Actor Amitabh Bachchan Made GST Brand Ambassador By Government

Danny Woods
June 19, 2017

Following concerns raised by the trade and industry, the GST Council said that taxpayers need to file only simple returns comprising a summary of outward and inward supplies for July and August, while the invoice-based details can be filed from September.

(A) 162/2017 was issued on June 6 and said that the amended Goods and Services Tax would come into operation on July 1, 2017.

The GST Council will meet again on June 30, the eve of the launch, Mr Jaitley said. This would mean interim tax stages such as excise duties and service tax and state levies such as VAT will be absorbed under the GST.

The council has already finalised tax rates on nearly all goods and services in the bracket of nil, 5, 12, 18 and 28 percent.

It also cleared six rules, including on anti-profiteering. "I hope we are not compelled to use it (anti-profiteering)", Jaitley said. It also poses a huge challenge for larger companies to remodel their business process, while many small-time traders lack the technological know-how to cope. Malaiya discussed the difficulties being faced by traders related to implementation of GST system with Jaitley.

The official launch of the goods and services tax (GST) is slated for mid-night of June 30 and July 1.

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Jaitley said the real estate builder will enjoy the benefit of input credit, which will be deducted from tax liability. State's Finance Minister Malaiyya said, that the tax rate of various commodities should be reduced. There was no "luxury of time to defer the implementation" of GST, he said. "The DG of Safeguard will then take about three months to investigate the complaint and send its findings to the anti-profiteering authority", Adhia explained.

It comes nearly two years after the former treasurer Joe Hockey announced the plan in August 2015. Similarly, services provided by restaurants in five-star hotels will now also charge 18%, down from 28% earlier.

As for the e-way bill, the GST Council was divided on the issue and made a decision to allow states to continue with their existing system.

"Till a consolidated rule is framed by consensus, the transient rule will continue", Jaitley said on the e-way bill issue. "Council decided categorically it will be implemented from 1st July onwards".

"Barring Uttarakhand and Jammu and Kashmir, it was decided to make the composition limit at Rs 50 lakh for the other north-eastern states and hill state of Himachal Pradesh", Jaitley said. It will be 28 per cent beyond Rs 7,500.

The shift to the new GST could provide an opportunity for banks to strengthen relationships with middle-market clients and win relationships with new companies.

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