GST Council meet: New tax regime set for July 1 rollout as all states agree
The Central and State Governments have thrust in preparations for implementation of the largest tax reforms in the country’s history, from July 1 to the Goods and Services Tax (GST) being shown. Under this, the 15th meeting of GST Council was held in Vigyan Bhawan, capital of Delhi. In which all the rules related to GST have been cleared on the basis of implementation.
In fact, all the states have agreed to implement the goods and services tax (GST) from July 1. In the 15th meeting of the ongoing GST Council, the rates of taxes for the remaining 6 items are being finalized, which includes gold. Kerala Finance Minister Thomas Isaac said during the break in the GST Council meeting Saturday afternoon, “All states have agreed to implement GST from July 1.”
He also said that the council is discussing to fix tax rates on 6 goods, which include gold, garments, sandal-shoes, biscuits and bidi. At the same time tax rates on 1,211 items have been decided in the previous council meeting in Srinagar. Earlier this week, West Bengal Finance Minister Amit Mitra had expressed serious doubts about the implementation of GST since July 1.
Finance Minister Arun Jaitley is the head of the GST Council, he asked the industry to be ready for GST from Thursday and said that the date of implementation will not change.
In addition to the gold and silver, pearls, precious stones, coins and artificial jewelery, the tax on biscuits, textiles, footwear, bidi and tendu leaves was to be decided in this meeting.
The Finance Minister of the states in the GST Council headed by Finance Minister Arun Jaitley is also included. There may be some other things on this review of tax rates. Apart from this, the rules for the format of the form can also be approved after the GST is implemented in the meeting. In this regard, the Finance Ministry said in the statement that the approval for the draft GST rules and related forms is also on the agenda.
Tax on gold and silver jewelery
Some states have advocated 4% tax and input tax credit on gold, so that the effect of tax on these precious items remains at the existing 2% level. At the same time, Chief Financial Adviser of the Finance Ministry Arvind Subramanian recommended 4-6% tax on gold. 99% of the requirement is imported in India and 10% custom duty, 1% exemption on manufacturing and 1% VAT on sale.
Two categories of branded and non-branded clothing in clothes
If you talk about clothes then they can be kept in two categories of branded and nonbranded. According to experts, taxis are now divided in taxis, where cotton is 0% on fibers, 12.5% on synthetic excise. In such a scenario, the government can make uniformity by distributing the clothes in two categories and taxing the tax on them.
Tax Policy on Biscuit
Sources on Biscuit said that this was discussed in the last meeting of the Council of the Government of Srinagar. In this, some states have demanded to maintain existing 0% tax on biscuits with a price less than Rs. 100 per kg whereas the center wants to keep it in the 12% tax slab. Another source said that tax on biscuit would be a political decision.
Explain that the GST Council had fixed rates for 1200 items and 500 services last month, ranging from 5, 12, 18 and 28 per cent. In addition, with the harmful things for health, cess was levied in addition to 28% tax on luxury products. However, the council did not fix tax rates for six commodities such as gold and silver jewelery and clothes and shoes.
