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Tag: Goods and Services Tax

  • Leaked Video Of Conversation Between Tamil Nadu’s Restaurant Owner, FM Sitharaman Lands BJP In Soup- All About The GST Apology Row |

    Tamil Nadu GST Row: The Goods and Services Tax has been a bone of contention between the BJP and the Congress. Leader of Opposition Rahul Gandhi had once termed it ‘Gabbar Sing Tax’. The Congress got fresh ammunition after a video of a conversation between Finance Minister Nirmala Sitharama and Tamil Nadu’s famous restaurant chain owner was shared on X mistakenly by a BJP worker. The Congress slammed the Finance Minister for her arrogance. On the other hand, Tamil Nadu BJP chief K Annamalai apologised for the incident.

    What Is The Issue All About?

    The root of the row goes back to the September 11 event attended by several businessmen and Finance Minister Sitharaman. During the event, Annapoorna chain of restaurants owner Srinivasan expressed his concerns related to the GST in front of FM Sitharaman. 

    The hotel chain owner mentioned that sweets are subject to a 5% GST, while savouries are taxed at 12%. “There is 18% GST on cream-filled buns, whereas there is no GST on buns. Customers often complain, saying, ‘Just give me the bun, I will add the cream and jam myself’,” said Srinivasan.

    He is Coimbatore’s pride Annapurna Group Head Srinivasan.

    Yesterday he was forced to apologise to FM Nirmala Sitharaman on camera.

    His crime? To ask a genuine question on GST from FM during an event.

    This not only exposes BJP leaders’ arrogance but is also an insult of the… pic.twitter.com/MJ6sRj6wyD
    — Ankit Mayank (@mr_mayank) September 13, 2024

    A day later, Srinivasan met FM Sitharaman during which he reportedly apologised to the minister saying that he is not a member of any political party. In a video shared by the BJP’s Tamil Nadu unit, Srinivasan, the owner of Annapoorna, is captured standing and folding his hands while interacting with Sitharaman. “Please pardon me for my comments. I do not belong to any political party,” he was heard saying in the video.

    Rahul Gandhi Ji in Coimbatore — Goes to a sweet shop, buys some sweets for TN CM @mkstalin, greets the staff of the shop and gets clicks with them.

    Nirmala Sitharaman in Coimbatore — Forced the owner renowned Annapoorna group to apologise & released the video to humiliate him. pic.twitter.com/AKhnTiJwLZ
    — Shantanu (@shaandelhite) September 13, 2024

    Congress Slams BJP

    A businessman apologising to the FM for his genuine concerns sparked a row with people terming it bad optics while Congress slammed the ruling party and its minister for ‘arrogance’. Leader of Opposition Rahul Gandhi said, that when the owner of a small business like Annapoorna restaurant asks public servants for a simplified GST regime, their request is met with ‘arrogance and outright disrespect’. 

    “Yet, when a billionaire friend seeks to bend the rules, change the laws, or acquire national assets, Modi Ji rolls out the red carpet. Our small business owners have already endured the blows of demonetisation, an inaccessible banking system, tax extortion and a disastrous GST. The last thing they deserve is further humiliation. But when the fragile egos of those in power are hurt, it seems humiliation is exactly what they’ll deliver. MSMEs have been asking for relief for years. If this arrogant government would listen to the people they would understand that a simplified GST with a single tax rate would solve the problems of lakhs of businesses,” said the LoP.

    When the owner of a small business, like Annapoorna restaurant in Coimbatore, asks our public servants for a simplified GST regime, his request is met with arrogance and outright disrespect.

    Yet, when a billionaire friend seeks to bend the rules, change the laws, or acquire…
    — Rahul Gandhi (@RahulGandhi) September 13, 2024

    Congress president and Rajya Sabha Leader Of Opposition Mallikarjun Kharge said, “‘Tax Terror’ for Poor & Middle Class, while ‘Tax Cuts’ for Modi ji’s Crony Friends!  The disgraceful humiliation of a small businessman, the owner of Sree Annapoorna restaurant in Coimbatore by the Finance Minister and the BJP, smacks of arrogance of power. She has been a repeated offender in such public interactions.”

