13 Jul 2023 04:35 PM
New

Our GST regime needs a return to factory setting

Source: https://www.livemint.com/opinion/online-views/our-gst-regime-needs-a-return-to-factory-setting-11689174930836.html

The complexity of decisions taken by the GST Council is enough to explain why we need a reset of this regime. Let’s get it back in harmony with its promise of ‘one country, one tax’
The Goods and Services Tax (GST) Council’s latest decisions highlight just how complex this tax regime has become. Multi-utility vehicles (MUVs) with a minimum length of 4,000mm, or engine size of at least 1,500cc, or ground clearance exceeding 170mm will now be treated like sport-utility vehicles (SUVs), thus attracting a cess of 22% instead of 20%.

13 Jul 2023 04:41 PM
New

GST clarity a breather for PVR Inox; content performance is key

Source: https://www.livemint.com/market/mark-to-market/multiplex-operator-pvr-inox-gets-respite-as-gst-council-sets-5-tax-rate-for-food-and-beverages-consumed-at-cinema-halls-11689181312189.html

Multiplex operator PVR Inox Ltd got some respite after goods and services tax (GST) council said food items and beverages (F&B) consumed at cinema halls will be taxed at 5%. Pre-booked snacks will also be taxed at the same rate. This provides tax rate certainty.

13 Jul 2023 04:45 PM
New

Excess tax credit use to spur automatic notices

Source: https://www.livemint.com/economy/excess-tax-credit-use-to-spur-automatic-notices-11689188314929.html

The move has the potential to boost tax collections as businesses and traders may have to use cash payments where tax credits cannot be used.

13 Jul 2023 05:17 PM

Steep tax will shrink prize pool, dissuade players, say gaming firms

Source: https://www.livemint.com/companies/news/steep-tax-to-shrink-prize-pool-dissuade-players-feel-cos-11689189242178.html

The online real-money gaming (RMG) industry in India is reeling after the decision by the Goods and Services Tax (GST) Council to impose a 28% tax on the entire entry fee rather than just the platform fee. Industry associations and companies argue that this move will not only restrict cash flow, but also diminish players’ motivation to participate on legitimate sites, driving them towards illegal offshore betting companies.

13 Jul 2023 05:20 PM

Utility vehicles may see price hikes but demand to be in top gear

Source: https://www.livemint.com/market/mark-to-market/utility-vehicles-may-see-price-hikes-but-demand-to-be-in-top-gear-11689231441422.html

Higher-end passenger vehicles (PVs) will likely see price hikes following changes in taxation rules by the GST Council, which has modified the definition of vehicles that will attract a compensation cess of 22%, additional to the 28% tax rate.

13 Jul 2023 05:27 PM

Perverse incentives explain why GST is a confusing mess

Source: https://www.livemint.com/opinion/online-views/perverse-incentives-explain-why-gst-is-a-confusing-mess-11689233165575.html

The Goods and Services Tax (GST) Council recently decided to treat multi-utility vehicles (MUVs) with a minimum length of four metres, an engine size of at least 1,500cc, or a ground clearance exceeding 170 mm as sport-utility vehicles (SUVs). These vehicles used to attract 20% GST but will now attract 22% GST. MUVs that don’t match the prescribed criteria will continue to attract 20% GST.