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Time of India
4 days ago
- Business
- Time of India
GST's identity crisis: One nation, multiple headaches
Academy Empower your mind, elevate your skills Rajesh Sodhi still remembers the night of June 30, 2017. The Ludhiana-based textile manufacturer had stayed up past midnight, watching Parliament TV as the Goods and Services Tax (GST) was announced. 'One Nation, One Tax' was the clarion call. It sounded like music to his years on, Sodhi's enthusiasm has morphed into frustration. His factory now employs three accountants just to handle GST compliance . "We were promised simplicity," he says. "Instead, we got something more complicated than what we had before."Sodhi's story isn't unique. Across India, individuals and corporates alike are grappling with a tax framework that seems to have developed a mind of its complexity starts with the basics. Instead of 'One Tax', today's GST comes with five different tax rates: 0%, 5%, 12%, 18%, and 28%. Add in numerous exemptions, differential rates for services, and sector-specific rules, and you have a system that's making the old tax regime look something as basic as determining which rate applies to popcorn, which is still a hot-button issue months after the December 2024 GST Council meeting. Is it taxed at 5%, 12%, or 18%? The answer depends on factors so nuanced that even tax lawyers disagree, but the lowdown is: it's 5% if sold loose (such as in a movie theatre), 12% if packaged and savoury-flavoured, and 18% if caramelised. But if your popcorn comes bundled with your movie ticket, the GST would be 18% because this would be treated as a composite such as these have prompted entrepreneurs and companies, regardless of industry, to reclassify their products and services after routine audits, resulting in demands for additional tax ranging from lakhs to crores of rupees."There has to be a philosophy to taxation that informs decision-making. GST is far from the good and simple tax it was supposed to be," says former Finance Minister (FM) Yashwant Sinha. "When I was FM, I rationalised the multiple central excise rates down to three. GST has a rate multiplicity problem. It's creating classification, implementation, and filing issues. The slabs must be reduced— ideally to one."The digitalisation of the Indian economy has revealed another vital limitation in the implementation of GST. App-based services, digital payments, and e-commerce platforms have created a whole new category of tax disputes that the system wasn't designed to Karnataka, vendors are protesting after having received GST notices for UPI-based transactions exceeding ₹40 lakh a year. They are currently demanding that the state revoke such notices, and that enforcement of such rules be relaxed for small-scale consider fintech entrepreneurs whose lending platforms are embroiled in disputes over whether algorithmic credit scoring should be taxed as a software solution or a financial service, a distinction that could mean the difference between 0% and 18% tax rates. Software as a Service (SaaS) companies are unclear and thus unable to determine whether they're selling goods or services. There's confusion over e-commerce platforms' marketplace versus inventory models, and skill-based online gaming companies are still contending with the massive retrospective demands rising from the hike from 18% to 28%, on par with chance-based activities such as gambling and there's the 'luxury' classification. As Aarin Capital Chairman and former Infosys executive Mohandas Pai puts it:"Air conditioners and TVs larger than 32 inches are taxed at 28%, but these aren't luxury items. They're mass goods today. Two-wheelers and sedans are also not considered luxury goods in 2025. Cement, which is critical for building India, also falls in the 28% bracket. The number of slabs should be reduced, and classifications revised."A concern on GST's complexity is the volume of disputes it has generated. There were significant judgments pertaining to GST in 2024, rendered by High Courts across the nation. And 2025 is even busier, as evidenced by recent multinational corporations across sectors have taken the international arbitration route to seek relief from retrospective tax claims. Several disputes are ongoing. Two, online real money gaming platforms are challenging