Karnataka Panel Proposes Higher User Charges and Tax Reforms for Revenue Boost Issue: To address key financial challenges, particularly the low non-tax revenue and reliance on a few major tax sources, the Karnataka government’s committee recommended comprehensive reforms focused on maximizing non-tax collections and modernizing tax administration. Facts: The Resource Mobilization Committee (RMC), headed… Read More »
GDP and GST: Revenues Lag Pre-GST Levels Despite October Collections Issue: To examine the overall revenue buoyancy of the Goods and Services Tax (GST) seven years after its implementation, assessing if the aggregated GST-to-GDP ratio has reached the levels of the taxes it replaced, and analyzing the differential revenue performance across various states. Facts:… Read More »
Finance Bill 2026 to Carry Key GST Reforms for Automation and Liquidity Issue: To formalize the legislative framework for the “Next-Gen GST 2.0” structural and procedural reforms—specifically concerning fast-track registration and automated provisional refunds—by introducing necessary amendments to the GST law through the upcoming Finance Bill 2026. Facts: The GST Council and the government… Read More »
CBDT Retains Transfer Pricing Tolerance Levels for AY 2025-26 Issue: To provide continuity and stability in the application of Transfer Pricing (TP) regulations, the Central Board of Direct Taxes (CBDT) formalized the tolerance range for assessing the difference between the actual price of a related-party transaction and the Arm’s Length Price (ALP) for the… Read More »
GST Council Unlikely to Address Insurance Agents’ Commission Cuts Issue: Insurance agents and distributors submitted representations seeking relief from the Goods and Services Tax (GST) Council regarding commission cuts implemented by private insurers. The cuts were made by insurers to offset their own financial loss resulting from the withdrawal of Input Tax Credit (ITC)… Read More »
Oxford Economics: Structural Reforms Needed for Sustained Long-Term Growth Issue: To provide a cautionary analysis that, despite the immediate positive boost to consumption from the GST rate rationalization, structural economic issues will prevent a sustained rise in India’s long-term growth prospects unless deeper, non-tax reforms are implemented. Facts: The government hailed the GST rate… Read More »
Residential Leases for Exclusive Use are Exempt from GST Issue: Whether Goods and Services Tax (GST) is leviable on the renting or leasing of residential property when used exclusively for residential purposes, and consequently, whether GST and water charges should be included in the computation of lease rent for the purpose of assessing stamp… Read More »