Govt finances unlikely to be hit by proposed cut in GST rates: Analysts
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Indian Express
10 minutes ago
- Indian Express
Rs 50,000-cr worth GST compensation, Rs 8,000 cr under RDF pending: Punjab Finance Minister slams Centre
Punjab Finance Minister Harpal Cheema on Thursday hit out at the central government for not releasing Punjab's share of GST compensation worth Rs 50,000 crore besides withholding Rs 8,000 crore under the Rural Development Fund (RDF). Cheema made the remarks while talking to the media in Delhi as he went to attend the GST Group of Ministers (GoM) meeting. He said that GST had inflicted a Rs 1.11 lakh crore loss on Punjab, with the Centre releasing only Rs 60,000 crore so far, while over Rs 50,000 crore and an additional Rs 8,000 crore under the RDF remained withheld. Slamming the GST, the Punjab Finance Minister stressed that the state would not have suffered such massive revenue losses had it not joined the 'One Nation-One Tax' scheme and in fact it would have received much more revenue. With the compensation cess now scrapped, he called out the BJP government for deliberately wrecking state economies to make them beg before the Centre. 'We honoured the central government's decision (on GST) and stood with the country, but Punjab suffered for it. Along with Punjab, many other states also suffered.' 'On August 20–21, the GoM met continuously for two days. On Wednesday, the meeting was on life and health insurance. In the evening, a meeting was held on compensation cess. The Chairman told us that today the meeting was on rate rationalisation, and that all members of the compensation cess would participate. Therefore, we also participated in Thursday's meeting,' he said. 'GST was implemented in 2017. In the past eight years, there have been 27 amendments in GST, with exemptions given to different sectors. Fifteen times the GST rates of various goods were reduced. This practice has been continuing in the GST Council for the last eight years, and for the past three years I have been witnessing it myself.' Cheema also said that Prime Minister Narendra Modi earlier declared that there would be two GST slabs — one at 5 per cent and another at 12 per cent — and that 'everyone would celebrate Diwali'. 'But after the GST came, who will compensate for the loss suffered by Punjab and other states? Who will pay for this damage? One Nation, One Tax was the scheme of the central government, and all states including Punjab gave their consent. Everyone agreed that uniform tax rates should prevail across the country so that no state could impose higher or lower taxes on its citizens. But this formula has inflicted a huge loss on Punjab.' Emphasising on Punjab's loss, the Finance Minister said, 'In all three meetings of the GST Group of Ministers, I placed Punjab's position. So far, Punjab has lost Rs 1,11,045 crore. Out of this, the central government has given Rs 60,000 crore compensation, but still Rs 50,000 crore remains with the central government. Who will pay this money?' Cheema also said ever since the GST has been introduced, the BJP-led central government has kept making one amendment after another, but never reached a conclusion. 'Taxpayers of the country are being harassed continuously. The system of the country is being destroyed. Several states are continuously losing revenue due to the GST system. The central government has backed away from making up for this loss.' Detailing the latest discussions, Cheema said, 'In Thursday's meeting on compensation cess, the government said that the loans taken to pay states under compensation cess would be fully repaid by October. On harmful goods (sin goods), a special tax was imposed. The states suffering losses in its collection were being compensated. But now the report of the rate rationalisation committee shows that even the tax slab on sin goods is being reduced.' The Finance Minister also claimed that two days ago, another Rs 1,000 crore under the Prime Minister Road Scheme was also stopped. 'In this way, nearly Rs 60,000 crore is pending with the central government against Punjab. This includes the Rs 50,000-crore revenue loss (Punjab faced) after the (implementation of) GST. The central government must immediately release Rs 60,000 crore,' he concluded.
