GST rate cut: From diamonds to used cars, here's full list of revised items

The changes will be effective from January 25; 15 states to start intra-state e-way bill from February 1

Two weeks ahead of Budget 2018, the GST Council on Thursday cut rates on 83 employment-oriented goods and services, in a bid to encourage greater compliance as revenues have dipped since the landmark reform was announced in July. The panel, headed by Finance Minister Arun Jaitley and comprising representatives of all states, at its 25th meeting decided to reduce tax rate on 29 items and 54 categories of services with effect from January 25. Businesses have raised concerns about high rates of taxation and cumbersome processes in GST, billed as India's biggest tax reform in 70 years.

The goods on which GST will be lowered include biofuel-run buses, used motor vehicles and diamonds and precious stones.

Here's the complete list:

List of goods on which GST rate recommended for reduction from 28% to 18%Old and used motor vehicles on the margin of the supplier, subject to the condition that no input tax credit of central excise duty/value added tax or GST paid on such vehicles has been availed by him.

Buses, for use in public transport, which exclusively run on bio-fuels.

List of goods on which GST rate recommended for reduction from 18% to 12%

Sugar boiled confectionary Drinking water packed in 20 litters bottles Fertilizer grade Phosphoric acid Bio-diesel Bio-pesticides Bamboo wood building joinery Drip irrigation system including laterals, sprinklers Mechanical Sprayer

List of goods on which GST rate recommended for reduction from 18% to 5%

Tamarind Kernel Powder Mehendi paste in cones LPG supplied for supply to household domestic consumersList of goods on which GST rate recommended for reduction from 12% to 5%Articles of straw, of esparto or of other plaiting materials; basketware and wickerworkList of goods on which GST rate recommended for reduction from 3% to 0.25%Diamonds and precious stones

List of goods on which GST will not be charged

Vibhuti Parts and accessories for manufacture of hearing aids De-oiled rice bran

GST rate cut on services

In the services segment, government will cut taxes on transportation of crude, gasoil, gasoline, jet fuel and services relating to mining, exploration and drilling of oil and natural gas, among other things.

Admission to theme parks, water parks, joy rides, merry-go-rounds, go-carting and ballet will now be taxed at 18% instead of 28% and on common effluent treatment plans services from 18% to 12%.

budget 2018: Drop GST price on biodiesel from 18% to five%, demands industry

Levy on Biodiesel has long gone from 6% in excise obligation to 18% in GST

Budget 2018 GST : suffering to live on regardless of the government 's easy electricity dream, biodiesel industries have demanded the goods and provider Tax (GST) charge on them be slashed from the cutting-edge 18 to 5 in keeping with cent.

The call for got here days after sun industry made a comparable pitch, declaring whilst the unrealistic levy on the sun panels is killing the Indian industry and giving an side to chinese language exporters.

On Tuesday, the Biodiesel association of India (BDAI) wrote to Union Finance Minister Arun Jaitley and Finance Ministers of West Bengal and Rajasthan seeking a reduction of high GST charge.

The apex industry frame pointed out that at the same time as there is a huge ability of manufacturing more cleanser fuel in India, the first-rate levy has offered the enterprise at the "breaking point of extinction".

With the implementation of GST from July 1 2017, levy on Biodiesel has long gone from 6 per cent in excise duty to 18 in step with cent in GST.

"This has made Biodiesel dearer than excessive-speed Diesel (HSD) and biodiesel users will now not get any input credit for use of it. each those put together, the powerful value of Biodiesel has end up unviable to the stop customers. eventually the complete Biodiesel industry will come to a halt, regardless of this inexperienced gas having such environment and social advantages," BDAI said in the letters.

Made directly from suitable for eating oil in same quantity, of which India is a second maximum consumer, the bio-diesel enables in decreasing the emissions by way of 30 to a hundred in step with cent, relying upon its mixture in the ordinary diesel.

