E ditor’s Letter
During the 28th meeting, the Goods and Service Tax Council gave its approval to slash tax rates on over 100 items. Those were items in the highest 28% tax bracket. The rates on articles including consumer durables were brought down from 28% to 18%. The council has rationalised rates on several other items too. Interestingly, it has exempted sanitary napkins from taxes under the GST regime.
Now, traders with annual turnover of less up to Rs 5 cr will have to file their returns every quarter, whereas those above the threshold will have to file returns every month. The taxes incurred under GST will have to be paid every month, though. The changes will come into effect from July 27, and it is expected that the cuts are to cost the exchequer Rs 7,000 crore.
The council’s decision has left a lot many elated since footwear priced up to Rs 1000 will now attract 5% GST. The industry is still divided, but not on that it should be on all MRPS. Liberty Group’s Adesh Gupta was repoted to say that 20 percent of the revenue of the company is coming from footwear priced between Rs 500 and Rs 1,000. He asserted that the threshold for the five percent slab has now been increased from Rs 500 per pair to Rs 1,000 per pair.
Meanwhile, tax officers in states and union territories will reach out to trade and industry bodies, MSMES, to understand their Gst-related issues and grievances and would place them before the Council on August 4. The 29th GST Council meeting will be held on August 4, and it will discuss issues faced by MSME and ways to solve their problems. Finance Minister Piyush Goyal was quoted, the next meeting of the Council will focus on simplification, rationalisation and relief to small tax payers. It appears like the GST dust is slowly settling.