The Centre and states decided yesterday to lower rates on 66 goods and services — from pickles and cheaper cinema tickets to insulin and instant food mixes — and also eased the compliance burden for small businesses as they raced to be ready to launch the goods and services tax from July 1. The GST Council, which met yesterday, reduced the rates for nearly half the 133 items on which representations had been received, which included hybrid cars, sanitary napkins, telephone bills and ships manufactured in the country.
The objective (of earlier rates) was to maintain equivalence to the existing taxes and in some other cases the fitment had breached this equivalence principle.
In others, the reduction is required because of the changing nature of the economy and changes that have occurred in consumer preference.
Over the last three weeks, the council — comprising the Union and state FMs — had decided the rates for 1,211 goods and around 500 services and had been flooded with requests for revision.
All goods and services have been put into four tax slabs of 5, 12, 18 and 28% in addition to several mass-consumption items that will attract zero tax.
Apart from the changes in rates, the GST Council also reworked the composition scheme for small businesses by allowing those with an annual turnover of Rs 75 lakh, instead of Rs 50 lakh earlier, to avoid any compliance burden and simply pay tax.
From India, Ahmadabad
34The objective (of earlier rates) was to maintain equivalence to the existing taxes and in some other cases the fitment had breached this equivalence principle.
In others, the reduction is required because of the changing nature of the economy and changes that have occurred in consumer preference.
Over the last three weeks, the council — comprising the Union and state FMs — had decided the rates for 1,211 goods and around 500 services and had been flooded with requests for revision.
All goods and services have been put into four tax slabs of 5, 12, 18 and 28% in addition to several mass-consumption items that will attract zero tax.
Apart from the changes in rates, the GST Council also reworked the composition scheme for small businesses by allowing those with an annual turnover of Rs 75 lakh, instead of Rs 50 lakh earlier, to avoid any compliance burden and simply pay tax.
From India, Ahmadabad
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Order No. 1-2018 Extension of date for submitting the statement in FORM GST TRAN-2.pdf