GST Rates Finalised, Luxury Items To Cost More

After the GST regime comes into force on July 1st, cars, personal care items and hotel food will cost more. Health and education to be exempted.

New Delhi: Tax rates for services under the Goods and Service Tax (GST) regime were finalised on Friday by the GST Council. GST regime is scheduled to be rolled out from July 1.

Both goods and services fall under four rates- 5, 12, 18 and 28 percent. While Healthcare and education will be exempted from GST the tax bracket for gold was not finalised.

While milk, fruits and vegetables, grain and cereals have been exempted from the tax, sugar, tea, coffee and edible oil will be taxed the lowest rate of 5 percent.

Personal-care items will be taxed at 28 percent; hair oil, soaps and toothpaste, will attract an 18 percent levy. Cigarettes will attract a tax of 5 percent on top of the peak GST rate of 28 percent.

Vehicles already attract different levies, which add up to 28 percent — the peak GST rate fixed for the sector.  Appliances such as air-conditioners, refrigerators and washing machines will attract the peak rate, which is slightly higher than the existing tax slab.

Addressing the media, Finance Minister Arun Jaitley said, restaurants with Rs. 50 lakh or below will face 5 percent tax, while the non-AC restaurant will face 12 percent tax. AC restaurants and those with a liquor license will be charged 18 percent and 5- star hotels will be levied 28 percent GST.

Telecom and financial services will attract GST of 18 percent and 28 percent tax will be charged for race club, betting and cinema halls.

Religious travel including Haj Yatra, travelling on the metro, a local train will be exempted from GST.

The council will meet again on June 3.

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GST To Be Launched In Midnight On June 30 In Parliament: Jaitley

All States passed State GST Law except Kerala and Jammu And Kashmir.

New Delhi: In the midnight June 30-July 1, Central Hall of Parliament will witness ‘Tryst With Destiny’ movement of 1947 vintage. The GST will be launched by the NDA Government at midnight.

Addressing Press Conference in New Delhi, Union Finance Minister Arun Jaitley said that President Pranab Mukharjee, Vice President amid Hansari, Former Prime Ministers Manmohan Singh, Deva Gowda, and PM Modi will attend the function.

On Mid night of August 14-15, when India got Independence, from British a epical function was held at Central Hall when the then Prime Minister Jawaharlal Nehru gave famous speech” TRYST WITH DESTINY”.

Jaitley said that exactly at mid night of June 30th, GST will be launched in the presence of all members of Parliament, State Finance Ministers, States Chief Ministers and officers who empowered role in GST.

Jaitley praised UPA Government for announcing GST in 2006 and introducing Constitutional amendment in 2011. He said the GST Bill was passed by all the States except Jammu & Kashmir and Kerala where it will be passed very soon.

PM Modi and President will have a short speech on that day with two short films on GST will be screened at Central Hall. They will make short speeches on that day. Two short films on GST will be screened at Central hall on that occasion.

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Amitabh Bachchan To Promote GST

Bollywood star Amitabh Bachchan will be promoting through a documentary the GST which is slated to come into operation on July 1st.
Amitabh Bachchan To Promote GST

New Delhi: As the government gears up to implement the sweeping tax reform Goods and Services Tax (GST) from July 1, it has roped in Bollywood star Amitabh Bachchan to promote it. The GST will be inaugurated by Prime Minister Narendra Modi at the midnight of June 30-July 1.

The Central Board of Excise and Customs is preparing to make the 74-year-old Bachan brand ambassador for GST. A 40-second video featuring him has already been shot and is being circulated.

See Also: Kamal Haasan Threatens To Quit If GST On Films Is Not Slashed

“GST – An initiative to create a unified national market,” the finance ministry said in a tweet, attaching the video.

In the video, Bachchan explains GST as a unifying force just like the three colours in the national flag. GST is an initiative to create ‘one nation, one tax, one market’, he says.

The megastar has been roped in just as the rollout of the biggest tax overhaul since independence entered its final phase.

Ace badminton star PV Sindhu was previously the GST ambassador.

GST will simplify a web of taxes, regulations and levies by subsuming an array of central and state levies including excise duty, service tax and VAT.

See Also: Film Industry- GST Row: Pressure Will Not Work, Jaitley

It is being dubbed as the most significant economic reform since BJP government came to power in 2014 and is expected to add as much as 2 percentage points to the GDP growth rate.

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TTD Prasadam Exempted From GST

The richest shrine in the country, the Tirumala temple takes up many service activities with the revenue it gets, hence the GST Council decided to exempt prasadam from GST.

