GST Council meet: Rates for 27 items slashed; e-wallet for exporters, quarterly filing for small businesses approved
“The old India was economically fragmented, the new India will create one tax, one market and for one nation”- A genuine step towards Unity!
GST stands for Goods and service tax. It is the first indirect service tax which was introduced on 1st July, 2017 by our president Pranab Mukherjee and PM Narendra Modi . It was commenced throughout India, thus, releasing the multiple cascading of the taxes, that was levied by the central and the state government.
It is a transparent and a fair system that will keep the corruption and the black money at bay!
This was introduced as The Constitution Act of 2017, which was made possible by the agreement of the passage of constitution 122nd Amendment bill. GST is taken care by a GST council and its chairman is none other than our finance minister Mr.Arun Jaitely.
The GST council meet, held on Friday, has come up with the following:
Also Read: Goods and service tax(GST) in Other Countries.
- Resulted in providing relief to the small and medium businesses on filing and payment of taxes
“Our strength lies in small businesses and they will feel more secure with GST. Consumer and small businesses will gain tremendously.”, quoted the PM.
The big tax payers, who contribute to at least 94-95% of the total taxes, will continue to file monthly and pay the tax on monthly basis.
Different ministers have brought the Composition scheme into play for the small and medium businesses holders. It was to be implemented from 1st October, 2017. Here, they are required to file quarterly and they would have to file the monthly returns for the first three months of GST. This was implemented from 1st July! Thus, helping many!
- Eased rules for the exporters through the advent of e-wallet
As a reminder of fiscal, exporters will enter into one of the exempted category, paying a nominal of 0.1% GDP!
From April, a new e-wallet scheme will be introduced for the exporters to provide liquidity
Cut down the tax rates on almost more than two dozen articles.
The slashing of the rates for27 items in India has brought an expression of gee in the common people.Thus, Modi ji proving his words that “Consumer is the king”.
GST accordingly applied to these items:
- On unbranded products such as namkeens, ayurvedic medicines, sliced dried mango and khakra has been cut to 5% from 12%,
- The same on man yard used in textile sector has been reduced to 12% from 18%.
- Tax on stationery items, stones used for flooring (other than marble and granite), diesel engine parts and pump parts has been cut to 18 percent from 28 percent.
- E-waste has been slashed to 5 percent from whooping 28 percent.
- Food packets given to school kids under Integrated Child Development Scheme (ICDS) will now have 5 percent tax instead of 12 percent.
- Job works like zari, imitation, food items and printing items would allure 5 percent tax instead of 12 percent.
- Government contracts involving high amount of labour will be levied 5 percent GST instead of 12 percent in order to contain cost of those programmes.
Our esteemed PM always believed that “Rashtraneeti (national policy) is bigger than rajneeti (politics).” Thus, you can see the difference!
