Browsed by
Category: GST News

National Pension Scheme benefits: Tax saving, GST advantage, partial withdrawal and more

National Pension Scheme benefits: Tax saving, GST advantage, partial withdrawal and more

National Pension Scheme benefits: Tax saving, GST advantage, partial withdrawal and more

Last month, the Pension Fund Regulatory and Development Authority (PFRDA) increased the maximum age of joining the National Pension Scheme (NPS)-private sector from 60 years to 65 years. This move, now allowing a larger segment of senior citizens to adequately plan for retirement, matters because research shows that by 2050, 20% of our population will be above 60. Moreover, coming on the heels of the tax incentives announced in Budget 2017, it is yet another step by the pension regulator to make NPS more attractive for investors.

Yes, the National Pension Scheme does offer several tax benefits, which unfortunately gets sidelined in the face of the fact that only 40% of the NPS corpus is tax free on maturity, unlike other retirement options like EPF and PPF, which are fully exempt. Here are four advantages that you need to know about, apart from the fact that NPS returns are likely to beat those from the EPF:

Tax benefits beyond Section 80C

Under Sections 80C, 80CC and 80CCC of the Income-Tax Act, investments up to Rs 1.5 lakh are deducted from the taxable income of salaried as well as self-employed individuals. Those investing in NPS can claim an additional deduction of Rs 50,000 under Sec 80CCD(1b).

Moreover, under Section 80CCD(2), any NPS contribution made by the Central Government or any other corporate employer on your behalf is eligible for deduction up to 10% of your basic salary plus dearness allowance, irrespective of the amount.

Ability to manage taxation better

According to Hemant G. Contractor, a well-structured withdrawal strategy coupled with prudent tax planning can effectively reduce your NPS tax liability to zero. “Last year, 40% of the maturity corpus was made tax free. Another 40% of the corpus escapes tax when put in an annuity to earn a monthly pension. However, 20% of the corpus is still subject to tax at maturity, though there are tax-saving options available to the investor,” he said to The Economic Times Wealth. According to Contractor, if the balance 20% corpus is also put in the annuity (along with the mandatory 40%), it will not be taxed. For the record, an annuity is a contract aimed at generating steady income during retirement, in which you make a lump sum payment or a series of payments and, in return, receive regular disbursements.

Tax-free partial withdrawals

Though the National Pension Scheme (NPS) has a locking period of 60 years-with the option of postponing lumpsum withdrawal till 70 years-you are allowed to make up to 3 premature withdrawals in between. You can withdraw up to 25% of your NPS contribution for medical emergencies and life events like marriage, education etc. These withdrawals are now tax-free and, according to media reports, will come into effect from assessment year 2018-2019.

GST benefits

According to Contractor, another tax friendly feature is that GST is waived on annuities purchased with the NPS corpus. Normally, there is 1.8% GST payable on the value of the annuity, but NPS investors are exempt.

Those new to the workforce need to understand that National Pension Scheme (NPS) was started in 2004 with the objective of providing retirement income to citizens. Initially, it was introduced for new government recruits, barring the armed forces but since May 2009, it has extended its reach to all citizens, including the unorganised sector workers on a voluntary basis.

There are two types of retirement accounts under NPS: Tier I account, which is the one that will fetch you the above-mentioned tax benefits, and Tier II Account, which is simply a voluntary savings facility. The minimum contribution in Tier I account is Rs 1,000 per financial year and there is no upper cap on it.

Source :  Business Today in
Post GST reduction GCPL passes on the benefits to consumers

Post GST reduction GCPL passes on the benefits to consumers

Post GST reduction GCPL passes on the benefits to consumers

Post GST reduction GCPL passes on the benefits to consumers

On Tuesday, ITC, Dabur, HUL and Marico, had cut prices of various products following the reduction in GST rates effective November 15.

“We are committed to passing on the benefits of the reduced rates to our consumers and have initiated a 7-10 per cent price reduction in our products across hair colours, air fresheners, liquid detergents and deodorant categories,” Business Head-India and SAARC, Godrej Consumer Products Ltd (GCPL), Sunil Kataria was quoted by PTI as saying.

The move comes days after the Government asked the firms to immediately revise the MRP on the products to pass on lower GST rates to consumers.

GCPL said the reductions will be effective immediately and would also be applicable to our existing stocks.

“We are working very closely with our distributors and channel partners to monitor that the reduced MRPs are being passed on to the consumers,” Kataria told PTI.

