E di­tor’s Let­ter

Shoes & Accessories - - Contents - AMITABH TANEJA Ed­i­tor-in-chief

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.

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