LuvNTR

How the GST is monitored by Central & States for interstate transactions and returns? India will adopt a dual GST model wherein the Centre will levy the central GST and the states will levy state GST. An integrated GST will be levied on inter-state movement of goods. The entire tax registration, payment, tax return and refund system will be online and will be administered by the GST network.

The goods and services tax (GST) will undoubtedly give India a facelift on the taxation front. Of course, the suspense over the rate at which GST will be levied remains. While it is difficult to quantify the impact on various sectors until the government announces the final GST rate, analysts and economists are assuming a standard rate of 17-18%. If that happens, then companies in the manufacturing sector are expected to benefit, while those in the services sector stand to lose. Of course, even though the bill has been passed in the current session, it will be another couple of years until GST is fully rolled out. As such, it’s premature to conclude how this reform will impact stock prices in the near term. In any case, there are various other factors that impact stock prices, and while GST is an important reform, analysts are more keen about indicators of the economic recovery. The winners 1) Automobiles: The auto sector is likely to emerge as a winner from GST implementation, provided the rate is below the total tax incidence for the sector (>27%). GST is expected to lead to lower prices for the end user and thus boost demand. Companies to benefit include Maruti Suzuki India Ltd and Mahindra and Mahindra Ltd. Both stocks have outperformed the market so far this fiscal year. Analysts believe some impact of GST could well be priced in at current levels. 2) Multiplexes: Multiplex companies pay around 25% of the average revenue per user (average ticket price + food and beverage spends, or F&B per head) as taxes, according to Kotak Institutional Equities. This is in three broad areas—(a) entertainment tax on net ticket sales, ( Value-added tax (VAT) on F&B, and © service tax on input costs for which there is no set-off available. No wonder, GST is expected to reduce the tax burden and improve the Ebitda (earnings before interest, taxes, depreciation and amortization) margin. Stocks of PVR Ltd and Inox Leisure Ltd have increased 50% and 30%, respectively, so far in FY17, suggesting the shares are factoring in most of the positives. Of course, there are other factors that are driving these shares. 3) FMCG: If the GST rate is less than or equal to 18%, then it should be positive for most consumer goods companies, point out analysts at Citigroup. Of course, much depends on which exemptions are retained and which of the current excise benefits are “grandfathered”. In addition, there will be gains from warehouse rationalization and a better competitive position vis-à-vis unorganized firms. But gains aren’t expected to be massive and will occur gradually; as such, stocks may not react dramatically just because the GST bill is passed. If cigarettes attract a higher tax incidence under the GST regime, then it will have an adverse impact on companies such as ITC Ltd. 4) Logistics: Supply chain management is expected to get a boost and transit time will reduce. Further, interstate trade barriers would reduce and eventually result in better interstate commerce. Consolidation of warehousing facilities is expected. Stocks that may benefit include Container Corp. of India Ltd and Transport Corp. of India Ltd. Citi’s analysts point out that the better operating environment could lead Gateway Distriparks Ltd to enter the domestic business. 5) Cement: The anticipated 18% GST rate is far lower than what cement companies are paying currently, and analysts expect cement makers to pass on the benefits to consumers as demand continues to remain weak. Whether this alone will help revive demand is another matter altogether. 6) Retail: The opportunity to set off input tax credit on rent is expected to aid margin expansion. But retail companies are facing other problems. Shoppers Stop Ltd’s stock has underperformed the benchmark Sensex this year, as underlying demand remains weak and like-to-like sales growth has been lack lustre. The losers As mentioned earlier, services-related sectors are expected to be negatively impacted, as they may have to shell out higher taxes than what they are currently paying. Service tax rate is currently at about 15%. 1) Telecom: The moderate rise in tax outgo could hit demand and revenues. But there would be a simultaneous set-off of taxes (Cenvat, or central VAT) paid on certain capex inputs. So, the impact would be marginal. But telcos have bigger problems. Data volumes are slowing and the Reliance Jio Infocomm Ltd launch can worsen matters. 2) Consumer staples and discretionary: Many consumer staples currently have low indirect tax. Hence, GST will be negative for companies in food processing, bakery, edible oil, dairy segments and personal care items. Quick service restaurants too will be adversely impacted. Kotak Institutional Equities sees some impact on Britannia Industries Ltd and ITC. courtesy: mint Winner is Manufacturing industry. Loser is food industry, Service industry such as telecom, restaurants, hospitals, real estate services etc (if the GST rate is above 18%). Simple logic to predict to winner & loser in service industry: current service tax is 15%. if GST rate is more than 15% then that sector will become loser.