"With 18 per cent GST, the charge come around Rs. 10 in keeping with litres, this is equal to everyday diesel," BDAI President Sandeep Chaturvedi informed IANS.

At gift few states like Karnataka use a hundred in step with cent or zero-emission biodiesel buses, whilst states like Andhra Pradesh use 20 per cent blend bio-diesel.

"this indicates purifier surroundings, drop in imports and numerous jobs," Chaturvedi said.

Indian Railways, nation transport companies, port authorities, construction and mining, jute, textile and chemical manufacturers among others are users of biodiesel in India.

presently India has an installed capability of 12 lakh tonnes in keeping with annum of biodiesel, of which real

manufacturing is three.five lac ton consistent with annum, but expected or ability manufacturing is ready 27.five lakh heaps according to annum.

"The industry employs 25,000 human beings directly and a hundred,000 humans indirectly and with the demand, employment requirement might go to an anticipated 500,000," Chaturvedi said.

He similarly introduced that by means of alternative of 3.95 million MT diesel through biodiesel, India could store its foreign forex of approx. S$1.forty seven billion.

"this could go similarly up with an boom in combination Ratio from five in line with cent to twenty in step with cent," he stated, adding that the biodiesel enterprise is likewise in discussions with the defence quarter.

Modi's Independence Day speech is all about creating a 'New India'

Says note ban helped nab shell firms and GST increased efficiency

In the penultimate Independence Day speech of his current term, Prime Minister Narendra Modi on Tuesday looked beyond the Lok Sabha polls due in April 2019 to give a call for building a “new India” by 2022.

If in his previous three speeches, the PM had announced such path-brea king steps as the abolition of the Planning Commission and schemes such as Startup India and Stand-Up India, Modi’s speech on Tuesday was devoid of new announcements except the launch of a website to honour gallantry award winners.

Instead, the PM focused on giving a report card of his government’s performance in the last three years and spelt out his vision of a “new India”. He indicated the lynchpins of his Lok Sabha campaign would be his government’s efforts at curbing corruption, building modern infrastructure, and delivering welfare.

Also Read : More shell firms found: PAN deactivation jolt for tax evaders in stock market

Modi said by 2022, the 75th anniversary of India’s independence, he envisioned a country where each family would have a pucca house, electricity, and power supply; farmers would earn twice of what they get currently; the country would be free of terrorism, communalism, casteism, corruption, and nepotism; and it would be clean and healthy.

The PM appealed to people to leave behind the “chalta hai” attitude, to think of “badal sakta hai”, or we can transform. Asking countrymen to take the “New India pledge and move ahead”, the PM quoted from scriptures: “If we don’t accomplish work within a stipulated time, we shall not be able to get the desired results.”

Modi asked people to replicate between 2017 and 2022 the resolve Indians showed from 1942 (Quit India Movement) to 1947. He said if Quit India’s slogan was “Bharat chhoro” today’s slogan should be “Bharat jodo”. (more)

SUVs to cost more: Luxury car firms lash out at govt on cess flip-flop

Most say they will review their Make in India plans as prices may top pre-GST level

Company News : Shocks and surprises have not abated for the domestic car industry. There was a short-lived euphoria after the goods and services tax (GST) roll-out lowered the levy on passenger vehicles, especially luxury cars and sports utility vehicles. Now the manufacturers are staring at a situation where prices could be higher than those in the pre-GST regime.

The GST Council has recommended an amendment to increase the cess on all passenger vehicles above four metres and with an engine capacity of 1,500 cc and above to a peak of 25 per cent, from 15 per cent now. Such vehicles currently attract a GST of 28 per cent and a 15 per cent cess.

The Centre will have to amend the Schedule to Section 8 of the GST (Compensation to States) Act, 2017, for this increase to take effect. The increase in cess would be finalised by the GST Council. The move adversely impacts M&M, Toyota, and luxury carmakers such as Mercedes, BMW, Audi, and JLR.

