Goods and Services Taxes - Indian GST

New era in Indian Taxation begins.. Goods and Services Tax - GST

AcTouch.com has always tackle towards understanding individual customers’ global and local business right, bring solutions that help them & run better, Goods and Services Tax (GST) reform. Govt of India launched GST regime on 1st July 2017 for Indian business to comply with the new Goods and Services Tax (GST).

The constitution amendment bill for (GST) “Goods and Service Tax” in the Parliament conference in Rajya Sabha on 3 August 2016  and the government is set to bring GST bill in Lok Sabha on 8 August 2016) along with the authorization by 50 percent of state Parliament. Hence the current indirect taxes levied by state and centre are all set to be replaced with expected implementation of “Goods Service Tax” by April 2017. This would be the biggest tax reform in India since independence and a benefit to the recession as it will eliminate the shortcomings of the ongoing tax structure and bring us single tax on supply of all goods and services.

Are you ready for GST ?

tax

GST would bring numerous changes in accomplishment business support for best practices and Supply changes in technical development systems in all the organization for being GST flexible for tax payers has to analysis the process GST in the mean time. Based on the sector sizes the changes would be large and may require eager to plan within the time period.

In order to plan for GST implementation organizations have to understand the GST policy scenarios planning and development the guidelines. refer GST forum-community

GST council has agreed on rate structure

  • 0%- essential items including food

  • 5%- common use items

  • 12% and 18% – Standard Rates

  • 28% – items which are currently taxable with (30-31%)

  • 28%(with cess) – Luxury and de-merits goods

List of the Items and the tax rates

  1. List of Items with GST 5% 
  2. List of Items with GST 12%
  3. List of Items with GST 18% – Part 1 and Part 2 details.
  4. List of Items with GST 28%

No tax 
Goods
No tax will be imposed on items like fresh meat, fish chicken, eggs, milk, butter milk, curd, natural honey, fresh fruits and vegetables, flour, besan, bread, prasad, salt, bindi. Sindoor, stamps, judicial papers, printed books, newspapers, bangles, handloom, etc.

Services
Hotels and lodges with tariff below Rs 1,000 has been exempted under GST.

5%
Goods
Items such as fish fillet, cream, skimmed milk powder, branded paneer, frozen vegetables, coffee, tea, spices, pizza bread, rusk, sabudana, kerosene, coal, medicines, stent, lifeboats will attract tax of 5 %,

Services
Transport services (Railways, air transport), small restraurants will be under the 5% category because their main input is petroleum, which is outside GST ambit.

12%
Goods
Frozen meat products , butter, cheese, ghee, dry fruits in packaged form, animal fat, sausage, fruit juices, Bhutia, namkeen, Ayurvedic medicines, tooth powder, agarbatti, colouring books, picture books, umbrella, sewing machine, cellphones will be under 12 % tax slab.

Services
Non-AC hotels, business class air ticket, fertilisers, Work Contracts will fall under 12 percent taxes

18%
Goods

Most items are under this tax slab which include flavoured refined sugar, pasta, cornflakes, pastries and cakes, preserved vegetables, jams, sauces, soups, ice cream, instant food mixes, mineral water, tissues, envelopes, tampons, note books, steel products, printed circuits, camera, speakers and monitors.

Services
AC hotels that serve liquor, telecom services, IT services, branded garments etc.

28%
Goods
Chewing gum, molasses, chocolate not containing cocoa, waffles and wafers coated with choclate, pan masala, aerated water, paint, deodorants, shaving creams, after shave, hair shampoo, dye, sunscreen, wallpaper, ceramic tiles, water heater, dishwasher, weighing machine, washing machine, ATM, vending machines, vacuum cleaner, shavers, hair clippers, automobiles, motorcycles, aircraft for personal use, will attract 28 % tax – the highest under GST system.

Services
5-star hotels, race club betting, cinema will attract tax 28 per cent tax slab under GST

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