With two weeks to go for the goods and services tax (GST) roll-out, the GST Council on Sunday reduced the rates for 66 items and expanded the scope of the composition scheme for the benefit of small traders, manufacturers, and restaurateurs. The composition scheme is a presumptive taxation scheme allowing small traders, manufacturers and restaurants to pay a 1-5 per cent GST rate on sales without tax credits.
Insulin, pickles, printers, agarbattis, school bags, and cashew nuts are among the 66. Those were among 133 items whose rates were reviewed following industry representation. Click to read more
The Goods and Services Tax (GST) Council at its 16th meeting announced gifts for children by exempting colouring drawing book from GST and the reducing the proposed tax on school bags from 28 per cent earlier to 18 per cent.
GST Council had earlier proposed 12 per cent tax on children’s picture and colouring drawing books.
Cheering the development, shares of Navneet Education and S Chand and Company were trading in green in early trade. Click to read more
The Goods and Services Tax (GST) Council on Sunday decided to reduce tax rates on 66 items including cashew nuts, packaged foods such as sauces and pickles, agarbatti, insulin, school bags, children’s colouring books, cutlery, and some tractor components. The Council has also reduced the tax rate on cinema tickets costing Rs. 100 or less.
Finance Minister Arun Jaitley, while addressing the media following the conclusion of the one-day meeting in the capital, said that the tax rate on cashew nuts has been reduced to 5% from 12%, while the rate on sauces, pickles, mustard sauce, and other similar packaged foods has been reduced to 12% from the 18% earlier set. Click to read more
GST Council revised rates for as many as 66 items on Sunday after discussions in the 16th GST meeting in New Delhi.
Finance Minister Arun Jaitley said that recommendation to revise rates for a total of 133 items had been made out of which the GST rates were reduced for 66 items.
What’s getting cheaper?
Most of the items on which the GST rates have been reduced are of use for the common man. They include cashew nut, sauces, pickles, insulin, children’s colouring and drawing books, cutlery. Click to read more
Acceding to the demands from several industrial segments, small traders and producers and keeping the interests of relatively low-income consumers in mind, the Goods and Services Tax (GST) Council on Sunday decided to lower the tax burdens on them in the upcoming GST regime. Even as these concessions per se would lead to a significant reduction in the overall weighted average tax rate from what it is now and could have an adverse impact on government revenue, finance minister Arun Jaitley said the resultant check on inflation and the likely revenue buoyancy from an expanded tax base would still yield wholesome gains. Click to read more
There is not much for paint firms to cheer about as far as the goods and services tax (GST) is concerned. For them, the process of GST implementation brings along a near-term supply chain disruption at dealer and vendor levels, which could hurt their volume growth and operating margin.
The March quarter of fiscal 2017 was a dull one for paint companies. While volumes in the decorative segment recovered from the demonetization impact, the industrial segment remained subdued. Operating margin fell from their peak, dented by escalating raw material prices. Click to read more
In the five years she has been running a small business of gift packaging, Samiksha Dhingra has not felt the need to apply for a sales tax number. But this will soon change because Dhingra plans to take her business online. The Goods and Services Tax (GST), which comes into effect from 1 July, requires all e-commerce businesses, including tiny outfits like Dhingra’s, to register under the new tax regime.
In Surat, textile manufacturer Devrishi Arora is vaguely aware that GST will soon come into effect but is yet to take concrete steps for migrating his business to the new tax. Click to read more
Airlines seem to be preparing for turbulence with the implementation of the GST regime as certain segments of aviation business, including movement of spare parts, might attract more taxes.
While the Goods and Services Tax (GST) is set to be in place from July 1, lack of clarity on certain areas pertaining to airlines business have raised concerns of higher operational costs, according to industry executives. Click to read more
Traders and businesses can opt for verification of their Goods and Services Tax (GST) registration through the e-mode, including an OTP on their registered mobile number, sources said.
This is in addition to the option of using banking channel or electronic verification code (EVC), for e-verification of the enrolment.
The move comes after traders complained of facing problems in verifying their GST enrolment through digital signature for companies and Aadhaar for traders. Click to read more
Finance Minister Arun Jaitley today hinted that the tax rate on hybrid cars will not be reviewed, saying the industry demands were not in sync with a study conducted by tax officers.
The council had fixed 43 per cent tax (28 per cent GST plus 15 per cent cess) on hybrid cars, a rate that industry felt was too high for the fuel efficient vehicles.
“We have done a detailed study on auto industry demand and a paper has been made which will be circulated among members. And, if necessary, it would come up for discussion. Click to read more
The Goods and Services Tax (GST) has united them once again. The cloth merchants are up in arms against the GST slabs and are gearing up to organise a ‘token bandh’ on June 15 demanding that textiles be exempted from the GST. They are, however, waiting for a green signal from their counterparts in Surat to go ahead with the bandh. The traders here have taken a pledge that they would continue their agitation until the government meets their demand. Click to read more