Latest news with #Cess
NDTV
02-07-2025
- Business
- NDTV
Tobacco, Liquor, Fancy Cars. What Will Cost More As Centre Plans New GST Cess
New Delhi: Cigarettes, carbonated drinks, and high-end cars are among items that may become more expensive if a proposal to replace the expiring compensation cess - in the Goods and Services Tax system - with cesses on health and clean energy, targeting tobacco products and automobiles, is passed. The Health Cess will apply to 'sin goods' - referring to products usually taxed at higher rates due to their perceived negative impact on society - and others in the higher 28 per cent GST bracket. The Clean Energy Cess will target more expensive cars and coal, and is seen as aligning with the Narendra Modi government's overall push to renewable or non-polluting energy sources. Sources told NDTV Profit a panel - the Group of Ministers, or GoM, on Compensation Cess - chaired by junior Union Finance Minister Pankaj Chaudhary is expected to discuss the matter later this month. Sources also said the GoM is already close to an agreement on the two new levies, particularly since most states are expected to accept continuing to tax goods seen as unhealthy or harmful. Experts, though, believe swapping one cess for two may not be as easy as that, because the GST law does not allow for a new levy, which could require a constitutional amendment to become law. The core issue is identifying the beneficiary of the proposed new cesses. What Is Compensation Cess? Compensation cess is an additional tax on select goods and services over and above the GST. It was introduced in 2017 - concurrent with the enactment of the Goods and Services Tax Act - as a way to 'provide compensation to States for loss of revenue' from implementation of the law. But should the centre collect and keep the new cesses it for itself, the states might object to the loss of revenue, especially since they were promised equal shares in GST revenue to give up their rights. A new revenue-sharing mechanism will have to be worked out, sources said. ARCHIVE | Opposition-Ruled States Want GST Compensation Extended Compensation cess was to be valid for five years only. It expired in June 2022, but was extended till March 2026 to allow states to repay loans taken to meet pandemic-era compensation shortfalls. GST Relief For Middle Class? Meanwhile, sources also said talks are also ongoing over reducing the number of GST slabs, possibly by abolishing the 12 per cent slab. If passed, this will mean some products taxed at that 12 per cent will fall into the lower tax bracket - i.e., five per cent. Others will be pushed into the higher 18 per cent bracket. The government believes, source said, products like toothpaste in the 12 per cent category are staples for the middle class and economically weaker sections, and could be taxed at lower rates. READ | GST Relief For Middle Class? Cheaper Toothpaste, Utensils, Clothes, Shoes Sources said this is expected to increase the burden on the central government by up to Rs 50,000 crore. The centre, though, is prepared to absorb the initial impact and expects the deficit to reduce long-term because of an anticipated boost in consumption. Essentially the centre believes lower prices mean higher sales, and this will result in a tax base and increased GST collection. GST Collection Rises GST collection in June rose over 6.2 per cent to over Rs 1.85 lakh crore, compared to about Rs 1.74 lakh crore in the same period last year, according to official data released Tuesday. But June's GST collection was less than May's Rs 2.01 lakh crore and April's Rs 2.37 lakh crore.