Now bill is approved. one by one effect is coming out. 1. Real estate may see more tax burden thus impacting middle class negatively per economists. It would add up to 8 percent to the cost of new homes and reduce demand by about 12 percent. 2. GST is being referred as a single taxation system but in reality it is a dual tax in which state and centre both collects separate tax on a single transaction of sale and service. so essentially central govt will get some thing on every goods sold. 3. Majority of dealers are not covered with the central excise but are only paying VAT in the state. Now all the Vat dealers will be required to pay “Central Goods and service tax”. 4. It’s quite apparent that the whole process of GST is going to make Centre a way lot powerful as the Centre has to specify the rate of revenue that has to be shared with the states. There is every chance for some states to put up with a loss in terms of tax sharing. In addition, the centre might fix everything about the whole recompense. The centre can hike the tax rates for states for compensation. Many protests are quite obvious to appear.

Also you need to keep in mind that 'A robust IT infrastructure need to be maintained" at state level for implementaion of GST bill.

5 years lopu compensation ani undi. but after 5 years malli edo plan sesi MH ki GJ ki money divert sestharu. ee BJP ni nammlem.

revenue loss compensate chestharu guaranteed ga gujarat ki for 5 years. ee lopu daani GDP penchukovali otherwise it will start losing after 5 years. but Modi ni nammalem. Edo oka bill techi moeny isthadu gujarat ki even after 5 years.

Main ga use for AP entante, it will get level playing field for attracting manufacturing in comparison with KA and TN. disadvantage entante, it has to raise its GDP with in next 5 years otherwise it will lose 4000 Cr revenue per annum compared to TN which looses 10000 Cr revenue per annum.

vallu main ga oppose sesaru. congress vonthu paadindi. final ga jaitley XXXX ayyadu....now the revenue loss is guaranteed for 5 years via this clause and if center does not pay in time, states can go to supreme court. lekunte Modi gaaru edo malla oka reason cheppi adi kuda ega10ge vaadu...

This is true. the main motivation for GST bill is to profit North states. they want to distribute tax revenue based on population so that bihar, uttar pradesh etc. gets more money via tax distribution. see below images of population Vs Per Capita tax collection in individual states.

Mee Modi gaari bhajana aapithe better brother. originally bill had words of clause as "compensation of loss of tax revenue for upto 5 years". with the TN, MH and congress demand the words changed to "compensation of loss of tax revenue for 5 years". read in this link.

true that there were no incentives to states for loss of revenue and powers to states via GST council in UPA bill. now both are included only after TN and MH demanded it. Otherwise modi would not have included them.

Vichitram entante - Modi opposed GST bill tried to introduced by UPA when he was CM. Now he is the one introducing it.

Correct anything if i typed wrong. Below is the state wise tax collection in 2014. notice that figure for AP as united with TG. Below is full detail on GST that is targeted to be effective from 2017 April 1:

what is GST:- before GST, structure of tax as shown in below image: Consumer has to pay 242 rupees for the final finished product based on VAT. after GST, tax will be low on final product as shown in below image: see above with GST bill:- whole saler will say that manufacturer paid 10 rupees tax already so i will pay remaining 5 rupees. Again retailer will say that both wholesaler & manufacturer paid already 15 rupees tax so i will pay remaining 7 rupees tax only. So this is how GST is levied on based on value addition only but not on whole price. So the final product will be cheaper for consumer with GST bill reform. the difference is 15 rupees cheaper for consumer for the same product. Pros - 1. if a person or business unit does a service on a machinery item in chittoore, generally he can bill in chennai and shows invoice to chittoor business as he already paid (TDS) cess 4% (current rate) paid to TN govt. So this Chittoor tax unit will shut his asss hoole and keeps silent. Now with GST bill, he will pay GST tax to central govt. So central govt. will revert this 4% tax to AP govt since service is done in chittoor, AP. - Gain to AP & Loss to TN. (point # this is one of the reason why TN is opposing GST). 2. generally if a product is manufactured, all types of taxes applicable collected in all stages of manufacturing that product. let say that product is manufactured in AP. generally business buys raw material from either local vendors and manufactures the final product. Also manufacture has head office in mumbai, MH. Now finished goods is sold in MH to whole saler or directly to consumer so this transaction becomes interstate, as the manufacturer bills the wholesaler in mumbai and collects local mumbai tax. before GST, entire tax amount goes to MH only as the business might have incentive from AP govt for setting local manufacturing unit to create local jobs. with GST, all the taxes relevent in AP are substracted on manufacturer cost and only remaining tax on value added to manufacturer cost is paid by consumer within this collection of GST, center distributes that tax on manufacturer cost to AP & remaining tax on value added by wholesaler to MH. This is the case where manufacture bills in mumbai since his headquarter is in mumbai. - Gain to AP, consumer & Loss to MH. (point # This is one of the reason why MH is loosing the revenue and wants center to compensate). 3. GST makes the tax as consumer based taxation. Before it was origin based taxation system. if a product is manufactured in TN and head quarter of manufacture is located in TN, the product is billed with tax in TN to wholesaler by manufacturer. This entire tax goes to TN govt even though wholesaler is in MH and final consumer is in MH. Now with GST, tax goes to MH since the consumer is located in MH. (point # why TN is opposing this GST). 4. All e-commerce business now comes under GST. before there was not taxed by many states. now with GST all e-commerce business needs to collect GST including amazon, snapdeal, flipcart etc. Cons - 1. GST is not applicable to crude oil, diesel, petrol, natural gas, ATF (aviation turbine fuel) and alcohol consumed by humans. These products are only directed taxes by State Govt. 2. States can still add additional tax on raw material manufactured by business to counter the loss faced by states due to GST. 3. States can sill add freight and logistics taxes on products. 4. GST may add more taxes to house construction & Real estate per economists. 5. service industry where current rate is 15% and if GST rate is more than 15%. 6. Pharmacy sector - Rates of pharmaceuticals will increase. 7. Inflation will rise as there will be rates increse in service sector. Below Example explains how consumer gets benifit with GST: This tells you are paying 58 Rs tax now. With GST in force, you will pay only 16 Rs. Update Jun 27, 2017: below link you can find full list of items covered under 3 different tax rates in GST. http://www.moneycontrol.com/news/business/economy/full-list-of-gst-rates-for-98-categories-of-goods-2283599.html

