[ad_1]
The decision of the Goods and Services Tax (GST) Council to reduce the rate of taxation of white goods will likely result in an annual income loss of about Rs. 250 crore for the year. State
The council decided July 21 to reduce rates for 17 white goods such as washing machines, refrigerators and televisions.
The ruling came into effect on Friday, according to preliminary estimates, is likely to result in a loss of tax revenue of Rs. 500 crore for the state, whose state share is of Rs. 250 crore. It is estimated that the Center suffered a total loss of Rs. 8,000 crore in this score
The council's decision goes against Kerala's declared stance that had strongly argued to reduce the rate of death. imposition of essential products for the benefit of the common man, but the council chose to decide to reduce rates of these products.
The Hindu
here, an upward trend in tax collection is generally observed early in the festival season in August and should normally continue until December. Onam and Christmas are two festive seasons experiencing a boom in the sale of electronic goods, but the tax benefit of the sales surge this season would not work to the benefit of the state government .
More importantly, merchants are now filing only summary returns. Not all resellers download the specific details of their sales. This complex scenario eludes the possibility of a sectoral badysis and also limits the possibility of obtaining the precise result of the tax reduction.
Although manufacturers have promised that the benefit of the latest tax cut would be pbaded on to consumers, it remains to be seen how much consumers would benefit from the decision.
The absence of specific details is a major problem for tax detectives in data badysis.
GST officials in the state were now waiting to crack down on recalcitrant traders when they filed annual reports in December, sources said.
The disruption of goods movements as a result of the transportation strike has already had an impact on tax revenues. The council's decision to ignore the demand to cut rates for the essentials and to prefer white goods has been interpreted as an attempt to help big business, sources said.
[ad_2]
Source link
