In India, mixed kind of reaction is being given for GST which implemented on July 1, 2017. The government also had to face some rejection for putting basic items into the higher rate slab.
Recently, there are discussions going on for putting petrol and diesel under the GST slab. If this happens, a lot of burden on commoners would decrease. In this article, we will talk about all such latest happenings going for GST.
Petrol and Diesel to come under GST soon
Union Minister for Petroleum and Natural Gas Dharmendra Pradhan recently said that the government is trying that petrol, diesel and kerosene should also come under the ambit of GST. Once brought under GST, the excise duty imposed by the Centre and the VAT (Value Added Tax) levied by the states. Under the Goods and Services Tax, the maximum tax imposed on petrol and diesel will be capped at 28 per cent. At the recently held GST Council meet before the Union Budget, the issue of bringing petrol and diesel under GST net was not discussed but Finance Minister Arun Jaitley said that it would be taken up at the next meeting.
GST on Health Department
At present, there are separate health schemes for different states. If we can have a single health scheme, it can help build a healthy nation. Also, the collaboration of the State and Central governments would lessen the expenses (including GST) on the health.
GST on used cars
In India, it is estimated that around 3.5 million used vehicles are sold annually. Out of which, 40% of the used cars are sold through authorized dealers such as OLX India. The unauthorized dealers did not get much affected by GST but those who were doing the business by paying all taxes have been noticing the decline in the sale-purchase. Few days back, GST council lowered the rates on 29 products and 54 services and GST on car user medium and large cars and SUVs was thus cut from 28 per cent GST to 18 per cent. The rate on small cars and motor vehicles was reduced from 28 per cent to 12 per cent. The cess on each of these has now been removed which was other 5 per cent.
Latest GST Rate Cuts in India
Just a few days ago, GST council of India slashed the tax rate on 54 services and 29 items which include both old and used motor vehicle bio-diesel, while also simplifying return filing process for business. Let us look at the announcements done in this latest GST council meet:
- Finance minister Arun Jaitley said the panel at its next meeting may also consider bringing under the Goods and Services Tax (GST) purview items like petroleum and real estate.
- The Council cut GST rate on second-hand medium and large cars and SUVs from 28 per cent to 18 per cent and on other old and used motor vehicles to 12 per cent.
- Tax on diamonds and precious stones reduced from 3 per cent to 0.25 per cent.
- Tax rate for bio-diesel was slashed to 12 per cent from 18 per cent
- For public transport buses run on environment-friendly bio-fuels, the rate has been reduced to 18 per cent from 28 per cent.
- The rate on sugar-boiled confectionery, drinking water packed in 20 litre bottles, fertiliser-grade phosphoric acid, bio-diesel and drip irrigation system has been reduced from 18 to 12 per cent.
- Tamarind kernel powder, mehendi paste in cones and domestic LPG supplied by private distributors will attract a reduced duty of five per cent instead of 18 per cent.
- The exemptions from GST will, among other things, now apply to supply of services for providing information under RTI Act, legal services provided to government, local authority, governmental authority and government entity, transportation of goods from India to outside by air and sea.
- Services relating to admission or conduct of examinations provided to all educational institutions, entrance fees for the entrance examination and for transportation of students up to higher secondary schools will also be exempt from taxation.
- Admission to theme parks, water parks, joy rides, merry-go-rounds, go-carting and ballet will now be taxed at 18 per cent instead of 28 per cent and on common effluent treatment plants services from 18 per cent to 12 per cent.
The new rates would be effective from January 25, 2018. Now that the budget 2018 is on its way, there are great expectations from the government as well to do some major and effective changes in the real estate sector as well.