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A joint representation of Micro, Small and Medium Enterprises (MSME) on Monday have urged District Collector to recommen...
08/08/2018

A joint representation of Micro, Small and Medium Enterprises (MSME) on Monday have urged District Collector to recommend to the Union Minister for MSME to impart suitable corrections in certain clauses of the Micro, Small and Medium Enterprises Development (Amendment) Bill, 2018.

The petition submitted by the Coimbatore Compressor Industries Association, Coimbatore Sidco Industrial Estate Manufacturers’ Welfare Association, Coimbatore Wet Grinder Manufacturers’ Association and Laghu Udyog Bharati, Coimbatore, said that they are apprehensive that even big traders engaged in selling imported products can get them registered as a micro or small enterprise in the GST-era.

While the MSME Act is to facilitate the promotion of indigenous micro and small units engaged in manufacturing, there is no differentiation on manufacturer or trader in the GST-era. Hence, the petitioners wanted inclusion of a clear-cut clause in the Bill to bar traders to get registered as micro or small units.

According to them, the amendment empowers the Government to raise turnover limit to define a MSME up to ₹ 225 crore. They wanted the Central Government to remove the clause regarding turnover limit increase from the Bill.

They said that the amendment Bill has no mention whether the enterprises have to approach the District Industries Centre every year to get classified or re-classified as their turnover are subjected to increase or decrease. Such situation will not facilitate ease of doing business.

According to the petitioners, concessions for micro and small units are being withdrawn one after another and duty/tax exemptions have already been abolished. They said that sector is losing its competitiveness after GST implementation while large scale enterprises, corporates and multi-national companies are benefited. They added that Bill is also to benefit the large scale traders and companies.

Demand from all party representatives

An all-party representatives from Karumathampatti town panchayat submitted a petition to District Collector on Monday seeking various amenities and developments in their locality. Their demands included street lights on Powerhouse corner Somanur – K. Rayarpalayam road, bypass from Somanur parallel to Noyyal river, renovation of Somanur bus stand, desilting of all tanks in Karumathampatti and repair of check dam across Noyyal near Somanur among others. The petitioners also sought Tasmac outlets to prevent sale of illicit liquor which is rampant at Somanur.

Alternative road sought

Residents from Saramedu on Monday submitted a petition against the service road for Ukkadam-Athupalam bypass planned through their residential area. The petition submitted to District Collector said that more than 100 families are residing in the area will have to be relocated for laying service road. They sought authorities to plan for an alternative road skipping the residential area

07/08/2018

A handset lobby body has warned the government of a risk of losing Rs 10,000-15,000 crore of future investments in mobile manufacturing, if the system of state incentives is not revived in some manner under the goods and services tax regime. In a recent letter to cabinet secretary Pradeep Kumar Sinha and Niti Aayog vice chairman Rajeev Kumar, the Indian Cellular Association (ICA) said the incentives for local manufacturing has virtually collapsed after the introduction of GST, and urged the government to “honour its commitments” to support the Make in India programme.

ICA chairman Pankaj Mohindroo said the transition from VAT to GST created an unintended, but serious, issue which is hurting the image of India as a whole and state governments in particular on living up to commitments, and impacting future investments because of lack of clarity on rules. The body termed mobile phones and components as the champion sector in ‘Make in India’, with more than 120 plants mushroomed in the last three years, encouraged by policies to boost local manufacturing. If things go as per plans under the phased manufacturing programme, some Rs22,000-23,000 crore more of investments are expected in the next three years. Almost 90% of all handsets currently sold in India are locally manufactured, according to Counterpoint Research.

Outlining the issue, the ICA said in the earlier VAT system, state governments could incentivise manufacturing under which they had powers of levy, exemption and disbursement of VAT revenue as incentives. But under GST, this is not possible since there is only one common law to be followed by both the central and state governments.

To attract investments, most state governments were offering VAT reimbursements primarily linked to fixed capital investments, or reimbursement commitments for 5-7 years. Central sales tax was also usually a part of this incentive. Under GST, an SGST refund mechanism was mentioned as an alternative and successor to VAT refund. The ICA, however, said now the actual SGST payment has become nil because most of the transactions are taking place in the IGST mode and raw material or input purchases are either imports or from outside the state.

Moreover, the IGST rates are further inverted in many cases — for example battery packs are at 28% against the final product of 12%, it said, adding: “This makes the case even worse.” “Now, it’s a no man’s land situation. The Centre is saying that it’s a state government issue, while states say it (inability to give incentives) is because of GST,” Mohindroo said.

