All items, except a few “luxury and sin items”, may be knocked off the 28% goods and services tax (GST) slab, bringing down the average tax rate to levels way lower than in the pre-GST regime.
All items, except a few “luxury and sin items”, may be knocked off the 28% goods and services tax (GST) slab, bringing down the average tax rate to levels way lower than in the pre-GST regime. More relief can be expected at the next meeting of the GST Council in Guwahati on November 9-10 after a spate of cuts at the last two meets. The cuts will help rein in any inflationary pressures in the new indirect tax regime.
Meanwhile, revenue secretary Hasmukh Adhia said on Sunday that an estimated Rs 67,000 crore had accumulated as integrated GST (IGST) over July-August. Of this, only about Rs 5,000-10,000 crore will be due as refunds to exporters.
While no tax will have to be paid on goods to be exported in the remaining months of current fiscal, from April 1, an e-wallet service will be launched that will give exporters notional credits that can be used to pay GST, Adhia said. The credit in the wallet would be transferable.
On refunds on taxes paid already paid since the introduction of GST in July, the revenue secretary explained the rules provide that if IGST is paid on export, immediate refunds should be made. However, since that system was not in place, the refund claims of July totalling about `600 crore will start from October 10 and another Rs 800 crore for August from October 18, he said.
Following a decision taken at the GST Council meet on October 6, a group of ministers (GoM) has been set up under Assam finance minister Himanta Biswa Sarma to make the composition scheme more attractive and also revisit GST rates on restaurants. The GoM will submit its report within 2 weeks.
The other members of the GoM are Bihar deputy chief minister Sushil Modi, Jammu and Kashmir finance minister Haseeb Drabu, Punjab finance minister Manpreet Singh Badal and Chhattisgarh minister of commercial taxes Amar Agrawal, according to an office memorandum.
With PTI inputs