Special treatment under GST for few states is a bad idea

Synopsis: The issue of special allowances under GST on Covid-19 relief products is being projected as a Centre versus states issue. Introduction This is an attempt to gain political benefit on an issue of human and national importance. The structure and design of GST are being questioned. Already settled debates on the decision-making process in… Continue reading Special treatment under GST for few states is a bad idea

Global Minimum Corporate Tax and India – Explained, pointwise

Introduction The recent meeting of G7 countries resulted in the adoption of a 15% Global Minimum Corporate Tax(GMCT). The GMCT would enable the countries to add a top-up tax on companies who try to avoid taxes by showing their incomes in low tax jurisdictions. A Global Minimum Corporate Tax will also encourage the countries to… Continue reading Global Minimum Corporate Tax and India – Explained, pointwise

Problems with “one state one vote” structure of GST Council

Synopsis:   The “one state one vote” structure under GST Council is a flawed one. It needs to be replaced with a proportional representation of voting in the GST Council. This system should be based on the size of states or their revenue contribution to the GST pool  Background In the recent GST Council meeting, there… Continue reading Problems with “one state one vote” structure of GST Council

The tussle of Digital Services Tax between India and US

Synopsis: The US has rolled back its increased tariff on products of 6 countries including India. It now wants to negotiate, over the imposition of a digital service tax by the 6 nations. It is even willing to engage in a future trade war.  Background: The six countries of Austria, India, Italy, Spain, Turkey, and… Continue reading The tussle of Digital Services Tax between India and US

Road towards a Global Minimum Corporate Tax

Synopsis: The US has proposed a 15% Global Minimum Corporate Tax that will prevent tax avoidance by companies. The tax would be beneficial for India. But many counties will not accept the tax structure. Background: The Base Erosion and Profit Shifting (BEPS) programme were initiated in 2013. It aims to curb practices that allowed companies to reduce their… Continue reading Road towards a Global Minimum Corporate Tax

Highlights of 43rd GST Council Meeting

Synopsis- Key recommendations made during 43rd GST Council meeting and why it is a missed opportunity. Introduction  43rd GST Council Meeting took place recently. There were announcements of several measures. However, they failed to inspire any hope of recovery from the disastrous impacts of 2nd wave of the pandemic. Key recommendations during 43rd GST council… Continue reading Highlights of 43rd GST Council Meeting

Cooperative Federalism is Necessary for the Success of GST in India

Synopsis: Without a strong framework for ‘Cooperative federalism’ it is unlikely that the GST mechanism will survive in the future. Background The GST Council is troubled with mistrust under the prevailing cloud of vendetta politics. Also, Cooperative federalism in India is witnessing a deep crisis due to the widening divide between the Centre and states.… Continue reading Cooperative Federalism is Necessary for the Success of GST in India

Need for Eco Tax in India

Synopsis: Eco Tax in India can be useful for sustaining public  Health financing as well as in mitigating effects of climate change. Background India’s tax revenue decreased significantly during the Pandemic. It has resulted in widening the Fiscal deficit. For instance, the fiscal deficit for FY 2020-21 (revised estimates) is projected to be 9.5% of… Continue reading Need for Eco Tax in India

Government Notifies Rules for 74% FDI in Insurance Sector

What is the News? The Finance Ministry notified the Indian Insurance Companies (Foreign Investment) Amendment Rules, 2021. These rules will apply to all insurers irrespective of the stake held by the foreign partner. These rules will give an effect to increased FDI limit in the Insurance Sector to 74% from 49%. Key Provisions of the Rules:… Continue reading Government Notifies Rules for 74% FDI in Insurance Sector