    ‘Tax Terror’ for Poor & Middle Class, while ‘Tax Cuts’ for Modi ji’s Crony Friends!

    The disgraceful humiliation of a small businessman, the owner of Sree Annapoorna restaurant in Coimbatore by the Finance Minister and the BJP, smacks of arrogance of power. She has been a…
    — Mallikarjun Kharge (@kharge) September 13, 2024

    BJP Apologises To Businessman

    While Finance Minister Nirmala Sitharaman is yet to respond to the issue, Tamil Nadu BJP chief K Annamalai apologised for the leaked video. “On behalf of BJP Tamil Nadu, I sincerely apologise for the actions of our functionaries who shared a private conversation between a respected business owner and our Hon. FM. I spoke with Thiru Srinivasan Avl, the esteemed owner of the Annapoorna chain of Restaurants, to express regret for this unintended breach of privacy,” said Annamalai.

    On behalf of @BJP4TamilNadu, I sincerely apologise for the actions of our functionaries who shared a private conversation between a respected business owner and our Hon. FM.

    I spoke with Thiru Srinivasan Avl, the esteemed owner of the Annapoorna chain of Restaurants, to express…
    — K.Annamalai (@annamalai_k) September 13, 2024

    The state BJP president further said, “Annapoorna Srinivasan Anna is a pillar of Tamil Nadu’s business community, contributing significantly to the state’s and nation’s economic growth. I request everyone to lay the matter to rest with due respect.”

  • GST Collections In August Rise 10% Year-On-Year At Rs 1.74 Lakh Crore | Economy News

    New Delhi: Goods and Services Tax (GST) collections in August, in gross terms, were at Rs 1.74 lakh crore, with a yearly jump of 10 per cent, data showed on Sunday. In August 2023, the total collection was to the tune of Rs 1.59 lakh crore. CGST, SGST, IGST, and cess all increased year-on-year in August, official data made available showed today.

    So far in 2024, the total GST collection has been 10.1 per cent higher at Rs 9.13 lakh crore, as against Rs 8.29 lakh crore mopped up in the corresponding period of 2023. In April, the total GST mop-up surged to a record high of Rs 2.10 lakh crore.

    Goods and Services Tax (GST) collections in July were Rs 1.82 lakh crore. In May and June, the collections were at Rs 1.73 lakh crore and Rs 1.74 lakh crore, respectively. During the financial year 2023-24, the total gross GST collection was recorded at Rs 20.18 lakh crore, with an 11.7 per cent increase compared to the previous fiscal year.

    The average monthly collection for the fiscal year, that ended in March 2024 stood at Rs 1.68 lakh crore, surpassing the previous year’s average of Rs 1.5 lakh crore. The surge in recent GST collections reflects a positive trajectory for India’s economy, underscoring robust domestic consumption and buoyant import activity. The figures bode well for the country’s fiscal health and economic recovery efforts, signalling resilience amidst global uncertainties.

    The Goods and Services Tax was introduced in the country with effect from July 1, 2017, and states were assured compensation for loss of any revenue arising on account of the implementation of GST as per the provisions of the GST (Compensation to States) Act, 2017 for five years.

    Hair oil, toothpaste, soap; detergents and washing powder; wheat; rice; curd, lassi, buttermilk; wristwatches; TV up to 32 inches; refrigerators; washing machines, mobile phones, are among key items on which GST rates have been slashed substantially, or for some kept at zero, benefiting people of this country.

    A Finance Ministry study suggested that consumers saved at least four per cent of their household monthly expenses on an aggregate after GST. Thus, consumers now spend less on daily consumables like cereals, edible oils, sugar, sweets and snacks.

    The GST regime removed the inefficiencies and complexities of the previous archaic taxation system. Over the years, GST has, among others, simplified compliance and reduced the cascading impact of tax. Before July 1, 2017, the indirect tax regime was highly fragmented. The Centre and States were separately taxing goods and services. The GST Council, a federal body comprising the Union Finance Minister as its Chairman and Finance Ministers of all States as members, has played its part in the forum. 

  • GST Collection For May At Rs 1.73 Lakh Crore, Up 10% YoY | Economy News

    New Delhi: The Goods and Services Tax (GST) collections for May came in at Rs 1.73 lakh crore, a 10 per cent growth (year-on-year), driven by a strong increase in domestic transactions and slowing of imports, the Centre said on Saturday. 

