GST NEWS
GST reduction to cut prices, further revisions expected
GST reduction to cut prices, further revisions expected
Sep 13, 2017

The recent revision of tax rates by the GST Council may bring cheer to people.

While the GST Council, that met in Hyderabad on Saturday, revised the tax rates for as many as 40 goods, experts expect further revision in the GST slabs in coming meetings.

Among various other elements, the GST slabs of custard powder, stone inlay work, statues and other ornamental articles, pots and jars, plastic raincoats were reduced to 18% from 28%. Many experts that DH spoke to said none of these items deserved to be in the highest slab in the first place.

Some essential commodities that saw reduction in the rate slabs are walnuts (whether or not shelled), tamarind dried, roasted gram and saree fall. These items saw a downward revision of tax rate from 12% to 5%. 

"This is certainly a welcome move that sends out the signal that the Council is prepared to listen to genuine concerns. However, the GST Tariff is still unwieldy and does too much of needless hairsplitting. For instance, why should not a single rate be applied for computer monitors instead of worrying about how many inches it is? Also, is it really necessary to pick and choose 134 different types of hand made musical instruments for exemption?" Mohan Lavi, a Bengaluru-based chartered accountant suggested.

However, for simplicity of the process, Lavi suggested reduction in the entries of GST. "If GST is to turn out to be a Good and Simple Tax, the GST Tariff should comprise less than 100 entries based on industry products and with a single HSN Code for each. A comprehensive review and simplification of the GST Tariff is absolutely necessary," he said.

Anita Rastogi, partner, Indirect Tax at PricewaterhouseCoopers (PwC), India also asked for more clarity on tax rates. "It is good to see rates of many products being reduced. There are many more which the government should look at. The government should do a thorough analysis and then do a rate reduction one time. Frequent changes do not allow stability to be maintained," she said.

PwC India had recently written to the government seeking reduction in tax slabs of as many as 140 goods.

Source :  Deccan Herald

Top Stories
Outcome of the 23rd GST Council Meeting held on 10.11.2017
The GST Council in its 23rd Meeting decided to reduce tax rate on a wide range of daily use items. T...
Nov 11, 2017
1202 Views
GST returns: Govt waives fine for delayed filing for August, September
The government on Tuesday waived penalty on delayed filing of initial goods and services tax (GST) r...
Oct 24, 2017
614 Views
GST Network launches an offline tool to file a form detailing inputs or capital goods sent to job workers and received back
GST Network today said it has launched an offline tool for businesses to quarterly file a form detai...
Oct 24, 2017
439 Views
Deadline to claim GST transition credit till 30 November
The government on Thursday extended the deadline by a month till 30 November for businesses to claim...
Oct 26, 2017
316 Views
Yet another GST extension: July deadline to file GSTR-2, GSTR-3 moved to Nov 30, Dec 11
In a move to give relief to GST taxpayers, the government today extended the deadline to file return...
Oct 30, 2017
612 Views
Articles on GST