India on Saturday finalised some pending rules and finalised the goods and services tax (GST) rates for items such as gold, packaged foods, biscuits, foot wear and solar panels, paving the way for the country’s biggest tax reform from July 1.
The GST Council has tried to keep the tax rates lower for most items as the Narendra Modi government wants to keep a lid on inflation and nurture economic growth that has slipped to 7.1% in 2016-17 from 8% a year ago.
The GST Council will meet on again June 11 to complete all the processes required for smooth roll-out of the new regime that will have four slabs of 5%, 12%, 18% and 28%, with an aim to unify the nation into a single market.
Union finance minister Arun Jaitley said the rate for packaged food has been fixed at 5% and biscuits at 18%. Gold will be taxed at 3% as against the current tax incidence of 2-6% varying across states while it will be 0.25% for rough diamonds, said Jaitley after a meeting of the GST Council.
“Gold, which currently has an excise of 1% and states charge 1% VAT...keeping these various taxes in mind, and after a lot of debate in the GST Council, we have finally reached a consensus on 3% for gold and gold jewellery,” Jaitley said.
Silk and jute will be exempt but cotton and natural fiber will be taxed at 5%, manmade fibres at 18% and apparel costing below Rs 1,000 will be taxed at 5%, he said.
Footwear below Rs 500 will be taxed at 5% while the rest would be in the 18% bracket. Beedi and beedi leaf will not attract cess over and above the tax of 28%, Jaitley said. The tax on solar panel will be 5%, he added.
Earlier, the GST Council decided to exempt most food items including wheat, rice and milk from the Goods and Services Tax (GST). Other household items such as sugar, tea, coffee and edible oil will attract 5% GST, senior officials said. The tax on coal has been fixed at 5% as against the current 11.69%.
“There is no increase in taxes of the items considered today (Saturday). In fact, for many of them, taxes have come down,” said Jaitley.The GST Council decided the tax rates for 1,200 goods and 500 services with a majority of manufactured items and services being kept at 12-18%.
The GST Council also revised some of the rules. Ernst & Young tax partner Divyesh Lapsiwala said the formats of return have been changed significantly.
“Taxpayers will have to review all the revised requirements in detail to ensure that no new data elements are required. This will mean that taxpayers will need a longer lead time to get ready for compliances,” he said down heavily on the BJP-led central government, leaders of various opposition parties on Saturday called for a united fight against communalism and fascism that is trying to divide the country while paying encomiums to DMK president M Karunanidhi.
They were here to participate in a meeting to celebrate Karunanidhi’s 94th birthday and also his diamond jubilee year in the Tamil Nadu assembly.Congress vice-president Rahul Gandhi said there is one ideology in the country that thinks it has all the answers and does not talk to others on various issues.
Recalling how on November 8, 2016, the PM told the country’s 1.3 billion people that the money in their pockets will be worthless, he said, “He didn’t ask anybody and decided unilaterally.”
Pointing to opposition leaders on the dais, Gandhi said none of them would allow the RSS to impose its ideology on the country. Gandhi said Karuna nidhi reflected the views of the people in his writings and speeches and thanked his son and DMK Working president MKStalin for organising the meeting.
Bihar CM Nitish Kumar said Karunanidhi is a tall leader who fought for social justice for downtrodden and backward classes. He noted it was Karunanidhi who was instrumental in the implementation of Mandal Commission recommendations providing reservation to backward castes during the National Front government led by VP Singh.
CPI national secretary D Raja said if Karunanidhi was present at the meet he would have spoken against the communal politics in the country.
Hindustan Times New Delhi, 05th June 2017
The GST Council has tried to keep the tax rates lower for most items as the Narendra Modi government wants to keep a lid on inflation and nurture economic growth that has slipped to 7.1% in 2016-17 from 8% a year ago.
The GST Council will meet on again June 11 to complete all the processes required for smooth roll-out of the new regime that will have four slabs of 5%, 12%, 18% and 28%, with an aim to unify the nation into a single market.
Union finance minister Arun Jaitley said the rate for packaged food has been fixed at 5% and biscuits at 18%. Gold will be taxed at 3% as against the current tax incidence of 2-6% varying across states while it will be 0.25% for rough diamonds, said Jaitley after a meeting of the GST Council.
“Gold, which currently has an excise of 1% and states charge 1% VAT...keeping these various taxes in mind, and after a lot of debate in the GST Council, we have finally reached a consensus on 3% for gold and gold jewellery,” Jaitley said.
Silk and jute will be exempt but cotton and natural fiber will be taxed at 5%, manmade fibres at 18% and apparel costing below Rs 1,000 will be taxed at 5%, he said.
Footwear below Rs 500 will be taxed at 5% while the rest would be in the 18% bracket. Beedi and beedi leaf will not attract cess over and above the tax of 28%, Jaitley said. The tax on solar panel will be 5%, he added.
Earlier, the GST Council decided to exempt most food items including wheat, rice and milk from the Goods and Services Tax (GST). Other household items such as sugar, tea, coffee and edible oil will attract 5% GST, senior officials said. The tax on coal has been fixed at 5% as against the current 11.69%.
“There is no increase in taxes of the items considered today (Saturday). In fact, for many of them, taxes have come down,” said Jaitley.The GST Council decided the tax rates for 1,200 goods and 500 services with a majority of manufactured items and services being kept at 12-18%.
The GST Council also revised some of the rules. Ernst & Young tax partner Divyesh Lapsiwala said the formats of return have been changed significantly.
“Taxpayers will have to review all the revised requirements in detail to ensure that no new data elements are required. This will mean that taxpayers will need a longer lead time to get ready for compliances,” he said down heavily on the BJP-led central government, leaders of various opposition parties on Saturday called for a united fight against communalism and fascism that is trying to divide the country while paying encomiums to DMK president M Karunanidhi.
They were here to participate in a meeting to celebrate Karunanidhi’s 94th birthday and also his diamond jubilee year in the Tamil Nadu assembly.Congress vice-president Rahul Gandhi said there is one ideology in the country that thinks it has all the answers and does not talk to others on various issues.
Recalling how on November 8, 2016, the PM told the country’s 1.3 billion people that the money in their pockets will be worthless, he said, “He didn’t ask anybody and decided unilaterally.”
Pointing to opposition leaders on the dais, Gandhi said none of them would allow the RSS to impose its ideology on the country. Gandhi said Karuna nidhi reflected the views of the people in his writings and speeches and thanked his son and DMK Working president MKStalin for organising the meeting.
Bihar CM Nitish Kumar said Karunanidhi is a tall leader who fought for social justice for downtrodden and backward classes. He noted it was Karunanidhi who was instrumental in the implementation of Mandal Commission recommendations providing reservation to backward castes during the National Front government led by VP Singh.
CPI national secretary D Raja said if Karunanidhi was present at the meet he would have spoken against the communal politics in the country.
Hindustan Times New Delhi, 05th June 2017
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