Finance Minister Piyush Goyal and Finance Secretary Hasmukh Adhia during the 28th Meeting of the Goods and Services Tax Council (Source: PTI)
8 years ago
Jul 21, 2018
The Goods and Services Tax council at its meeting today has reduced the tax rate on about 17 white goods including washing machines, refrigerators and air conditioners to 18 percent from 28 percent, a government official said on the condition of anonymity. The rate on ethanol used for blending with petrol and diesel was also reduced to 5 percent from 18 percent earlier, the official added.
Quarterly GST return filing for taxpayers having turnover up to Rs 5 crore would significantly ease the compliances for this segment. Big relief for hotels as GST rate of 28 percent would not apply if the actual tariff value is less than Rs 7,500 even though the published tariff may be more than that. This will also ease the IT systems for hotel players. Reduction in GST rate of ethanol for use by oil companies to 5 percent is again welcome as major petroleum products are outside GST and this would help reduce their cost.
The GST Council will meet next on August 4 to discuss the problems faced by small traders and businesses and entrepreneurship. The meeting will be completely focussed on the MSME sector, Goyal said.
The textile industry will now be allowed to refund their unused input tax credits on account of the inverted duty structure. This will be applicable from July 27.
Exemption limit for traders in Assam, Arunachal Pradesh, Himachal Pradesh, Himalaya, Sikkim, increased from Rs 10 lakh to 20 lakh: Finance Minister Piyush Goyal pic.twitter.com/myTqrvrNdO
The GST council has approved increasing the turnover threshold for the composition scheme to Rs 1.5 crore from Rs 1 crore, according to press release from the Bihar government. Composition dealers will continue to pay monthly GST, but will need to file returns only once in a quarter.
The release also said that the Council simplified tax return form for the tax payers with a turnover of more than Rs 1.5 crore. The simplified form will not be of more than two pages.
It is a positive move by the government after a long time. This year, sales growth were flat to low single-digit. Since GST rates have been lowered, sales growth can move up to 8-10 percent.
This is a bold step taken by the government. We were contemplating on taking price hikes as raw materials costs are increasing. But now we will support the government and will drop prices by 10 percent.
The Goods and Services Tax Council was expected to discuss the revision of tax rates on a few items, about 46 amendments in the GST law, and simplification of returns.