The lobby body, in its short-term recommendations to the GST Council to resolve the matter, asked for an exemption for import and domestic IGST on electronic manufacturing only for components/inputs under the actual utilisation condition. Such a move, the ICA said, will not entail any revenue loss to the government but will ease the cash flow situation for actual manufacturing and will re-energize SGST reimbursements without any associated problems. “What will emerge in this situation will be that actual SGST payments will start getting made in cash and eventually the reimbursement issue will somewhat get sorted out.”

The ICA has also urged state governments to refund the portion of the incentives which may have accrued, based on the VAT rate and theoretical calculation till the authorities arrive at a clear policy for the future. “We would request you and all the major states to take the matter up very urgently and resolve the same for the period 1-7-2017 when GST was introduced till date and also arrive at a final solution for the future. This will redeem India’s image,” Mohindroo said.

05/08/2018

इनकम टैक्स रिटर्न फ़ाइल करने की आखिरी तारीख 31 अगस्त अब बस कुछ ही सप्ताह दूर है, इसलिए आराम से टैक्स रिटर्न फ़ाइल करने के लिए अपने सभी टैक्स संबंधी दस्तावेजों को इकठ्ठा करने का समय आ गया है. इससे आपकी फाइलिंग प्रक्रिया सिर्फ तेज ही नहीं होगी बल्कि अनजाने में कोई गलती होने और कोई जानकारी छूटने की संभावना भी कम हो जाएगी.

यहां उन सभी महत्वपूर्ण टैक्स संबंधी दस्तावेजों के बारे में बताया जा रहा है जिन्हें आपको फाइनेंशियल वर्ष 2017-18 के लिए अपना आईटीआर फ़ाइल करने से पहले तैयार करके रख लेना चाहिए.

सामान्य दस्तावेज

चाहे आप सैलरी पर काम करते हों या अपना खुद का कोई कारोबार करते हों, सभी को आम तौर पर एक जैसे दस्तावेजों की जरूरत पड़ती है. हर बार अपना आईटीआर फ़ाइल करते समय आपको इन दस्तावेजों की जरूरत पड़ेगी. इसलिए, भविष्य में इनका इस्तेमाल करने के लिए इन्हें एक साथ किसी सुरक्षित स्थान में रख लेना बेहतर होता है.

पैन: आपका पैन नंबर, आपके टैक्स से जुड़ी सभी जानकारियों के लिए आवश्यक सबसे महत्वपूर्ण फाइनेंशियल विवरण है. यह नंबर, इनकम टैक्स डिपार्टमेंट की ई-फाइलिंग वेबसाइट के लिए एक यूजर आईडी की भूमिका भी निभाता है. इसके लिए आपको सिर्फ अपना पैन नंबर पता होना चाहिए, पैन कार्ड का होना जरूरी नहीं है, लेकिन फिर भी अपने पैन कार्ड की एक हार्ड कॉपी को सुरक्षित रखना जरूरी है.
आधार: ठीक आपके पैन नंबर की तरह, आसानी से आईटीआर फ़ाइल करने और आधार-आधारित ओटीपी का इस्तेमाल करके उसे ई-वेरिफाई करने के लिए आपको अपने आधार नंबर की भी जरूरत पड़ती है. ई-वेरिफिकेशन सिर्फ तभी हो पाएगा जब आपका आधार आपके रजिस्टर्ड मोबाइल नंबर और पैन नंबर से जुड़ा होगा.
बैंक अकाउंट स्टेटमेंट: आपको अपनी कुल टैक्स देनदारी का हिसाब निकालने से पहले संबंधित फाइनेंशियल वर्ष के लिए अपने सभी बैंक अकाउंट का स्टेटमेंट भी निकालकर रख लेना चाहिए. आपको अपने टैक्स रिटर्न के दौरान खुलासा करने के लिए ख़ास तौर पर अपने अकाउंट के माध्यम से किए गए बड़े-बड़े लेनदेनों पर ज्यादा ध्यान देने की जरूरत है.
रिवाइज्ड आईटीआर फाइलिंग के लिए ओरिजिनल आईटीआर: अपने आईटीआर में कोई जानकारी छूट जाने पर या कोई गलती हो जाने पर एक रिवाइज्ड आईटीआर फ़ाइल करके उसे ठीक करना पड़ता है और ऐसा करने के लिए आपको पिछली बार फ़ाइल किए गए आईटीआर की कॉपी की जरूरत पड़ती है.
फॉर्म 16