vizag lo UGD unda already?

Nijamga TG povadam oka vidamga adrustham ani seppali. guntur, vijayawada, vizag, tirupati, kakinada, rajahmundry, Nellore etc. full ga infra develop sesukuntunnayi. lekunte always HYD ke money pettalsi vochedi govt. nundi.

Correst...idi nenu 8 months back seppa.

Centre permits CBI to prosecute Andhra Pradesh government’s special chief secretary The Centre has accorded permission to the Central Bureau of Investigation (CBI) to prosecute senior IAS officer L V Subramanyam, who is currently posted as special chief secretary to Andhra Pradesh government in-charge of sports and youth advancement. He along with another IAS officer B P Acharya was named in the chargesheet filed by CBI alleging irregularities in the sale of villas, plots and flats in the integrated project aimed at benefiting the Dubai-based infrastructure firm. The joint venture between of Andhra Pradesh Industrial Infrastructure Corporation (APIIC) and Emaar Properties, Dubai, was to develop an integrated project consisting of golf course, club house, hotel and township on 535 acres of land in Manikonda on the outskirts of Hyderabad Modi government has also granted sanction against Acharya, who is a co-accused and posted as principal secretary to Telangana government handling Panchayati Raj and Rural development. A senior CBI official confirmed to ET that they have received the sanction for both the officers. Both the officers are of 1983 batch and had served as vice chairman and managing director of APIIC from 2004 and 2009 during the tenure Y S Rajasekhara Reddy. The CBI approached Centre for permission to prosecute the two IAS officers in January 2012 but filed its chargesheet in February 2012 without obtaining the sanction. The accused officers went to the court challenging CBI's case that no sanction was obtained by the agency before filing the chargesheet. After a long delay, the officers were directed to submit their replies that were examined by department of personnel and training (DoPT) which finally recommended their prosecution. According to the CBI chargesheet, Subramanyam and Acharya along with others hatched conspiracy during 2002 and 2010 to defraud the APIIC and thereby Government of Andhra Pradesh, in the matter of sale of villas, plots, apartments and other ventures pertaining to the Integrated Project. CBI alleged, "The public servants had abused their respective official positions & facilitated the private real estate companies to sell the villas, plots at exorbitant rates to the buyers. Courtesy: Economictimes

chesi 7 months ayindi brother. any construction activity going news unda?

Idi bavundi.....TG ki power isthe dabbulu pay seyyatledu...kanisam ila commercial & PSUs ki isthe time to time money vochi revenue baaga increase avuddi.

super baa. TFS. alage ATP - palasamudram BEL gurunchi emaina info unda..akkada defense parka annaru gaa.

