Finance Minister Arun Jaitley today introduced in Lok Sabha four bills on Goods and Services Tax, providing for a maximum GST rate of 40 percent, an anti- profiteering authority and arrests for evading taxes.
The implementation of Goods and Services Tax (GST) is likely to be fiscally neutral and its impact on inflation is expected to be less than 20 basis points, says a Nomura report.
E-commerce firms like Snapdeal and Amazon will have to mandatorily deduct up to 1 percent TCS (Tax Collected at Source) while making payments to their suppliers under the GST regime which is expected to kick in from July 1.
All eyes in the coming week will be on listing of D-Mart operator Avenue Supermarts, the company owned by ace investor Radhakishan Damani, on March 21. Analysts expect the stock to cross Rs 450 on listing day, against its issue price of Rs 299.
The GST Council on Thursday decided to cap the cess rate on tobacco products at Rs 4,170 per 1,000 sticks or 290 percent ad valorem; analysts remain upbeat on the stock
While the cess rate seems exorbitant, Krishna Byre Gowda, a GST Council member representing Karnataka, clarified that the high cess would not mean an increase in the price of cigarettes.
With all five draft laws now being given the green signal by the Council, they will next be sent to the Cabinet for approval and subsequently to Parliament, which is currently in session, for the final nod.
The broader markets continued to outperform benchmarks, with the Nifty Midcap up 1.4 percent to end at record closing high on positive breadth. About five shares advanced for every share falling on the exchange.
Benchmarks continue to hold its gains, which have seen slight trimming from its morning additions. Tata Steel and Adani Ports continue to be top gainers on both indices
The rupee gained past 65.50, the highest level since November 2015 as the dollar buying slackened ahead of Federal Reserve meeting outcome.
The Council’s nod will act as another decisive step in the run up to the implementation of the overhauled tax regime from July 1.
The later part of the truncated week may see some correction amid consolidation due to the Fed policy meeting, say experts.
Reliance Industries shares touched fresh nine-year high of 1,307.05, up 3.86 percent intraday as investors remained bullish on its telecom prospects.
Speaking to CNBC-TV18, MS Mani of Deloitte Haskins said that barring political contingencies, India's biggest tax reform could well be implemented on time.
The country's biggest tax reform moved one step closer to fruition with the GST Council broadly clearing the CGST and IGST bills.
Investors are in the wait-and-watch mode, avoiding any fresh positions ahead of assembly elections results next week, and Federal Reserve's policy meeting on March 14-15. The two upcoming public issues will see a chunk of both domestic and foreign funds being routed into the primary market.
The change in the peak rate will not alter the 4-slab rate structure of 5, 12, 18 and 28 percent agreed upon last year, but is only a provision being built into the model law to take care of contingencies in future, two officials in the know told PTI.
The much-awaited Goods and Services Tax (GST) is all set to be implemented by the stated deadline of July 1 as all states have agreed, reports CNBC-TV18 quoting Economic Affairs Secretary Shaktikanta Das.
After hitting new one-year high on Nifty, experts feel this breakout may take market higher from current levels. They expect it at new high in coming days as lot of positive newsflow lined up but maintained cautious approach after 7 percent rally in last five consecutive weeks.
If the Good & Services Tax (GST) Bill is introduced without exhaustive planning, it could turn into a disaster, warns Manish Sisodia, Deputy CM of Delhi and a member of the GST Council.
The market may look to build on the bullish momentum from previous sessions on Tuesday. Stocks to watch would be Ambuja Cements as well as TCS. The cement major posted strong earnings in December quarter, while TCS announced a major buyback of Rs 16,000 crore.
Finance Minister Arun Jaitley-led GST Council met on Saturday and approved the Draft Compensation Bill, in a bid to speed up the rollout of Goods and Services Tax by July 1, 2017. Crucial draft laws pertaining largely to Central GST, Integrated GST and State GST are yet to be finalised.
The GST Council, which is meeting on Saturday, is likely to finalise the draft model GST law including final drafting of the anti-profiteering clause to ensure benefit of lower taxes gets shared with consumers.
Biscuit manufacturers have sought lower GST rate saying it is an item of mass consumption and higher taxes will have an adverse impact on production as well as demand of this food item.