Skip to main content

GST Council sets up panel to rework GST rate for restaurants

By
GST Council sets up panel to rework GST rate for restaurants
GST Council has set up a five-member panel of state ministers to rework the GST rate on restaurants and implement the composition scheme for SMEs
Federal tax body the Goods and Services Tax (GST) Council has set up a five-member panel of state ministers to make the quarterly tax filing and payment scheme for small businesses more attractive and to rework the tax rate on restaurants.The panel comprises Assam finance minister Himanta Biswa Sarma, Bihar deputy chief minister Sushil Kumar Modi, Jammu & Kashmir finance minister Haseeb Drabu, Punjab finance minister Manpreet Singh Badal and Chhattisgarh commercial taxes minister Amar Agrawal, a person privy to the development said on the condition of anonymity.
At present, services of non-air-conditioned restaurants are taxed at 12% and that of air-conditioned ones including those in five star and above rated hotels are taxed at 18%.The Council has noticed that restaurants have not passed on the benefit of tax rebate available to them for various materials and services that they use.
The panel was announced on Friday by finance minister and GST Council chairman Arun Jaitley. It will examine whether items that are exempted from GST need not be counted while determining the eligibility for firms to sign up for the ‘composition scheme’.The scheme allows restaurants, small manufacturers and traders to pay a marginal GST rate and file tax returns every quarter. The Council, which met in the capital on Friday, decided to raise the eligibility threshold from Rs75 lakh to Rs1 crore.
Businesses making inter-state supply of goods are not eligible for the composition scheme at present, although those making inter-state services can sign up for it as per Friday’s Council decision. The panel will examine if businesses making inter-state trade in goods too should be allowed. It will also examine how large businesses sourcing goods and services from small enterprises which pay taxes and file returns quarterly can avail of monthly tax rebates
The Mint, New Delhi, 09th October 2017

Comments

Post a Comment

Popular posts from this blog

Household debt up, but India still lags emerging-market economies: RBI

By
  Although household debt in India is rising, driven by increased borrowing from the financial sector, it remains lower than in other emerging-market economies (EMEs), the Reserve Bank of India (RBI) said in its Financial Stability Report. It added that non-housing retail loans, largely taken for consumption, accounted for 55 per cent of total household debt.As of December 2024, India’s household debt-to-gross domestic product ratio stood at 41.9 per cent. “...Non-housing retail loans, which are mostly used for consumption purposes, formed 54.9 per cent of total household debt as of March 2025 and 25.7 per cent of disposable income as of March 2024. Moreover, the share of these loans has been growing consistently over the years, and their growth has outpaced that of both housing loans and agriculture and business loans,” the RBI said in its report.Housing loans, by contrast, made up 29 per cent of household debt, and their growth has remained steady. However, disaggregated data sho...
Post a Comment
Read more

External spillovers likely to hit India's financial system: RBI report

By
  While India’s growth remains insulated from global headwinds mainly due to buoyant domestic demand, the domestic financial system could, however, be impacted by external spillovers, the Reserve Bank of India (RBI) said in its half yearly Financial Stability Report published on Monday.Furthermore, the rising global trade disputes and intensifying geopolitical hostilities could negatively impact the domestic growth outlook and reduce the demand for bank credit, which has decelerated sharply. “Moreover, it could also lead to increased risk aversion among investors and further corrections in domestic equity markets, which despite the recent correction, remain at the high end of their historical range,” the report said.It noted that there is some build-up of stress, primarily in financial markets, on account of global spillovers, which is reflected in the marginal rise in the financial system stress indicator, an indicator of the stress level in the financial system, compared to its p...
Post a Comment
Read more

Retail inflation cools to a six-year low of 2.82% in May on moderating food prices

By
  New Delhi: Retail inflation in India cooled to its lowest level in over six years in May, helped by a sharp moderation in food prices, according to provisional government data released Thursday.Consumer Price Index (CPI)-based inflation eased to 2.82% year-on-year, down from 3.16% in April and 4.8% in May last year, data from the Ministry of Statistics and Programme Implementation (MoSPI) showed. This marks the fourth consecutive month of sub-4% inflation, the longest such streak in at least five years.The data comes just days after the Reserve Bank of India’s (RBI) Monetary Policy Committee cut the repo rate by 50 basis points to 5.5%, its third straight cut and a cumulative reduction of 100 basis points since the easing cycle began in February. The move signals a possible pivot from inflation control to supporting growth.Food inflation came in at just 0.99% in May, down from 1.78% in April and a sharp decline from 8.69% a year ago.A Mint poll of 15 economists had projected CPI ...
Post a Comment
Read more