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(Eds: Incorporates all newsalerts released with GST slug) New Delhi, Mar 14 () The GST Council on Saturday decided to increase GST rates on <keyword id="38260" type="TECHNOLOGY" weightage="20" keywordseo="mobile-phones">mobile phones</keyword> to 18 per cent from 12 per cent with effect from April 1, Finance Minister Nirmala Sitharaman said. The Council also decided to slash GST on maintenance repair overhaul (MRO) services for aircraft to 5 per cent rom 12 per cent while the tax rate on handmade and machine-made matchsticks has been rationalised to 12 per cent. The Council in its meeting chaired by the Union finance minister decided to waive late fee for delayed filing of annual returns for FY2018, FY2019 by entities with a turnover of less than Rs 2 crore. The minister also said that interest will be levied on net tax liability from July 1 for delayed GST payments. Sitharaman said the GST Council has asked Infosys to deploy more skilled manpower, increase capacity of hardware of GST Network to ensure that the system is glitch-free. The council has asked Infosys, which has designed the GSTN, to provide a better groomed GSTN system by July 2020, she added. JD KKS MR MR

Govt. to increase GST on mobile phones by 6% from April 1

Betting on your luck is about to get costlier as the <a href="http://www.businessinsider.in/politics/modi-government-to-start-spending-suggests-deutsche-bank/articleshow/58492030.cms">Indian government</a> has decided to levy 28%, the maximum possible rate of goods and services tax (<a href="http://businessinsider.in/topic/GST">GST</a>) on lottery tickets, a business worth Rs 5000 crore. Up until now, states that allow lotteries have had minimal or zero tax levied on them. Also read: <a href="http://www.businessinsider.in/No-surprises-in-GST-rates-promises-Jaitley/articleshow/58416741.cms">No surprises in GST rates, promises Jaitley</a> "The taxation has to be logical," Rahul Tangri, president, Playwin, an <keyword id="4492496" type="UNKNOWN" weightage="100" keywordseo="electronic-lottery">electronic lottery</keyword> provider told <a href="Lottery%20India,%20GST%20India,%20lottery%20business,%20electronic%20lottery,%20gst%20slabs">ET</a>. "It would be very unfair if the government levies tax on the face value of the lottery." This face value that Tangri is talking about consists of three parts, the prize money, government taxes and the operators' margin. Also read: <a href="http://www.businessinsider.in/You-are-paying-more-than-100-tax-on-oil-prices/articleshow/58363463.cms">You are paying more than 100% tax on oil prices</a> "<a href="http://www.businessinsider.in/Afraid-of-GST-retailers-are-limiting-their-purchases/articleshow/58417777.cms">GST</a> should only be levied on the operators' margin. The prize money part comes under direct tax (income tax paid by the winner)," said Tangri. If applicable, this 28% tax would impact the revenue of the state governments that either have lotteries or allow licensed agencies to run them on their behalf. The lottery industry is not openly accepting the move. "Any irrational tax structure would kill the industry," said Kamlesh Vijay, CEO of Sugal &amp; Damani, one of India's largest lottery and gaming operators. "Lottery is a well-regulated industry. It provides direct employment to over 10 lakh people. Higher tax slabs would force lottery companies out of business. It will also spawn a large number of underground, illegal lottery schemes," he said. Also read: <a href="http://www.businessinsider.in/Trump-might-be-eyeing-a-tax-overhaul-in-the-US-but-heres-why-GST-is-more-important/articleshow/58342028.cms">Trump might be eyeing a tax overhaul in the US, but here’s why GST is more important</a> However, one problem that this levy would face is that Indian courts have stated that lotteries are neither goods nor services, so implementing a tax meant for these two is not ideal, as per many states and the <keyword id="3320466" type="UNKNOWN" weightage="100" keywordseo="lottery-business">lottery business</keyword>. (Image source YouTube)

Lottery tickets to attract maximum GST rates

<keyword id="6355261" type="POSITION" weightage="100" keywordseo="Finance-minister">Finance Minister</keyword> <keyword id="42575" type="PERSON" weightage="100" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> has promised that he would not be bringing any surprises in fixing tax rates under the new <keyword id="6359833" type="ORGANIZATION" weightage="100" keywordseo="Goods-and-Services-Tax">goods and services tax</keyword> (<keyword id="6354679" type="ORGANIZATION" weightage="100" keywordseo="GST">GST</keyword>) regime, which is all set to be rolled out from <a href="http://www.businessinsider.in/markets/economy/heres-why-arun-jaitley-wants-gst-to-be-implemented-from-july-1/articleshow/57794802.cms">July 1</a>. <a href="http://www.businessinsider.in/politics/arun-jaitley-wont-tax-agricultural-income/articleshow/58381284.cms">Jaitley</a> added that the tax rates will not be "significantly different" from what they currently are. However, he was firm in saying that whatever benefits companies have because of lesser rates, they should pass them on to consumer. "Profit is not a bad word... but unfair enrichment is. And therefore the benefit of reduction in taxation is a benefit that consumers are entitled to. And that's not a principle that can be seriously contested," he said. The tax rates would be finalised in a meeting of the <a href="http://www.businessinsider.in/markets/economy/gst-council-clears-almost-allrules-except-for-remaining-four/articleshow/57959857.cms">GST Council</a>, headed by <a href="http://www.businessinsider.in/international/jaitley-calls-protectionism-a-major-global-concern/articleshow/58394323.cms">Jaitley</a>, which is scheduled to take place in Srinagar on May 18-19. The <a href="http://www.businessinsider.in/jaitley-hopes-to-resolve-dual-control-issue-in-next-gst-council-meet/articleshow/56336143.cms">GST Council</a> has zeroed down to four rate categories of 5, 12, 18 and 28% to be charged on various categories of products. Also read: <a href="http://www.businessinsider.in/decoding-BJP-and-the-GST-puzzle/articleshow/57986645.cms">Here’s how difficult the GST process was for the Modi government</a>

No surprises in GST rates, promises Jaitley

The <a href="http://www.businessinsider.in/searchresult.cms?query=GST&amp;sortorder=effectivedate">GST Bill</a> has been passed in the Rajya Sabha and now it will go to the <a href="http://www.businessinsider.in/searchresult.cms?query=gst+council&amp;sortorder=effectivedate">GST council</a> for setting down the <keyword id="6412918" type="UNKNOWN" weightage="20" keywordseo="GST-rate">GST rate</keyword> in consultations with the states. 
 
The Council will now have to tread carefully after <a href="http://www.businessinsider.in/searchresult.cms?query=arun+jaitley&amp;sortorder=effectivedate">Finance Minister Arun Jaitley,</a> while presenting the GST Bill in the Rajya Sabha, said the GST rate is likely to be between 18 and 20 per cent, as advised by the chief economic adviser. 
 
As per economists, the GST rate of 18-20 per cent will cause mild <a href="http://www.businessinsider.in/searchresult.cms?query=inflation&amp;sortorder=effectivedate">inflation</a> and if it is kept higher than 20 per cent, it will lead to high inflation. 
"The more you move away from the standard rate of 20%, the inflationary pressures will rise. Inflationary pressures will depend on how the RNR (revenue-neutral rate, or the rate at which tax revenues will remain the same for Centre and states) is split between standard and low rate," Abheek Barua, chief economist at HDFC Bank, told ET. 
 
"There will be mild inflation...services would become expensive," DK Joshi, chief economist at ratings agency Crisil, told ET, adding “the inflationary pressures will reduce in the medium term because of efficiency gains. 
 
During the GST debate in the Rajya Sabha, former Finance Minister P Chidambaram said if the service tax rate is increased to 23-24%, it will lead to huge inflation and will lead to a backlash. 
 
(Image: Reuters)

GST Council to walk a tightrope while deciding GST rate between 18-20%

New Delhi, Apr 3 () Smartphone maker Honor on Friday said it will absorb the GST hike on mobile phones and not raise prices of its handsets. The government had last month increased GST rate on mobile phones to 18 per cent from 12 per cent, with effect from April 1. "Offering support and taking measures to deliver a seamless experience, we at Honor will not hike the prices of our top selling Honor 9X and Honor 20 smartphones even after the recent revision of GST rate for mobile phones," Honor India said in a statement. The industry has opposed the Centre's move to hike GST on mobile phones. According to mobile phone makers' body ICEA, around 80 crore mobile buyers in the country will be affected by the hike in GST, which will put a burden of Rs 15,000 crore on consumers. PRS ABMABM

Honor India to absorb GST rate hike on smartphones

The Good and Service Tax has been rolled out. Finance Minister Arun Jaitley had stated that those food items which were imposed an average of 12.5% under the VAT laws will subsequently be cut-down to 5% under the new GST regime. As per the GST law, all items falling under its regime will be imposed tax rates at 5%, 8%, 18% and 28%. GST will not have any impact on the list of products and services which come below the term ‘Essential’, and this list will have zero tax rate. A survey by All India ITR shows that personal care products, entertainment activities and household items under GST will become cheaper than its current rate. However, many of the services such as mobile phone services, healthcare services as well as transportation charges are expected to attract a tax rate of 18%, which is 3% more than its current 15% tax rate. Once the new rates will come into action, your monthly household budget will also be impacted. The analysis shows that entertainment tax rate under GST will successively be reduced to a 28% tax rate as against its current 30% tax rate. The effect of GST on the current tax rate To keep a surveillance of the goods manufacturers and service providers, the GST council has also taken the resolution to form an anti-profiteering committee. This committee will be the authority responsible for taking care of the grievances to ensure that the benefit of GST upon the lower tax rates doesn't get tampered. It has been declared that the committee will be formed by officials of the central and state revenue departments. <table> <tbody><tr> <td> Goods and Services </td> <td> The Impact of GST </td> </tr> <tr> <td> GST Tax Rate on Automobiles: </td> <td> The GST rate will be higher for SUVs (55% to 43%) as compared to smaller cars (30% to 29%). </td> </tr> <tr> <td> GST Tax Rate on Beauty and Makeup Products: </td> <td> The current tax rate of 26% on these items will increase to 28% (applicable on items like perfumes, skin care products, shampoos etc.). </td> </tr> <tr> <td> GST Tax Rate on Gold Ornaments: </td> <td> The tax rate on gold metal will be 3% while 5% rate will be imposed on making charges. </td> </tr> <tr> <td> GST Tax Rate on Hotel Stay: </td> <td> GST is not applicable for hotel rooms that cost below Rs. 1,000, any cost above this will be taxed progressively, however, all room charges above Rs. 5000 will be charged a whopping 28% tax rate. </td> </tr> <tr> <td> GST Tax Rate on Refined Cooking Oil: </td> <td> Edible oil will be taxed at 5%, a subsequent decrease from its current tax rate. </td> </tr> <tr> <td> GST Tax Rate on Air Travel </td> <td> An economy-class air ticket which is currently taxed at 5.6% will decrease to 5%. While business class travelers will have to shell out a lot more than which is currently charged since it will increase from 8.4% to 12%. </td> </tr> <tr> <td> GST Tax Rate on Telecom </td> <td> The existing tax rate of 15% on telecom services will increase to 18% as these services will not benefit much input tax credit. </td> </tr> <tr> <td> GST Tax Rate on Eating Out </td> <td> Non-AC eateries will charge 12% against GST on your total bill. But, you will have to pay the price of eating out at a 5-star restaurant as 28% in GST will be the tax rate (an increase from the existing 18%). </td> </tr> </tbody></table> A List of Items Exempted from GST Here are a few commonly utilized goods and services which have been exempted from the GST regime. Unprocessed cereals (rice, wheat etc.) Unprocessed proteins (milk, vegetables, meat, fish etc.) Train travel via local and sleeper class. Education. Healthcare (exclusive of medicines). Hotel stay or lodges with room rented at less than Rs. 1,000. Kid’s Stationery items (color pencils, crayons, drawing books etc.) Bindis, sindoor, bangles etc. All India ITR summarizes that the upcoming GST Law will have its own sets of pros and cons - many necessities will get cheaper but in the meanwhile, the rest of the necessities that falls under the higher GST tax rate bracket will ultimately cause a discomfort in the household budget. <keyword id="6360118" type="UNKNOWN" weightage="20" keywordseo="GST-Rates">GST rates</keyword> will also bring about a bigger tax burden on the use or purchase of goods and services which are deemed as luxurious. (This article has been written by Vikas Dahiya, founder, and CEO of <a href="https://www.allindiaitr.com/">All India ITR</a>)

Here's how GST rates will impact your monthly household budget

New Delhi, Dec 19 () Brands are slow in passing on benefits of GST rate reduction to consumers who want profiteering probes to look beyond the individual line item complained upon, said a survey report.
 Local Circles conducted a consumer survey to ascertain their perception of GST rate reduction benefits that have been passed on to them. 
 "Only 12 per cent in response said that full benefits of lower tax are being passed while 23 per cent said only partial benefit is being passed. 47 per cent said no benefits of the lower tax rate are being passed on as the base price of the products has been increased. 18 per cent were unsure about it," it said. 
 The Goods and Service Tax (GST) was introduced with the purpose of simplifying the tax structure in the country and services instead of having to deal with multiple taxes. 
 Since then, the GST Council has met various times and reduced the applicable GST on various products and services. 
 The survey said the sole purpose of these rate reduction was to make the purchase that much more affordable for the consumers but many corporates were accused of not passing on the benefits of the GST rate reduction to the consumers and instead profiteered from it. DP DP MR
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Brands slow in passing GST rate reduction benefits to consumers: Report

New Delhi, Jan 15 () Industry chamber Assocham on Wednesday urged the government to reduce GST rate by 25 per cent across the board for the next six months with a view to boost investment and demand.
The industry body said that it is not the time to worry about widening fiscal deficit as in the current circumstances, deficit financing will not be in an issue.
"The first radical suggestion is that GST rate should be cut across all slabs by 25 per cent for the next six months in order to kick start the economy.
"It will mean an additional deficit of Rs 1.20 lakh crore, which obviously will increase fiscal deficit.....but in the circumstances of today, deficit financing will not be an issue," Assocham President Niranjan Hiranandani told reporters here.
He said that the move will encourage more businesses to pay tax, which will lead to generate more revenue due to expansion of the tax base.
Such steps would help in achieving the target of USD 5 trillion GDP, he added.
"We need to solve the unemployment problem of India along with GDP growth. GDP growth alone is not enough for India. It has to be inclusive. Our suggestions are in line with this fact," he said.
Hiranandani also said that fuel should be brought under the ambit of GST and the option for availing input tax credit should be available to all the businesses, so that the credit chain does not get blocked.
He also suggested that most NBFCs are under a huge liquidity crunch, which has a direct impact on the economic activities, resulting in a financial pressure and slowing down of businesses.
The finance minister, with support from the RBI, needs to create a professional panel to address the situation on a war footing, the president said.
"Allow large non-banks to convert into banks. They will be able to serve their target clientele (MSMEs, informal sector etc) and promote nationalist banks with initial ownership of even 100 per cent to be reduced gradually to 26 per cent over a given period of time," he said.
On direct taxes, he suggested the government that the maximum cap of tax rates for the salaried individual should be kept at 25 per cent, keeping in mind the reduced corporate tax rates.
"All allowances and deductions for example conveyance etc should be indexed as per cost of inflation notified for capital gains, since the date of their introduction".
On the agriculture sector, he said that corporates should be allowed to do contract farming and to infuse high-end technology in farming, there is a need to create technology up-gradation fund for agriculture to provide capital subsidy.
On telecom sector, the Assocham president said that it is absolutely imperative to address the AGR issue to ensure the continuity of business, and investment in the sector.
"Telecom Sector has been going through financial stress in the last 3 years. The recent AGR judgment has further aggravated the stress and lead to an unprecedented financial crisis," Hiranandani said.
Similarly for the real estate sector, he recommended that the banks and financial institutions should be given discretion to one time restructuring and/or roll over of their existing loans to the sector on the lines of loans to other segments.
When asked, whether the ongoing protests will dent investments, he said "I do not agree" as investors are looking at India in a positive manner. RR CS BAL

Assocham for cut in GST rates by 25 pc across board

New Delhi, Mar 3 () A parliamentary panel on Tuesday suggested lower GST rate for the automobile segment at least till the revival of the sector, and uniform road tax across all states against the backdrop of negative growth in the automobile production since July 2018. A parliamentary panel had examined the Demands for Grants 2020-21 of Department of Heavy Industry (DHI) and tabled its report in Parliament. The automobile industry in India is one of the largest and fastest-growing sector and constitutes 27 per cent of industrial gross domestic product (GDP) and 49 per cent of manufacturing GDP. It provides about 37 million direct and indirect jobs and 15 per cent of total GST collection amounting to Rs 1.5 lakh crore. "But, the committee observes that of late, there is a negative growth in the automobile production since July 2018," said the report. The committee noted that some of the factors that contributed to slowdown are non-availability of credit facility to consumers, stringent rules for loan sanction by banks, rise in price due to the upfront payment of third-party insurance for 5 years, introduction of BS-VI vehicles from April 2020; and higher rate of GST on automobiles and components. Amid slowdown in the sector, the committee, among other things, recommended to either suspend or postpone the upfront payment of insurance for 5 years for the time being and reduction in GST rate to a lower slab "at least till the revival of the auto sector". Further, it made a case for introduction of incentive-based scrappage policy for creating purchase demand for new vehicles, reduction in import duty on lithium-ion cell battery which is used for operating the e-vehicles and levy of uniform road tax across all states. The report said the committee "is pleased to note" that the Delhi-Chandigarh highway has been declared as the first e-vehicle friendly expressway of the country. It desires that other expressways, including Delhi-Jaipur and Mumbai-Pune expressways, may also be made completely e-vehicle friendly soon with charging infrastructure in place at regular and frequent intervals. RSN NKD HRS

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Govt. to increase GST on mobile phones by 6% from April 1

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Lottery tickets to attract maximum GST rates

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No surprises in GST rates, promises Jaitley

GST Council to walk a tightrope while deciding GST rate between 18-20%

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Honor India to absorb GST rate hike on smartphones

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Here's how GST rates will impact your monthly household budget

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Brands slow in passing GST rate reduction benefits to consumers: Report

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Assocham for cut in GST rates by 25 pc across board

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Parliamentary panel suggests lower GST rate for auto sector

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