There is still some lack of clarity with regard to inter-state sale of goods which is covered by integrated GST (IGST). If a business is selling goods to another state, he would have to pay the applicable tax under the head IGST and not CGST and SGST. This is collected by the centre and subsequently shared with buyer state equally.
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The much awaited transition to GST has finally happened and appears to be getting settled. While the legislative changes with laws being passed separately by all the states, formation of GST council, formulation of rules etc were one aspect of GST, equally serious challenge is its implementation, a task being handled by GST Network (GSTN). While transition appears to be smooth, the acid test of IT infrastructure would be when the businesses file the return for the month of July. A look at how GSTN prepares to handle the task...
Continue ReadingThe passage of Ordinance related to NPAs has renewed the sense of urgency to clear up the mess with Gross NPA of the banking sector crossing Rs 6 lakh crore mark. More worryingly, there is no sign yet of a trend reversal. An analysis to understand where this NPA is coming from..
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The promulgation of the Ordinance yesterday for resolution of Non Performing Assets (NPAs) is another measure to tackle the crisis gripping the banking sector. Yet, the ordinance could be another dead ball and nothing that one can hope would work wonders for lack of market participants. A look at the implication of the ordinance...
Continue ReadingUnited Nations Global Compact (UNGC) report, released this week, stating that richest 1% Indians own 53% of the total, second worst in terms of wealth inequality, puts again a question mark over India's developmental model. As per an IMF paper, Gini coefficient has risen sharply for the nation since 1990 despite significantly higher growth rate. So, is it is impossible to achieve both growth and lower income inequality and are the two mutually exclusive. A brief look...
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While Central GST (CGST) and State GST (SGST) would be easier to implement, the challenge would be to track the flow of goods and and implement inter-state GST (IGST). In case of inter-State sales, under the present system, the Centre levies a tax (Central Sales Tax) but the tax is collected and retained entirely by the originating states.
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The countdown to the implementation of Goods and Services Tax (GST) has begun with Bihar becoming the second state to clear State GST (SGST) bill today after Telangana. The Parliament has already passed the centre GST (CGST) and Inter-state GST (IGST) late last month. A look at the bill and various complexities attached to it..
Continue ReadingThe world economy is expected to witness a reasonable improvement in growth at 3.5% in 2017 against 3.1% in 2016 as per the IMF report released this week. More importantly, growth improvement is expected to be broad based with advanced economies, in the throes of subpar growth since the global crisis, also witnessing momentum gain. A look at the highlights..
Continue ReadingThe changes in the H-1B visa rules marks the culmination of last few months of intense action and debate on the issue. The issue has just got even more polarised this week with Australia and New Zealand proposing changes in their foreign national employment conditions. So what exactly is H 1B visa and implication to different stakeholders. A brief overview..
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Honourable Supreme Court's decision last week disallowing "Compensatory Tariff" to Tata Power and Adani Power brings back this power sector invention into limelight. The compensation had earlier been awarded to these companies by the Appellate Tribunal for Electricity (Aptel) to compensate for unforeseen increase in the cost of generation.
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