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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Fisherman killed in crocodile attack in Odisha's Kendrapara
Kendrapara (Odisha) (PTI): A 48-year-old fisherman was killed in an attack by a saltwater crocodile in a village on the fringes of Bhitarkanika National Park in Odisha's Kendrapara district, a forest officer said on Wednesday.
The forest and fire brigade personnel later retrieved the maimed body from a river.
The incident took place at Baulakani village in Mahakalapada forest range when the fisherman, Deba Kumar Mandal, was dragged into the water by a crocodile while he was casting a fishing net on Tuesday afternoon. His body was retrieved on Wednesday, the officer said.
Though the incident occurred outside the national park limits, the deceased fisherman's family would be covered under an ex gratia compensation payment scheme after post-mortem examination, Varadaraj Gaonkar, Divisional Forest Officer (DFO) of Rajnagar Mangrove (wildlife) Forest Division, said.
As per the revised ex gratia compensation for human fatalities arising out of conflict with wild animals, the forest department will provide a compensation of Rs 10 lakh to the bereaved family, he said.
Human-crocodile conflict in areas close to the national park has resulted in the loss of four human lives in the last 12 months.
The national park is home to 1,858 saltwater crocodiles in its water bodies and river system. No crocodile death has been reported in the last one year, the DFO said.
