A group of ministers will be formed who will submit a report by 8 June 2021 to determine whether the rates are to be increased or decreased.Revision of GST Rates announced in the 42nd GST Council Meeting Highlights of the meeting held on 5 October 2020 Small taxpayers can file returns under this scheme. Amnesty Scheme was announced by the finance minister to reduce late fee returns. Any Covid-related relief item if imported even with the intention of donating to the government or any relief organization will be exempted from IGST till 31 August 2021. GST on import of medicine for black fungus, that is Amphotericin B is also placed under the exemption list.For the auto-generation of GSTR-3B, a roadmap is prepared, where the details of the supplier’s GSTR-1 will help in auto-populating the ITC. The quarterly taxpayers have the option of paying 35% of the net tax liability of the previous quarter, using an auto-generated challan for the first two months of the quarter. Due to the implementation of this rule, the number of returns has reduced to 8 from 24. This new rule came into effect on 1 January 2021.Taxpayers with a turnover of Rs.5 crore and above will have to mention a 6-digit HSN code. Taxpayers will pay their GST through a simple challan. This rule came into effect on 1 April 2021. Hence, it is important to mandatorily file GSTR-1 before filing GSTR-3B.
![]() The compensation cess collected till date amounts to Rs.20,000 crore. Sanitisers that are non-alcoholic will be continued to be taxed at 18% GST. ISRO, Antrix Corporation, and New Space India Limite (NSIL) will receive GST exemptions to encourage the space launching services in India. Bank accounts which have their PAN linked with Aadhaar will be able to receive refunds. This rule came into effect on 1 April 2021. ![]() The government will provide an additional 0.5% relaxation in states where the borrowing limit is under the FRBM Act. This will help in exempting the state from the burden of repaying the borrowed amount.Revision of GST Rates announced in the 41st GST Council MeetingThe 41st GST Council meeting was chaired by the Union Finance Minister Nirmala Sitharaman and was held on 27 August 2020. Cess collected from July 2022 will not be disbursed to states in India and will be used for the payment of principal and interest. In the case of small taxpayers (aggregate turnover of up to Rs.5 crore), the rate of interest has been reduced to 9% from 18% p.a. In case taxpayers file the returns between 1 July 2020 and 30 September 2020, the maximum late fee that can be charged is Rs.500. As per the meeting, no late fee will be levied for taxpayers that come under nil tax liability. Revision of GST Rates announced in the 40th GST Council MeetingThe 40th GST Council meeting was chaired by the Union Finance Minister Nirmala Sitharaman and was held on 12 June 2020. Two options have been provided to the states to meet the compensation cess shortfall. Other precious metals are likely to see the implementation of an extra concessional GST tax slab as these metals are currently taxed at just 1% under VAT.Following is a table of commodities and services and the GST rates applicable to them:Items that are not listed in any other category, such as electrical appliances, oil, soaps, etc.All services like professional charges, fees, insurance, banking, restaurants, telecom, etc.Essential farm produced mass consumption items such as wheat, rice, food grains, etc.Mass consumption and common use food items like mustard oil, tea, spices, etc., but not including processed foodsDe-merits and luxury goods and items that fall under the sin category, such as aerated drinks, tobacco, luxury cars, pan masala, etc.GST Council implements rate cuts leaving 35 goods in the highest tax bracketBy July 2018, the GST Council reduced tax rates on 191 goods, leaving only 35 items in the 28% tax category. Negative items and luxury goods, however, are expected to be taxed at a considerably higher rate to maintain revenue neutrality for state and central governments following the implementation of the new GST rates. The reason for this is that these food items constitute around 50% of the consumer basket, and contributes significantly towards ensuring that widespread inflation is kept in check even after the revised tax slabs under GST have been implemented. Revision of GST Rates announced in the 39th GST Council MeetingThe following table reflects the changes in the rates applicable to the goods and services:Supplies of Railways wagons & coaches (without the refund of accumulated ITC)Hotels with Room Tariff of Rs.7501 and aboveHotels with Room Tariff from Rs 1,001 to Rs 7,500Woven or non-woven Polyethylene Packaging bagsWet grinders (consisting of stone as a grinder)Specified goods for petroleum operation under Hydrocarbon Exploration Licensing PolicyCess on Petrol Motor Vehicles (Capacity of 10-13 passengers)Cess on Diesel Motor Vehicles (Capacity of 10-13 passengers)Revision of GST Rates announced in the 36th GST Council MeetingVegetables which are preserved provisionally but are not suitable for immediate consumptionCooked or uncooked vegetables which are steamed, frozen or boiled (branded)Parts for manufacturing renewable energy devices falling under chapter 84, 85 or 94 of TariffPremium on Third party insurance on VehiclesAccessories for Handicapped Mobility VehiclesVideo game consoles, equipments used for Billiards and Snooker and other sport related items of HSN code 9504Colour Television Sets & monitors up to “32 Inches”Pulleys, transmission shafts, cranks and gear boxes under HSN 8483Reduction of tax rates on Air travel of pilgrimsThe GST Council has proposed a four-tier tax structure wherein rates are either nil or very low so far as essential food items are concerned. However, the returns must be filed before 30 September 2020. Download indesign cs5 for macThus, a total of 8% GST is charged on gold ornaments. However, if the gold is converted into ornaments, an additional 5% GST is charged on the making charges. FAQs on GST ratesThe GST on gold is 3% of its value. The highest tax slab may be further rationalised to ensure that only sin goods and super luxury goods are taxed at 28%. Over a period of 1 year, the GST Council has slashed the taxation rates for 191 items in total. For TVs that are bigger than 32 inches, the GST charged is 28%. What is the GST rate charged on television sets?At present, the GST charged on television sets is 18% for TVs of up to 32 inches. However, there have been petitions to reduce the GST on two-wheelers to 18%. What is the GST rate charged on two-wheelers?At present, the GST charged on two-wheelers is 28%, which is the highest slab for GST.
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