Items likely to see the slash in tax rates and reportedly tax is likely to cut in the daily uses items which include, plywood, sanitary ware, suitcase, wallpaper, stationery articles, play instruments, watch, and so on. From this Friday the GST Council may consider reducing items in the 28 percent tax slash and slab rates that includes the daily use items, hand-made furniture, and this step will surely bring some relief to the consumers.
Sushil Kumar Modi the Bihar Deputy Chief Minister, who heads the panel on the Goods and Services Tax Network (GSTN) stated on yesterday that the rates on over 200 daily-Around 28 percent to 18 percent items are said to be cut down at the GST Council meet.
“With a view this is going to be like relief for the public and it can prove to be like some kind of good for the consumers and the small taxpayers (businessmen) on the large scale, it is expected that tax rates will be come down on current 28 percent to 18 percent on over 200 items for the regular use,” he said before flying to Guwahati where he joined the GST Council meet.
Items likely to see some reducing of the tax rates which includes some regular daily use stuffs like, stationery articles, watch, play instruments, sanitary ware, suitcase, wallpaper, plywood and so on, said Modi, he heads a five-member Group of Ministers (GoM) to monitor technology-related issues and its implementation of the GST.
After 4 months the Goods and Services Tax (GST) was rolled out, the Union Finance Minister Arun Jaitley, panel headed look at the most comprehensive overhaul of rates, which make it easy to returns the tax filing and can give some relief to the small and medium enterprises.
The 23rd meeting of the Council it will be intentional on the suggestions announced by the Assam Finance Minister Himanta Biswa Sarma-headed GoM to cut tax rates for the composition scheme.
It is said that in the businesses to 1 percent and lower rates for non-AC restaurants it will work.
The Council, comprising state finance ministers, is also set to review the GST returns filing cycle and this will be going to make a taxpayer-friendly. In the meantime, P Chidambaram, the former Finance Minister stated that he is very hopeful at the GST Council meeting of a “shower of changes in GST rates”.
This Council can be witness some rationalize rates in sectors where the total incidence of taxation will be gone as the goods were either accepted from excise or attracted lower VAT rates which are coming under the indirect tax regime from the earlier period.
As the Council tries to provide somewhere to stay industry concerns on tax rates, post-estimation of the impact on revenue, all around 28 percentage tax brackets is expected in all rationalization of items.
It is said that the daily-use items like shampoo can witness 18 percent of lower in the tax. On some other items like electric switches, furniture, and plastic pipes the tax rates can be relooked at, PTI said quoting an official.
The Group of Ministers (GoM) suggested that the Council may decide to allow businesses in an inter-state trade where the proper arrangement can be done.
The GoM had also advised that the there should be slashing tax rate to 1 percent for manufacturers and restaurants choose for the scheme from 2 percent and 5 percent, in that order.
This can prove worth for the tax rate distinction between AC and non-AC restaurants, and these are not covered under the composition scheme and tax them at a flat 12 percent.
At present, non-AC restaurants are taxed at 18 percent.
Only 50 items to face 28% GST tax rate: Here are the important details
1). The Goods and Services Tax (GST) Council on Friday which is determined to cut the tax rate on 177 items from 28% to 18%, This will be left only 50 items in the highest tax slab so it will be offering some crucial to the businesses and consumers.
2). It is one of the biggest concessions which declare post the new indirect tax system which provides an impact on 1st July.
3). The tax reductions will result in a revenue loss of about Rs20, 000 crore a year, four people who attended the council meeting said.
4). The tax rate is reduced in the range of goods—from marble to stonework from chocolates to chewing gum from detergents to deodorants.
5). An official, the person spoke on the condition of anonymity stated that auto components, automobiles, washing machines and air-conditioners type of goods will remain in the slab of 28% for this particular time being.
6). Haseeb Ahmed Drabu, the finance minister of Jammu and Kashmir stated that the tax rate rationalization will be in the continuous process, gradually some further rate cuts can be possible.
Amit Mitra, the West Bengal finance minister said that his government had inclined to keep hold of only big luxury products or items and the tobacco.
This is also being advised that the eating out at hotels that have room tariff of more than Rs 7,500 which can attract an 18% rate of this uniform instead of any separate category for a 5-star hotel, which right now falls under the 28 percent bracket.
With regard to traders, the GoM proposed a two-pronged approach for taxation which is coming under the composition scheme.
Though for those who pay tax on total turnover, the tax rate already proposed and promotes at 0.5 percent and it is suggested that the businessman who wants to prohibit sale proceeds of tax-free items can turnover to pay 1 percent GST
And a regular taxpayer will have to pay tax on the monthly basis, a composition supplier is also needed to file only one return and pay taxes on a quarterly basis.
This is the view that this step can ease the burden taxpayers; the Council is also set to review the requirement of filing three returns under the GST set-up, every month.
Businesses have to file returns in GSTR-1, GSTR-2 and GSTR-3 forms for every month. These forms detail outward supplies of taxable goods and/or services, inward?
The input tax credit and monthly returns can be also increased.
The review follows businesses complaining about problems which are going to match the invoices filing July returns. Businesses have also complained that there is some trouble invoice matching while filing GSTR-2.
The Assam finance minister-headed GoM advised to allowing all businesses to file quarterly returns under the GST regime, similar to that business whose monthly turnover is up to Rs 1.5 crore.
As of now, the GST collections is around Rs 2.78 lakh crore for the exchequer reportadely.
The businesses have initially filed sales returns or GSTR-3B and paid taxes.
GSTR-3B was introduced for making compliance easy that can be available until December. The official further stated that the GSTR-3B can be also extended beyond December this is so as the government feels that businesses will be adopted themselves to the government system.
3B is needed to be filed by the 20th of next month.
The final GST returns can be filed by submitting forms GSTR-1, 2 and 3.
In the month of July, more than 47 lakh businesses have filed the GSTR-1 return. These sales returns need to be matched with the purchase invoice to be filed in GSTR-2.
Over 21 lakh businesses have filed July GSTR-2 and because of the date for filing have been extended until 30th November.
Post GSTR-1 and 2 will be matched with the businesses will have to file July GSTR-3, and the last date of the same is 11th December.