retrospective GST notices amounting to ₹1.12 lakh crore, which exceed the industry's turnover of approximately ₹20,000 crore. The Supreme Court heard their arguments on July 15 and has scheduled its final hearing for July 25. Three, food delivery aggregators are wondering whether delivery charges attract 5% or 18% GST, which could further dent make or break their razor-thin margins. Four, airlines and shipping companies were mired in compliance issues around 'place of supply rules' that confused rather than clarified. Lastly, life and health insurance companies contended with 18% GST, a move that was passed on to already-burdened cases highlight that retrospective tax actions, especially those related to indirect taxes like GST, may impact not only compliance but also business overall "pay first, argue later" approach is also a hurdle for micro, small, and medium enterprises (MSMEs), which have minimal resources, including cash flows, to sustain specialised tax compliance teams. And the paperwork doesn't help. This includes mandatory multi-factor authentication for GST portal access and restrictions on E-Way Bill (EWB) generation to curb fraudulent practices, which have added yet another layer of complexity to daily operations. As Rajesh Sodhi, the entrepreneur from Ludhiana, says:'Tax refund delays are my biggest problem. I'm spending most of my time on GST-related tasks. I became a businessman to sell hosiery and other textiles, not to become a tax expert. But that's what this system has forced me to become."Although India's foreign direct investment (FDI) performance has shown resilience, recent data indicates moderation in investment momentum. In FY25, net FDI inflows dropped to a record 96.5%, as reported by The Economic Times. This has everything to do with investors exiting lucrative IPOs here and Indian firms ramping up overseas investments. But here's something to consider: the retrospective application of tax laws also undermines the principle of legal certainty, which is critical for investor confidence. Such enforcement imposes additional due diligence requirements and risk assessment protocols on foreign investors, particularly in sectors with complex supply chains and cross-border Financial Times reported that disputed tax demands, totalling around ₹13.4 lakh crore (as of March 2024), may have contributed to the decrease in net FDI inflows. Automaker Volkswagen is contesting a tax demand of approximately ₹12,000 crore related to import duties stemming from a 12-year investigation. Similarly, Maruti Suzuki (~₹20,000 crore) and Hyundai (~₹4,000 crore) are also among the top companies. Such prolonged battles and uncertainty surrounding tax obligations could raise concerns among investors about the predictability of India's tax are signs that policymakers are finally acknowledging pain points. Owing to Budget 2025, enterprises can expect some GST rate rationalisation in the 56th GST Council meeting, to be held later this month. Two major measures reportedly being considered are the elimination of the 12% slab and the abolition of GST altogether for term for businesses like Sodhi's, the question isn't whether reforms will come. It's whether they'll arrive soon enough. After eight years of promises and patches, India's entrepreneurs are running out of patience with the great tax answer, it seems, is written in the stars… or perhaps in the next GST Council meeting.
Time of India
5 days ago
- General
- Time of India
HC orders Amarnath board to let Ludhiana trust run langar
This is a representative AI image (Pic credit: Lexica) JAMMU: J&K and Ladakh high court has ordered Shri Amarnath Shrine Board (SASB) to restore permission to Ludhiana-based Bhole Bhandari Charitable Trust to set up a langar (community kitchen) at Panchtarni --- a scenic rest camp 15km from the last stoppage at Sheshnag Lake on the shrine route --- to serve the pilgrims. The court set a week's deadline for the compliance. Justice Rahul Bharti in his order on Tuesday observed the petitioner trust was arbitrarily and discriminatorily excluded from setting up a langar, despite 28 years of unblemished service record. Welcoming the court order, Rajan Gupta, a trustee of Bhole Bhandari Charitable Trust, told TOI, 'Bhole Bhandari Charitable Trust remains committed to selfless service, as we have done for nearly three decades.'
