ECONOMY | GST is great but it could have been better!

08 October, 2017, 01:02 | Author: Barbara Daniel
  • Arun-Jaitley-GST-PTI

While addressing the media after the GST Council's meeting Arun Jaitley said the Council has made a decision to cut GST rate on 27 commonly used items including manmade yarns of different types - a major demand by the textile industry, especially in Surat.

Retail traders have welcomed the relief measures granted by the GST Council but demanded setting up of joint committees of government officials and trade bodies at the central, state and district levels in order to address issues and for effectively implement the GST regime.

New Delhi-The threshold for composition scheme in Goods and Services Tax (GST) has been hiked from Rs 75 lakh to Rs 1 crore, news agency PTI reported.

Businesses with annual turnover of up to Rs 1.5 crore can now file quarterly income returns. "We have given 15 days' time to the government to make amendments in the GST Act failing which we will intensify our struggle", said Thukral. While majority of common use items have been exempted from GST, 28 per cent tax is levied on luxury, demerit and "sin goods".

The Centre has promised that all glitches around goods and services tax (GST) implementation would get sorted out over the next nine months and a win-win situation would emerge for all stakeholders.

Major items on which taxes were reduced on Friday included food packets distributed for children under the Integrated Child Development Services, stationary items, textile sector (man-made yarn), stones for flooring except for granite and marble, unbranded ayurvedic medicine, "chapatis" and "khakhra", unbranded "namkeen", diesel engine parts and pumps.

Moreover, exporters will continue to get the pre-GST exemptions under the Advance Authorisation and EPCG schemes while importing goods for the objective of exports.

Addressing the National conclave on "GST, A Catalyst for Economic Growth and Ease of Doing Business" organised by the PHD Chambers of Commerce and Industry here, Kumar claimed that until Friday, 26.3 lakh new tax payers were added to the system. This can be called a paradigm shift in the GST regime because when the the rules were set, the idea was to create tough compliance norms to check leakages in taxes.

Moreover, reducing compliance burden for SMEs would widen the tax base under GST.

The group of minister, which will also review the tax structure for restaurants, would submit its report expeditiously in two weeks, Jaitley said.

Traders will now have to pay fixed tax rate between 1% - 5% under the composition scheme. Service providers can not, however, opt for the composition scheme.

"Indian GST rate is now the highest in the entire world". Jobs like imitation, food items, zari and printing items will be taxed st 5 per cent and not 12 per cent.

If GST on service is reduced to 10-percent, then scope of tax on service can be reduced from present 20 lakh per annum to five lakh per annum with those availing service worth more than five lakhs required to deposit GST directly to public-exchequer rather than routed through service-provider.

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