Nampally CBI Court issues non bailable arrest warrant as he was not attanding CBI court in may, 2016 trials. https://youtu.be/oS7cUuFdots

In 8 years flat he became a billionaire. His house in Yelahanka , Bangalore in 22 acres of land is worth 300 crores. This is in addition to a posh home in Hyderabad https://youtu.be/0AuRDY1rdGM https://youtu.be/BCOOf4zG7Y4 YS Jagan Banglore Palace: YS Jagan Hyderabal Lotus Pond Palace:

Y.S.R. Reddy's election declaration of 2004 included tax returns showing Jagan's assets at Rs. 9.2 lakh, out of total family assets of Rs. 50 lakhs. In April 2009, Jagan revealed total assets of Rs. 77 crores, and by 2011 this has allegedly increased to amount Rs. 365 crore. In August 2011, the Andhra Pradesh High Court, based on preliminary report by the CBI, ordered a thorough probe. In addition to the CBI, the Comptroller and Auditor General (CAG) and the Indian Revenue Service (IRS)have been probing the corruption charges. http://1.bp.blogspot.com/-kXVxpZJSAZY/TmBn0l98LqI/AAAAAAAACDQ/FkM7DBWzVtE/s1600/Bharati.jpg Enni articles in media about limitless scams of jagan Entire YSR family crime history:- https://www.scribd.com/document/23120450/factionist-becomes-chief-minister