He was further quoted by PTI as saying: “Our intent is to offer maximum support to retailers and wholesalers so that the switch to the new pricing is seamless and quick”.

The Goods and Services Tax (GST) rate was reduced on 178 items, including detergents, shampoos and beauty products, from 28 per cent to 18 per cent from November 15.

GST rates on a number of items have also been reduced from 18 per cent to 12 per cent and from 12 per cent to 5 per cent.

GST Ready Invoicing Software – Generate GST Compliant Invoice

Source: India Retailing
15th Finance Commission to assess GST impact on tax revenues, allocate more resources to states, says Arun Jaitley

15th Finance Commission to assess GST impact on tax revenues, allocate more resources to states, says Arun Jaitley

Arun Jaitley : GST

The Cabinet on Wednesday approved the setting up of the 15th Finance Commission which will assess the tax resources of the nation and suggest a formula for their devolution among states.

The members of the Commission and its terms of reference will be notified in the due course of time, Finance Minister Arun Jaitley said after the Union Cabinet meeting. Its recommendations will have to be in place before April 1, 2020, he said.

“Normally, it takes 2 years for Finance Commission to give its recommendations.”

As per Article 280 of the Constitution, the Commission is required to make recommendations on the distribution of the net proceeds of taxes between the Centre and the states.

The Commission also suggests the principles which should govern the grants in aid of the revenues of the states out of the Consolidated Fund of India. This time it will have to take into account the impact of the Goods and Services Tax, which kicked in from July, on the resources of the central as well state governments.

On who will head the 15th Finance Commission, Jaitley said: “The members of Finance Commission will be appointed very very soon.”

When asked whether the 15th Commission will also allocate more resources to the states, he said: “I think let us not prejudge the situation. India is a Union of states, the Union also has to survive.”

The 14th Finance Commission was set up on January 2, 2013. Its recommendations cover the period from 1 April, 2015 to 31 March, 2020.

XaTTaX: Cloud and On-Premises Based GST Filing Software For India

Source :  Firstpost
Decision on bringing petroleum under GST after considering revenue impact: MP minister

Decision on bringing petroleum under GST after considering revenue impact: MP minister

Decision on bringing petroleum under GST after considering revenue impact: MP minister

The Madhya Pradesh Government today said it would decide on bringing petroleum products under the Goods and Services Tax  (GST) after considering its impact on the revenue.

Speaking to reporters after a cabinet meeting here, Finance Minister Jayant Malaiya said, “The government will take the revenue outcome in consideration before reaching consensus on bringing petroleum products under the GST regime.

“Discussions are going on about bringing petroleum products under the GST’s purview. We will take appropriate decision whenever the proposal is brought before the GST Council,” he added.

To a question, Malaiya admitted that there is a shortfall in tax collection following the introduction of the GST, but added that the situation has been improving.

He, however, parried the questions about the quantum of shortfall.

On October 13, the state government reduced the value added tax (VAT) on petrol and diesel by three and five percent, respectively. Besides, the additional cess of Rs 1.5 per litre on diesel was also withdrawn.

Malaiya had then claimed that diesel had become cheaper in MP compared to neighbouring Rajasthan, Gujarat and Chhattisgarh, while also mentioning that about 34 per cent of the commercial tax revenue comes from VAT and other taxes on petroleum products.

Ease Your GST Filing & Invoice with XaTTaX GST Software

Source : The Economic Times

Govt records highest GST filing in October, Punjab tops the list in compliance

Govt records highest GST filing in October, Punjab tops the list in compliance

All eyes are on GST as Centre plans better social pension

The Goods and Services Tax (GST) Council’s efforts to sort out the sundry issues plaguing taxpayers during the initial rollout and the steady reduction in tax rates seems to be paying off in terms of compliance and tax collections. As many as 43.67 lakh businesses have filed the initial GSTR-3B returns for October, the highest monthly return filing within due date since the new tax was introduced on July 1, according to a GST Network statement. That’s around 56% of the registered taxpayers. Punjab saw over 73% taxpayers filing GSTR-3B returns, the highest among all the states.

In fact, there has been a steady increase in the number of taxpayers filing the initial sales return. Over 39 lakh returns were filed within due date for September compared to 28.46 lakh for August. This can be attributed to two major factors. “One is greater awareness and the fact that GSTR-3B is a simpler form. The second is that the GSTN portal has been performing much better, especially [for] GSTR-3B and GSTR-1,” said Pratik Jain, leader, indirect tax, PwC India in a quote to The Hindu. Incidentally, GST registrations overall has crossed 11 crore from around 60 lakh in late August.