The decision has upset the growth plans of the luxury car industry, which had seen a flat performance in the 2016 calendar year, owing to demonetisation and the ban on 2,000-cc diesel cars in the National Capital Region for the first eight months of the year.

“This move unfortunately is against the spirit of liberal market dynamics,” said Rahil Ansari, head of Audi India. “This proposed increase in cess will most definitely adversely impact sales and we will be forced to re-evaluate our business plans.” Ansari said the proposal to further increase cess would dampen the spirits of workers and employees, besides hitting companies, dealers, and customers. M&M and Toyota did not comment on the development. A little over 30,000 luxury cars are sold in the domestic market every year and this forms just 1 per cent of the passenger vehicle market of 3 million units. Read more

Business class traveller? Submit your company's GST Identification Number

Company News : People travelling for business purposes on business class air tickets are now required to submit details about their companies to avail tax benefits under the GST regime.

The Goods and Services Tax (GST) framework, which came into effect from July 1, provides for certain input tax credit only on business class tickets and there is no such provision on economy class fares.

Air India, Jet Airways and Vistara - the three domestic carriers that offer business class seats have already sent out communications to inform passengers that GSTIN details need to be submitted in order to avail the benefits.

The GST Identification Number is issued to entities that are registered under the new tax regime.

"It is now mandatory for guests travelling for business to add their company's GST details at the time of booking. To ensure a seamless experience, we request that you inform your guests travelling for business to register on our portal and claim up to 12 per cent back on flights," Jet Airways said in a communication.

The GST rate on first class and higher class tickets is 12 per cent while the rate is 5 per cent on economy class tickets. The GST would also replace service tax, krishi kalyan cess and swachh bharat cess.

After submission of the details, the airlines would generate GST invoice for the particular travel and that invoice can be used to claim the benefits.

"It is not compulsory to provide GST details. GST registration details for your business or company may be optionally provided if a customer wishes to claim input tax credit on the GST paid if travelling for business reasons," Vistara said in a communication.

According to Air India, all passengers requiring GST invoice for their tickets have to complete the one-time registration process on its website by entering the relevant details.

In its communication, Jet Airways also made it clear that "any bookings for leisure travel will not be entitled for GST benefits".

Buying a car, gold or property? How GST will impact your expenses from 1 July

Govt has surely kept the consumer's interest in mind while deciding the tax rates under GST

Company News :The introduction of GST from 1 July 2017 would not only have an impact on businesses in India but also on the common man’s monthly budget. The prices of goods and services forming part of the monthly budget would either increase or decrease depending on the GST treatment.

Eating out

For example, when an individual eats out in a restaurant, today there is service tax and VAT charged in the invoice, apart from having a service charge collected additionally. The service tax and VAT is not applicable for all types of restaurants and therefore varies from restaurant to restaurant. Under GST, the rate of tax on the restaurant invoice could be either 5%, 12% or 18%, depending on whether the restaurant is under composition scheme, non-air conditioned or air-conditioned, respectively. The replacement of service tax and VAT with GST at the above rates would make it simple for the customer to understand how much is actually going to the government in terms of taxes.

Buying gold

When it comes to buying gold, we Indians cannot stay away from this temptation. The taxes on gold currently is around 2% in most states, comprising of 1% of excise duty and 1% of VAT in most States.

Kerala has a higher VAT of 5%. The GST rate is increased from the existing rate of around 2% to 3%. While most consumers would have to shell out additional tax of 1%, consumers in Kerala would benefit from the rate reduction.

Buying property

For under-construction property, there is a significant impact post GST. The existing tax rates are broadly around 6% in most States comprising of service tax and VAT (other than a few where the VAT rate is higher). Under GST the rate shall increase to 12%, with the ability of the builder to avail all input tax credits, resulting in reducing his cost which may be passed on to buyers by commensurate reduction in prices. However, this may not be possible for the builder immediately, especially where the builder has already procured the construction material. Hence, for properties currently under construction, the transition into GST would have consumers being charged with the additional tax without actual reduction in construction value.

