business

Six important thing You Must Know About the New GST Rates

Tax rates on over 200 items, including charm products, chewing gums, chocolates, coffee, and custard powder , amongst other, were slashed from 28 per cent to 18 per cent of the members, Finance Minister Arun Jaitley said after the 23 rd GST Council meeting in Guwahati. The council also made changes to the composition strategy. The GST Council also decided that taxpayers with an annual aggregate turnover up to Rs. 1.5 crore need to file return utilizing form GSTR -1 on a quarterly basis, while taxpayers with a turnover of above Rs 1.5 crore need to file it on monthly basis.

Six things you must know about the brand-new GST rates

1) The GST Council pruned the index of items in the top 28 per cent of the members Goods.  And Services Tax( GST) slab to simply 50 from current 228.  So, simply luxury and sins goods are now in the highest excise bracket and items of daily application are shifted to 18 per cent.  Mr Jaitley said that the Council over the months has been snipping items in the 28 per cent of the members list.

2) Eating out becomes cheaper: All restaurants will be levied the GST at 5 per cent . ~ ATAGEND without input excise credit( ITC) benefits. However five-star eateries within starred-hotels with chamber rent above Rs 7,500 will attract 18 per cent.  And can still avail ITC advantages, members of the council said.  Outdoor catering will attract 18 per cent GST with input tax credit benefits.

3) The top tax rate of 28 per cent of the members will now be levied on goods like pan masala, aerated ocean.  And beverages, cigars and cigarettes, tobacco products, cement, paints, fragrances, ACs, dish cleanse machine, washing machine, refrigerators, vacuum cleaners, cars and two-wheelers, aircraft and yachts.” These revises in rates are expected to reduce prices. And increase intake and thereby bringing growth for the consumer products and retail industry ,” EY India said in a statement.

4) GST on 13 items has been reduced to 12 per cent from 18 per cent.

Few More

5) GST on two items has been is incorporated into 12 per cent of the members GST slab from 28 per cent of the members bracket. Six items have been brought into 5 per cent from 18 per cent of the members slab. GST on eight items has been cut to 5 per cent of the members from 18 per cent.

6) Tax rate on six items has been lowered to zero from 5 per cent. Excise on wet grinders and an armored vehicle was cut from 28 per cent of the members to 12 per cent of the members. Tax rate on six items was reduced from 18 per cent of the members to 5 per cent.  On 8 items from 12 ppercentto 5 per cent and on six items from 5 per cent to nil. To get a full list of excise slashes click here .

Experts and industry welcome the decline in tax rates

Industry has welcomed the outcome of 23 rd GST Council. Shyam Bhartia, Chairman and Hari Bhartia, Co-chairman Jubilant Foodworks said in a statement,”. We welcome the move by the Government of India to reduce GST on AC restaurants from 18% to 5 %.  This is a very progressive stair which will make eating out and ordering food at home.  Much more affordable for consumers and will lead to a significant growth in the coordinated eatery segment. These revises in rates are expected to reduce costs and increase consumption. And thereby bringing growth for the consumer products and retail industry ,”  EY India said in a statement.

” Reduction of rate from 28 per cent of the members to 18 per cent of the members on 178 items is a step in the right guidance.  And is indicative of a policy transformation from principle of’ equivalence’ to what is right for GST structure and buyers. It would be good if the 28 per cent of the members slab is farther snipped in next few months which will lead to fewer tax slabs in next couple of years. Due to anti profiteering provisions and market dynamics, the work requires lead to reduction in prices for the consumers. Pratik Jain, Leader-indirect Tax of PwC said.

Angel Research believes that the rate cut should have anti-inflammatory impact. ” This massive pruning of GST rates should have an anti-inflationary impact on the economy.  And should compensate for the inflation impact of higher oil prices ,” said Mayuresh Joshi, money administrator from Angel Research.

GST

The cut in tax will cost Rs 20,000 crore in revenues annually.

In a bid to affluence compliance burden for traders and firms, the penalty for late filing of returns be cut to Rs 20 per day from Rs 200 for nil liability taxation filers.  Revenue Secretary Hasmuksh Adhia said.

A large number of taxpayers were unable to file their return in FORM GSTR -3B within due date for the months of July, August and September, 2017. Late cost was waived in all such cases, the council said.

Exports of services to Nepal and Bhutan have already been exempted from GST.  It has now been decided that such exporters will likewise be eligible for claiming Input Tax Credit in respect of goods. Or services used for influencing such exempt supplying of services to Nepal and Bhutan.

The GST Council widened the due dates for furnishing certain forms.

Comments

comments