GST and Doing Business in India

Sacchidananda Mukherjee, PhD, Associate Professor, National Institute of Public Finance and Policy, New Delhi

A version of this article was originally published in Chinese as ‘商品和服务税对在印经商的影响’ [Shangpin he fuwu shui (GST) dui Yin jingshang de yingxiang], Diyi Caijing, 15 May 2015. This is part of a series by Indian scholars in China’s top business affairs news portal facilitated by the ICS. The English version follows below the Chinese text.

在经历漫长的等待之后,印度终将于2017年7月1日起推出商品和服务税(GST),实现统一税制。在四项法案(Central GST、Integrated GST、Union Territory GST、GST Compensation to States)通过印度两院批准后,将会形成GST征税行政框架以及执行规则。

预计GST改革委员会将于2017年5月为各商品指定税率。不同社会经济阶层所需承担的不同税负在很大程度上取决于细致划分下不同税率的商品与服务。目前,委员会已确定了四层税率结构(5%、12%、18%和28%),预计委员会还将公布一份简短的,包含了部分基础商品及服务的豁免清单。而对于低质货物(如烟草制品、汽水)及对环境有害的物质(如煤炭),除了征收最高税率外,还有征收额外的GST补偿税。由补偿税组成的税收收入将用于补偿邦政府在新税制实施头5年面临的税收损失。此外,委员会还明确了针对不同类别商品设定的相应的最高GST补偿税率,如对槟榔、豪车分别征收135%、15%的税,对每吨煤征收400卢比。不过具体到各不同商品的GST补偿税尚未明确。因进项税可抵免GST补偿税,因此不会产生针对补偿税的阶梯税率。 Continue reading “GST and Doing Business in India”

India’s Concerns about China’s Belt and Road Initiative

Ashok K. Kantha, Director ICS and former Indian ambassador to China

It is one of the most imaginative and ambitious programmes ever to be rolled out by a government. It represents a broad strategy for China’s economic cooperation and expanded presence in Asia, Africa and Europe, and has been presented as a win-win initiative for all participating nations. But for India, the connotations of China’s Belt and Road Initiative” are somewhat different. A flagship programme and the most advanced component of the initiative, the China-Pakistan Economic Corridor (CPEC), passes through Pakistan-occupied Kashmir, a region that belongs to India and is under the control of Pakistan. As a country acutely conscious of its own sovereignty-related claims, China should have no difficulty in appreciating India’s sensitivities in this regard. Continue reading “India’s Concerns about China’s Belt and Road Initiative”

China’s SAARC Bid and Implications for India

Gauri Agarwal, Research Intern, Institute of Chinese Studies 

Pakistan’s support to China for full membership to SAARC and India’s refusal to entertain the bid is a case of the use of geopolitics to pursue selfish aims. Whether China will be accepted or not remains to be seen, but what China brings to the table needs a careful cost-benefit analysis.

SAARC’s Shortcomings

The importance of SAARC as a regional organization is recognised by all leaders. But there is a frank acknowledgement that the organization has failed to live up to the hope and aspiration of one-fifth of humanity. Continue reading “China’s SAARC Bid and Implications for India”

Time to Rethink India’s Approach on OBOR

Jabin T. Jacob, PhD, Fellow, Institute of Chinese Studies

When Indian Prime Minister Narendra Modi and Chinese President Xi Jinping met for their bilateral on the sidelines of the 8th BRICS Summit in Goa two issues dominated. One was the Chinese resistance to India’s membership of the Nuclear Suppliers Group (NSG). The other was China’s refusal to support UN action against terrorists living under state protection in its ally Pakistan, who were involved in the attack on the Indian Parliament in New Delhi in 2001 and the 26/11 attacks in Mumbai.

It is unlikely that New Delhi will get anywhere with the Chinese on either issue. The reasons are rather simple. Continue reading “Time to Rethink India’s Approach on OBOR”

China’s Forum Diplomacy in South Asia

Naina Singh is a Research Intern at ICS and is pursuing MPhil at Centre for International Politics, Organization and Disarmament (CIPOD), School of International Studies, Jawaharlal Nehru University.

Although a lot has been said about China’s unique economic engagement with ASEAN countries, this article attempts to focus on China’s ‘forum tactics’ towards South Asia as part of its so-called ‘win-win cooperation’. China has constantly utilized the institutional platforms of ASEAN to channelize its growing economic interest in the region. The China-ASEAN Free Trade Area has established its own benchmark and now China seems ready to focus on South Asia – stretching from Afghanistan to Myanmar.

Continue reading “China’s Forum Diplomacy in South Asia”

India’s Place in Chinese Foreign Policy: South Asia Bound

Jabin T. Jacob, Assistant Director and Fellow, Institute of Chinese Studies.

Originally published as ‘Boxing It In: China’s Approach to India’, The Quint, 13 August 2016.

Chinese Foreign Minister Wang Yi’s visit to New Delhi in mid-August was ostensibly in preparation for the G-20 summit in Hangzhou in September for which Prime Minister Narendra Modi will visit China and the BRICS Summit  in Goa for which Chinese President Xi Jinping will visit India in October. However, high-level meetings no longer impact matters significantly as they used to. Nor even do they help maintain matters on even keel if the incursions during Li Keqiang’s and Xi’s visits to India in 2013 and 2014 respectively or China’s objection to India’s NSG entry despite Modi’s personal intervention with Xi are anything to go by.

Continue reading “India’s Place in Chinese Foreign Policy: South Asia Bound”