Stay tuned for LIVE updates:
The finance minister confirms that all restaurants will come under the 5% tax bracket, irrespective of whether they are AC or non-AC. The restaurants, however, will not get benefit of Input Tax Credit. The decision has been taken because it was found that restaurants were not passing on benefits of ITC to customers. They were charging GST on previous rates and the burden was on the customer.
Finance Minister Arun Jaitley talks about the changes made to the GST structure. He says that when initially, GST rates were fixed keeping in mind previous tax structure that had excise and VAT. He says that the GST council has systematically looked at the 28% tax bracket in the last three monthly meeting for rationalization and rates have been cut as they were of daily use. Only demerit goods will stay in the 28% slab, he says.
GST Network today said businesses can now make changes to the forms uploaded on the portal to claim transition credit, reports Moneycontrol. "The facility to revise Form GST TRAN-1 declaration has been introduced on the GST Portal for taxpayers who had already filed it prior to November 9, 2017," GSTN said in a statement.
GST Council decides to raise composition scheme threshold to Rs 2 crore, reports CNBC TV-18. PTI reported Thursday that the GST Council is in favour of expanding the composition scheme. Composition scheme is a scheme which is open manufacturers, restaurants and traders businesses whose turnover does not exceed Rs 1 crore, which was raised at the October 1 meeting. The initial threshold was Rs 75 lakh. Now, the threshold has jumped to Rs 2 crore.
In effect, the GST, in its 23rd meet on Friday, cut rates on 177 goods. Facing intense heat from opposition-ruled states over keeping mass used goods in the 28 per cent bracket which was meant for luxury and de-merit goods, the Council pruned the list to 50 as against 62 that was recommended by its fitment committee.
RECAP | The Group of Ministers (GoM) had also suggested that eating out at hotels that have room tariff of more than Rs 7,500 should attract a uniform 18 per cent rate instead of any separate category for a 5-star hotel, which currently falls under the 28% bracket. With regard to traders, the GoM came up with a two-pronged approach for taxation under the composition scheme. It suggested that traders who want to exclude sale proceeds of tax-free items from turnover can pay 1% GST. However, for those who pay tax on total turnover, the tax rate has been proposed at 0.5%.
RECAP | Bihar Deputy Chief Minister Sushil Kumar Modi, who is also a member of the GST Council, said goods used by common man have been removed from the 28% slab. “Only luxury goods and items such as tobacco and cigarettes have been kept in the 28% slab." The Rate Fitment committee had proposed keeping 68 items in the bracket. Pruning this tax bracket may result in revenue loss of Rs 20,000 crore. The government seems to have gone a step further.
RECAP | In what can be deduced as the biggest re-jig in GST rates, only 50 out of more than 200 items have been retained in the 28% rate slab. Luxury items and goods such as tobacco are the ones that will attract 28% tax from now on. In a meeting held on Friday in Guwahati, GST council decided to drop items used by common man from the highest tax slab and lower their taxes to 18%. GST council largely consists of state finance ministers headed by central finance minister Arun Jaitley.
The Group of Ministers (GoM) has also suggested that eating out at hotels that have room tariff of more than Rs 7,500 should attract a uniform 18 per cent rate instead of any separate category for a 5-star hotel, which currently falls under the 28 per cent bracket. With regard to traders, the GoM came up with a two-pronged approach for taxation under the composition scheme. It suggested that traders who want to exclude sale proceeds of tax-free items from turnover can pay 1 percent GST. However, for those who pay tax on total turnover, the tax rate has been proposed at 0.5 per cent.
Besides, making the composition scheme more attractive is on the agenda and as per the Group of Ministers (GoM) recommendations, the GST Council may decide to allow businesses in the inter-state trade to opt for the arrangement. The GoM had also suggested slashing tax rate to 1 per cent for manufacturers and restaurants opting for the scheme from 2 per cent and 5 per cent, respectively. It was in favour of doing away with the tax rate distinction between AC and non-AC restaurants, those which are not covered under the composition scheme and tax them at a flat 12 percent. Currently, non-AC restaurants are taxed at 18 per cent.
The GST Council, comprising state finance ministers, is also set to review the GST returns filing cycle and make it taxpayer-friendly. The Council may rationalise rates in sectors where the total incidence of taxation has gone up because the goods were either exempt from excise or attracted lower VAT rates under the previous indirect tax regime, PTI reported. As the Council tries to accommodate industry concerns on tax rates, after estimating the impact on revenue, a rationalisation of items in the 28 per cent tax bracket is expected.
The GST Council will also deliberate on the suggestions made by Assam Finance Minister Himanta Biswa Sarma-headed GoM to cut tax rates for the composition scheme businesses to 1% and lower rates for non-AC restaurants. The Council, comprising state finance ministers, is also set to review the GST returns filing cycle and make it taxpayer-friendly.
The GST Council is holding its 23rd meeting in Guwahati today and may approve tax cuts on items that fall within the 28% slab and slash rates for daily use items, plastic products and hand-made furniture as it looks to provide relief to consumers. Four months after the Goods and Services Tax (GST) was rolled out, the panel headed by Union Finance Minister Arun Jaitley will look at the most comprehensive overhaul of rates, easing returns filing and providing more relief to small and medium enterprises.
13 Oct, 2018 | England in Sri Lanka ENG vs SL 278/950.0 overs 140/529.0 oversEngland beat Sri Lanka by 31 runs (D/L method)
12 Oct, 2018 | Zimbabwe in South Africa ZIM vs SA 132/720.0 overs 135/415.4 oversSouth Africa beat Zimbabwe by 6 wickets
12 - 14 Oct, 2018 | West Indies in India WI vs IND 311/10101.4 overs 367/10106.4 oversIndia beat West Indies by 10 wickets
10 Oct, 2018 | England in Sri Lanka ENG vs SL 92/215.0 overs /oversMatch Abandoned
09 Oct, 2018 | Zimbabwe in South Africa SA vs ZIM 160/620.0 overs 126/1017.2 oversSouth Africa beat Zimbabwe by 34 runs