Skip to main content

Congress States Seek Full GST Revamp

Congress States Seek Full GST Revamp
Highest tax rate should be 18% and petroleum should be part of new tax regime, say state govts ahead of GST Council meet
A day ahead of the GST Council meeting here, Congress-ruled states have sought a complete overhaul of the indirect tax regime with the highest slab at 18% instead of 28%.Congress-ruled states have written to union finance minister Arun Jaitley demanding “nothing less than a complete overhaul of GST structure.“
“The highest rate should not be more than 18%,“ said Karnataka minister Krishna Byre Gowda who is a member of the GST Council, said on Thursday.The government may not be averse to the revamp.“The key agenda to be taken up is revamp of the 28% slab and the composition scheme for businesses as well as restaurants,“ said Bihar finance minister and deputy chief minister Sushil Modi.“Most of the issues will be addressed.“
“The Congress is in favour of inclusion of petroleum into GST,“ Punjab finance minister Manpreet Singh Badal said at a press conference called by Assam Pradesh Congress Committee. Kerala finance minister Thomas Issac however is not in favour of including petroleum and real es tate in GST till the time new tax regime settles down.
Gowda said Congress had earlier said the GST rate should not be more than 18% but the government still went ahead and raised the slab.“There are many luxury and sin goods which would be taxed at a higher rate and under that premi se, a rate of 28% was agreed upon by the council. But we find that a lot of items of mass consumption are also in the 28% slab,“ he said.
Many materials used for building a house such as tiles, bricks, cement, sanitary ware and taps are in the 28% slab and it is proving to be a burden for individuals building their homes, he said.
“A builder is different because the builder gets input tax refund whereas a common person does not get any refund. So it is proving to be a costly affair and there is no justification in keeping construction materials in the 28% tax slab,“ he said. Barring real goods of luxury or of sin nature, GST slab should be brought down to 18%, he said.
“That has been our general position for a while. So we hope there will be a positive and a resultoriented discussion on this issue tomorrow. Over time, 12% and 18 % slabs should converge and only a few items should remain in the 28% slab,“ he said.Puducherry chief minister V Narayanasamy said that handicrafts should be exempted from GST and compliances should be reduced.
He claimed Congress-ruled states had been demanding a re vamp in the GST structure, but the Centre never paid any attention and was now taking steps in view of the assembly elections in Gujarat.The GST Council is likely to review items in the 28% slab, some of which could be moved to 18% and 12% slab. It is also expected to simplify compliances for small and medium enterprises as well as large businesses.
GST, a single tax that subsumed as many as 43 taxes and cesses, was rolled out on July 1. The government has been since trying to address hiccups through periodic GST Council meetings.
Sops Likely for Digital Payments
Guwahati: The GST Council may consider incentives for digital payments in the GST framework to give a push to the digital payments system.The incentives could be in the form of credit or exemptions.The council will take a decision based on the revenue implications of the proposal.
The Economic Times, New Delhi, 10th November 2017

Comments

Popular posts from this blog

At 18%, GST Rate to be Less Taxing for Most Goods

About 70% of all goods and some consumer durables likely to cost less

A number of goods such as cosmetics, shaving creams, shampoo, toothpaste, soap, plastics, paints and some consumer durables could become cheaper under the proposed goods and services tax (GST) regime as most items are likely to be subject to the rate of 18% rather than the higher one of 28%.

India is likely to rely on the effective tax rate currently applicable on a commodity to get a fix on the GST slab, said a government official, allowing most goods to make it to the lower bracket.

For instance, if an item comes within the 12% excise slab but the effective tax is 8% due to abatement, then the latter will be considered for GST fitment.

Going by this formulation, about 70% of all goods could fall in the 18% bracket.

The GST Council has finalised a four-tier tax structure of 5%, 12%, 18% and 28% but has left room for the highest slab to be pegged at 40%. A committee of officials will work out the fitment and the council…

Coffee-Toffee, the GST Debate Continues

Hundreds of crores of rupees in the form of taxes ride on the exact categorisation of products Is Parachute hair oil or edible oil? Is KitKat a chocolate or a biscuit? Is a Vicks tablet medicament or confectionery? For the taxpayer and the tax collector, this is much more than an exercise in semantics -hundreds of crores of rupees ride on the exact categorisation.
As the government moves closer to rolling out the goods and services tax (GST) on July 1, many such distinctions are being debated so that no ambiguity remains. Not just that, the government is revisiting old tax cases that were lost over product categorisation, according to people with knowledge of the matter, presumably with a view to making sure that revenue collections can be maximised. “In the past, several tax officers had challenged some of the product categorisations, including those in the retail segment, but lost out in court or at appellate level,“ said one of the persons. “Now we have a chance to go ahead with speci…

Deposit gush:-CA Institute Bats for Special Audit