Nandan Nilekani advises GST council to solve input tax credit woes

Nandan Nilekani advises GST council to solve input tax credit woes

Nandan Nilekani advises GST council to solve input tax credit woes

The BJP hailed Prime Minister Narendra Modi and Finance Minister Arun Jaitley over the reduction in GST rates on a number of products, and said the new tax regime has emerged as people-friendly in a short span of time.

29 handicraft products have also been brought to 0% rate which were earlier charged at 18%.

The council also decided that 3B returns filing will continue and suppliers can continue to load their invoices. Infosys non-executive chairman Nandan Nilekani made a presentation on simplification of the return filing process. Initially, there will be a GSTR-3B and a supplier's invoice. The remaining issues will be discussed in the next GST council meeting. This slump in GST collections has been the biggest worry for the Finance Minister.

The final call will be taken in the upcoming meeting, he informed. Composition scheme allows small businesses to pay taxes at a concessional rate.

Without divulging the details finance minister Arun Jaitley during a media briefing said, "These will have a minor impact on revenues, but will boost jobs".

This, coupled with subdued collections under the composition scheme, indicated that traders may be continuing to evade taxes or under-report revenues. Total collection under the composite scheme till date was only Rs 307 crore, the meeting was told.

The GST council brought cheer to Right to Information activists by announcing an exemption for RTI services from GST levy.

On including real estate in GST gambit, he said that this matter is still to be discussed.

Sugar boiled confectionary Drinking water packed in 20 litters bottles Fertilizer grade Phosphoric acid Bio-diesel Bio-pesticides Bamboo wood building joinery Drip irrigation system including laterals, sprinklers Mechanical Sprayer.

LPG supplied for supply to household domestic consumers by private LPG distributors 18 per cent to 5 per cent. There will be no GST on vibhuti and parts and accessories for manufacture of hearing aids. Cigarette filter rods will attract higher GST rate of 18 per cent, as against 12 per cent now.

- To reduce GST to 12 per cent in respect of mining or exploration services of petroleum crude and natural gas and for drilling services in respect of the said goods.

The government has exempted other services pertaining to admission or conduct of examinations provided to all educational institutions, entrance fees for the entrance examination and for transportation of students up to higher secondary schools from taxation.

Almost half a year after the historic Goods and Services Tax (GST) was introduced in Asia's third largest economy of over a billion people, the indirect tax regime has undergone one more round of major changes.

Buses running on bio-fuels under the chapter 8702, have been recommended for a reduction.

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