GST (Goods and Services Tax)

Centre has tabled the much-hyped Goods and Services Tax (GST) Bill in the Lok Sabha.

The legislation seeks to create a single and unified tax regime in the country putting an end to complicated system of taxation where multiple agencies levy tax on the same item/service one after another.

The Bill - a constitutional amendment (122nd) - is believed to boost the economy by placing a business-friendly economic structure.

Being a constitutional amendment, it needs two-third majority in Parliament in addition to ratification by over half of all the state legislatures.

Benefits

• It will create a single and unified economy in which taxes will be levied on a national basis - some by states, rest by centre in a clearly defined manner.
• This will make doing business easier in the country - by improving transparency and efficiency.
• This is likely to improve tax collections.
• GST will be is levied only at the destination point, and not at various points (from manufacturing to retail outlets).
• If it gets passed - the new regime will take effect from April 2016.

What kind of taxes it will replace?

• Central excise, state VAT, entertainment tax, octroi, entry tax, luxury tax and purchase tax on goods and services.

Exception

• Liquor has been kept totally out of the system whereas inclusion of petroleum products like petrol and diesel will have transitional arrangements.

Who will govern the new structure?

• GST Council - a statutory body - has been created with one-third representation from centre while the rest two-third come from the states.
• Any decisions regarding the GST structure will require 3/4 majority - giving none of the two stakeholders absolute power to tinker with the system.
• The council will decide the items/services on which the tax will apply for any given period.

Key Points

• The legislation has been in the pipeline since the days of UPA-2 (2011).
• States - fearing loss of revenue - were against GST.
• To speed up the implementation - Centre has had to concede many points to state in lieu of their support.
• Centre has agreed to give compensation to such states for a period of five years - in the following way - 100 per cent for first three years, 75 per cent in the fourth, going down to 50 per cent for the fifth one.
• Petroleum products will be levied at zero rate - meaning that the states will continue to levy VAT while Centre will exhort excise duty for initial few (5?) years.
• The states where goods originate can levy 1 per cent additional tax over GST to make up for any revenue loss for the first two years.

Will it lead to price rise?

• On the contrary it may do the opposite thanks to the expected decline in tax-corruption.
• However, the system needs some time to settle for the prices to stability.

After Make in India

After Make in India; Government plans 'Work for the World'

After lending a push to manufacturing sector with 'Make In India', Indian Government has shifted its focus to Service Sector.

There will be a 'Global Exhibition on Services' in Pragati Maidan from April 23-25 which will seek to market our services to the global consumers.

Over 40 countries are expected to participate in the fair which would be first of its kind integrated exhibition in the country showcasing our strength in the Services sector.

Global Exhibition on Services (GES) objectives:

• to tap the potential for services' exports and to increase FDI flow in the services sector.
• to generate more wealth and employment by making the Sector more competitive.
• to create a global platform for increased trade in services.
• 57% of our GDP is contributed by the Services sector and GES will provide further thrust to it.

The GES is being organized by Ministry of Commerce and Industry from April 23-25 at Pragati Maidan (New Delhi) in association with Services Export Promotion Council (SEPC) and Confederation of Indian Industry(CII).

Points to Ponder

• Services is one of the rare few sector in the country where our exports outdo our imports; and with a slight change in policy we can exponentially increase our revenue.
• Unlike manufacturing sector, we already have impressive pool of skilled manpower to take this figure way too higher.
• India ranks 6th in the global Service trade with 3 per cent share as against 4.6 per cent of China.

CURRENT AFFAIRS APRIL/10/20015

CURRENT AFFAIRS APRIL/10/2015

1. INDIA AND USA SINGED MOC:

A.   India and USA signed a memorandum of cooperation on transportation.

B.   Memorandum of Cooperation (MOC) was signed between Union Road Transport and Highways Minister Nitin Gadkariand US Secretary of Transportation Anthony Foxx.

2.   SEBI RAISED THE LIMIT FOR CURRENT DERIVATIVES TRADES:

A.   Securities and Exchange Board of India (SEBI) has raised the limit for currency derivatives trades to 15 million US dollar.

B.   The limit is raised from 10 million US dollars to 15 million US dollars for both foreign and domestic investors.

3. SUMIT MAZUMDAR ELECTED AS PRESIDENT OF CII:

A.   Sumit Mazumdar is elected as the president of confederation of Indian Industry for the year 2015-16.

B.   Sumit Mazumdar Succeeded Ajay Shriram.

C. Sumit Mazumdar is the chairman and Managing Director of the TIL limited, Indian largest manufacturer of material handling equipment.

D. Elected president of CII – Dr. Naushad Forbes

E.  Elected Vice – President of CII – Shobana Kamieni

4. RAJASTHAN AND VENDATA GROUP SIGNED AN MOU:

A. Rajasthan Government and Vendata group signed an MoU to improve 3056 Anganwadi centres in 5 districts.

B. Angarwadi centres will be improved in the five years under the integrated child development scheme (ICDS).

C. Selected 5 districts are:

·         Udaipur

·         Chittorgarh

·         Bhilwara

·         Rajsamand

·         Ajmer

5. DR. NASIM ZAIDI APPOINTED AS CEC:

A. Dr. Nasim Zaidi is appointed as the Chief Election Commissioner of India.

B. Dr. Nasim Zaidi becomes 20^th CEC of India after succeedingHarishankar Brahma.

C. President of India, Pranab Mukherjee appointed Dr. Nasim Zaidi to be the next CEC

Note: The tenure of CEC is 6 years or age of 65, whichever comes first.

6. VISIT KERALA 2015 CAMPAIGN LAUNCHED:

A. Visit Kerala 2015 campaign is launched to promote Kerala Tourism.

B. Union Minister of State for Tourism, Dr. Mahesh Sharmalaunched the campaign.

C. Various Innovative programmes and schemes will be launched in India and abroad to attract Domestic and foreign tourists.

7. SNAPDEAL ACQUIRED MOBILE RECHARGE SERVICE FREE CHARGE:

A. E-commerce giant Snapdeal acquired mobile recharge serviceFreecharge in a cash and stock deal.

B. With this deal, Snapdeal became the largest mobile commerce company in India.

Note: Free charge was launched in 2010 by Kunal Shah.

8. JAYAKANTHAN PASSED AWAY:

A. Jnanpith awardee Tamil Writer Jayakanthan passed away

B. Jayakanthan writings were mainly focused against social injustices and economic inequality in the society.

C. Jayakanthan won Sahitya Akademi award in 1972, Jnanpith in 2002 and Padma Bhusan in 2009.