[ad_1]
At its 28th meeting, the Goods and Services Tax (GST) Council reduced tax rates on over 50 items including sanitary napkins, washers, refrigerators and appliances. of the kitchen. Sanitary napkins were exempted from the GST – they had a tax rate of 12% earlier. White goods saw their tax rates reduced to 18% from the previous 28%
The Council also decided to tax shoes worth up to Rs. 1000 to 5%, where earlier this slab was reserved for shoes up to a value of Rs. 500.
The Council also decided to grant a repair to the hotel industry saying that the rate of the tax on the accommodation service would be calculated on the basis of the transaction value and not the stated rate.
key decision on the filing process. Assbadins with an annual income of less than Rs. 5 crore can now file his returns quarterly. This affects over 90% of GST depositors and was therefore considered welcome for small businesses. In addition, the Council has developed two simplified forms – Sahaj and Sugam – for large registrants.
Tariff reductions are part of the Board's ongoing efforts to rationalize tax rates and keep items as low as 28%. The simplification of return return procedures is also the following in a series of measures taken by the Council such as the broadening of the eligibility criteria of the composition scheme, the suspension of GST returns and the simplification of Forms in a
The decision to exempt sanitary napkins from the GST was considered a step forward in favor of women and progressive that will significantly reduce their price. This is an incorrect badessment, given the structure of the GST. Goods that are exempt from the GST are also not eligible for input tax credits. Thus, while the output tax has been reduced, the input tax burden of the companies manufacturing these blocks has increased.
The two major Indian tampon manufacturers that are likely to maintain their profit margins at the same level as before the rate cut was announced, the price cut for consumers is expected to be only a few rupees.
In addition, the government diverted questions about the impact of tariff cuts on white goods saying that increased demand due to lower prices This would mean that the overall tax revenues of these products would remain largely unchanged. First and foremost, tax relief will mean a reduction of only 7-8% in the price of these white goods, many of which cost several thousand rupees. Secondly, the demand for these white goods is relatively inelastic in the sense that people will not buy more simply because they are cheaper. You will only buy the number of washing machines you need.
That aside, the rate cuts consisted of narrowing the slab by only 28% to luxury goods and sinister goods such as tobacco and cigarettes. This is a welcome step and a big step towards the complete elimination of the slab, further simplifying the GST.
The GST Board addresses new rate issues at each of its meetings . The issue of the agenda is the issue of petroleum products and when they will be included in the GST. According to reports, the Board will proceed in stages, first by considering natural gas, then fuel from aviation turbines, then eventually gasoline and diesel.
The filing process should also be changed gradually. how the invoice matching system can be incorporated into the system. Without an invoice match, the GST is still incomplete
TCA Sharad Raghavan
[ad_2]
Source link
