"The Madhya Pradesh government has decided to reduce VAT on petrol by 3 per cent. The VAT on diesel is reduced by 5 per cent. Moreover, the additional cess of Rs 1.50 per litre has also been withdrawn," state Finance Minister Jayant Malaiya announced after a meeting with Chief Minister Shivraj Singh Chouhan.
It is unlikely that the government would want to tinker with the GST structure and introduce any slab higher than 28 percent. But if it decides to bring it under GST, it will be at a huge cost.
Earlier in the day, Gujarat became the first state to announce a reduction it VAT on diesel and petrol. In a move seen as an attempt to lure voters in the poll-bound state, the Vijay Rupani dispensation announced a 4% reduction in VAT.
Move follows the Centre decision to bring down down excise duty on petrol and diesel by Rs 2 per litre
The relief to the consumers comes at the expense of government finances that are already struggling
The Centre had requested states to reduce the VAT rate on ATF by one per cent, to encourage flight services connecting important cities in the country.
Tax collected in the maiden filings under the GST regime, which kicked in from July 1, are still being compiled as the last date for filings under different rules is not yet over, he said.
The letter by Finance Minister highlights a concern being raised by the manufacturing sector regarding the rise in input costs of petroleum products taking place on account of transition to Goods and Services Tax regime.
Nearly 71 lakh excise, service tax and VAT assessees have migrated to the GST Network (GSTN) till July 25. Besides, another 12 lakh new registrations came about under the Goods and Services Tax (GST) regime.
In contrast, the impact would be broadly neutral for property, electricity, telecom, pharmaceutical and fertiliser sectors, it said. "The national service tax (GST), is unlikely to lead to rating changes for any of Fitch's internationally rated corporates despite being negative for certain sectors," it said.
A lower VAT on ATF for small planes is crucial for the success of the government's regional connectivity scheme that aims to make flying affordable for people living in cities with airports that are unserved or under-served
"Notwithstanding some teething troubles, the GST is saving trucking time on trunk routes, connecting top cities, between 24-36 hours besides saving the fleet owners Rs 5,000 -7,500 per trip," it said in a statement.
"The rate of reduction varies from state to state across the car range depending on the earlier VAT rates. The price reduction will be up to 5.9 per cent ex-showroom Delhi," Hyundai Motor India said in a statement. The new prices are effective from July 1, 2017, it added.
Maharashtra Industries minister Subhash Desai said the department has decided to form a committee under the Industries secretary to study the GST impact on industries.
A majority of wholesale grain, pulse and other commodity shops were shut in Naya Bazar, said Ashok Kumar Bansal, General Secretary, Grain Merchant Welfare Organisation.
Persons having annual turnover of more than Rs 10 lakh and those who are registered under VAT or Service Tax would be ineligible for loan waiver, the GR said.
In an interview to CNBC-TV18, Shankar Lal Somani, Chairman of Sumeet Industries spoke about the latest happenings in the company.
Replying to a debate on the Maharashtra Goods and Service Tax Laws (levy, amendment and validation) Act 2017 in the Upper House, he said that it is not possible even for the Centre to shift the tax rate of 25 per cent on petroleum products under the new Goods and Services Tax (GST) regime in one go.
Here’s how prices of goods could move after the new GST rates kick-in from July 1, 2017
Here’s a summary of rates charged in different countries and the years when GST kicked in across the world
The overall incidence of tax will be reduced with multiple existing levies, such as excise duty, central sales tax, entry tax, value added tax (VAT), and service tax being subsumed into single rate GST.
Addressing the Niti Aayog Governing Council's third meeting, which was attended by several state chief ministers, Modi said for long, India had suffered from economic and political mismanagement.
"The consensus on GST will go down in history as a great illustration of cooperative federalism. GST reflects the spirit of 'One nation, One aspiration, One determination'," an official statement quoted Modi as saying.
The anti-profiteering clause under the GST is meant to 'reassure' that there would not be any significant rise in prices or inflation consequent to the implementation of Goods and Services Tax, Chief Economic Adviser Arvind Subramaniam said here today.
The Lok Sabha, on March 29, 2017, cleared four bills in preparation of the upcoming rollout of the Goods and Services Tax (GST) regime: Integrated GST Central GST Union territory GST Compensation bill This R