The Print
01-07-2025
- Business
- The Print
Gross GST collections rise 6.2 pc to over Rs 1.84 lakh cr in June
During the last month, the Goods and Services Tax (GST) collection was Rs 2.01 lakh crore. Gross GST collections during the same month a year ago was Rs 1,73,813 crore. New Delhi, Jul 1 (PTI) Gross GST collections increased by 6.2 per cent to over Rs 1.84 lakh crore in June, as per government data released on Tuesday. The GST collection touched a record high of Rs 2.37 lakh crore in April this year. In June, gross revenues from domestic transactions rose 4.6 per cent to about Rs 1.38 lakh crore, while GST revenue from imports grew 11.4 per cent to Rs 45,690 crore. The gross Central GST revenues stood at Rs 34,558 crore, State GST revenues at Rs 43,268 crore and Integrated GST at about Rs 93,280 lakh crore in June. Revenues from Cess was at Rs 13,491 crore. Meanwhile, total refunds during the month rose by 28.4 per cent to Rs 25,491 crore. Net GST mop-up stood at about Rs 1.59 lakh crore, registering a 3.3 per cent year-on-year growth. PTI DP HVA This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
GMA Network
08-06-2025
- GMA Network
Alleged NPA top leader nabbed in CDO
Government forces arrested an alleged high-ranking leader of the New People's Army (NPA) in Barangay Indahag, Cagayan de Oro City on Thursday, June 5, 2025. The military identified the suspect as Edward Flores, also known by his aliases Cess, Ruby, Rafa, and Ramon. According to reports, the suspect allegedly served as secretary general of the NPA's Far South Mindanao Region (FSMR), which operates under the jurisdiction of the 6th Infantry Division (6ID). 'Once a powerful figure, Flores' group has significantly weakened due to sustain decisive military operations that dismantled vertical platoon and neutralization of majority of its leaders and remaining members,' 6ID said. The military added that the suspect also allegedly held positions previously such as Regional Urban Committee secretary, secretary of the dismantled Guerilla Front Tala, and spokesperson of the FSMR. 'The arrest of Edward Flores marks another critical blow to the already crumbling structure of the communist insurgency within the area of responsibility of the 603rd Brigade. In fact, we have already filed multiple cases against him for acts of terrorism and for recruiting vulnerable youth into armed rebellion. His capture is a major setback to their ranks and operations,' 603rd Infantry Brigade Commander, Brigadier General Michael Santos, said. Among the charges faced by the suspect include murder filed in Tagum City, Davao del Norte; multiple attempted homicide filed in Surallah, South Cotabato; murder filed in Isulan, Sultan Kudarat, and violation of the Anti-Terrorism Act. During the operation, authorities confiscated a Colt .45 pistol, a fragmentation grenade, and a smartphone from the suspect. "We will remain determined in our efforts to significantly reduce the capabilities of these terrorist criminals to harass innocent civilians. As the CTG continues to lose key leaders and more members, we will continue our pursuit until they are defeated. With the support of our civilian population and partner stakeholders under the Task Force to End Local Communist Armed Conflict (TF-ELCAC), we will not rest until this decades-long problem is resolved," 6ID Commander, Major General Ronald Gumiran, said. —GMA Regional TV News
New Indian Express
03-06-2025
- Business
- New Indian Express
Andhra Pradesh taxes show 2.3% rise despite decline of GST in May
VIJAYAWADA: Despite a marginal negative growth rate of 2.24% in gross GST collections, Andhra Pradesh has demonstrated remarkable resilience and efficiency in tax collection, successfully reversing the downward trend observed in November and December 2024, asserts Babu A, Chief Commissioner of State Taxes. In a detailed note issued Monday, he explained that the main reason for the negative growth was due to declines in Cess, SGST, and CGST payments, with reductions of Rs 52 crores (-20.02%), Rs 51 crores (-4.11%), and Rs 40 crores (-4.01%) respectively. However he noted that the overall impact of these declines was minimal on the state's actual revenue, as net revenue collections continue to demonstrate strong performance. The resilience of net collections underscores the effectiveness of state-level tax administration and enforcement efforts in ensuring steady revenue inflows, he stated. Further elaborating, Babu stated that the data from the Goods and Services Tax Network (GSTN), Central and State tax administrations showed divergent revenue trends during April-May 2025. Central tax collections declined by 7.2% year-over-year, while state tax administrations recorded 2.3% growth during the same period.
Hans India
02-06-2025
- Business
- Hans India
GST collections above Rs 2 trn for second straight month
New Delhi: Gross GST collections remained above the Rs 2 trillion mark for the second month in a row, rising 16.4 per cent in May to over Rs 2.01 lakh crore. Goods and Services Tax (GST) collection had touched a record high of Rs 2.37 lakh crore in April. In May, 2024, the mop up was Rs 1,72,739 crore. In May, 2025, gross revenues from domestic transactions rose 13.7 per cent to about Rs 1.50 lakh crore, while GST revenue from imports grew 25.2 per cent to Rs 51,266 crore. Total gross GST revenues stood at Rs 2,01,050 crore in May, 2025. Gross Central GST revenues stood at Rs 35,434 crore, State GST revenues at Rs 43,902 crore and Integrated GST at about Rs 1.09 lakh crore. Revenues from Cess was at Rs 12,879 crore. Total refunds issued during the month dipped 4 per cent to Rs 27,210 crore. Net GST mop-up in May stood at about Rs 1.74 lakh crore, a 20.4 per cent year-on-year growth. Deloitte India Partner M S Mani said the wide variations in the growth of GST collections across states require a thorough analysis across the sectors that are important in each state.