Time of India
27 minutes ago
- Time of India
Monthly ‘samvaad' to reddress GST disputes
Noida: In an effort to foster greater cooperation between taxpayers and the Goods and Services Tax (GST) administration, the Central Goods & Services Tax (CGST) commissionerate of Gautam Budh Nagar has announced the launch of a monthly interaction initiative titled 'Samvaad'. The programme, beginning this month will be held on fourth Friday of every month across all divisions under the commissionerate. The sessions will serve as a platform for dialogue between trade representatives and GST officials, with the primary focus on addressing taxpayer concerns, clarifying compliance-related issues, and gathering constructive feedback. The inaugural sessions for divisions I, II, and III will be conducted at the headquarters office on the 3rd floor, Wegmans Business Park, Knowledge Park-III, plot no 2, Greater Noida. Other divisions will host their sessions at their respective offices. You Can Also Check: Noida AQI | Weather in Noida | Bank Holidays in Noida | Public Holidays in Noida | Gold Rates Today in Noida | Silver Rates Today in Noida Officials emphasised that the agenda of 'Samvaad' is to provide a taxpayer-friendly GST ecosystem by encouraging open discussion. The interaction will specifically aim at resolving queries and challenges faced by taxpayers while inviting suggestions and feedback on improving GST administration. In a statement, the commissioner of CGST, GB Nagar commissionerate, under whose direction the initiative is being launched, noted that taxpayer participation and input would play a key role in strengthening mutual understanding and compliance facilitation. To ensure maximum outreach, the department has urged trade and industry associations, along with chambers of commerce, to publicise the initiative widely and encourage stakeholders to participate actively. Speaking about the initiative, the assistant commissioner (HQ), CGST, Gautam Buddh Nagar, highlighted that "Samvaad is a step forward in creating a collaborative environment where taxpayer concerns are heard directly and addressed systematically." The commissionerate believes that regular interactions of this kind will build confidence among taxpayers, streamline compliance, and ultimately support the govt's broader aim of simplifying GST administration and improving service delivery efficiency. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
Economic Times
31 minutes ago
- Economic Times
Etailers prepare brands for business in GST 2.0 era
Synopsis Flipkart and Amazon are in discussions with brands regarding the potential impact of the proposed GST reduction on demand. The ecommerce giants are concerned that consumers might delay purchases, especially of high-value items, anticipating lower prices. While festive sales will proceed as scheduled, platforms are preparing for a possible surge in demand later, urging brands to maintain sufficient inventory. ANI Representational image Walmart-owned Flipkart and Amazon have initiated talks with leading brands on ways to deal with the proposed goods and services tax (GST) reduction. The ecommerce marketplaces believe lower taxes could dent demand in the transitory phase as consumers may wait for prices to fall, especially for high-value goods like electronics, industry executives marketplaces are particularly concerned about the impact on their upcoming flagship festive sales, their most crucial annual sales event. This sale happens ahead of the Navratri festival when the new GST rates are unlikely to come into effect, the executives GST Council is likely to meet in the third week of September to finalise the new GST rates and the date of implementation.A group of ministers on GST rate rationalisation on Thursday approved the Centre's proposal to eliminate the 12% and 28% slabs, consolidating the GST structure into two rates-5% and 18%. A higher levy of 40% GST could be levied on sin products like alcohol, tobacco, and some luxury goods. While executives said Flipkart's Big Billion Days and Amazon's Great Indian Festival will happen as per schedule in September to ensure their month-long sales calendar is not impacted, the platforms told brands to be prepared for a late surge in sales in October in the second and third leg of their festive sales. The sales are likely to start around September 16-19. Brands have also been asked to keep sufficient inventory ready in case the GST rate cut is effective earlier than expected, which would lead to a demand spurt as prices would fall by at least 8-9%, the executives and Flipkart did not respond to email Singh Marwah, chief executive at online-focused TV manufacturer Super Plastronics said the ecommerce platforms do not want to postpone their flagship festive sales. The company is licensed to sell brands such as Kodak, Thomson, and Blaupunkt."We fear consumers may postpone their purchases which may impact the first leg of the sale, but with the expectation that the GST rates will be cut by early October before Diwali it should be compensated then. The platforms have asked brands to keep sufficient stock for a late pick up," said first sale of the ecommerce platforms around Navratri is the largest business period for online platforms in India, contributing 40-50% of the total festive ecommerce business. Discounts also tend to be the highest during this Gupta, cofounder at wearable and hearable brand GoBoult, said the company has already produced and supplied the festive inventory to its partners in Amazon and Flipkart. He said the sales are happening as per plans though a GST rate cut may further boost demand. Around 80% of the brand's revenue comes from ecommerce.