List of Enforcement Directorate (ED) filed charge sheets: First Chargesheet: (1st) The ED filed chargsheet on 3rd April, 2015. The ED agency relied on the the chargesheet filed by the CBI against Jagathi Publications, and tracked the trail of money, recorded the statements of certain investors in the publishing house for filing the chargesheet. ED said that it tracked the trail of money into Jagathi and highlighted certain violations regarding transfer of money from NRIs. It also recorded the statements of these investors who stated that they were lured into investing in Jagathi by none other than YSR himself along with Vijay Sai Reddy. Vijay Sai Reddy sent a message to TR Kannan, the director of Chennai-based Jayalakshmi Textiles, who was trying to set up a cement plant at Banaganapalli of Kurnool district telling him to invest Rs 5 crore in Jagathi Publications if he wanted 'things to move smoothly'. Accordingly, he invested Rs 5 crore in Jagathi. Madhava Ramachandra, an NRI with origins in Bangalore, too, invested Rs 19.5 crore in Jagathi following assurances from YSR and an invitation from Vijay Sai. Courtesy: Times of India Second Chargesheet: (2nd): On Feb 25, 2016. 18 People are accused from Ys jagan to vijaya sai reddy to Hetero & Aurobindo owners, directors. 29.5 Crores are invested by Hetero & Aurobindo as quid-pro-quo investment for getting 75 acres for each Hetero & Aurobindo drugs. Hetero (Srinivas Reddy), Aurobindo Drugs (chairman P.V.Ram Prasad Reddy), nityananda reddy, Rajeswary etc. all directors and owners, IAS officer BP Acharya are accused. Courtesy: TV9 Courtesy: The Hindu Courtesy: TimesofIndia PMLA Criminal Case:- Enforcement Directorate (ED) has attached assets worth over Rs 232 crore in connection with itsmoney laundering probe against YSR Congress chief Jagan Mohan Reddy and former BCCI top boss N Srinivasan in the alleged quid--pro--quo and illegal investments case between the business entities of the two and few others. The agency has registered a criminal case under the Prevention of Money Laundering Act (PMLA) to probe alleged bribes paid by Srinivasan, also the Managing Director of Ms India Cements Limited, to Reddy as "quid-pro-quo for undue favours received by his company from the government of Andhra Pradesh" when Jagan's father YS Rajasekhara Reddy was the state Chief Minister. ED, in the latest order, attached a number of land plots of Ms Janani Infrastructure Limited (firm owned by Jagan) and those of India Cements in Andhra Pradesh and Karnataka along with fixed deposits and shares. Courtesy: Indianexpress Third Chargesheet: (3rd case) : On Mar 4, 2016, Initiating one of its biggest criminal actions in a money laundering case, the Enforcement Directorate (ED) today attached assets worth Rs 863 crore of YSR Congressleader Jaganmohan Reddy and his associates in connection with its probe into alleged corruption in an infrastructure project in Andhra Pradesh. The agency slapped separate notices against Jagan andNimmagada Prasad whose companies were allegedly favoured by the then AP government (when Jagan's father Y S Rajasekhara Reddy was Chief Minister) in the Vadarevu and Nizampatnam Industrial Corridor (VANPIC) project whose aim was to develop sea ports and a green field airport in coastal areas of the southern state and industrial corridors in Prakasam and Guntur districts. The ED probe said there was 'quid pro quo' in this deal and hence illegal money exchanged hands. "Various concessions were extended to the VANPIC project in the form of alienation of huge chunks of assigned government land to the companies floated by Nimmagadda Prasad, development of shipyard, green filed airport, exemptions from levy of stamp duty and registration charges, seigniorage (deed-signing) fee and other undue benefits were extended," the ED probe report said. The CBI chargesheet, which the ED relied upon, said "illegal gains to the tune of Rs 1426.17 crore was made to Prasad in the acquisition of lands and Rs 854.54 crore was made to Jagan and his companies as quid pro quo by Prasad and his companies." "This is one of the biggest attachments done by the ED in a money laundering case. The assets will now be seized," sources privy to the development told PTI. Courtesy: Economictimes Fourth Chargesheet (4th case): on June 29, 2016 The agency launched the investigations on the basis of a charge sheet filed by the CBI. The Enforcement Directorate on Wednesday attached assets worth nearly Rs. 750 crore of YSR Congress chief Y.S. Jaganmohan Reddy and others in connection with the ongoing money laundering probe. The ED has so far attached assets — real estate, shares and fixed deposits — worth Rs. 2,524.10 crore in the case, this being the fifth provisional attachment order. According to the Directorate, investigations have revealed that Mr. Reddy received huge investments in his companies after 2004 when his father Y.S. Rajasekhar Reddy became the Chief Minister of Andhra Pradesh. “Bharathi Cement Corporation Private Limited, which till 2007 did not have any major investments other than those from him and his associates, received huge funds from companies of Nimmagadda Prasad of VANPIC Group and others between June 2007 and April 2010, with a huge and unsubstantiated premium as quid pro quo, amounting to Rs. 442.82 crore,” said the ED statement. Shares of Bharathi Cement at a par value of Rs.10 per unit were also purchased with the allegedly ill-gotten money. Courtesy: TheHindu In a fresh development, the Enforcement Directorate has attached YS Jagan Mohan Reddy's house in Lotus Pond and Jagan's bungalow in Bangalore along with his several other key properties including Minister's Commercial Building in Bangalore. All the properties of Bharati Cement were also attached by the ED. As per the charge-sheet filed in the misdeeds in Bharati Cement, ED has done a complete inquiry and confirmed that Jagan's involvement in several wrong doings and booked Money Laundering case against him. ED clearly stated that Rs 152 Crore worth limestone material was allotted to Bharati Cement during former CM YSR's regime against the rules and norms. It further stated that these assets would belong to public. The national law enforcement agency has also attached the shares of Jagan, Bharati in several companies. Jagan has around 2.58 Lakh shares in Silicon Builders on his name and 88,000 shares in a firm called Classic Reality. The shares are estimated to have value of Rs 1.5 Crore. Jagan's shares in Sandur Power estimated at Rs 1.66 Crore were also attached by the ED. Jagan's five plots in Hakeempet and 9680 Gajas residence plot in Rajendra Nagar were also among the attached properties in the long list of assets attached by the ED. As per government valuation, the assets would be 749 Crore including immovable assets worth of Rs 404.72 Crore and movable assets worth of Rs 344.28 Crores. In the open market the valuation would be over Rs 5000 Crore. Fifth Charge sheet (5th case): on May 05, 2017 ED files prosecution plaint in Penna Cements issue:- As part of its probe in the disproportionate assets case against YSR Congress chief Y S Jaganmohan Reddy, the Enforcement Directorate (ED) on Thursday filed prosecution complaint (charge sheet) before the designated court in connection with the alleged irregularities related to allocation of land and granting mining lease for Penna Cements. The ED named Jagan, V Vijaysai Reddy, Penna Group chairman Putta Pratap Reddy, Pioneer Holdings and Penna Cements as accused in the case. The prosecution complaint said that the then Congress government headed by chief minister Y S Rajasekhara Reddy allocated 231.09 acres in Yadiki mandal of Anantapur district in Andhra Pradesh to Penna Cements for setting up cement factory and some officials allowed the company to acquire assigned lands directly from the farmers in gross violation of land acquisition rules. The prosecution complaint further said that the Rajasekhara Reddy government refused mining lease for Ultratech Cement over 304.74 hectares in Burgula of Kurnool district and granted prospecting lease to Penna Cements violating the prevailing norms. Similarly, irregularities took place in reviving the expired lease in Tandur of Ranga Reddy district over 822.13 acres of land. Further, Rajasekhara Reddy government granted subsidies for construction of Pioneer Hotel in Banjara Hills, the ED said in its prosecution complaint. In return for all the favours Penna Group invested Rs 68 crore in the companies owned by Jagan violating the provisions of Prevention of Money Laundering Act (PMLA). The ED said adding that the process for attachment of properties for the violations has been initiated. Courtesy:- Hans India.