Of course, given the typical Indian mindset of dithering till the last minute, November 20-the last date for filing the summary returns for the previous month without interest-saw over 14.7 lakh taxpayers log into the GST Network portal; a new record for maximum returns filed in a single day.

“But the gap between eligible taxpayers and those filing returns by the deadline has continued to hover around 30 lakh, which would be a concern for the government,” said Abhishek Jain, tax partner, EY to The Financial Express. Nonetheless, the numbers should fan the government’s confidence that GST will widen the tax base and yield higher revenue than ever before.


GST Ready Invoicing Software – Generate GST Compliant Invoice

Source :  Business Today in
GST and real estate: Govt needs to address grey areas, disputes and litigations; take feedback from realtors, say experts

GST and real estate: Govt needs to address grey areas, disputes and litigations; take feedback from realtors, say experts

GST and real estate

Much has been discussed, argued and debated on demonetisation and the Goods and Services Tax (GST) implementation at various forums including election campaigns. Opposition parties slammed both the moves of Prime Minister Narendra Modi, though the latter managed to hit headlines on Thursday again after the Pew Research Centre’s survey announced him as ‘very popular’.

Without taking names or giving political colour, a panel discussion on ‘Dialogue on demonetisation, GST and the built environment industry’ organised jointly by RICS School of Built Environment, Amity University and National Institute of Urban Affairs (NIUA) on Thursday evening (16 November) in New Delhi, attempted a threadbare analysis of the impact of demonetisation and GST on the real estate sector.

In his inaugural presentation, noted economist Arun Kumar, Malcom S Adiseshiah, Chair professor, Institute of Social Sciences pointed out that the present form of GST was not ‘full GST’ as it kept real estate, alcohol, electricity and petroleum out of its ambit. “Now, if tax to GDP ratio rises, it’ll give rise to inflation. As a result, demand will fall and the rate of growth (will) decrease, which is contrary to what GST promised. The small and unorganised sector has been ignored and this sector can’t deal with GST due to its complexities. While demonetisation has put the economy on the downslide, the GST implementation has aggravated the condition. The poor have been marginalised in the process. Demonetisation and GST are the two big shocks,” he remarked.

On the possible impact of demonetisation on large real estate projects, Prof Kumar said demonetisation had resulted in decline of growth rate and GDP, and rise in deficit. “As the government won’t like fiscal deficit to go up, the demand in the sector will go down.”

Responding on a positive note, Arun Gupta, partner, SARC Associates said, “Demonetisation to some extent has led to an increase in tax compliance at present.” However, he mentioned, “GST in theory is a good system, but the way it was promised and projected during implementation, the government lost its way. There is a big lag between the plan and the outcome.”

Is demonetisation just a blip or has it had a much deeper impact on the economy? In response, Prashant Agarwal, partner (Indirect Taxes) at Pricewaterhouse Coopers said, “It was a shock therapy. Even after one year, we fail to know the significance of demonetisation or even implementation of GST. If we talk about these two actions or reforms, while PM Modi gained a Robin Hood image, the economists including former PM Manmohan Singh mentioned it as ‘shocking impact’. ”

Jagan Shah, director, NIUA observed, “Lack of implementation of policy interventions has impacted the sector. I don’t believe it’s a blip per se; but it’s a sign for a paradigm shift.”

Arun Kumar said that theoretically demonetisation won’t tackle black economy. “Demonetisation has hit investment and output. Credit off-take has declined. These are long-term effects. Investment can revive, once capacity utilisation picks up. Both public and private sectors have to boost investment, but it’s a Catch 22 situation.”

Gaurav Gupta, director, SG Estates Limited observed that after two decades people might not remember demonetisation, but it temporarily sucked up cash from the system. The move came as a shock and its biggest impact was on the unorganised sector. Probably, demonetisation wasn’t required, especially when government was implementing the GST.

Summing up the first round, panel moderator and associate dean and director, RICS School of Built Environment, Amity University, Sunil Agarwal said, “It’s not a blip as in the long-term people would remember the impact of demonetisation.”


Has GST adversely impacted the real estate sector? Panellists unanmously opined that while the intention of GST was good, its implementation and rates led to more confusion. They suggested that the government needed to address the grey areas,  disputes and litigations bothering the real estate sector by taking feedback from the realtors.

The government wanted the entire real estate sector under GST, but it’s half-done, which has been due to the states, said Prashant Agrawal, adding, “There’s an issue of distrust between the Centre and the states as far as revenue sharing is concerned. There are lot of legal issues in real estate sector. The players of this sector need to have a clear perspective and discuss their problems with the government on taxation. However, realising the problem, the government has brought down GST rates.”

In response, Gaurav Gupta said, “Real estate sector’s contribution to GDP is 9 percent and it is the second largest employment generator. The government has brought in lots of regulations, but there is an urgent need to improve the investment climate in this sector. Practical problems need to be resolved.”

Explaining the issue, Arun Kumar said, “There’s a need to simplify the process and bring real estate, liquor and petro fully under GST. This will help the sector. But there’s pressure from the states to keep them out and the Centre couldn’t handle it.”

While, the panellists delved into the pros and cons of note ban and GST, there were voices from amongst the audience who questioned the credibility of real estate players. Many shared the view that the decline in growth in the real estate sector started in 2012 — much before demonetisation and GST implementation —because of low credibility.

“Implementation of GST hasn’t contributed much to the slowdown in the real estate sector. Before GST, there was service tax. In fact, barring a few developers, the credibility of a majority has been questionable. They defaulted on the promises they made to their customers. Even banks refused extending credits. Despite taking money from home-buyers, the builders failed to deliver flats. It badly impacted the sector. The need of the hour is to regain confidence of the government, customers and financial institutions,” remarked Captain Vipul Choudhary, a retired army official and director, Olive Green Realty — a real estate consultancy firm.

Former HUDCO CMD, PS Rana questioned why land had been made unaffordable for the masses. “In any project, land cost is the real culprit. For example, a developer buys land at Rs 1 crore from a farmer, but by the time he begins construction, the price shoots up to Rs 10 crore. This makes entire project costlier.”

Moderator Sunil Agarwal said, “The demand in real estate sector is there but it’s in segments. Now, a lot of corporate houses have entered, making the sector more organised. It’s giving credibility to the sector as well.”

GST Ready Invoicing Software – Generate GST Compliant Invoice

Source :  First Post
Buying groceries? Make sure to check GST ‘discounts’

Buying groceries? Make sure to check GST ‘discounts’

From Wednesday, consumers would do well to check their shopping bills closely. A host of packaged products such as chocolates, toothpastes, shampoos and shaving creams – with the maximum retail price printed on them – is set to become cheaper following a steep reduction in the goods and services tax.

Some companies manufacturing these products have asked traders to pass on the tax cuts to consumers immediately, without waiting to put revised maximum retail price stickers on them or printing new packs, both of which would take time.

A watch company and a printer maker plan to inform customers about the price reduction through newspaper advertisements. Still, consumers should be aware that not all companies may implement the price cuts right away.

The changes will affect a large number of products that are already in stores or on their way there. Pasting stickers with revised prices can be done only after the government gives the go ahead. Apart from taking time, some companies said pasting stickers costs the same as printing packs with the revised prices.

revised gst

The maximum retail price of a product includes taxes and unless a company increases the base price or raises the margin for distributors and dealers, these products should become cheaper. The government is yet to issue fresh guidelines on pasting stickers with the revised prices.

“A number of products are in the MRP category, so companies will have to put a sticker or print new prices,” a government official said. The GST Council reduced the tax rate on about 200 products, of which 178 were moved to 18 per cent from the 28 per cent slab, at its 23rd meeting on November 10. The new rates are effective from midnight Tuesday, with both the states and the Centre issuing notifications.

“It’s good that the GST Council decided to bring in the changes from a particular date, that is November 15, as in a few cases earlier, different states had issued notifications from different dates,” said Pratik Jain, indirect tax partner, PwC.

“However, given the paucity of time, most companies have not been able to reduce the MRP of products but have communicated to dealers and retailers that prices should be brought down.” Consumers need to be aware about what prices are likely to come down and by how much, irrespective of the MRP printed on the product, he said. Gujarat Cooperative Milk Marketing Federation, which makes Amul, the country’s largest dairy brand, has told distributors to sell its products at the revised prices, managing director RS Sodhi said.

“We have started the process of price revision. But there will be some transition time before which products with new MRPs reach end consumers,” he said. GST slabs on condensed milk and chocolate have been revised downwards, directly impacting the company’s products. Dabur, the maker of Real fruit juices and herbal and ayurvedic products, said it has not informed its trade channels about the revised prices.

“So far we have not communicated anything to our distributors as we are awaiting the notification,” Dabur chief financial officer Lalit Malik said. “We are in the process of evaluating the impact of this announcement and a final decision will be taken post the notification of the rate cut.” Some companies may not cut prices and instead increase pack sizes.

“When the tax slabs went up in July, we did not increase prices. Now that they have been revised downwards, we may not drop prices. We will wait and see how the market dynamics play out before taking a decision,” said the head of a large cosmetics company. Consumers should keep a tab on restaurant bills, too.

GST Ready Invoicing Software – Generate GST Compliant Invoice

Source :  The Economic Times
GST Revised Rates: Eating out in hotels, restaurants to become cheaper from today

GST Revised Rates: Eating out in hotels, restaurants to become cheaper from today

GST rates slashed: Eating out in hotels, restaurants to become cheaper from today

Eating out in hotels and restaurants will become cheaper from today (15 November) with the Goods and Service Tax (GST) Council having slashed rates to five percent from 12 and 18 percent earlier. However, there is no formal notification from the government as yet.

A uniform 5 percent tax was prescribed by the council for all restaurants, both air-conditioned and non-AC. Union Finance Minister Arun Jaitley said that the Input Tax Credit (ITC) benefit given to restaurants was meant to be passed on to the customers.

Currently, 12 percent GST on food bill is levied in non-AC restaurants and 18 percent in air-conditioned ones. All these got input tax credit, a facility to set off tax paid on inputs with final tax. The council said the restaurants, however, did not pass on the input tax credit (ITC) to customers and so the ITC facility is being withdrawn and a uniform 5 percent tax is levied on all restaurants without the distinction of AC or non-AC.

Restaurants in starred-hotels that charge Rs 7,500 or more per day room tariff will be levied 18 percent GST but ITC is allowed for them. Those restaurants in hotels charging less than Rs 7,500 room tariff will charge 5 percent GST but will not get ITC.

Also, tax on wet grinders and armoured vehicles was cut from 28 percent to 12 percent, Jaitley said, adding the tax rate on six items was reduced from 18 percent to 5 percent, on 8 items from 12 percent to 5 percent and on six items from 5 percent to nil.

Chewing gum, chocolates, coffee, custard powder, marble and granite, dental hygiene products, polishes and creams, sanitary ware, leather clothing, artificial fur, wigs, cookers, stoves, after-shave, deodorant, detergent and washing power, razors and blades, cutlery, storage water heater, batteries, goggles, wrist watches and mattress are among the products on which tax rate has been cut from 28 percent to 18 percent.

“This revision in GST rate for restaurants is positive, as it would bring down the dining-out cost, supporting footfalls and revenues at a time when most organised restaurants are struggling to grow demand,” ICRA Vice President and Sector Head Pavethra Ponniah said.

“As most major inputs for restaurants like grains (not packaged), vegetables, poultry and seafood are exempt from GST, the input credit advantage available for restaurants was negligible,” Ponniah said, adding that restaurants were also not passing on any benefit of input tax credit to the consumer under GST.

Ease Your GST Filing & Invoice with XaTTaX GST Software

Source :  Firstpost
With simplified tax rates, revenue loss of Rs. 20,000 crore can be compensated

With simplified tax rates, revenue loss of Rs. 20,000 crore can be compensated

With simplified tax rates, revenue loss of Rs. 20,000 crore can be compensated

To what extent the GST Council’s move to ease the tax burden on consumers will pressure the fisc remains to be seen. Nevertheless, given how onerous the GST framework was turning out to be, it was imperative the returns filing schedule be made more lenient and tax rates be lowered. To that extent, finance minister Arun Jaitley, his team and the state finance ministers need to be congratulated for having responded to the grievances of taxpayers even if it means giving up some revenues. At this point, it is important the system does not intimidate assessees since the number of returns filed has been lower than expected, but it is picking up—as compared to the 6.5 million who were to file their summary returns for August, just 4.7 million have filed so far, but that number will increase over time. The increase in the ceiling for the composition scheme to Rs 1.5 crore, for instance, will make life easier for thousands of small businesses. Moreover, for close to 40% of the taxpayers whose tax liability is nil, filling out the form will be really elementary now.

Also Read: Finance minister Arun Jaitley hints at further trimming of GST 

And for the rest, too, the schedule is considerably easier—for assessees with a turnover of less than Rs 1.5 crore, the GSTRN1 for sales details needs to be filed just once a quarter and not every month. However, taxpayers with an annual turnover of more than Rs 1.5 crore need to file every month. While the sharp cut in tax rates across the board—only 50 items are left in the top 28% slab—might seem populist, it would nonetheless be disinflationary and spur consumption spending. More important, lower rates should encourage compliance and over time broaden the tax base. The cuts in the tax rates will give smaller firms—ancillaries or vendors—an edge over unorganised players since the pricing differential would now be lower; this should encourage formalisation.

