The commerce ministry has constituted a GST facilitation cell with a view to address issues regarding the new indirect tax regime in respect of foreign trade policy.

The cell is set up in the Directorate General of Foreign Trade (DGFT). In a notice to all its regional offices, DGFT said: “to ensure smooth and successful roll out of Goods and Services Tax (GST), it is decided to constitute a GST facilitation cell”.

The cell will be headed by Additional DGFT Nikunj Kumar Srivastava. It would have two Joint DGFT officials as members. The regional authorities have also been advised to establish similar cells in their respective offices.

The government on Thursday said foodgrains, flour, milk, vegetables and fruits will get cheaper by up to 5 per cent once the Goods and Services Tax is rolled out.

The government has exempted cereals, pulses, atta, maida and besan from the GST, which will be implemented from July 1.

Milk, vegetables and fruits, puffed rice, salt, organic manure, animal feed, fire wood, raw silk, wool, jute and hand-operated agriculture equipment too will be zero-rated under the new indirect tax regime.

However, branded foodgrains and flours with registered trade mark will attract 5 per cent tax under GST.

While items like foodgrains, milk and vegetables do not attract any central tax at present, some states levy VAT of 4 -5 per cent on these goods.

The GST would be rolled out from July 1. It will subsume a host of central and state taxes like excise duty, service tax and VAT.

 

 

Source :  Business Today