The pioneering Goods and Services tax is now on its way to be implemented from 1st July. It is important to understand that GST is not a tax concession scheme where the government has reduced the tax rates and hence all the goods and services would become cheaper once GST is implemented.
The need for GST has been felt because under the current indirect tax structure 1) tax barriers have fragmented the Indian market, 2) cascading effects of taxes on cost have made indigenous manufacture less attractive, 3) complex multiple taxes have raised cost of compliance.
A registered person whose aggregate turnover in the preceding financial year did not exceed seventy five lakh rupees may opt to pay, in lieu tax at the normal rates, tax at such rate as prescribed under composition levy.
In a big relief to home owners and individual investors relying on rental income, such earnings will not be taxed under the Goods and Services Tax (GST).Services by way of renting of residential dwelling for use as residence" have been exempted from taxation web. Residential construction services, will invite GST at the rate of 12 per cent, which will apply to developers selling residential units before completion of construction to the home buyers.
The tobacco consumption pattern in India is unique. Only 11% of total tobacco is consumed in the form of Legal Cigarettes. The balance 89% is consumed in other forms such as chewing tobacco, zarda, bidi and illegal cigarettes. This is unlike the rest of the world where tobacco consumption is synonymous with cigarettes which account for as much as 90% of total consumption.
With the Goods and Services Tax (GST) set for rollout in a month, retailers of white goods and electronics are pushing to clear stocks, by offering a range of exciting discounts to potential buyers. As much as 40 per cent discounts on refrigerators, Air conditioners, washing machines, TV sets and other items has been announced by quite a few retail chains, who are looking to empty their inventories and minimize any losses that might come their way before July 1.