SME Times is powered by   
Search News
Just in:   • Markets close with marginal gains despite weak global cues  • Pay Rs 275 cr by Dec 31, SC tells Jaypee  • Workshop on new National Policy on Biofuels held  • 'Honor 8 Lite' 64GB variant now available at Rs 15,999  • Centre considers hallmarking 24 carat gold jewellery 
Last updated: 19 May, 2017  

Arun.9.Thmb.jpg Services to have 4-slab GST rates, no decision on gold

GST.9.jpg
   Top Stories
» Modi expresses concern over large number of grievances of consumers
» Cabinet approves constituting 15th Finance Commission
» Panel set up to draft new Income Tax Act
» Ordinance for changes to Bankruptcy Code soon
» Garment exporters losing competitiveness by 9 pc: AEPC
SME Times News Bureau | 19 May, 2017
Council concluded its latest round of meetings on Friday with the decision to apply the same four tax rate slabs for services as for goods, exempting, however, healthcare and educational services from the purview of the GST.

Speaking to reporters here following the meeting, Kerala Finance Minister Thomas Isaac said that no consensus could be reached on the rate to apply on gold, and that the next meeting of the GST Council has been fixed for June 4.

"We could not come to a decision in this meeting on the rate to apply on gold," Issac said.

"Services will have the same four multi-slab structure of tax rates as for goods," he said.

The council on Thursday approved the tax rates for 1,211 items, of which 7 percent will be exempted, 14 percent will be in the 5 percent slab, 17 percent in the 12 percent category, 43 percent in the 18 percent segment, while 19 percent of goods will go into the top tax bracket of 28 percent.

"Services, which are at currently taxed 15 percent will be fitted into the 18 percent bracket. However, services will get the benefit of input tax credit for the goods used, so real incidence of taxation will be lower than the headline rate," Isaac added.

He said that while "luxury services" would attract the highest rate of 28 percent, health and education services would be exempt categories.

"Telecom services would continue to be taxed at the same rates of the past. Not in a single case has there been an increase in taxes from before," he added.

Union Finance Minister Arun Jaitley told the media here on Thursday, after the first day of the council meeting, that "there is no increase in taxes of the items considered today. In fact, for many of them, taxes have come down."

An overwhelming 81 percent of items will attract tax of 18 percent or below. Only 19 percent of items will be taxed at the highest rate of 28 percent.

Jaitley said that while the overall basket of taxes will see a reduction, he hoped for greater tax buoyancy because of greater efficiency and less tax evasion.

"On many commodities there would be reduction because of the cascading effect, but we are banking on the hope that because of a better tax system and less evasion there would be tax buoyancy," he said.

In a major measure of support to industry, the rate for capital goods, as well as industrial and intermediate items have been set at 18 percent.

Commenting on the GST Council's deliberations, a senior tax analyst said the rates announced were along expected lines.

"However, it seems a lot of work is yet to be done. Exemptions and issues related to reverse charge mechanism have not been finalised, and looks doubtful that it will be done in a day," said Taxmann.com Senior Consultant V.S Datey.

"Thus the chances of introducing GST by July 1 appears doubtful," he added.

"Companies would now quickly want to compute/re-compute the impact of rate change, if any, on their products and consequential change in their related margins," Partner in international accounting firm KPMG in India Harpreet Singh said in a statement in Srinagar.
 
Print the Page Add to Favorite
 
Share this on :
 

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

 
  Customs Exchange Rates
Currency Import Export
US Dollar
66.20
64.50
UK Pound
87.50
84.65
Euro
78.25
75.65
Japanese Yen 58.85 56.85
As on 23 Nov, 2017
  Daily Poll
Is counterfeiting a major threat to SMEs?
 Yes
 No
 Can't say
  Commented Stories
» Starting an import export business: Basic guide for beginners(12)
» Moody's upgrade: Thumbs up to reforms(4)
» GST: Course correction(3)
» 'Exporters can now manually file claims for GST refunds'(1)
» SC asks Unitech to deposit Rs 750 cr by December end(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter