Home Business GST Council reduces tax rate on 29 goods and 53 categories of...

GST Council reduces tax rate on 29 goods and 53 categories of services

397
0
CBI
file photo

Goods and Services Tax Council has reduced the tax rate on 29 goods and 53 categories of services by bringing them in lower category. The new rates will be effective from 25th of this month.

The GST rate on tailoring service has been reduced from 18 to 5 percent and tax on entry services to theme parks, water parks, joy rides, merry-go-rounds, go-carting and ballet from 28 percent to 18. The tax rate on construction of metro and monorail projects has been brought down from 18 percent to 12 percent. Besides, the rate on job work services for manufacture of leather goods and footwear has been reduced to 5 percent. The GST rate on transportation of petroleum crude and petroleum products including ATF has bee cut down from 18 percent to 5 percent without input tax credit and 12 percent with it. The GST rate on Common Effluent Treatment Plant services of treatment of effluents from 18 per cent to 12 per cent.

The GST rate on the Works Contract Services provided by sub-contractor to the main contractor to governments and local bodies has been lowered.The GST Council has also given tax exception to services provided by and to FIFA and its subsidiaries related to any of the events under FIFA U-20 World Cup to be hosted by India.

Briefing media after the council meeting, Finance Minister Arun Jaitley said, the Fitment Committee has recommended to the GST Council about this which were considered.

Mr Jaitley said, it was also decided to simplify the return filing process by merging all three types of GST returns into a single return soon. He said, Nandan Nilekani gave a detailed presentation on simplification of return filing process. He said, the Council veered around to the idea of registered entities continuing to file the return in GSTR 3B Form while moving to a system where supplier invoice captures details of the transaction. The Finance Minister said, the new process would be finalised in the next meeting of the GST Council after a written formulation is circulated to
the states.

Mr Jaitley said, the Council also reaffirmed the implementation of e-way bill system from 1st of next month. He said, the traders will have to mandatorily upload the e-way bill after its roll out. The new system will apply on inter state movement of goods valued of over 50 thousand rupees. He said, as many as 15 states have also decided to implement the provision for intra-state movements as well.

Mr Jaitley said collection under the composition scheme is a matter of concern and the Council discussed it seriously.He said there seems to be cases of under declaration under the scheme as it is based on unilateral declaration. The Minister said it was decided to distribute 35 thousand crore rupees IGST provisionally between the Centre and states instead of allowing it to be blocked.

Mr Jaitley also said, the Council has accepted the Sub- Committee report on handicraft items and now the Fitment Committee will fix rate on the items. On a question about inclusion of petroleum products in the GST, the Minister said the matter will be taken up in the next meeting of the council.

Previous articleIsraeli PM asks business leaders to focus on innovation
Next articleUnidentified gunmen kill mother-daughter polio workers in Pakistan

LEAVE A REPLY

Please enter your comment!
Please enter your name here