फॉर्म 16 को सैलरी सर्टिफिकेट के नाम से भी जाना जाता है जिसे सैलरी पर काम करने वाले लोगों को उनके एम्प्लॉयर द्वारा जारी किया जाता है। इसमें, दी गई सैलरी, स्रोत पर काटे गए टीडीएस, छूट, कटौती, इत्यादि का विवरण रहता है. एक फाइनेंशियल वर्ष में अपनी नौकरी बदलने वाले लोगों को अपने सभी पिछले एम्प्लॉयरों से फॉर्म 16 प्राप्त कर लेना चाहिए. आईटीआर फ़ाइल करते समय अपनी सैलरी से होने वाली
आमदनी को दर्ज करने के लिए और कुल टैक्सेबल आमदनी में उसे शामिल करने के लिए आपके पास सैलरी स्लिप मौजूद न रहने पर इससे काफी मदद मिलती है.

फॉर्म 16A

फॉर्म 16A में, सैलरी से होने वाली आमदनी के अलावा आपकी आमदनी पर काटे गए सभी टीडीएस का भी विवरण रहता है. जो लोग अपनी इच्छा से काम करते (फ्रीलैंसर) हैं या अपना खुद का रोजगार करते (सेल्फ-एम्प्लॉयड) हैं या परियोजना-आधारित कार्य करते हैं और साथ में उनका टीडीएस भी कटता है उन लोगों को उनके क्लाइंट के द्वारा उनके पेमेंट में से काटे गए टैक्स के लिए फॉर्म 16A जारी किया जाता है.

फॉर्म 12B

एक फाइनेंशियल वर्ष के बीच में एक नई कंपनी ज्वाइन करने वाले कर्मचारियों को इनकम टैक्स अधिनियम की धारा 26A के अनुसार नए एम्प्लॉयर के पास फॉर्म 12B सबमिट करना चाहिए. फॉर्म 12B सबमिट करना जरूरी नहीं है, फिर भी इससे नए एम्प्लॉयर को उस कर्मचारी के पिछले फाइनेंशियल लेनदेनों की जानकारी हासिल करने में काफी मदद मिलती है. उसके बाद नया एम्प्लॉयर, फाइनेंशियल वर्ष के अंत में उसे एक कंसोलिडेटेड फॉर्म 16 जारी कर सकता है.

फॉर्म 26AS

फॉर्म 26AS, इनकम टैक्स डिपार्टमेंट द्वारा जारी किया जाने वाला एक टैक्स क्रेडिट स्टेटमेंट या एक वार्षिक स्टेटमेंट है. फॉर्म 26AS में आपके द्वारा या आपकी तरफ से दिए गए किसी एडवांस टैक्स या सेल्फ-एसेसमेंट टैक्स सहित सभी टैक्स का विवरण रहता है. फॉर्म 26AS को इनकम टैक्स डिपार्टमेंट के ट्रेसेस पोर्टल से डाउनलोड किया जा सकता है.

निवेश संबंधी दस्तावेज

निवेश से जुड़े दस्तावेज, ख़ास तौर पर टैक्स बचाने वाले साधनों जैसे हेल्थ इंश्योरेंस, लाइफ इंश्योरेंस, तरह-तरह की चैरिटी को दिए गए दान, लोन की अदायगी, टैक्स सेविंग एफडी इत्यादि में किए गए निवेश से जुड़े सभी दस्तावेजों को एक साथ एक जगह रखना चाहिए ताकि टैक्स रिटर्न फ़ाइल करते समय टैक्स कटौती के लिए उन सभी का इस्तेमाल किया जा सके.

इंटरेस्ट सर्टिफिकेट

इंटरेस्ट सर्टिफिकेट या ब्याज प्रमाणपत्र एक ऐसा फॉर्म है जिसमें आपके सभी फिक्स्ड डिपोजिट पर काटे गए टीडीएस का विवरण रहता है. इंटरेस्ट सर्टिफिकेट ख़ास तौर पर फाइनेंशियल वर्ष के दौरान नॉन-टैक्सेबल इनकम के लिए या कटौती की सुविधा प्राप्त करने वाले वरिष्ठ नागरिकों के लिए टीडीएस के रिवर्सल के लिए फॉर्म 15G या 15H का इस्तेमाल करते समय काफी उपयोगी साबित हो सकता है.

