Home Tags Goods and Services Tax

Tag: Goods and Services Tax

Along with Electronic Items Few More Services to Get Cheaper as GST Council Cuts Tax Rates

Goods and Services Tax (GST) council has cut down the tax rates on consumer items. On Saturday, the GST council came up with a new rate-cut list of over 50 items including small TVs, refrigerators, and washing machines, which are currently taxed at 28 percent. These items will now be considered under the 18 percent tax section and the news of 10 percent relaxation on the tax has relieved common people.

Along with the rate-cutting, the GST council also exempted tax on Sanitary napkins and Rakhis. These changes in the tax rates will be implemented from July 27 onwards all over the country. After the 28th meeting of GST council, Finance minister Piyush Goyal announced the news of reduced tax rates.

Another step taken by the government is to introduce new forms called “Sahaj” and “Sugam”, which will simplify the return filing procedures. The new policy has hanged the tax filing systems for enterprises as well. Now, all the enterprises with an annual turnover of up to INR 5 crores will have to file their returns quarterly though they will have to pay tax on a monthly basis. All these years, these enterprises had to file their returns every month.

This relaxation of 10% will be applicable on small televisions, lithium batteries, domestic electrical appliances, mixers, water heaters, vacuum cleaners, hair dryers, hair smoothening irons, and toilet sprays. Now, buying footwear will also be cheaper as footwear has been brought to 5% slab from 18%.

To promote and encourage the domestic industry, the taxation on handicrafts has been brought down to 12% from 18% and, handmade textile flooring, carpets, toran, and tapestry are under the 5% margin after the rate cuts.

When GST was implemented in 2017, there were 226 items listed under the 28% tax slab; After such big rate cuts by GST council over past one year, now there are only 35 goods that are left under this margin.

Now, staying at a hotel might get cheaper as the tax will be implied based upon the transaction value in place of declared tariffs. Hotels with tariff below INR 1000 are exempted from GST.

GST returns filing deadline ends: Tax Practitioners seek more time from government

GST deadline

The deadline for filing the first monthly return for the Goods and Service Tax (GST) expires at midnight on Friday. The GST Act has passed in the Lok Sabha on 29th March 2017 and came in to effect from 1st July 2017.

GST is the new indirect tax regime that merges many state and central taxes, including Excise duty, Service Tax, and VAT. Maiden tax collections under the GST system have seen over 29.64 lakh returns.

Tax practitioners have urged the government to grant more time for filing tax returns and invoices for July. As the site crashed last week, the government postponed the tax filing deadline by five days to 25th August. Unfortunately, more time is wanted by the tax payers.

Pratik Jain, partner and leader of indirect tax practice, PwC India, “Given the number of issues that businesses are still facing, it might be desirable to extend the deadline to file not only GSTR 3B but also other returns due in September.” According to the reports, by 2 pm on Friday, 2.93 million assesses had filed returns on the portal of GSTN, the company that processes GST returns.

Top 5 GST Software in India to help companies and businesses

Until August 23rd, about 48 lakh taxpayers had saved the sales data on the portal, and they are stepping away from paying taxes and filing returns. An estimated amount Rs 50,000 crore had come in taxes from those returns.

Dr Amit Mitra said, “I had repeatedly said please postpone the launch of July 1, the impact is everyday postponements, they are saying that GSTN (Goods and Service Tax Network) could not take the load, this is what I had predicted, but they did not pay heed to that.”

GSTN had urged businesses to file return ahead of the deadline to avoid difficulties. “Uploading of invoices is a simple process at the GST portal and should be completed early to avoid delays that are usually witnessed on the last day.”

Follow our website Techfactslive.com on Facebook and Twitter for more News and Updates. If any problem contact us at [email protected]

Govt Clarifies 18 % GST on food takeaways from Non-AC area at AC restaurants

The New Goods and Services Tax (GST) regime which was implemented on July 1 across India has affected the customers directly. GST has affected the restaurant bills putting pressure on customers by making it expensive. The government confirms that it will charge 18% GST on takeaways as well as food served from a Non-AC area if any part of the hotel or restaurant has the AC facility.

According to the GST which is rolled out from July 1 will charge 12% on food bill in Non-AC restaurant. The tax rate for restaurants with the liquor license will charge 18% while five-star hotels will charge 28%.

The Central Board of Excise and Customs (CBEC) have clarified the rates on GST that are charged by restaurant cum bars. Taking an example where the first floor of the restaurant is air conditioned (AC) which is used for serving and alcohol while the ground floor is Non-AC. The CBEC said, in the above case we will charge 18% irrespective where the supply is made either from the first floor or the second floor.

Baba Ramdev appeals to boycott Chinese products

Coming to the tax rates that charge for the take away from such restaurants, CBEC said, “Tax has to be charged at 18 per cent on supplies of food made from their takeaway counter.” Likewise, the restaurants providing alcohol will be not eligible for composition scheme.

With the implementation of the new regime, customers have to pay 12% tax if they eat in a Non-AC restaurant. If you are in AC restaurant, you have to pay 18% tax whether alcohol is served or not.

Follow our website Techfactslive.com on Facebook and Twitter  for more News and Updates. If any problem contact us at [email protected]

GST effect: Great discounts on Electronics, Clothes, Footwear and more

GST effect sale

GST Effect: Retail stores and E-commerce websites are announcing big discounts ahead of the GST effect from July 1. The discount sale includes home appliances, electronics, clothes, footwear and more. The main reason for the discount is the implementation of GST which results hike in prices of electronic items. As government has declared that the Goods and Services Tax (GST) will be rolled out from July 1, retailers are gearing up sales.

Besides this, the costs associated with making old stock complaint will be included in the new indirect tax regime. As a result, the existing products will also get expensive post the rollout of GST. Prices of the items like LED televisions, Air conditions, washing machines have been cut down fearing the 28 percent GST slab from present 23 percent tax rate.

Flipkart Fashion Days Sale: 9-Day Long End-of-Season Sale on Top brands

The main game behind announcing hefty discounts is to clear the present stock ahead of GST effect. Leading online retailers like Amazon and Flipkart have slashed the prices in various categories like home appliances, fashion, watches, mobile accessories, leather products, and health and beauty products.

On the other hand, Paytm mall, a digital payments platform from Paytm also has launched a clearance sale. Authorized retailers and merchants are offering discounts and cashback on many items in this clearance sale. These discounts include the products like TVs, laptops, phones, ACs, and refrigerators.

Now, You Can Pay Traffic Challan Using Paytm: Steps to Pay Traffic Challan Online

“This sale has come at an opportune time for offline retailers who are looking to offload their entire inventory before the new tax rates become effective,” Paytm said.

Recently, the GST council has slashed the taxes on 66 items, placing products like pickles, ketchup, cutlery, mustard sauce and toppings at a lower tax of 12 percent from 18 percent earlier.

For more updates on latest technology stay tuned to our website Techfactslive.com. Follow us on Facebook and Twitter.