All you need to know about the 1st week of GST

All you need to know about the 1^st week of GST

1. Demonetization drive has led to an increase in the estimated number of taxpayers from 52.4 million in FY 2016 to 62.5 million in FY 2017. Once GST is in place this figure will jump further.
2. Exports have been impacted by the lack of clarification in the GST regime on the process of claiming input tax credit, documentation and use of input tax credit to pay IGST. Although government has already issued one set of desired clarifications, the industry seeks more. 
3.  Reckitt Benckiser is the first global company claiming that GST roll-out has hit its sales. Most large consumer-facing companies had stopped sales towards June-end to avoid unsold stocks.
4. The auto industry is set for an accelerated growth following the price reduction in the industry due to GST.  Hyundai and Skoda have slashed prices to pass on the benefits of revised tax structure to the consumers.
5. GST has narrowed down the gap between the iPhone prices in e-commerce and in offline trade. Apple billed the iPhones in India from states which provided a competitive VAT arbitrage due to which e-commerce industry was able to offer considerable discounts, this arbitrage is no longer available post GST, and hence e-commerce looses the edge on iPhone pricing.
6. Sovereign gold bonds have become a more attractive investment as they are not taxed under current regime of GST, compared to gold coins & bars which are liable to GST @ 3%.
7. To end the confusion over the unsold stock on 1^st July, government said that the old stock can be sold after mentioning new MRP till 30^th September. Though the intention of the government is right but the consumer goods makers are unlikely to change prices of pre- GST stock as it will be a long-drawn, costly and cumbersome process.
8. States are mulling over raising road tax to compensate revenue loss due to loss of octroi in the automobile industry.
9. Government states that the free services which are not a part of employment contract and gifts above Rs. 50000 are supplies and will come under GST net, input tax credit on the same will be allowed.
10. Power gear makers say that despite GST, Chinese companies still have an edge due to lack of investment in the power sector in our country.
11. Road transport and shipment minister, Nitin Gadkari, estimates that India’s logistics sector will be the biggest gainer from GST as its cost will decline by 20%.
12. A 6-day GST master-class is being conducted since 6^th July by revenue secretary, Hasmukh Adhiya, along with CBEC team to clear doubts pertaining to the new tax regime.