taking into account the GST and penalty, the total demand amount is over Rs 6.22 crore. Plus, an interest u/s 50 of the GST act would be levied. "The company will be filing an appeal against the said order," it said. The GST demand has been raised on the grounds of computation of input tax credit eligible to the company and alleged undischarged tax liability due to differences between returns filed by the company, ICICI Lombard said. Shares of ICICI Lombard were trading at Rs 1413.05, down 0.22 per cent over previous close on the BSE.

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Updated On : 27 Dec 2023 | 2:53 PM IST

GST collection hits an all-time high of Rs 1.87 trillion in April

April 2023 also saw the highest ever tax collection on a single day. "On April 20, Rs 68,228 crore was paid through 9.8 lakh transactions," the ministry said in a release

GST collection hits an all-time high of Rs 1.87 trillion in April
Updated On : 01 May 2023 | 9:37 PM IST

Govt specifies retail price based GST cess rate for pan masala, tobacco

The government has specified the retail sale price-based GST cess rate that would be levied on pan masala and tobacco manufacturers with effect from April 1. This is a departure from the earlier regime that imposed cess, over and above the 28 per cent Goods and Services Tax (GST) rate on ad-valorem basis. As per a finance ministry notification dated March 31, the GST cess rate that would be applicable on pan masala is 0.32 times the retail sale price (RSP) of the pan masala pouch. Pan masala, containing tobacco gutkha, now has a cess rate of 0.61 times the RSP, while the rate for smoking mixtures for pipes and cigarettes is 0.69 times. Chewing tobacco , filter khaini, and jarda scented tobacco attract a cess of 0.56 times the RSP, and the rate for branded unmanufactured tobacco and hookah or gudaku is 0.36 times the RSP. The new rates are applicable from April 1, 2023. Moving to RSP-based levy would mean that manufacturers would now have to pay the cess on the final retail price o

Govt specifies retail price based GST cess rate for pan masala, tobacco
Updated On : 09 Apr 2023 | 11:58 PM IST

Govt caps maximum GST cess rate on pan masala; links rate to sale price

The government has capped the maximum rate of GST compensation cess that would be levied on pan masala, cigarettes and other forms of tobacco and linked the highest rate to their retail sale price. The capping of the cess rate was brought in as part of the amendments to the Finance Bill, 2023, which was passed by the Lok Sabha last Friday. As per the amendment, the maximum GST compensation cess rate for pan masala will be 51 per cent of the retail sale price per unit. In the current regime, the cess is charged at 135 per cent ad valorem. The rate for tobacco has been fixed at Rs 4,170 per thousand sticks plus 290 per cent ad valorem or 100 per cent of the retail sale price per unit. So far, the highest rate was Rs 4,170 per thousand sticks plus 290 per cent ad valorem. The cess is levied over and above the highest Goods and Services Tax (GST) rate of 28 per cent. Changes in schedule-I of GST compensation cess Act, brought in via amendment in Finance Bill, has capped the maximum c

Govt caps maximum GST cess rate on pan masala; links rate to sale price
Updated On : 26 Mar 2023 | 11:02 PM IST

GST mop-up about Rs 1.5 trillion in Dec, third-highest ever: FinMin data

Surge of 15% on annual basis; might exceed BE by Rs 1.3-1.4 trillion

GST mop-up about Rs 1.5 trillion in Dec, third-highest ever: FinMin data
Updated On : 02 Jan 2023 | 2:39 AM IST

Contribution of cesses to central govt's tax kitty doubles to over 18%

States have been concerned about increasing cases of Centre imposing cesses for garnering additional revenue

Contribution of cesses to central govt's tax kitty doubles to over 18%
Updated On : 16 Dec 2022 | 6:25 PM IST

Centre releases Rs 17k cr GST compensation to states, says FinMin

The central government has released Rs 17,000 crore to states towards balance GST compensation, taking the total amount released so far this fiscal to over Rs 1.15 lakh crore, the Finance Ministry said on Friday. "With this release, the Centre has released, in advance, the entire amount of Cess estimated to be collected this year till March-end available for payment of compensation to States," the ministry said in a statement. Goods and Services Tax (GST) was introduced in the country with effect from July 1, 2017, and states were assured of compensation for the loss of any revenue arising on account of the implementation of GST for a period of five years. For providing compensation to states, a cess is levied on certain goods and the amount of cess collected is credited to the compensation fund. The central government released an amount of Rs 17,000 crore to states/UTs on November 24, 2022, towards the balance GST compensation for the period April to June 2022. The total amount of

Centre releases Rs 17k cr GST compensation to states, says FinMin
Updated On : 25 Nov 2022 | 6:36 PM IST

GST had serious defects which worsened over last 5 years: Chidambaram

Asserting that the GST had serious "birth defects" which became only worse over the last five years, the Congress on Friday said the GST laws and their implementation have "wrecked the economy"

GST had serious defects which worsened over last 5 years: Chidambaram
Updated On : 01 Jul 2022 | 3:55 PM IST

Govt announces extension of GST compensation cess levy till March 2026

The government has extended the time for levy of GST compensation cess by nearly 4 years till March 31, 2026. As per the Goods and Services Tax (Period of Levy and Collection of Cess) Rules, 2022, notified by the finance ministry, the compensation cess will continue to be levied from July 1, 2022 to March 31, 2026. The levy of cess was to end on June 30 but the GST Council, chaired by Union Finance Minister Nirmala Sitharaman and comprising state FMs, decided to extend it till March 2026 to repay the loans taken in the last two fiscal years to make up for the shortfall in their revenue collection. After the 45th GST Council meeting in Lucknow in September last year, Sitharaman had said the regime of paying compensation to states for revenue shortfall resulting from subsuming their taxes such as VAT in the uniform national tax GST, will end in June 2022. However, the compensation cess, levied on luxury and demerit goods, will continue to be collected till March 2026 to repay the ...

Govt announces extension of GST compensation cess levy till March 2026
Updated On : 25 Jun 2022 | 1:32 PM IST

GST Council meet: Extension of compensation cess to states to be in focus

The states have urged the Centre to extend the five-year compensation period under the GST law before its termination by June-end

GST Council meet: Extension of compensation cess to states to be in focus
Updated On : 29 Apr 2022 | 1:48 PM IST

GST shadow on Indian cryptocurrency firms; foreign platforms go free

In the absence of regulations, international crypto and NFT platforms are escaping the GST net

GST shadow on Indian cryptocurrency firms; foreign platforms go free
Updated On : 08 Jan 2022 | 6:05 AM IST