Accordingly, tax rates on cashew and packaged food items such as pickle, instant food mixes and sauces will fall. Taxes on school bags, insulin, cutlery, ball bearings and computer printers were also lowered from the levels decided at the council’s meeting held in Srinagar in May.
Finance minister Arun Jaitley said the council went an extra mile to lower the tax burden on many of these items even below the level of tax burden on them currently, taking into account changing consumption patterns and economic realities. The tax burden on some of these items was historically high, he said. The council had received proposals seeking relief on 133 items.
Jaitley, however, hinted that the GST rate on hybrid cars will not be reviewed. The environment-friendly hybrid cars will attract a 15% cess over and above the 28% GST rate, the same rate levied on large luxury cars and sport utility vehicles.
The scope of the composition scheme, a presumptive taxation scheme allowing small traders, manufacturers and restaurants to pay a 1-5% GST rate on total sales without tax credits, has been widened to include assessees up to a turnover of Rs75 lakh from the Rs50 lakh ceiling fixed earlier. This will allow more small businesses to avail of a hassle-free compliance regime. Under this scheme, eligible traders can pay a tax of 1% of sales, while manufacturers can pay 2% and restaurants 5%, the same rates set earlier. The scheme was expanded as these segments are large job creators, a priority area for the government.
Pratik Jain, partner and leader, indirect tax, PwC India, said raising the scheme’s limit will provide relief to many more small businesses, although service providers (except restaurants) continue to remain outside its ambit.
Despite recent calls from West Bengal finance minister Amit Mitra to defer GST implementation, the council decided to go ahead with the planned 1 July rollout. The council will meet again on 18 June to take stock of the rollout preparedness and any new proposal from states.
(http://www.livemint.com/Politics/q5GdiXpRY5IpQbAIgjP7HJ/GST-rates-revised-for-66-items-including-kitchen-items-sch.html)
(http://www.livemint.com/Politics/q5GdiXpRY5IpQbAIgjP7HJ/GST-rates-revised-for-66-items-including-kitchen-items-sch.html)
More will update soon!!
