Receiving criticism from opposition, GST Council reforms its policy: Here are the major announcements
New Delhi, October 7: The biggest tax reform, Goods and Service Tax (GST), had been receiving criticism from the opposition since it was rolled out. However, GST council provided a solace to the small business owners and traders throughout the country by announcing some reforms in the GST policy.
The businesses were, as announced by Finance Minister Arun Jaitley, to file income tax returns and pay taxes quarterly instead of monthly. This marked a major relief by businesses with annual turnover of up to Rs 1.5 crore. The announcement followed when the traders claimed that it was a hectic process for them to comply with.
The traders claim that recent announcement would save them from all hassles. Service providers with revenues less than 20 lakh per annum won’t be liable to pay IGST (Integrated GST).
GST Council, apart from announcing a relief to the traders, has reduced the rates for 27 items. The announcement came after the continuous criticising of slow Indian economy. GST rates have been reduced on many daily use items including manmade yarn, unbranded namkeen, stones used in flooring and diesel engine parts, and many others.
FM Jaitley asserted that a group of finance ministers would reconsider the way restaurants should be taxed.
List of items whose rates were reduced by the GST Council:
-At least six items, earlier priced at 12% have now been reduced to 5%
Sliced dried mangoes, Khakra and plain chapati/ roti, unbranded namkeens, unbranded Ayurvedic, Unani, Siddha Homeopathy medicines, paper waste/ scrap, real zari.
-Prices of around four items were reduced from 18% to 12%
Sewing thread of man-made filaments, all synthetic filament yarn (nylon, polyester, acrylic, etc), all artificial filament yarn (viscose rayon, Cuprammonium), sewing thread of man-made staple fibers.
-Around four items, earlier priced at 18% have been reduced to 5%
Plastic waste/ parings/ scrap, Rubber waste/ parings/ scrap, Biomass briquettes, Cullet/ other waste/ scrap of glass.
-From 28% to 5%
Hard rubber waste/ scrap, E-waste
-From 28% to 18%
Products of children amusements – poster color and modeling paste
-From 28% to 18%
All goods falling under a heading (other than those of marble and granite or those which attract 12% GST), Fittings for loose-leaf binders or files, letter clips, letter corners, paper clip-sand others; plain shaft bearings and diesel engine parts.
-From 18% to 12%
Yarn of man-made staple fibers
-Reduced to NIL from 5%
Duty credit scrips