Inverted Duty Structure

Legal amendments are likely to focus on easing compliance and improving liquidity; risk-based fast-track registration and automatic refund mechanism on the anvil

Explained: Why GST on textiles, apparel is being changed; industry’s concerns

With the GST rate set to be harmonised across the textile chain, the move will impact manufacturers and consumers, coming on the back of the pandemic and higher raw material costs

Packed agenda for first in-person GST Council meeting in nearly two years

The Council is expected to discuss the extension of compensation to states beyond 2022, rationalizing the inverted duty structure on supply chain of certain items, bringing petrol and diesel under GST, extending the GST exemption on Covid-essential items, and deciding the future of profiteering cases, since the tenure of the National Anti-Profiteering Authority ends in November.

Explained | What is the inverted duty structure and why is the GST Council talking about it?

Increasingly raised by domestic industry in a year marred by volatility in trade and rising costs, the issue of the inverted duty structure has re-acquired prominence. While everyone - from businesses, the Centre, state governments and tax authorities - unanimously think it's a problem, the responsibility of how to solve it has again been thrust upon the GST Council, the constitutional body that makes recommendations to the Union and state governments on issues related to GST.

Exclusive | GST Council may take up issue of inverted duty structure on May 28

The structure leads to working capital challenges for businesses and creates additional compliance requirements and ultimately more costs. Demands from domestic industry to fix the anomaly has gained pace since the pandemic-induced industrial slowdown began.

GST and considerations for the pharmaceutical industry

The impact of the new tax regime on the cost of healthcare to the patients remains at a status quo.

Capital Goods Policy critical to Make in India: Heavy ind secy

Heavy industries secretary Rajan Katoch says this is the first-ever policy intervention as far as the capital goods sector is concerned. "Previously, there have been piecemeal approaches, but this is comprehensive. There are 10 sub-sections in capital goods and this policy addresses each one of them."

What Economic Survey hints about Budget 2015's tax policy

The Economic Survey released by the government offers two important cues on tax policy changes in Budget 2015, reports CNBC-TV18‘s Menaka Doshi.

IT hardware cos want duty structure tweak in Budget

The IT hardware body, Manufacturers‘ Association of Information Technology (MAIT), has demanded five concessions in the upcoming Budget. These include elimination of inverted duty structures, reduction in excise duty on IT goods and improvement in the overall regulatory and business environment

Need exports to grow at 25% for 15-16% mfg growth: DIPP

Secretaries finalised one year and three year action plan on Make in India, says DIPP secretary Amitabh Kant. He says specific sector-wise action plan will be implemented, while adding that the industry raised issues on predictable tax regime, infrastructure deficit, inverted duty structure and land availability.

'Govt may address inverted duty structure issue in Budget'

Under inverted duty structure, finished goods are taxed at lower rates than raw material. "Inverted duty structure is a very, very complex issue. It is an issue which has adversely impacted manufacturing in India and which needs to be dealt with," DIPP Secretary Amitabh Kant said

Mfg council meets to discuss special zones, inverted duty

The Manufacturing Industry Promotion Council (MIPC) met after a year of its foundation. Chaired by commerce minister Anand Sharma, decisions on national investment and manufacturing zones and inverted duty structure were discussed.

Govt may do away with inverted duty structure in Budget

The government is considering doing away with inverted duty structure, under which finished goods are taxed at lower rates than raw material, for certain items in chemicals-related sectors, with a view to boosting manufacturing, sources said.