The MMT unequivocally asserts that an economically sovereign government which issues its own fiat currency does not face a solvency issue in its own currency. The same cannot be said for state governments or municipalities, which are more like the private sector in so far as they are users of currency
Instead of a unilateral stand, the Centre should help the GST Council reach a consensus on the vexed issue of compensation cess
While government officials have indicated that the Centre intends to compensate states fully for the GST shortfall, it now remains to be seen what States have to say at the next GST Council meeting. Watch the video to know more
Borrowings can at best be a temporary solution; Centre along with its siblings must explore more durable measures to shore up tax revenues
Those in favour of a tax cut point to the strong backward linkages of the auto sector that would help in accelerating economic growth
For many of the states to remain within their fiscal deficit/borrowing threshold for FY21, capital expenditure would have to be cut or deferred
States’ proposal to extend the time period looks sensible at a time when Centre’s ability to pay them their dues looks limited
"Reducing the GST rate on sanitizers and other similar items would lead to an inverted duty structure and put the domestic manufacturers at a disadvantage vis-a-vis importers," the Finance Ministry stated
The bureau was replying to query on the sum spent by the Centre on advertising and awareness campaigns on GST.
The Central Board of Indirect Taxes and Customs had conducted a refund fortnight from May 31 to June 14, which was later extended by 2 days to June 16.
Experts and dealers suggest that if fuel is brought under the GST, at a rate of even 40 percent, the price of petrol will go down by Rs 29 while diesel could go down by Rs 14.
The new simplified model may suggest giving credit on a provisional basis, once suppliers upload their sales invoices, upon fulfilling certain conditions.
Transfer fees which are paid by incoming and outgoing members to the society, contribute to the society's annual turnover.
These include arranging workshops and seminars on the GST Act and GST network after identifying needy dealers with the help of CAIT members, he said.
For the first time the data available in the Goods and Services Tax system can be the basis of credit, Nilekani said.
However, patients not admitted will have to pay tax on the total value of food served by the hospital.
In addition, it has found service tax evasion of Rs 9,660 crore in a total of 2,938 cases during April-December of 2017 -18.
The goods and services tax (GST) council in its meeting yesterday rationalised rates of GST rates for 29 goods and 59 services. This rate rationalisation announced may cost centre Rs 30,000 crore in FY18.
This is the sixth notice issued by DGS, the investigative arm of the finance ministry, to entities for not reducing prices post GST implementation from July 1.
The GST related issues are behind them and so are the issues related to demonetisation. One is seeing definite improvement in the overall business demand, said Harsh Mariwala, Chairman, Marico.
The ICA has sought extension of time period by at least 6 months, saying by that time the stock will be exhausted.
After GST became effective from July 1, companies were asked to use stickers on unsold packaged commodities to display new maximum retail price (MRP) till September, which was later extended till December.
Completing the new reforms is a big task and India can do it but if the global markets sees more on the governance front then that will be a positive, said Maurice Obstfeld, Chief Economist, IMF.
"The number of FTAs in India, during July-November 2017, was 41.16 lakh, as compared to the 36.14 lakh during July- November 2016, registering a double-digit growth of 13.9 percent. As such, no adverse impact of the implementation GST was seen in tourist arrivals," the minister said.
As per the information provided by the finance ministry to the Lok Sabha on Friday, as many as 33.2 lakh new taxpayers have registered themselves under GST till December 11 from the day of roll out on July 1.