Indian Express
6 days ago
- Indian Express
ED freezes Rs 21 crore in bank accounts of Dr Amit Bansal, kin, de-addiction centres
The Jalandhar Zonal Unit of the Enforcement Directorate (ED) on Wednesday attached multiple bank accounts worth Rs 21 crore belonging to Dr Amit Bansal, his family members, and the now-defunct drug de-addiction centres operated by him in connection with their ongoing investigation into a drug diversion and money laundering case connected to private de-addiction centres across Punjab, an ED official said. The official said the probe involves the alleged misuse of prescription drugs and illegal financial transactions tied to 22 private drug de-addiction centres in Punjab. In this connection, the ED had on July 18 conducted coordinated raids at four locations in Chandigarh, Ludhiana, Barnala and Mumbai, the official said. According to ED sources, the agency is examining 'how drugs meant exclusively for registered addicts were diverted and sold illegally' and 'how the proceeds from these sales were laundered'. The ED took over the case from the Punjab Vigilance Bureau, which had initiated the investigation and arrested Dr Bansal around seven months ago. Dr Bansal, a Chandigarh-based physician, was accused of misusing Adnoc-N, a regulated combination of Buprenorphine and Naloxone, prescribed for opioid addiction treatment, by selling it to non-registered drug users, ED sources said. Though Dr Bansal is currently out on bail, all 22 of the centres in Punjab and one in Chandigarh have been shut down, the ED official said, adding that his Chandigarh centre was also sealed during the ED raid on July 18. So far, four FIRs have been registered against his centres in various districts, including Jalandhar, Ludhiana, and Patiala, the official said, adding that the Punjab Vigilance Bureau had arrested him in Chandigarh before handing the case over to the ED. According to ED sources, thousands of tablets were found missing from Dr Bansal's centres. During inspections, Dr Bansal reportedly claimed that the unused medicines had been returned to the pharmaceutical companies from which they were procured — a claim now under scrutiny, said ED sources. In earlier raids, ED sources said, the agency seized thousands of restricted tablets and over Rs 90,000 in cash from a Ludhiana hospital and other facilities linked to Dr Bansal. Ludhiana-based Drug Inspector Ruppreet Kaur was also named as a co-accused, they added. The official said the investigation uncovered further irregularities: at a hospital in Nakodar (Jalandhar), nearly 1.44 lakh tablets were found missing from the inventory. The agency alleged that Dr Bansal attempted to cover up the discrepancy with the help of departmental staff and certain officials. 'With a clear money laundering angle emerging, the ED's July 18 raids were aimed at collecting digital records and financial evidence related to the illegal sale of controlled substances,' the official said, confirming the 'seizure of several incriminating documents and electronic devices, which are currently under forensic examination'. According to ED authorities, more arrests are likely as the investigation progresses. Earlier, the former deputy commissioner of Jalandhar had conducted a probe into alleged misappropriation at Dr Bansal's Nakodar de-addiction centre. That inquiry, too, found several irregularities in the centre's operations.
Hindustan Times
6 days ago
- Hindustan Times
Ludhiana: 6 held for lobbing petrol bomb at realtor's house
In a shocking revelation that underscores the international links of local gang violence, the Dakha police have unearthed a conspiracy to eliminate a Ludhiana-based realtor, allegedly orchestrated by a gangster currently hiding in the United States. The case pertains to a recent petrol bomb and gunfire attack at the house of Yadwinder Singh alias Yadi in Village Baddowal, carried out in the early hours of July 10. The six accused in police custody in Ludhiana on Tuesday. (HT Photo) According to police, six assailants have been arrested in connection with the case, while six others—some with serious criminal backgrounds—are still absconding. The arrested accused include - Harshpreet Singh Bhullar alias Harsh of Deep Nagar of Patiala, Dhruv Thakur of Jagdish Colony Patiala, Ekjot Singh of Adarsh Colony of Bhadson Road of Patiala, Gurinder Brar alias Guriof Nihal Singh Wala of Moga, Baljinder Singh of Bhamma Landa village of Moga and Amrik Singh of Jawahar Singh Wala village of Ferozepur. The Police have recovered two vehicles used in the crime, along with petrol bombs. Matter stems from a property dispute: Cops Deputy superintendent of police (DSP) Dakha Varinder Singh Khosa, confirmed that the crime was not a random act but a carefully plotted assault, stemming from a land dispute between Yadwinder Singh and one Dildar Singh, a resident of Jainpur village. The latter allegedly reached out to an infamous gangster Kunwarveer Singh—currently hiding in the US—to arrange the attack. 