    The gross GST collections in the FY2024-25, till May, stood at Rs 3.83 lakh crore, representing an 11.3 per cent year-on-year growth, according to the Ministry of Finance. After accounting for refunds, the net GST revenue in the FY 2024-25 till May 2024 stood at Rs 3.36 lakh crore, reflecting a growth of 11.6 per cent compared to the same period last year. (Also Read: ATF Price Slashed By 6.5% To Rs 94,969.01/kl; Windfall Tax On Crude Petroleum Reduced To Rs 5,200/Tonne)

    For May, after accounting for refunds, the net GST revenue stood at Rs 1.44 lakh crore, reflecting a growth of 6.9 per cent compared to the same period last year. While central Goods and Services Tax (CGST) was at Rs 32,409 crore, the state GST was Rs 40,265 crore and integrated IGST stood at Rs 87,781 crore, including Rs 39,879 crore collected on imported goods, said the ministry. (Also Read: Lok Sabha Elections 2024: Are Banks Closed Today, June 1? Check State-Wise List)

    The Cess stood at Rs 12,284 crore, including Rs 1,076 crore collected on imported goods.  For the FY 2024-25 till May, the CGST was Rs 76,255 crore; SGST was Rs 93,804 crore; IGST Rs 1,87,404 crore, and Cess was Rs 25,544 crore. 

    In the month of May, the government settled Rs 38,519 crore to CGST and Rs 32,733 crore to SGST from the net IGST collected of Rs 67,204 crore. This translates to a total revenue of Rs 70,928 crore for CGST and Rs 72,999 crore for SGST in May, after regular settlement. 

    “Similarly, in the FY 2024-25 till May 2024, the Central government settled Rs 88,827 crore to CGST and Rs 74,333 crore to SGST from the net IGST collected of Rs 154,671 crore,” said the ministry.  This translates to a total revenue of Rs 1,65,081 crore for CGST and Rs 1,68,137 crore for SGST in FY 2024-25 till May. 

  • Five States Including Karnataka Show Interest In Implementing Aadhaar-Based Authentication For GST Registration | Economy News

    New Delhi: Five states, including Karnataka, Tamil Nadu and Telangana, have shown interest in rolling out Aadhaar-based authentication for GST registration, an official said on Monday. The biometric-based authentication was discussed at the third National Co-ordination Meeting of senior Central and State GST officers earlier this month.

    Currently, two states, Gujarat and Andhra Pradesh, and the Union Territory of Puducherry have launched the Aadhaar authentication of taxpayers on a pilot basis. “Around five states, including Karnataka, Tamil Nadu and Telangana, have shown interest in implementing Aadhaar-based authentication for GST registration,” an official told PTI.

    The official further said that these states wanted to assess the cost involved, the infrastructure and manpower requirement for implementing the requirement of biometric authentication for registration. The data has been provided to them and based on the assessment, these states will have to put the proposal up before the state Cabinets for approval. (Also Read: Tata Motors Shares Tank Over 8%; Mcap Declines By Rs 29,016 Crore)

    Goods and Services Tax (GST) authorities have so far been using OTP-based Aadhaar authentication to establish the identity of the applicants, seeking registration. However, with instances coming to light wherein other people’s identity was misused to create bogus firms for claiming input tax credit (ITC), the Central Board of Indirect Taxes and Customs (CBIC) had decided to move towards biometric authentication under which in certain suspicious cases, the person seeking registration will be asked to go to an Aadhaar centre to have his biometrics verified.

    As per the analysis of April GST revenues, Karnataka is the second biggest contributor, followed by Uttar Pradesh and Tamil Nadu. Maharashtra garnered the largest chunk of revenue during the month. (Also Read: Paytm Focuses On UPI Lite Wallet For Low-Value Daily Payments)

    The GST collections, which include central and state mop-up, breached the Rs 2 lakh crore milestone in a month in April since the rollout of the unified tax system. Goods and Services Tax collections grew 12.4 per cent to a record high of Rs 2.10 lakh crore in April. The revenue growth was aided by strong economic momentum and increased domestic transactions and imports.