Deadlines To File GST Returns For July Extended

Deadlines To File GST Returns For July Extended

Deadlines To File GST Returns For July Extended

In a bid to bring a relief to tax payers, especially for aam aadmi, the newly-formed all powerful Goods and Services Tax (GST) Council is likely to announce affordable tax rates by lowering GST on a number of commonly-used items.

The decisions came after the 21st meeting of the GST Council, chaired by Finance Minister Arun Jaitley, was held in Hyderabad.

He said the tax structure for the textile industry is created to benefit big players, and small and marginal industries had been forced to leave the competition.

The date of implementation of the additional cess will be notified later. A small auto is defined as a vehicle having length less than 4 meters, powered by either a petrol engine that is less than 1,200cc or a diesel engine of less than 1,500cc. "Imports will increase and we would be left out of the competition for exports." he said.

Following that an Ordinance to hike the cess rate has been promulgated and the GST Council will now look at the quantum of hike on such cars.

GST cess on mid-segment cars has been increased by 2 per cent, for large segment cars it has been increased by 5 per cent and for SUVs by 7 per cent, he said.

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"Cess on cars with seating capacity above 10 but up to 13 as well as hybrid cars will remain unchanged", he said. "With this increase in cess now, the prices are bound to leap back to the pre-GST regime, in some cases higher than the pre-GST regime, thus negating altogether the benefits of GST regime", he added.

The cess hike, although, is lower than the wide expectation of a flat 10 percent increase on all passenger vehicles which are not classified as small vehicles (as defined by the government).

Khadi fabric will now be exempt from GST. The council will consider the reduction and exemption of GST on several household items such as brooms, clay idols and saree "falls" besides new guidelines for packaged and branded food products. Hence, many businesses are deregistering their brands to avoid the levy.

"We have reduced rates for dried tamarind, roasted gram, raincoats and agarbatti among other things", the finance minister said. It extended the deadline for filing of returns.

FM Arun Jaitley says overall GST collection robust with over 70 percent of eligible taxpayers filing returns of about Rs 95,000 crore.

Besides, the TS government, which is hosting a GST Council meeting for the first time, has threatened to move the Supreme Court if it does not approve its demand to reduce the tax on work contracts of projects of public importance to five per cent.

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