KSA Infomatrix

Refutes reports alleging that tax authorities want to impose GST on salaries paid to employees The Finance Ministry on Friday made it clear that Goods & Services Tax (GST) will not be levied on salary. This clarification has come in the wake of reports that GST has been demanded on salaries paid to CEOs (Chief Executive Officer) or employees of a company. “…media report in this regard alleging that tax authorities want to impose GST on salaries paid to employees is factually incorrect and misrepresents the tax authorities,” the Central Board of Indirect Taxes and Custom (CBIC) said in a statement. The indirect tax policy body under the Finance Ministry emphasised the GST law position, which clearly states under Section 7(2) read with Schedule III of the Central Goods and Services Act, 2017 (CGST Act) that salaried services by an employee to the employer shall be treated neither as a supply of goods nor as a supply of services. So, salaries as such cannot be subject to GST...

Finance minister Nirmala Sitharaman on Tuesday said the government will soon use its strong electoral mandate to usher in the next wave of reforms, and not to miss the bus this time. Without naming the reform measures unsuccessfully attempted by the Modi government in its first term, and in an apparent hint at land acquisition reform attempts by NDA1, she said government's efforts last time were thwarted by the poor numbers in the Upper House. It can be noted that many analysts have been calling for urgent reforms in the factor markets, especially regarding land and labour, to get the economy out of the trough, citing the strong political mandate the government enjoys. "...I am sure we will now show the commitment for reforms happens fast. That is where the mandate given to Modi 2.0 will help," Sitharaman said, speaking at The Indian Express' 'Adda'. "We will push forward with those reforms which have missed the bus last time, but won't miss...

Uttar Pradesh has estimated that the state will suffer a loss of Rs 13,500 crore in 2022-2023 due to implementation of the Goods and Services Tax. Presenting its estimated expenditure plans for the next five years to the 15th Finance Commission recently, the state said its revenue in subsequent years too will be hit because of GST. “The GST collection of UP is estimated to be Rs 65,000 crore in 2022-2023, therefore the compensation will be around Rs 18,000 crore. But the Union government will provide compensation only till June 2022, five years from the date of implementation of GST. Thus, in the last three quarters of 2022-2023, the loss of revenue is expected to be about Rs 13,500 and the revenue in the subsequent years may also be affected. Such losses in the post compensation regime need to be looked into by the finance commission ” the state government said in its submission to the commission last week." An official from UP government also said that the state has asked ...