'This case exposes how local land disputes are now being escalated into full-blown international criminal conspiracies,' said DSP Khosa. 'Dildar Singh contacted Kunwarveer Singh in the US, who in turn recruited assailants including Harshpreet Bhullar, Sahil Malhotra, Sahil alias Matru, and Riaz to execute the attack.' The attack was executed with alarming precision. On the intervening night of July 9 and 10, the accused hurled a petrol bomb at Yadwinder Singh's residence in Baddowal. As the victim came out to investigate, the attackers opened fire. Although Yadwinder miraculously escaped. The attackers filmed the entire act on their mobile phones before fleeing the scene. Six accused still on the run According to police, the assailants used a stolen Hyundai i20 for the attack. The vehicle was procured by Ekjot Singh and was under his possession for 15 days prior to the incident. After executing the plan, the gang abandoned the car near a petrol pump in a bid to mislead the police. The vehicle was then moved by another accused, Dhruv Thakur, along with an accomplice identified as Jazzy. Later, three others—Gurinder Brar, Baljinder Singh, and Amrik Singh—picked up the shooters in a Mahindra Scorpio and provided them with shelter. Among the accused still on the run are Dildar Singh, proclaimed offender and US-based gangster Kunwarveer Singh, Sahil Malhotra, Sahil alias Matru, Riaz from Patiala, and Jazzy. The DSP confirmed that the FIR, originally lodged under sections 125 (acts that endanger human life or personal safety due to rashness or negligence) and 326 (offense of mischief by injury, inundation, fire, or explosive substance) of the BNS, sections 25, 27, 54 and 59 of the Arms Act, has now been expanded with the inclusion of additional sections 109 (attempt to murder), 249 (offence of harbouring an offender), 3 (5) (common intention) of BNS. 'This is not just a local crime. The involvement of a gangster sitting in the US raises serious questions about the extent of foreign influence on Punjab's gangland activities. We are coordinating with higher authorities and cyber units to trace communications and financial links involved in this attack,' Khosa added.
Indian Express
19-07-2025
- Indian Express
On radar in Sidhu Moosewala murder case, gangster Ravi Rajgarh, close aide of Lawrence Bishnoi, arrested
The Khanna Police has arrested Ravi Rajgarh, a Category-A gangster and a key member of jailed gangster Lawrence Bishnoi's gang, a senior officer confirmed on Friday. According to sources, Rajgarh was apprehended on the way to his village where he was supposed to meet his father Jagtar Singh Dhillon, who is a sarpanch. A weapon has also been seized from his possession, they added. Police, however, have not revealed further details about the arrest of Rajgarh. Rajgarh — who faces at least 12 FIRs, including 'murder' and 'attempt to murder', across different police stations — had allegedly supplied weapons for the murder of singer-politician Sidhu Moosewala and been on the National Investigation Agency (NIA) radar. He also allegedly got involved in clashes inside prisons, including Ludhiana and Ropar, where he allegedly attacked jail officials and rival gang members. Rajgarh had also allegedly helped several aides of Bishnoi, including his brother Anmol Bishnoi, in fleeing India by arranging fake passports for them. He had given Rs 25 lakh to Ludhiana-based transporter Baldev Chaudhary to send Anmol to Dubai on a fake passport; Chaudhary is already arrested for allegedly providing weapons to shooters involved in Moosewala's murder, police said. On January 27, 2023, Rajgarh was arrested by the state Anti-Gangster Task Force (AGTF) from Mohali and a China-made pistol was seized from his possession, Punjab Police DGP Gaurav Yadav had said in a statement. 'The accused (Ravi Rajgarh), who had been in touch with Lawrence Bishnoi and Canada-based terrorist Goldy Brar for the past 13-14 years, carried out criminal activities at their behest. He has a criminal history with cases pertaining to murder, attempt to murder, and Arms Act among others… Preliminary investigations revealed Ravi Rajgarh was providing hideouts, logistic support, arms, and vehicles to members of the Lawrence Bishnoi gang, as well as facilitated their associates to procure passports on fake particulars to escape abroad.' Rajgarh was later released on bail. In September 2024, the NIA had raided Rajgarh's residence in connection with Moosewala's murder, and other gangster-terror nexus activities. In October 2024, Rajgarh — out on bail — 'campaigned' for his father, who had contested the panchayat elections from their native village Rajgarh, Khanna; Dhillon had won.
