AMN / NEW DELHI
The Confederation of All India Traders (CAIT) has welcomed the reduction of GST tax rates on various items by GST Council today and said that it is a progressive step in rationalising and simplifying the tax structure. CAIT Secretary General Mr. Praveen Khandelwal said that reduction in GST tax rates will on one side will lower the cost of production of large number of items and on the other hand will make consumers more comfortable.
Mr. Khandelwal said that lowering of tax rates on construction items will further lower the cost of construction . It would ave been more better if tax rates of Cement is also reduced as Cement constitute a major component of construction cost. Announcing the formation of a composition scheme for small service suppliers is a good policy decision as it will relive the small suppliers from the clutches of tax complications.
The traders keenly await the new return filing system which is to be implemented from 1st April,2019 and hope that return will be required to be filed once in three months.
GST of 6 items reduced from 28 percent to 18 percent slab
Finance Minister Arun Jaitley today said GST of 6 items reduced from 28 percent to 18 percent slab. Briefing media on decisions taken in GST Council Meeting in Delhi, Mr Jaitley said these items include TV, tyre, power bank and video games.
He said, now 28 percent slab rate is applicable only on 28 items, which are luxury items like cement, auto parts, AC and dishwasher.
Accessories for carriages for specially abled persons have been brought down to five percent. The Finance Minister said GST on movie ticket up to 100 rupees has been brought down to 12 percent and above 100 rupees has been brought down to 18 percent from 28 percent.
GST rate on special flights for pilgrims has been lowered for economy at 5 percent and business class at 12 percent.
The services supplied by the banks to Jan-Dhan account holders will be exempted from GST. The new GST rates will be effective from 1st January next year.
Mr Jaitley informed that the Law Fitment Committee will take a view on GST on real estate in the next meeting.
The GST Council meeting has also approved proposal to form a seven Member Group of Ministers to study the revenue trend, including analysing the reasons for structural patterns affecting the revenue collection in some of the states.
The study would include the underlying reasons for deviation from the revenue collection targets vis a vis original assumptions discussed during the design of GST system, its implementation and related structural issues.