SME Times is powered by   
Search News
Just in:   • Niryat Mitra, a well thought-out app  • Rupee hits record-low of 70.08 against USD  • Trump signs $717bn annual defence policy bill into law  • After retail inflation, WPI eases to 5.09 pc in July  • Apple delays 'Group FaceTime' feature for video calls 
Last updated: 24 Jul, 2018  

gst-THMB.jpg GST rate cut, easier compliance norms

   Top Stories
» Rupee hits record-low of 70.08 against USD
» After retail inflation, WPI eases to 5.09 pc in July
» Tail winds turn into head winds for airlines: ASSOCHAM
» Data protection law for data-driven processes, innovation soon: Official
» Fintech cos can play key role in MSME financing: Survey
Bikky Khosla | 24 Jul, 2018

The GST Council last week announced reduction of rates on a list of 100 items, including sanitary pads, small TVs and footwear. The new rates are to be implemented from July 27, and now with the tax rate coming down on 15 items from 28 percent to 18 percent, the number of products in the highest GST slab will come down drastically. Announcing the decision, Union Finance Minister Piyush Goyal said the move would benefit consumers, but views vary on the probable outcome of the decision.

The Opposition took no time to view that the decision was taken keeping in view the upcoming Lok Sabha elections in 2019 and Assembly elections in Madhya Pradesh, Rajasthan, Chhattisgarh and Mizoram later this year. On the other hand, from an economic point of view, some experts point out that the cut would result in a revenue loss that is as high as 1 percent of the tax budgeted. This amount may reach Rs 60 billion, according to some estimates. For them, this can be bad news at a time when the budget deficit needs to be kept under control.

In contrast, some others view that private consumption will get a big boost from the rate cut. For the last few years, private consumption has been a strong support for the economy, and it is expected that now the lower tax rates will help keep private consumption strong. Festivals like Diwali and Christmas are ahead, considering which the rate cut on consumer durable products is expected to increase demand in a big way, offsetting the effects of revenue loss due to the move.

While debates on the aforesaid issue abound, it is widely agreed that the GST council’s another major decision -- to allow quarterly return filing for businesses with turnover of up to Rs 5 crore -- will prove beneficial. It will facilitate ease of doing business and particularly ease miseries of MSMEs. Also, increased compliance is expected. In his announcement, the Finance Minister said that a special meeting of the GST Council would be held on August 4 to further focus on MSMEs, and we will all eagerly await it.

I invite your opinions.

Print the Page Add to Favorite
Share this on :

Please comment on this story:
Subject :
(Maximum 1500 characters)  Characters left 1500
Your name:

Gst on electric rice cooker
JAWAHAR | Thu Jul 26 06:24:04 2018
Why is it still 28% gst for electric rice cooker.

GST rate cut
M GURUMURTY | Thu Jul 26 03:57:24 2018
It is very good decision. However, this type of information must to reach lowest consumers throgh TV media with the list of items and every village level to understand at common platform of villages through Village Administration.

  Customs Exchange Rates
Currency Import Export
US Dollar
UK Pound
Japanese Yen 58.85 56.85
As on 15 Aug, 2018
  Daily Poll
Is counterfeiting a major threat to SMEs?
 Can't say
  Commented Stories
» Starting an import export business: Basic guide for beginners(8)
» PMEGP to assist entrepreneurs financially: Dinesh Rai(1)
» Exports must be priority(1)
» Audi CEO to remain in German police custody(1)
» History of Lok Sabha elections(1)
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter