Daily Current Events by Civils360 October 23, 2017
DAILY CURRENT EVENTS CIVILS360
Govt planning steps to ease GST compliance burden on SMEs:
- Revenue secretary Hasmukh Adhia remarked that some rejig in the Goods and Services Tax( GST) rate structure is required to reduce the burden on small and medium enterprises.
- The simplification process may result in some readjustment of tax rates, including a possible reduction in some items that attract the highest tax slab of 28%.
- Products are now classified into various subcategories—in many cases, different subcategories fall in different tax slabs—under a code called the harmonized system of nomenclature (HSN) that existed before GST.
- Such a detailed classification is hard to follow for small and medium enterprises.
- The government’s willingness to calibrate the GST system is significant considering that tax compliance has been below expectations in the first three months since the new indirect tax was introduced.
- The GST Act was passed in the Lok Sabha on 29th March, 2017, and came into effect from 1st July, 2017.
- Goods & Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that will be levied on every value addition.
- Under the GST regime, tax will be levied at every point of sale.
In most cases, the tax structure under the new regime will be as follows:
|Transaction||New Regime||Old Regime|
|Sale within the State||CGST + SGST||VAT + Central Excise/Service tax||Revenue will be shared equally between the Centre and the State|
|Sale to another State||IGST||Central Sales Tax + Excise/Service Tax||There will only be one type of tax (central) in case of inter-state sales. The Center will then share the IGST revenue based on the destination of goods.|
SEBI to tighten listing norms as part of crackdown on shell firms
- The Securities and Exchange Board of India (Sebi) is looking to tighten listing norms to prevent fly-by-night operators from getting listed on stock exchanges.
- The capital market regulator’s move follows the government’s ongoing crackdown on shell companies to curb black money
- The plan is to increase the minimum net worth requirement, the proportion of assets held in tangible form, the number of years of profitability and the minimum number of public investors to whom shares are allotted.
Rules to be eased for Tibetan refugees
- India is all set to simplify travel rules for Tibetan refugees who want to visit foreign countries.
- Currently they have to secure an “exit permit” from the Home Ministry before applying for a visa with any foreign mission.
- The refugees would be provided with a no-objection certificate at the time of issuance of identity certificates.
- The Ministry of External Affairs will issue a notification informing all foreign missions of the exit permit clause being removed.