1. GST rollout, launch in India: New Tax regime will not lead to inflation, says Central Excise official Surendrakumar Mankoskar

GST rollout, launch in India: New Tax regime will not lead to inflation, says Central Excise official Surendrakumar Mankoskar

GST rollout, launch in India: A senior central excise official today allayed fears and apprehensions about spurt in inflation with the advent of Goods and Services Tax (GST) from July 1.

By: | Mumbai | Published: June 30, 2017 10:14 PM
GST rollout, GST launch in India, Gst in India, GST, new tax regime, tax in india, indian economy, tax, tax rates, new tax rates, vat, value added tax, latest news, modi government, indian government, latest updates, indian government GST rollout, launch in India: Additional Commissioner, Central Excise Surendrakumar Mankoskar while speaking to reporters here at Mantralaya, said that essential items of daily consumption will not incur tax. (Website)

GST rollout, launch in India: Central excise official Surendrakumar Mankoskar said that government services like RTO driving licenses, birth and death certificates, registration fees, license fees will not attract any tax. However, activities carried out on commercial basis like state transport, commercial complexes will attract tax. All essential items like foodgrains sold loose, milk, curds, butter milk, salt and others will attract zero tax. Valuables like gold and silver will attract 3 per cent tax. Flavoured milk, cotton fabric, branded foodgrains and transportation will attract 5 per cent GST, he said. Branded butter and mobile phones will attract 12 per cent GST. Machinery, online services like Amazon, Ola, laptops will attract 18 per cent GST. Luxurious items like cars, trucks, tobacco will attract 28 per cent GST, Mankoskar said.

A senior central excise official today allayed fears and apprehensions about spurt in inflation with the advent of Goods and Services Tax (GST) from July 1. Additional Commissioner, Central Excise Surendrakumar Mankoskar while speaking to reporters here at Mantralaya, said that essential items of daily consumption will not incur tax. Moreover, he allayed fears that GST will lead to rise in costs of flats. “However, luxurious branded items and imported goods and services will cost more,” said Mankoskar. “For the traders the maintenance of accounts and filing of returns has been simplified as under GST now they will be spared off maintaining multiple forms, depots, end the scourge of octroi checkpoints,” he said.

When asked about the impact of GST on state’s revenue income, Mankoskar said Maharashtra besides being a major producer of goods, is also equal consumer of finished goods. Elaborating the point further, he said earlier dealers and buyers in order to evade higher taxes in the state used to sell or buy trucks and vehicles from states that had lower tax rates. “Now the state will stand to gain revenue from the taxes on trucks and cars produced in the state,” he said. Commenting upon the tax on dry fruits, Mankoskar said that barring kishmish (dried grapes) no other dry fruit is produced in the state. Replying to queries over the apprehensions expressed about rise in costs of flats, Mankoskar clarified that those flats purchased after the completion certificate is awarded will not attract GST.

The flat which was earlier sold say at the rate of Rs 4,500 per sq ft will now be sold at say Rs 4,000 per sq ft, he said. Besides this the GST Act provides for anti-profiteering clause whereby the builders will not be able to charge in excess, he added. Allaying fears of the trading community, Mankoskar said that now under GST traders and businesses will have to file just four tax returns that too every three months and are free to indulge in inter-state purchase. Commenting upon the apprehensions raised on rise in ticket rates for Marathi plays and cinemas in theatres, he said that the tax rate for cinema tickets priced under Rs 100 will attract 18 per cent GST, for tickets above Rs 100 the GST will be 28 per cent.

For Marathi plays the tax rate for tickets above Rs 250 the GST will be 28 per cent, he said. Mankoskar said that with the advent of this one nation one tax, the Marathi films and plays that were charged much higher taxes in neighbouring states, those states will now not be able to levy higher taxes.

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