GST Council clears draft laws

The council, headed by Mr Jaitley and which comprises the representatives of all states, chose to levy a five per cent GST rate (2.5 per cent by Centre and 2.5 per cent by states) on small hotels, restaurants and dhabas with an annual turnover of up to Rs 50 lakhs.

The model Goods and Services Tax Bill will replace the clause which states the tax rate "not exceeding 14 percent, with "not exceeding 20 percent" when it comes up for debate in Parliament during the second phase of Budget session beginning next week". But political differences over how to divvy up GST revenues or compensate states for lost income because of the new tax held up progress.

"GST looks on track", the Minister said.

Further, the 4-slab rate structure of 5%, 12%, 18% and 28% that was agreed on past year will not be disturbed by this increase in the peak rate. "The cap will be on the higher side", finance minister Arun Jaitley said without elaborating on the higher limit.

More news: Chinese Multinational LeEco Fires 85% Indian Workforce, Plans To Exit India

The Goods and Services Tax (GST) Council meet, headed by Finance Minister Arun Jaitley at its eleventh meet on Saturday, finally cleared crucial Central GST and Integrated GST laws.

"CGST, IGST and Union Territory-GST (UTGST) law to be taken to Parliament in the second half of Budget session starting March 9", Mr Jaitley said.

"UT-GST along with SGST will be on lines of CGST law; GST Council to consider them at March 16 meeting", he added.

Officials said this will now be changed to say the rate will not exceed "20 percent".

More news: Death threats to Mahesh Bhatt's family

The GST Council also fixed a five per cent tax rate on small hotels and restaurants and approved the draft of key supporting legislation to enable the rollout of the new indirect tax regime from July 1.

However, Mitra highlighted the three main points of the GST implementation, which includes the benefit of the common man, enough compensation if the revenue falls and avoiding of dual control for enterprises up to 1.5 crore.

This is only an enabling provision and the highest rate levied on goods will still be 28% (14% central GST and 14% state GST).

Meanwhile, a business entity with an annual turnover of up to Rs. 20lakh would not be required to take registration in the GST regime, unless he voluntarily chooses to do so to be a part of the input tax credit (ITC) chain. "The rates will be what has been decided by the Council".

More news: 5 reasons Eden Hazard will chose Real Madrid over Chelsea


Popular
  • Joseph Wapner, judge on "The People's Court" passes away at 97

    The series was the first reality show of its kind, using an arbitrage-based system to settle small claims disputes. He returned to his Los Angeles home on Friday and was under hospice care until he passed away on Sunday.
    Shock and outrage over shooting of two Indian men in Kansas City

    Shock and outrage over shooting of two Indian men in Kansas City

    This is a hate crime! Suspect Adam Purinton is being held on a $2m bail and is due back in court on Monday. More than $70,000 has also been raised for Mr Madsani, who has now been discharged from hospital.
    O'Keefe heroics stun sorry India as Australia end Asia hoodoo

    O'Keefe heroics stun sorry India as Australia end Asia hoodoo

    However, this Test has progressed at such a pace that Day 2 could very well turn out to be the moving day of the game. Ajinkya Rahane then became O'Keefe third prey of the innings as he gave away a simple catch to Nathan Lyon at covers.
  • Spotify takes a cue from Tidal with hi-fi streaming option

    Spotify takes a cue from Tidal with hi-fi streaming option

    As the below image shows, some of the ads indicate Hi-Fi will also include a free vinyl record and discounts on vinyl purchases. When asked for a comment, Spotify gave a generic response, indicating that it tests new products regularly and that is all.
    Home prices rise in region but at slowest pace in US

    Home prices rise in region but at slowest pace in US

    While it is true consumer prices are higher today than 20 or 30 years ago, the inflation rate is supposedly much lower. The December index for single family homes was up 0.5% from November while the condo index was down 0.1%.
    Analyst's Perspective on Rating and Recommendation: Bloomin' Brands Inc (NASDAQ:BLMN)

    Analyst's Perspective on Rating and Recommendation: Bloomin' Brands Inc (NASDAQ:BLMN)

    The share price of Bloomin' Brands (NASDAQ:BLMN) was down -3.99% during the last trading session, with a day high of 17.52. The Stock now has Analyst' mean Recommendation of 2.3 where the scale is from 1 to 5, 1 means Strong Buy and 5 means Sell.
  • Rory McIlroy makes a strong return at WGC-Mexico Championship after injury

    Rory McIlroy makes a strong return at WGC-Mexico Championship after injury

    I'm taking next week off to see how everything reacts and responds so it was the logical place to come back. Battling a stomach issue, McIlroy's play certainly didn't reflect it as he shot a 3-under 68.
    Pancakes flipped throughout region on Shrove Tuesday

    Pancakes flipped throughout region on Shrove Tuesday

    And two-thirds of the population said they plan to mark the occasion, eating an average of two and a half pancakes each. Jamie Oliver has a solution for you if you're struggling to get rid of that butternut squash in the veg rack.
    Samsung to tighten control over donations following arrest of vice chairman Lee

    Samsung to tighten control over donations following arrest of vice chairman Lee

    Were these executives to leave too, Samsung could be in trouble. As such, his exit could throw the top leadership in chaos. Choi has played the role of mentor to the Samsung heir.
  • Judge agrees to release widow of Pulse shooter

    Judge agrees to release widow of Pulse shooter

    Her lawyers have argued she was a victim of a "tragic marriage" to Mateen, and that she had no prior knowledge of the attack. They said Salman accompanied Mateen on scouting trips to the nightclub before he carried out the deadly attack on June 12.

    Lightning deal G Bishop to Kings

    The Kings next game will come on Monday on the road against the Calgary Flames with either Quick or Bishop in net. The Los Angeles Kings acquired goalie Ben Bishop in a trade with the Tampa Bay Lightning.

    Ghanaians rescued as SA Xenophobic attacks worsen

    The pan-African parliament, which is the legislative arm of the African Union now has its headquarters in Midrand, South Africa. Others reportedly looted shops that are owned by foreign nationals. - Fresh round of xenophobic attacks erupts in South Africa.

CONNECT