GST Council meet: Relief to exporters, small business; rate cut on 27 items
The Dollar Business Bureau After three months of the implementation of the Goods and Services Tax (GST), the GST Council, in its 22nd meeting on Friday has announced various measures to further simplify the new indirect tax regime. These measures include easing of rules for exporters, increase in composition scheme limit, relief to small and medium businesses in payment and filing of taxes, and rate cut in tax for 27 items. “It’s almost three months since GST roll out. Returns have been filed for first two months as well. So it was a time to deliberate on its effect on various trades and the transition,” said Finance Minister Arun Jaitley in a press briefing after the GST Council meeting. Relief to exporters Taking stock of ...
AEPC demands refund of IGST on apparel machinery import
The Dollar Business Bureau Exporters’ body Apparel Export Promotion Council (AEPC) has asked the Ministry of Finance for the refund of Integrated Goods and Service Tax (IGST) paid on the import of machinery used by apparel manufacturer exporters. AEPC, in a letter written to Ministry of Finance, has stated that after the implementation of GST from July 1, 2017, apparel exporters are required to pay IGST up to 18% on assessable value plus basic customs duty (BCD) while clearing shipments of capital goods under the Export Promotion Capital Goods (EPCG) scheme. “The incidence of a very high IGST without any corresponding relaxation for export obligation has rendered the EPCG scheme unattractive,” AEPC said in a statement. In the letter written to GK Pillai, Chairman ...
Grasim Industries divests its arm GBTL to Donear group
The Dollar Business Bureau Grasim Industries Ltd, a company of Aditya Birla Group, will sell its fully-owned arm Grasim Bhiwani Textiles Ltd (GBTL) to Donear Group’s Rajendra Synthetics. However, the amount of the deal has not been disclosed. “We are divesting our 100% holding of Grasim Bhiwani Textiles Ltd (GBTL), a wholly owned subsidiary, to Donear group,” the company said in a statement. The move is part of our time-to-time business portfolio review exercise and our strategy to consolidate the focus on our core business, it said. The company’s board, in a meeting held on Monday, cleared the agreement for transferring 100% stake in GBTL to Donear Group. “The company has entered into a definitive agreement for divesting the company's total investment in GBTL to Rajendra ...
Grasim Industries divests its arm GBTL to Donear group
The Dollar Business Bureau Grasim Industries Ltd, a company of Aditya Birla Group, will sell its fully-owned arm Grasim Bhiwani Textiles Ltd (GBTL) to Donear Group’s Rajendra Synthetics. However, the amount of the deal has not been disclosed. “We are divesting our 100% holding of Grasim Bhiwani Textiles Ltd (GBTL), a wholly owned subsidiary, to Donear group,” the company said in a statement. The move is part of our time-to-time business portfolio review exercise and our strategy to consolidate the focus on our core business, it said. The company’s board, in a meeting held on Monday, cleared the agreement for transferring 100% stake in GBTL to Donear Group. “The company has entered into a definitive agreement for divesting the company's total investment in GBTL to Rajendra ...
No MEIS benefit on guar gum products is impacting its exports
Aamir H Kaki The modest and humble guar gum, a low-value crop grown on marginal land got transformed into one that can generate substantial income for farmers in recent years. The modest seed mostly harvested in the tropical regions of India (Rajasthan, Haryana and Gujarat) and Pakistan, used as a food crop for animals, gained international fame due to its viscosity. The innocuous looking seed/powder transformed into a product that can generate substantial income for processors, manufacturers, traders and farmers. Owing to its usefulness in food, paper, textile and in the gas and oil industries India’s export of guar gum powder, saw a steep increase from a mere $84.7 million in 2001-02 to $3,930 million in 2012-13, becoming the largest agricultural export ...
IGST, CGST and Compensation Bill receive Lok Sabha nod
By Ranjeet Mahtani and Sweta Rajan A seven-hour long debate in the Lok Sabha, resulted in the passage of the Integrated GST, Central GST and GST Compensation Bills this week. Having been introduced as ‘money bills’ the Rajya Sabha did not have the power to amend or reject bills. Now, the Bills require presidential assent to become law. In preparation for the transition to GST, the Central Government has introduced another bill in the Lok Sabha to amend the Customs Act, 1962, the Customs Tariff Act, 1975, the Central Excise Act, 1944, the Central Excise Tariff Act, 1985, the Finance Act, 2001, and the Finance Act, 2005, and to repeal certain existing enactments. These amendments are essential to modify the tax levying ...
Goods and Services Tax: Progress made, concerns and the way forward
By Ranjeet Mahtani and Sweta Rajan Draft GST laws The Union Cabinet chaired by the Prime Minister has approved the Integrated GST, Central GST, Union Territory GST and GST Compensation bills on March 20, 2017. These four bills will now have to be passed by the Parliament. It is expected that the bills will be introduced in the Parliament early next week as a ‘money bill’ (note that the Rajya Sabha does not have the power to amend or reject money bills and is required to return it to the Lok Sabha within 14 days). Should the July 1, 2017 target for the introduction of GST in India be met, the Parliament will have to pass these bills before the end of ...
Duty Drawback changes notified by Govt
The Dollar Business Bureau The Government after considering various representations and feedback related to All Industry Rates (AIR) of Duty Drawback that took effect on 15.11.2016 has notified certain changes vide Notification No.03/2017-Customs (N.T.) dated 12.01.2017. These changes take effect from 15.01.2017. The changes include: Tariff entry for ‘Surimi Fish Paste’ under tariff item 160401 has been shifted to tariff item 030402 (Chapter 3- FISH AND CRUSTACEANS, MOLLUSCS AND OTHER AQUATIC INVERTEBRATES) and description of tariff item 160401 has been amended to read as ‘Surimi Analogue Product’ to address classification issue Drawback cap of Silk Fabric is being increased Drawback rates/caps are being changed for Man-made fibre floor coverings that come under the broad classification of Carpets and Other Textile Floor Coverings. They can be ...