Paytm GST clearance sale offers discount up to 80%, here are the best deals

You could win an Apple iPhone 7 on minimum purchase worth Rs 1,000 as well; sale ends on Thursday

Companies News :Paytm is running a pre-GST clearance sale on its e-commerce platform Paytm Mall. The three-day sale -- June 13 to June 15 – offers discounts, cashbacks and a chance to win Apple iPhone 7 in a bid to clear the stock before the final roll-out of Goods and Services Tax (GST) in the country on July 1.

Under the Paytm Mall pre-GST clearance sale, the e-commerce portal is offering up to 80 per cent off on products including TVs, laptops, phones, cameras, air-conditioners and refrigerators. The clearance sale also offers a cashback of up to Rs 20,000 on DSLRs, televisions, laptops and air conditioners.

Apart from all the discounts and cashbacks, the e-commerce portal is offering a chance to win Apple iPhone 7 on a minimum purchase amount of Rs 1,000.

Here are some of the best deals that the Paytm Mall is offering under pre-GST clearance sale:

Apple iPhone 7

maximum retail price of Rs 60,000, is currently going on sale at a discount of 24 per cent for Rs 45,366. Also, the e-commerce portal is offering a cashback of Rs 5,750 that brings down the overall selling price of the smartphone to Rs 39,616. At this price, the iPhone 7 is a great deal.

Also Read : Apple iPhone 7 Plus, Apple MacBook Air 13, HP OMEN Gaming Laptop, Canon EOS 1300D DSLR camera, Canon EOS 5D Mark IV Kit (EF 24 - 105 IS II USM)

April 1 deadline for GST a stiff target: Jaitley

April 1 deadline for GST a stiff target: Jaitley

Union Finance Minister Arun Jaitley on Wednesday said the April 1, 2017, deadline to roll out the goods and services tax (GST) was stiff, as there were a few hurdles ahead.

He added the Centre and states were “running against time”, and there were issues, which the proposed GST Council needed to address.

“After the notification and constitution of the GST Council, there are obviously some pending issues, which the council will have to resolve. So we have September and October, and, parts of November to do that,” said Jaitley at the The Economist India Summit in the national Capital.

Later, a senior finance ministry official said there were three issues — GST rates, dual control over assessment and scrutiny of assessees, and geographical or area-based exemptions.

“If we are able to successfully transact those issues, the pieces of legislation would be introduced in Parliament in the winter session. Looking ahead, it’s very stiff. We are running against time,” said Jaitley.

More than half the states have ratified the Constitution amendment Bill, passed by Parliament on August 6. Only the President’s assent is left to make it a law.(more)

Nifty hovers above 8,550; Tata Motors up 4%

Nifty hovers above 8,550; Tata Motors up 4%

Markets have shrugged off the clearance of GST in the upper house and are trading in a narrow range with Sensex and Nifty swinging between negative and positive zone.

By 10:25 am, the S&P BSE Sensex was up 48 points at 27,746 and the Nifty50 gained 14 points to trade 8,559. Broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.5% each.

"Contrary to popular belief, the passage of the GST Constitutional Amendment marks only the beginning of a fairly tedious procedure that should ultimately result in the implementation of a unified GST in India at best by 2HFY18. Even as the adoption of a unified GST is one of the most remarkable tax reforms from a long-term perspective, in the short-term we highlight that this is likely to result in (1) a mild pick-up in inflation as hitherto untaxed goods and services are now brought under the tax net, (2) a meaningful loss of jobs in the informal sector as this sector will no longer be able to fly under the radar of the taxman and (3) consequently trigger pro-electorate measures in the form of higher revenue expenditure from FY18 onwards as the Modi-led BJP Government begins preparing for the 2019 General Elections," adds Ritika Mankar Mukherjee, Senior Economist, Ambit Capital.(more)