Free GST Updates 17th Mar!

Dear Frndz, We are close then ever before in terms of implementing GST in India. Here are the key updates from yesterday:

  1. In yesterday’s GST Council meet, below were some key milestones achieved:
    1. The remaining two Draft laws were approved namely S-GST & UT- GST. The other three were already approved earlier (Namely I-GST, C-GST and GST Compensation law)
    2. The Cess which has been introduced to compensate for the loss the states has below impact:
      1. It would be capped at different % as listed below:
        1. Aerated drinks & luxury automobiles – 15%
        2. Pan Masala 135%
        3. Cigarettes 290%
      2. Industry will have relief since:
        1. The cess is not be applicable on all products but on select products
        2. The Council has capped the Cess % which means the tax rates wont go beyond this point
        3. Cess would be applicable only for first 5 years in order to compensate the States
    3. Below are key points from FM’s yesterday’s comments:
      1. “For the purposes of empowerment, we have kept the cap of 15 per cent for cess, even though we may end up imposing only 12 per cent. The cap is ceiling, so we have kept a little headspace… not an extraordinary headspace, but only a marginal headspace,”
      2. He said the five sets of already approved regulations might require “marginal corrections” in view of the legislations which have been finalised by the Council. The officers committee will circulate the set of nine regulations to the states by the next weekend.
      3. The GST Council has already approved five sets of rules and regulations relating to registration, payments, refund, invoice and returns, Jaitley said, adding there are four others — composition, valuation, input tax credit and transitions — which now require a formal approval. (In total there are 9 Rules so far)
  2. The GST Council will consider and approve those regulations in the next meeting on March 31
  3. After these rules are approved, the fitment of various commodities into the tax slabs would be taken up.
  4. SEZ Taxation : “Now, we will have the same treatment for any supply made to SEZ as it is made in case of exports. Offficial said. It is a great change since earlier it was clarified that they will first pay the tax and then the SEZ unit will get refund.
  5. The Central Excise department (CBEC) has opened two helpline centres to assist commercial tax payers to migrate to Goods and Service Tax (GST) in Noida.

That’s if for today. We have covered all the news in India on GST in above 7 points. Hope you enjoyed them. Do write us your valuable feedback. Take care!!

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