02/08/2018

GST officers have arrested two city based businessmen for evading taxes worth Rs 201 crore by fraudulently issuing invoices of Input Tax Credit (ITC) without actual supply of goods.

The Central GST Delhi West Commissionerate has arrested two Rohini-based businessmen in the plastic granule industry, who were involved in tax evasion of Rs 201 crore, the Finance Ministry said in a statement.

“Searches were conducted at several places during which various incriminating documents and evidences were found. During investigation, it was revealed that the businessmen had floated multiple entities for issuing such fake invoices,” it added.

Further investigations are underway and the quantum of evasion is likely to go up.

Officers are not ruling out the possibility of existence of several other fake firms as the investigation moves ahead, the ministry added.

02/08/2018

The Finance Ministry announced on Wednesday that total collections from Goods and Services Tax (GST) in July reached Rs 96,483 crore. This is slightly lower than the monthly target of Rs 1 lakh crore.

According to a Finance Ministry statement, of the total GST collection, CGST’s share was Rs 15,877 crore, SGST was Rs 22,293 crore, and IGST’s share was Rs 49,951 crore (including Rs 24,852 crore collected on imports). Cess contributed Rs 8,362 crore (including Rs 794 crore collected on imports). “This is broadly on expected lines,” the statement said.

The total number of GSTR 3B Returns filed for July up to July 31 was 66 lakh , compared to GSTR 3B Returns filed for June up to June 30 at 64.69 lakh.

31/07/2018

Bihar Deputy CM and finance minister Sushil Kumar Modi, a senior member of the GST Council and a former chairman of the empowered committee of state finance ministers on VAT, on the GST changes:

Earlier it was said that GST rates would be cut only after revenue stabilisation but now revenue considerations appear to have been kept aside. : Earlier, when middle-class consumers bought white goods such as TVs, washing machines, the component of excise duty was invisible to them. They were not aware about the GST rate on these goods. Now, under the GST, optics wise, the 28 per cent tax rate with CGST and SGST components, looked bad. So, there was a general consensus in the Council that the tax rate should be decreased. Revenues may be hit for three-four months, but after that they will start increasing.

Compliance levels have always been a concern. Was that not a concern for the Council before deciding to cut GST rates? : Compliance has been improving (under the GST). We are getting business intelligence reports and MIS (Management Information System) reports for model 2 states. The e-way bill system has also been rolled out. All these measures are getting reflected through improved compliance in states and are expected to improve further. With the recent rate cuts, the tax burden will reduce, sales will increase and, accordingly, the compliance by taxpayers will also increase.

Though revenue of states is protected through compensation for first five years, do you see an impact of the rate cut on the overall GST revenues, especially for states?: All states are earning well under the GST. Some level of revenue shortfall is being seen only for the special category (hilly and northeastern) states such as Himachal Pradesh, Uttarakhand, Jammu & Kashmir along with Punjab and Bihar, whereas GST revenues of other states are growing at about 15-20 per cent. In fact, overall revenue shortfall for states (against their protected revenues) has narrowed by 3-4 per cent. Till January, the overall revenue shortfall was at about 17 per cent, which has now come down to 13 per cent.

28/07/2018

In a blog post published on social media on Friday, Finance Minister Arun Jaitley hinted that Goods and Services Tax (GST) tax rate on luxury and sin goods such as cement, air-conditioners and large screen televisions, among others, could be cut soon.

The finance minister has said that “within a record period of thirteen months, the GST Council has almost phased out the 28 percent category,” with the remaining products being luxury-sin goods.

“The day GST was implemented, several items which were proposed to be put in the 28 percent category (where the 31 percent items were adjusted) were brought down to 18 percent. On 10th November, 2017, within four-and-half months of GST implementation, 177 items and on 21st July, 2018, another fifteen items were brought down. Even in other GST meetings on individual basis, several items were considered and brought down,” Jaitley said in the blog.

“Today, the 28 percent category is being phased out. Bulk of these items remaining in this category are only luxury items or sin goods,” Jaitley added. Items of common use such as sanitary napkins, footwear and fridge got cheaper as GST rate cut on about 88 items came into effect on Friday.

The GST Council, chaired by interim Finance Minister Piyush Goyal, had last week pruned the highest 28 percent tax slab by moving some goods to the 18 percent tax bracket. Refrigerator, washing machine, small screen TV, storage water heaters, paints and varnishes will attract 18 percent GST from Friday, as against 28 percent.