New Delhi: The Goods and Services Tax (GST) Council decided to exempt laddu prasadam and human hair at the Tirumala Tirupati Devasthanams (TTD) from the tax net on the request of Andhra Pradesh government.

Finance Minister of AP, Yanamala Ramakrishnudu who attended the 17th GST Council meeting reportedly said that as the TTD is a reputed religious trust involved in services of lakhs of devotees on a regular basis, it should be exempted from GST registration.

According to a leading daily, the Council has also reduced the originally proposed GST rates on agarbathis, biogas and cashew nut from 12% to 5%.

This move came after, TTD requested the Centre to exempt the ingredients that it purchases for making laddus and other prasadams from GST.

Another report earlier said that the TTD had also requested that items used for pooja and serving pilgrims at choultries, guest houses, besides the sale of human hair and other revenue sources of the temple board also be exempt from tax.

TTD had already been granted immunity under VAT by the State government.

If the GST was imposed an annual additional burden on TTD would have been ₹ 70 crores the accounts department of TTD said.

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Film Industry- GST Row: Pressure Will Not Work, Jaitley

Union Finance Minister Arun Jaitley told film industry that it cannot arm-twist the government through media to reduce tax on cinemas under the GST regime. He was replying to Kamal Hassan’s criticism.
Film Industry- GST Row: Pressure Will Not Work, Jaitley

New Delhi: Days after actor Kamal Haasan slammed the government for its proposal to bring film industry into 28% tax category under Goods and Services Tax (GST), Finance Minister Arun Jaitley firmly said that using media to pressurise government will not make any difference.

Meanwhile, Jaitley in an exclusive interview given to a national channel said, “We will look at each and every representation. But using the media as propaganda to pressurise the government is not going to work. We won’t be arm-twisted.”

He said that the total average of entertainment tax was 29.1 percent, while it would only be 28 percent under GST.

The film industry that was protesting against the proposed GST received support from Kamal Haasan last week when he sought to lower tax under GST.

Speaking then, Kamal also said that, “We should remember this is not East India Company. We see this as a big punishment for our industry, we are requesting the government to reduce the tax slab. ”

Taking offence at the proposal to charge cinema the same tax rate as ‘sinful’ items like alcohol and tobacco products, he said, “Cinema is my life…. I am offended that cinema has been put under the sinful category.”

Haasan said it was a wrong idea to club Bollywood movies, which have a budget of crores of rupees, and regional cinema, often produced on shoestring budget, in the same tax slab. “Regional cinema is the strength of Indian cinema. We need to maintain this diversity. We cannot bring monoculture. When industry cannot afford such high tax rate, it will collapse,” he warned.

1 Response

  1. June 19, 2017

    […] See Also: Film Industry- GST Row: Pressure Will Not Work, Jaitley […]

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GST Council Finalises Tax Rates, Gold Tax At 3 Percent

The GST council has finalised tax rates for six goods including gold and footwear. The new tax system will come into force on July1.
GST Council Finalises Tax Rates, Gold Tax At 3 Percent

New Delhi:  Finally the Goods and Services Tax Council fixed the tax for gold and giving relief to middle classes it has taxed the yellow metal at 3 percent and biscuits at 18 percent. A nominal rate of .025 percent will be imposed on rough diamonds.

Last month, the GST Council had put 1200 goods and 500 services in the four tax brackets of 5, 12, 18 and 28 percent.  The GST regime will be rolled out from July 1.

On Saturday, the Council decided on tax rates for six goods including footwear, textiles, biscuits and gold. The Council was presided over by Finance Minister Arun Jaitley and comprised his State counterparts.

It was decided to put footwear below Rs 500 in the 5 percent tax bracket, while the rest would be taxed 18 percent. Presently, footwear priced from Rs 500-1000 attracts 6 percent excise duty. Apart from this States also levy VAT.

While solar panels and packaged food items will be taxed at 5 percent, beedis will be taxed at 28 percent and tendu leaves at 18 percent.

Natural yarn will be taxed at 5 percent, while manmade yarn will be taxed at 18 percent.

The Council at its 15th meeting took up for discussion the remaining goods for taxation on Saturday. It approved the transition and return rules earlier in the day.

GST, to be rolled out from 1 July, will unify 16 different taxes and make India a single market. The next meeting will take place on 11 June.

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Kamal Haasan Threatens To Quit If GST On Films Is Not Slashed

Superstar Kamal has threatened to quit the film industry if the proposed GST is not halved to 12-15 per cent instead of 28 per cent on entertainment sector.

Chennai: Actor Kamal Hassan demanded that the Centre lower the GST rate for the film industry to at least half. While welcoming the GST on entertainment industry, he criticized the government for slapping it with heavy tax. Addressing a press conference in the film chamber at Chennai on Saturday, he said the regional film industry would take a severe beating as a result of the Centre’s decision.

“I would be forced to quit my profession, if the tax is not slashed to about 12 to 15 percent,” the actor threatened. Saying that he cannot afford the tax pegged at 28 percent, he said he would have to quit the industry under the new circumstances.

The new tax regime would ruin the industry, he observed. Expressing anguish over the way the tax imposed, he wanted to know whether there was East India Company or the government (at the helm).

The prestigious GST will come into force from next month.  For the entertainment industry, the tax will be replaced by a single 28 per cent slab.

1 Response

  1. June 19, 2017

    […] See Also: Kamal Haasan Threatens To Quit If GST On Films Is Not Slashed […]

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President Clears Four GST Bills

The bills included Central GST (C-GST), Integrated GST (I-GST), Union Territory GST (UT-GST) and the Compensation to the States Law.

New Delhi:  The four Goods and Services Tax (GST) Bills passed by the Parliament last week were cleared by the President Pranab Mukherjee on Wednesday.   The groundbreaking bill is said to end all indirect taxes and bring them under one umbrella is all set for roll out on July 1, 2017.

While Lok Sabha passed them on March 29, Rajya Sabha cleared them on April 6. On March 20 the central Cabinet approved them.

The bills included Central GST (C-GST), Integrated GST (I-GST), Union Territory GST (UT-GST) and the Compensation to the States Law.

The C-GST Bill allows the central government to levy and collect tax on intra-State supply of goods or services or both. Meanwhile, the I-GST Bill allows the central government to levy and collect taxes on the inter-state supply of goods or services or both.

While UT-GST is similar to the States GST (SGST) that would be levied and collected by States/ Union Territories on the intra-State supply of goods or services or both.

The Compensation Bill as mentioned in the name itself provides compensation to States for loss of revenue due to the implementation of GST for a period of five years.

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Rajya Sabha Passes Landmark GST Bill

The Finance Minister Arun Jaitley responding to the debate on the bills said that no one person or government can or should take credit for this bill.

New Delhi: Decks are cleared for GST to become law on Thursday, as the Rajya Sabha passed all the four GST Bills without any amendments. As the last parliamentary hurdle has been cleared, the government will be able to rollout the landmark Goods and Services Tax Bill which is an unified tax regime on July 1st as scheduled.

The four Bills included Central Goods and Services Tax Bill, 2017, the Integrated Goods and Services Tax Bill, 2017, the Goods and services Tax (Compensation to States) Bill, 2017 and the Union Territory Goods and Services Tax Bill, 2017.

The Finance Minister Arun Jaitley responding to the debate on the bills said that no one person or government can or should take credit for this bill.

The Lok Sabha approved the Bill last month. It is the turn of the State Assemblies to consider and pass their respective State GST (SGST) law.

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ICAI to train 15 lakh traders in GST Basics

Hyderabad: The Institute of Cost Accountants of India is to train some 15 lakh traders across the country in next one year in GST Basics, CMA Manas K R Thakur, National President has said.

Speaking to mediaperons here today, Thakur said there were some 22 lakh indirect tax assesses in the  country now and once GST is implemented, the number will increase up to 70 lakh. “The government wants us to train traders and new assessees in familiarizing them with filling in forms and so on. So far, we have trained 400 people. We are creating a pool of trainers, who would train others on the fundamental aspects of the Goods and Services Tax (GST), expected to come into force in the near future, Thakur said.

“Union Ministry of Corporate Affairs has appointed a task force to develop methods for ease of doing business in India. Currently in the list of 194 nations, India stands at 130.  It is government’s endeavour to see that our rank reaches within the 50 limit. ICAI is the member in this task force”, Thakur informed. Ministry of Railways has appointed ICAI to do activity based cost accounting. This will enable Railways Account Process better, he informed.

Dr PVS Jagan Mohan Rao, Central Council Member and Dr R. Chandra Sekhar, Secretary and Chairman — Coaching Administration were also present. (nss)

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GST Should Be Implemented From July 1st: Shaktikanta Das

New Delhi: According to Economic Affairs Secretary Shakthikant Das, GST will be implemented in all States by July 1st. All States have agreed for implementation date for the goods and Service Tax (GST) a according to Das.

Draft compensation bill for GST was approved by Council members at the meeting held on Feb 18th, which has to be passed by Parliament.

Government is waiting for draft approval of cGST( Central GST), iGST(Integrated GST) and sGST ( State GST) before the Parliament session which starts on March 9th for second half of budget as these four enable GST Constitutional amendment.

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