Today, GST council has its 16th meeting in which it was announced, Good and Service Tax imposed on small entities has been reduced. Coloring books, Insulin, construction items, and schoolbags are among the 66 items on those reduced tax has been a levy. On the other hand, cap rose on the ‘composition scheme’ by offering relief to small enterprises to avail for the scheme and also to manufacturers, restaurants, and traders.
The tax rate on cashew and insulin has been reduced to 5 per cent from 12 per cent, food items like ketchup and pickles will have a tax of 12 per cent from 18 per cent. As matter of fact, the Central Board of Excise and Customs will also issue the tax structure within few weeks. The upper limit for the ‘composition scheme’ increased to Rs75 lakh from the earlier Rs50 lakh by Council. Manufacturers, traders, and restaurants with an annual earning of Rs20 lakh to Rs75 lakh can avail of this scheme and pay tax at 1, 2, and 5% respectively.
The Council approved two categories of rates to promote regional cinema. While tickets above Rs100 will draw 28% tax and less price will be taxed at 18 %. While interacting with media, Arun Jaitley, Finance Minister told, “The decision to lower rates was taken with the objective to maintain the equivalence with the current tax rates or due to the change in utilization behavior.”
To encourage employment-intensive sector of diamond processing, jeweler, leather, and textile, the Council permits 5% on job work. “It eases the burden on these categories as they are mass job creators,” he further said, “However, the arguments being spread are not close to the facts.”
There would be no relief for hybrid cars and automakers to lower the Goods and Service Tax rate on hybrid cars to 18%, let’s see what the Council decides. There is also approval for rules for accounts and records under GST by the council. In conjunction to this, Revenue Secretary Hasmukh Adhia said that the rules for the proposed anti-profiteering authority look after sooner.
The Industry seemed happy with the revised rates of GST, Harpreet Singh, Partner, Indirect Tax, KPMG in India said, “This is likely to have a positive impact on various sectors like textiles, education, entertainment as their concerns on rates have been addressed.” We hope you find this post informative, so visit again to our website for more and latest updates and don’t forget to like, comment, and share. You inspire us to write more and we love doing that. Stay tuned to insiderindian.com. Thanks for reading, keep reading, keep motivating!!