Sanitary napkins, which attracted 12 percent GST, have been exempted from tax with effect from Friday.

27/07/2018

The Central Government vide Notification No. 13/2018 – Central Tax (Rate) dated July 26, 2018, has issued the gist of the aforesaid notification as explained hereunder:



Sr. No Chapter or Section heading Description of Service (Existing) Description of Service (Revised) Rate (%)
7. Heading 9963 (Accommodation, food and beverage services) (ii) Accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having declared tariff of a unit of accommodation of one thousand rupees and above but less than two thousand five hundred rupees per unit per day or equivalent. (Rs. 1000 – Less Than Rs. 2500)
Explanation.- “declared tariff” includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit.

(ii) Accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having value of supply of a unit of accommodation of one thousand rupees and above but less than two thousand five hundred rupees per unit per day or equivalent. (Rs. 1000 – Less Than Rs. 2500)
Note: The words “declared tariff” is substituted by “Value of supply” i.e Actual Tariff or Transaction Value.

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(vi) Accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having declared tariff of a unit of accommodation of two thousand five hundred rupees and above but less than seven thousand five hundred rupees per unit per day or equivalent. (Rs. 2500 – Less Than Rs. 7500)
Explanation.- “declared tariff” includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit.

(vi) Accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having value of supply of a unit of accommodation of two thousand five hundred rupees and above but less than seven thousand five hundred rupees per unit per day or equivalent. (Rs. 2500 – Less Than Rs. 7500)
Note: The words “declared tariff” is substituted by “Value of supply” i.e Actual Tariff or Transaction Value.

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(viii) Accommodation in hotels including five star hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having declared tariff of a unit of accommodation of seven thousand and five hundred rupees and above per unit per day or equivalent. (Rs. 7500 and above)
Explanation.-“declared tariff” includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit.

(viii) Accommodation in hotels including five star hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having value of Supply of a unit of accommodation of seven thousand and five hundred rupees and above per unit per day or equivalent. (Rs. 7500 and above)
Note: The words “declared tariff” is substituted by “Value of supply” i.e Actual Tariff or Transaction Value..

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Please note the following changes:

The word declared tariff is substitued with Value of Supply, Therefore now the tax on accomodation charges will be charged on actual transaction value as per slab prescribed earlier in serial no 7 of N.No. 11/2017 – Central Tax (R) dated June 28, 2017, which was further ammended by N.No 46/2017 – Central Tax Rate dated November 14, 2017.
This aforesaid notification shall be effective from July 27, 2018.
The explanation provided in earlier notification is now omitted vide N.No. 13/2018

26/07/2018

Draft GST return forms to be released for public comments by 30th July
GST Commissioner Upender Gupta said in the new return filing system 'nil' filers, who don't have purchase or supplies in a quarter, can file returns by just sending an SMS.
PTI
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The drafts of new forms for filing GST return will be put in public domain by early next week for stakeholder consultation, a revenue official said today. GST Commissioner Upender Gupta said in the new return filing system 'nil' filers, who don't have purchase or supplies in a quarter, can file returns by just sending an SMS.

The new return forms will give option to taxpayers to make amendments till September next year.

“We will put the new return filing format in public domain by Monday. Industry can send their comments on the form for one month. Your feedback will help further improve the system,” Gupta said while addressing a industry meeting organised by CII.

The GST Council, chaired by Union Finance Minister, had last week cleared the new return filing form. It would replace the current GSTR-1 and GSTR-3B returns.

25/07/2018

The Centre may come out with amendments to Special Economic Zones (SEZ) Rules 2006 to synchronise it with Goods and Services Tax (GST) laws by the end of this month, a top official said today.

“We have been working for a few months on the amendment of SEZ Rules, 2006 to synchronise it with the GST laws, this is under active consideration of the government. “With due consultation process with Department of Revenue… this fairly elaborate amendments of the rules is likely to come out now by the end of this month, it is almost at the final stage and we shall be issuing it,” said Bidyut Behari Swain, additional secretary in the Ministry of Commerce at an Assocham conference here.

He also informed that the commerce ministry has created a group of eminent persons to develop a road-map for future of SEZs to have a very fresh look at it and come up with ideas which could be important in the policy making process.

“This group is deliberating today for the second time in this month itself, we really put a lot of hope on this and we feel that the ideas they come up with eventually in another one month or so would really helpful for us in the policy making process,” said Swain.

