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GST - Some Aspects
Posted on: 30/Jun/2017 5:34:15 PM
GST - Goods And Services Tax is set to be introduced from the coming midnight (Start of Saturday, 1st July). This has been initiated to ensure the uniform taxation system throughout India in place of the existing system where different states have different types and slabs of taxes for different times. This is a historic occasion as this is the 1st major attempt in the history of the department of taxes to have undertaken this mammoth effort. It is advisable to know the salient features of GST which will be in effect right from tomorrow.
Cars:
A GST slab of the maximum 28% has been imposed along with Cess Tax leading to a price increase by 1% to 15%. For petrol cars with a capacity less than 1200 cc, along with 28% GST, a cess tax of 1%, for diesel cars below 1500cc capacity, a cess tax of 3%, and for cars above 1500 cc capacity and SUV cars of more than 4 metres length, a cess tax of 15% has been charged.
The price of small cars may go up by a small margin after GST. The automobile companies have informed that the prices of luxury cars may come down.
Home consumer durables:
Consumer durables like air-conditioners and refrigerators are under the 28% GST slab. So, there are possibilities of reduction in price for these items. This is because the prevailing tax rate is 30% to 31%.
Rental cars:
Transport service charges come under the 5% GST slab. Presently, the rental cab service providers such OLA and Uber charge up to 6%. When GST is implemented, there are some chances for a slight reduction in the rates.
Entertainment - Cinema tickets:
The entertainment aspect is brought under the Services category. Film tickets over Rs. 100 will come under 28% GST slab. Film tickets below Rs. 100 will come under the 18% GST slab.
Until now - history so far
2006 - The 1st announcement regarding GST was made during the budget presentation of the financial year 2006-07 by the then ruling Congress party. An authoritative committee was formed consisting of the central and state finance ministers.
2008 - The committee headed by Asimdas Gupta presented the GST report to the central government. During the ensuing discussion, several state governments protested against the proposal.
2009 - The committee released the 1st discussion-based report about GST in November 2008. In this 3 types of GST – Central GST, State GST and GST between 2 states. It was reported that the 3rd GST will be collected by the central government and distributed later to the concerned state governments.
2011 - Petition to amend Indian Constitution Act 115 presented in the State Legislative Assemblies and later the report was sent to the Parliamentary Standing Committee. It was asked that the report must be presented before 7th August 2013. As the tenure of the ruling government ended in 2014, the petition became invalid.
2014 - BJP was elected as a ruling party. It made certain amendments in the GST proposal and introduced a petition to carry out the amendment in the Indian Constitution Section 112. On 19th December 2014.
2015 - The Amendment as above was carried out on May by the parliament.
2015 - 12th May, the petition was sent to a committee of 21 members under Bhupender Yadav of Rajya sabha Selection Committee.
2015 - The Rajya Sabha selection committee submitted a report on 22nd July.
2015 - August, The attempt to pass the petition failed.
2016<6 - March, The central government agrees to the proposals of Congress about GST.
2016 - August, GST Bills passed in Rajya sabha.
2016 – September, With the condition that at least 50% states must agree, 16 states agreed and passed the State GST bill.
President’s approval was obtained. Presently, all states except Jammu and Kashmir have passed state GST bills.
2016 - November, GST council decides on 4 GST slabs.
2017 - March, 4 New Law sections related to GST passed.
2017 - 18th June, GST for 1211 items finalised. The GST Council decided the Service Tax the next day (19th June). A review on GST was carried out on 11th June and GST slabs for 66 items reduced.
2017 - 30th June, The inaugural function of GST to be conducted by midnight in Parliament Centre. Under GST, 5 central taxes, and 6 state taxes, a total of 11 taxes, get integrated.
GST slab on items:
- Footwear below Rs. 500 - 5%
- Footwear above Rs. 500 - 18%
- Ready-made clothing - 12%
- Clothes below Rs. 1000 - 5%
- Cotton dress material - 5%
- Beedi - 28%
- Gold - 3%
- Diamond - 3%
- Uncut Diamond - 0.25%
- Biscuit - 18%
- Handloom thread - 5%
- Synthetic thread – 18%
- Agricultural equipment - 5%
- Hair oil, toothpaste, and soap - 18%
- Air-conditioner, Refrigerator - 28%
- Small Cars - 28%
- Gulab Jamun, Rasgulla, Cooking oil, sugar, tea, coffee, and coal - 5%
GST slab on Services:
- Telecommunication and Finance - 18%
- Transportation - 5%
- Air-conditioned travel - 5%
- Hotels and lodges with a room rent of Rs. 1000 to Rs. 2000 per day - 12%
- Hotels and lodges with room rents per day exceeding Rs. 5000 - 28%
- Films, gambling, and betting - 28%
- Plastic Tarpaulin - 18%
- School Bag - 18%
- Concrete pipes - 18%
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