GST will roll-out on 1st July, confirms Arun Jaitley

Posted June 19, 2017

Some argue that GST could end up being deflationary, and prices may actually come down.

Microsoft has teamed up with tax firm EY to offer DigiGST, a cloud-based solution, while HP Inc has linked with KPMG to sell a GST laptop with two years' support for a flat fee of 33,990 rupees (RM2,270).

State-run lottery tickets will attract a levy of 12% while those run by private players will attract a higher GST of 28%. Similarly, services provided by restaurants in five-star hotels will now also charge 18%, down from 28% earlier.

"We do not have the luxury of time to defer GST".

Among a series of efforts to educate people on the Goods and Services Tax (GST), the Central government on Monday launched a video where actor Amitabh Bachchan is speaking about the much talked about tax.

However, some states expressed fears that the relaxation given on filing returns would lead to a revenue loss for them.

"The government is ready to allow late return filing in the first two months", Jaitley said.

Hailed as the the country's biggest tax reform since Independence, GST will unify Asia's third largest economy into a common market, eliminating a string of central and state levies.

A northeastern business chamber on Friday urged the Central government to frame a focused and favourable industrial policy for the region and sought greater clarity on how the central excise duty refund, now eligible for industries set up under a regional policy, would continue under the GST regime. "CII is undertaking more than 100 workshops across the country to enable enterprises to comply with the new regulations".

A search-cum-selection committee will be set up for finalising the members of the anti-profiteering authority and it is expected to be in place in around two months. "However, for other commodities, the penalty amount will be deposited in the consumer welfare fund as provided under the GST Act", Adhia added. It also expanded the negative list for the composition scheme to include ice-cream, pan masala and tobacco. Jaitley said that barring Uttarakhand, which has opted for a Rs 75 lakh threshold for the composition scheme, and Jammu & Kashmir, the Rs 50 lakh threshold will continue for all other special category states. Movement of goods of more than Rs 50,000 in value can not be made by a registered person without an e-way bill. Jaitley said until a final decision is taken, existing provisions would prevail.

The Council also decided that Integrated GST (IGST) on shipping vessels will be 5 per cent with input credit. However, assesses must file the return with invoice details in September for both months. But we want to use the anti-profiteering rule as a deterrent. It's critical to understand these rules. Often accused of conducting business mostly in cash and evading taxes by under-reporting income, these businesses will, for the first time, have to report every transaction, creating an online trail for the tax office.

Ramakrishnudu also said that the Council turned down all the other representations for revision in rates, after it had agreed to revision for a numeber of items at its previous meeting here on June 11.