While the Department of Commerce consistently looks at facilitating ease of doing business by removing bottlenecks wherever they exist, it was observed that there is a possibility of different authorities handling administrative and financial matters being at slight variance with each other.

“We have taken up a project in which we would like to have a very clear set of guidelines regarding how administrative and financial matters by the authorities are carried out and we are hopeful that we will come out with a report in two months which should be implemented in three months,” Swain said.

23/07/2018

Home Minister Rajnath Singh today said the central government is open to further review of the GST rates of different items as it has just reduced taxes of 88 consumer-centric products such as refrigerators, washing machines and sanitary napkins. Inaugurating the National Traders’ Conclave organised by the Confederation of All-India Traders here, he said the economic reforms undertaken by the Narendra Modi government during the last four years will push India among the world’s top economies.

“GST rates of several items have recently been slashed and many items have been brought under zero per cent and five per cent slabs. The government is open to further review of the slabs,” he said.

The Goods and Services Tax Council, in its 28th meeting on Saturday, approved rate reductions for 88 consumer-centric items such as cosmetics, refrigerators, washing machines, and small screen televisions, and cleared the widely demanded exemption on sanitary napkins.

The home minister said out of 6.5 crore traders and shopkeepers, around 1.25 crore have registered under the new indirect tax regime. According to the Economic Survey, during November 2016-2017, more than 1.15 crore returns have been filed.

The GST is a major tax reform in the country where only 6.10 crore people are under the taxation regime out of a population of more than 130 crore, he said.
Singh said in 2014, according to a survey by a reputed consultancy firm, India was ranked ninth among the world’s top 10 economies, and today the country has raced ahead of France to the sixth position.

“I am confident, as economists predict that in the next two-three years, India’s economy will be among the top five. With this pace of GDP growth, by 2030 we will break into the world’s top three economies,” he said.

The home minister said India is the most attractive destination for foreign investors and the country received more than $150 billion FDI in the last four years, while in “Ease of Doing Business”, the country’s ranking has improved from 142 to 100.

“Besides, the manufacturing sector has got a fillip with the ‘Make in India’ programme. In 2014, there were only two mobile phone factories in India, today we have 120 handset manufacturing units,” he said.

23/07/2018

The GST Council has pruned the 28 per cent slab by cutting tax rates on 191 goods over the last one year, leaving just 35 items, including AC, digital camera, video recorders, dishwashing machine and automobiles, in the highest tax bracket.

There were around 226 goods in the 28 per cent category when Goods and Services Tax (GST) was implemented on July 1, 2017.

Over the last one year, the Council, chaired by Union Finance Minister and comprising state ministers, has slashed rates in 191 items.

ALSO READ: Synthetic textiles to become 5-7% cheaper on GST rate cut on fabric
The 35 goods, which will be left in highest slab once the new GST rates are implemented from July 27, also include cement, automobile parts, tyres, automobile equipments, motor vehicles. yachts, aircrafts, aerated drinks, betting and demerit items like to***co, cigarette and pan masala.

Experts said going forward as the revenues stabilise, the Council may look at further rationalisation of the 28 per cent slab, to restrict the highest tax slab to super luxury and sin goods.

ALSO READ: Here's everything that will get cheaper as new GST rates come into effect
Deloitte India Partner M S Mani said it would be logical to expect that once the GST collections after the recent reductions stabilise, the remaining items such as televisions of all sizes, dishwashers, digital cameras, air conditioners could be considered for an 18 per cent rate.

"It would be ideal if only demerit goods are retained in the 28 per cent slab so that a gradual movement towards having fewer GST slabs can be initiated," Mani said.

ALSO READ: GST rates cut for aam aadmi: Peak rate basked snipped; returns made easier
After the latest rounds of rate cuts by the GST Council on July 21, only 35 items are left in the 28 per cent tax slab, an official said.

The Council brought down tax rates to 18 per cent from 28 per cent on 15 items, including vacuum cleaners, washing maching, 68 cm (27 inch) TV, fridge, laundry machines, paints and varnishes.

"The rate cuts would lead to a revenue loss of about Rs 60 billion," the official said.

ALSO READ: No GST on sanitary pads, rakhis; rates slashed on shoes, several appliances
The official, however, said that the revenue loss would be only notional as increased consumption and compliance would lead to more revenues to the exchequer.

EY Partner Abhishek Jain said: "The reduction of GST rates from 28 per cent to 18 per cent shows that directionally, the Government seems to be clear that the 28 per cent rate should be restricted to super luxury and sin goods".

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