Page 42 - Banking Finance August 2017

ARTICLE

rate-structure so far finalized by GST

Council (up to 19-5-17)?
The fitment of rates of goods was discussed today during
the 14th GST Council meeting held at Srinagar, Jammu &
Kashmir for two days -18th & 19th May 2017. The Council
has broadly approved the GST rates for goods at nil rate,
5%, 12%, 18% and 28% to be levied on certain goods. Re-
portedly the GST Council on 18-5-2017 finalised tax rates on
80-90% of goods and services under the above-mentioned
four-slab structure fitted in 5, 12, 18 or 28% brackets with
essential items of daily use being kept in the lowest bracket
of 5%.

States as well as among States. It has been specifically pro- In the said meeting the Council headed by Union finance
vided that the GST Council, in its discharge of various func- minister and comprising representatives of all states, also
tions, would be guided by the need for a harmonized struc- approved rules for the Goods and Services Tax (GST) regime
ture of GST and for the development of a harmonized na- that is scheduled to kick in from 1 July. The fitments, as
tional market for goods and services. The GST Council is to observed by the GST Council, have been done in a way that
establish a mechanism to adjudicate disputes arising out of there is no increase in tax incidence. So rates close to the
its recommendation or implementation thereof. The Coun- present incidence of excise duty plus VAT or service tax has
cil has so far made recommendations to the Union and the been considered to be the rate under the GST.
States on important issues related to GST, like
X GST rates including the floor rates with bands, special 8. How Goods and commodities have
rates for raising additional resources during natural ca-
lamities/disasters or RNR been fitted under various GST Rate
X The goods and services that may be exempted from Slabs by the Council?
GST. For the purpose of deciding GST Rate Structure, GST coun-
X Principles governing Place of Supply cil has council has prepared GST Rate Schedule classifying
and grouping for goods and commodities into about 98
X Threshold limits for chargeability
chapters. Goods and commodities specified in the schedule
X Rules for Registration of taxpayers have been fitted under rates slabs of 0, 5%, 12%, 18% and

X Rules for Payment of tax 28% to be levied on the on the supply of goods and com-
modities specified therein. Following is an example of distri-
X Rules for Filing of returns
bution of items and goods for the rates under various slabs
X Rules for Invoicing, the Goods and Services Tax (GST) Council on 18th May 21,
X Rules for Debit & Credit notes 2017 decided the tax rates for 1,211 items, a majority kept
at 18%. Pertinently the rates on gold and beedi remained
X Valuation of supply of goods / services
undecided.
X Input tax credit
X Transition provision for migration to GST regime The products which are used on a daily basis such as food
grains, hair oil, soaps and toothpaste as also electricity will
X Composition scheme rule
cost less from July 1 when the GST is scheduled to be rolled
X Special provisions for certain States, etc.
out.
7. What are the salient points of GST While the Council fitted all but six items in 5, 12, 18 or 28%

42 | 2017 | AUGUST | BANKING FINANCE

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