Ease Your GST Filing & Invoice with XaTTaX GST Software

To be sure, some measures taken by the GST Council, such as not allowing restaurants to avail of input tax credit, are seen to be distorting the format of the GST and also smack of the anti-profiteering law—in this case, the government decided restaurants were not lowering prices in keeping with the lower tax rates and so input tax credit was to be denied. On the plus side, the move has been accompanied by a lowering of the rate to 5% and it has been made uniform for all restaurants except those in 5-star hotels. The government estimates the loss to the exchequer, on account of the cut in the tax rates, at roughly Rs 20,000 crore or 0.12% of GDP, and if the losses materialise, the fiscal deficit could slip to 3.5% compared with the targeted 3.2%.

However as the finance minister observed, the lower tax incidence and the more liberal rules for filing returns should result in better compliance and better collections. So far, the monthly GST collections have been rising from Rs 94,063 crore in August to Rs 95,131 crore in October, after a dip to Rs 93,141 in September; analysts at Credit Suisse observe these numbers are healthy given Q2 tends to be seasonally weaker. As of now, though the shortfall in collections by the states—compared to the monthly target of Rs 45,000 crore—has narrowed to 24% in September and further to 17.6% in October versus 28.5% in August. Once, the IGST revenues are allocated to states and the claims for transitional credit of around Rs 90,000 crore are sorted out, a clearer picture of the revenues will emerge. Given the system is now easier to deal with, it is likely revenues will pick up.

XaTTaX: Cloud and On-Premises Based GST Filing Software For India

Source :  Financial Express
Finance minister Arun Jaitley hints at further trimming of GST

Finance minister Arun Jaitley hints at further trimming of GST

Arun Jaitley : GST

Finance minister Arun Jaitley on Monday hinted at further rationalisation of goods and services tax (GST) rates, while slamming opponents who have been advocating a shift to a single-rate regime, in what was seen as a rebuff to Congress vice-president Rahul Gandhi.

“Rationalisation process in a transition (phase) will continue… Such rationalisation in future will depend on revenue buoyancy,” the finance minister said.

On Friday, the GST Council, led by Jaitley, slashed rates of over 200 items with the levy on 176 reduced from 28% to 18%, leaving just 50 in the highest slab. While state FMs have said this list will be pruned further, a change in lower slabs of 12% and 18% is also on the cards in the coming months.

Jaitley has repeatedly said over a period of time, these two rates will converge into one, something he reiterated on Monday but linked it to tax buoyancy.

Jaitley hopes GST rate cuts will reduce inflation

In what seemed to be a response to Rahul Gandhi’s claim+ that Congress will shift all products to a single bracket, Jaitley said: “Those who are speaking of a singlerate GST have no understanding of the tariff structure… they do not have elementary understanding of goods & service tax.”

With the rate cuts, the government is expecting the gains on a host of products — from cosmetics and razors to washing powder — to be passed on to consumers.

Jaitley said GST has brought down inflation. “This actually reduces inflation. This is one of the advantages of a more efficient tax system… Effectively, today, almost all items in the goods category are better off than they were prior to July 1,” he said.

The minister said that including central excise, state VAT and central sales tax, the levy on several items added up to 31%, which was reduced to 28% when GST was launched. Elaborating on it, he said the process of reduction in the top slab was under way since August. “This is a threefour month exercise… These are all consensus decisions of the GST Council and process started after GST implementation. It is juvenile politics+ to link it with either elections or political demands,” the minister said.

Also Read: GST Council prunes list of goods to be taxed at 28% to 50

He said the GST Council had opted for a structure where food items were exempted, while aam aadmi products were kept in the lowest bracket of 5%. “Wheat, rice or sugar can’t be taxed at the same rate as a Mercedes (car) or a yacht or tobacco. So, rates will have to be different.” In recent tweets and public meetings in Gujarat, Gandhi has talked about Congress reducing rates to under 18%, something that has been repeated by some of his party colleagues.

Jaitley said revamped filing mechanism that has been put in place, will ease the burden on taxpayers and going forward he wants the system to settle and apprehensions to disappear.

GST Ready Invoicing Software – Generate GST Compliant Invoice

Source :  The Times of India