TV, refrigerator, washing machines to get cheaper, GST rate cut on 50 items
New Delhi, July 21 : In a relief for common man, the GST Council on Saturday reduced tax rates on over 50 items including refrigerators, washing macines and small televisions, which would now be taxed at 18 per cent, down from the current 28 per cent.
Apart of bringing down rates, the Goods and Services Tax (GST) Council also exempted GST on sanitary napkins, rakhis, fortified milk and idols of deities made of stone, marble and wood.
The changes would come into effect across the country from July 27 onward, Finance Minister Piyush Goyal told media after the 28th meeting of the GST Council.
"Refrigerators, small televisions, of upto 25 inches, lithium ion batteries, vacuum cleaners, domestic electrical appliances, such as food grinders, mixers....storage water heaters, immersion heaters, hair dryers, hand driers, electric smoothing irons," among others have been brought to the 18 per cent slab," Goyal said.
The council also gave a major relief to the hotel industry by providing that tax rate shall be based on transaction value instead of declared tariff.
Earlier, there was a lack of clarity on the issue causing a lot of trouble for consumers booking hotels with 'declared tariffs' of Rs 7,500 and above which incurred 28 per cent GST.
While hotels with tariff below Rs 1,000 are exempted from GST, those with tariff between Rs 1,000-2,500 are taxed at 12 per cent, those between Rs 2,500-7,500 at 18 per cent, and above Rs 7,500 at 28 per cent.
However, it often happened that hotels offered discounts and hence the actual transaction cost would be much lower than the declared cost, but tax would still be charged at the declared cost.
Another significant decision the council made was regarding easing of return filing procedure by approving two new simplified forms called 'Sugam' and 'Sahaj', the minister said.
Also, enterprises with annual turnover of upto Rs 5 crore would have to file quarterly returns instead of the current monthly filing, although they would continue to pay tax on a monthly basis.
However, the implementation of the revamped return filing process would take some time as corresponding changes would have to be made into the GST network, the minister clarified.
The council also deferred the implementation of reverse charge mechanism by another year and now it will come into force from October next year.
The minister further informed that the council would have a special meeting on August 4 to address concern of small and medium enterprises.
Among other tax-reduction decisions, Goyal said, tax rate on handicraft items such as handbags, pouches and purses, jewellery box, wooden frames of paintings and photographs among others have been brought under the 12 per cent slab, from 18 per cent.
GST on handmade carpets and handmade textile floor coverings has been reduced from 12 per cent to 5 per cent.
The tax rate on ethanol, which is used in the blending of petrol and diesel also has been brought down to 5 per cent from 18 per cent.
During the meeting, the council also made certain amendments to the GST Act including raising the upper limit of turnover for opting for composition scheme from Rs 1 crore to Rs 1.5 crore.
It also approved an amendment which will enable taxpayers to opt for multiple registrations within a state in respect of multiple places of business located within the same state.
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Ensure paid holiday for postal staff on polling day in Kerala: John Brittas writes to Scindia
New Delhi (PTI): CPI(M) Rajya Sabha MP John Brittas on Sunday wrote to Union Minister of Communications Jyotiraditya Scindia, seeking his urgent intervention to ensure that postal employees in Kerala are granted a statutory paid holiday on April 9 for the Assembly elections in the southern state.
In his letter, Brittas expressed serious concern over the Kerala Postal Circle’s instructions to treat all postal employees as “absentee voters in essential services (AVES)”, directing them to opt for a postal ballot within an “extremely limited” timeframe.
The Department of Posts operates under the Ministry of Communications. Along with the Department of Telecommunications, it is one of the two main sections within the ministry headed by Scindia.
In his letter, Brittas pointed out that the circular dated March 19 required the collection of Form 12D by March 20 (Eid al-Fitr), and submission of the compiled details at the respective collectorates by March 22 (Sunday), both holidays in Kerala, making meaningful compliance difficult and raising apprehensions about the “arbitrary” nature of the directions.
The CPI(M) leader also pointed out that the Election Commission, in a communication dated March 16, reiterated the requirement under Section 135B of the Representation of the People Act, 1951, that every person employed in any establishment and entitled to vote shall be granted a paid holiday on the polling day, without any deduction or abatement of wages.
He said even where certain services are treated as essential, the long-standing administrative practice has been to maintain only minimal required operations on polling day, without denying employees the opportunity to vote in person.
Brittas argued that in some other states going to polls this month, including Assam, most postal employees have been granted a holiday on polling day, in accordance with the statutory provisions.
During the 2021 Kerala polls, postal establishments had observed a holiday on polling day, subject only to limited essential arrangements, he claimed.
The present deviation, Brittas said, raises concerns about inconsistency in the application of law and the avoidable curtailment of the democratic rights of employees.
Stating that the right to vote lies at the core of India's democratic framework, Brittas urged Scindia to examine the matter urgently.
“Given the proximity of the polling date, I earnestly seek your kind indulgence to have the matter examined on priority, and to issue urgent directions to the postal authorities in Kerala to ensure that the statutory entitlement of postal employees in Kerala to a paid holiday on the day of polling is duly ensured,” Brittas said in the letter.
The 140 seats in the Kerala Assembly will go to polls on April 9, and the results will be out on May 4.
