Two months of GST: Key decisions taken by govt for smooth roll-out

The goods and services tax (GST) regime was rolled out on July 1 to replace multiple tax slabs across the country and ease trade. Indivjal Dhasmana takes a look at the several decisions the government took after the introduction of the indirect tax regime to ensure the roll-out was as smooth as possible:
July 18
GST Council holds out-of-turn meeting via video conferencing; raises cess on cigarettes. Earlier, cigarettes were taxed at the peak rate of 28%, along with a cess of 5%. This was lower than what was levied in the pre-GST era. The additional tax will give Rs 5,000 crore extra revenue to the exchequer that will be used to compensate the states.
August 2 
The Central Board of Excise and Customs (CBEC) clarifies integrated GST (IGST) will be levied only when goods are cleared by the Customs, in case of high-sea transactions; this clears ambiguity whether tax being levied for each leg of a transaction.
August 5
The Council cuts rate on job works for the textile sector to 5% from 18%, approves e-way bill without revising a threshold of Rs 50,000 and allows setting up of screening panels under the anti-profiteering measure. Rates on inputs specific to tractors cut to 18% from 28%, on government works contract cut to 12% from 18%. Rates on other services — including rent-a-car, job work in newspaper printing, entry to planetariums — reduced. Council recommends the Centre come out with an amendment in the compensation Bill to increase the ceiling on cess on luxury cars from 15% to 25%.
August 30 
Cabinet clears ordinance to increase ceiling on cess on luxury cars, SUVs up to 25% from 15%. CBEC notifies e-way bill; exempts items of mass consumption such as vegetables, fruits, foodgrain, meat, bread, curd, books, jewellery, judicial and non-judicial stamp papers, newspapers, khadi, raw silk, Indian flag, cheques, municipal waste, liquefied petroleum gas for cooking, kerosene, heating aids and currency.

Registrations:

July 31
6 mn, excluding those under composition

Morning of Aug 29
9.1 mn, including those under composition

New assessees1.9 mn

Return filers:
 
Morning of Aug 29 
3.8 million or 64.4% of assessees (for July) filed returns
Tax collections for July:
 
Collections under GST 
Rs 92,283 cr against target of Rs 91,000 cr
Composition scheme:
 
July 21
Only 100,000 assessees, about 1.25% of registrations then, opts for composition scheme by this deadline; govt extends scheme by a month
Till August 20
Composition scheme takes off; 938,165 assessees or 11% of registrations sign up

 

Read More at: http://www.business-standard.com/article/economy-policy/two-months-of-gst-key-decisions-taken-by-govt-for-smooth-roll-out-117090100061_1.html

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