Bookmark Kaumudi Online  Bookmark this site  Editor@Kaumudi  |  Marketing  Print Advt rates  |  Calendar 2012        Go!    
 
 
March 25, Saturday 2017 3:17 PM       

       HEADLINES: 15 youths 'sexually abuse' 16-year-old girl at Ochira                                              Ban on Vinayan: CCI fines Kerala Cinema associations                                              Pvt. carriers ban MP after assault on AI staffer                                              Fadnavis warns striking docs of legal action                                              No question of supplying Cauvery water to TN: Karnataka                                              Death toll in UK terror attack rises to five                                              'Significant arrests' made in UK terror attack case                                              Bill against outsourcing jobs back in House of Representatives                                              Ajinkya is more chilled out than Virat: Smith                                              Waugh says pressure on India, urges Australia to retain XI                                              Manohar defers decision to step down as ICC chairman                                              Kaumudi Facebook
       BUSINESS Next Article: Hold camps on digital payments from April 1: RBI to banks  
       GST Bill to make peak tax rate 40%, slabs intact for now
 
         Posted on :20:36:34 Mar 2, 2017
   
A A
       Last edited on:20:36:34 Mar 2, 2017
         Tags: GST Bill, peak tax rate, slabs intact for now
 
NEW DELHI: The GST levy may go up to 40 per cent after the GST Council proposed raising the peak rate in the Bill to 20 per cent, from the current 14 per cent, to obviate the need for approaching Parliament for any change in rates in future.
 
The model Goods and Services Tax Bill will replace the clause which states the tax rate "not exceeding 14 per cent, with "not exceeding 20 per cent" when it comes up for debate in Parliament during the second phase of Budget session beginning next week.
 
The change in the peak rate will not alter the 4-slab rate structure of 5, 12, 18 and 28 per cent agreed upon last year for the moment, but is only a provision being built into the model law to take care of contingencies in future, two officials in the know told PTI.
 
The revised draft of model GST law, which was made public in November 2016, provides for a maximum rate of tax under the new regime at 14 per cent (14 per cent central GST and an equal state GST, taking the total to 28 per cent).
 
"There shall be levied a tax called the central/state goods and services tax (CGST/SGST) on all intra-state supplies of goods and/or services... at such rates as may be notified by the central/state government... but not exceeding 14 per cent on the recommendation of the Council and collected in such manner as may be prescribed," the draft law states.
 
Officials said this will now be changed to say the rate will not exceed "20 per cent".
The GST Council, headed by Finance Minister Arun Jaitley and comprising representatives of all states, has agreed to keep the upper band of the rate in the law at 20 per cent.
 
"For the moment, we will not tinker with the rate structure of 5, 12, 18 and 28 per cent. The GST Council has decided to keep the upper cap higher at 20 per cent so that in future in case of need to hike tax rate, there is no need to approach Parliament for a nod and the GST Council can raise it," the officials said.
 
This means the central GST and state GST can be up to 20 per cent each, leaving the scope for a maximum levy at 40 per cent.
 
"The 4-tier rate structure that has been decided will hold for now. By keeping the upper cap at 20 per cent, we are just keeping an enabling provision which the Council can exercise at a later date after deliberation," the officials added.
 
Mirroring the model GST law, the CGST, the SGST and the UTGST law will be firmed up by the Centre, states and Union Territories, respectively.
 
The Centre plans to introduce in Parliament the Central GST (CGST) Bill in the forthcoming session beginning March 9.
 
After it is ratified, the states will introduce the State GST (SGST) Bill in their respective legislative Assemblies.
 
The central and state officials will soon start the exercise to determine which goods and services should fall in which tax bracket and the same will be taken to the Council for approval soon.
 
Together with this, they will also decide the goods and services that would attract a cess on top of the peak rate to create a corpus that can be used to compensate states for any loss of revenue from implementation of GST in the first five years. The government is looking at GST rollout from July 1.
A A
       BUSINESS
Next Article: Hold camps on digital payments from April 1: RBI to banks
 
 
BUSINESS HEADLINES
Sensex up for 2nd day, Nifty reclaims 9100 as bank stocks gain  
Govt may table 4 GST bills in Parliament today: Minister  
Airfares in India among 'lowest' globally: Sinha  
Sensex tanks 318 pts, Nifty slumps below 9100 on global clues  
Notes ban to spur economic activity: Govt  
Govt nod for 18 new airports costing Rs 30,000 cr  
Govt nod for 18 new airports costing Rs 30,000 cr  
Adani Enterprises acquires Adani Infra  
Vodafone, Idea Cellular to create new Indian market leader  
Softbank appoints Kabir Mishra to Snapdeal board  
Idea to sell 2G, 3G, 4G mobile data at same price from Mar-end  
Airbus to set up its first Asia training facility in Delhi  
BSNL offers 2GB data per day, unlimited calling for Rs 339  
Sensex soars 188 pts, Nifty at fresh closing peak on Fed move  
Prominent Australians ask Adani to abandon coal mine project  
Harley-Davidson launches Street Rod at Rs 5.86 lakh  
India imports petrol, diesel from China  
Rupee hits 1-1/2 yr high, surges 78 paise on BJP sweep  
Tata Steel, Wipro in world's most ethical companies' list  
Google in talks with China to stage a comeback: report  
Despite bottom line pressure, FY17 to be the best for airlines  
IIP bounces back in Jan, expands by 2.7 pc  
12 lakh new notes infused in the market: Jaitley  
Tata Motors inks pact with VW, Skoda; products likely from 2019  
IIP bounces back in Jan, expands by 2.7 pc  
 
Do you support the choice of Yogi as UP chief minister?
yes
 
no
 
don't know
 
 
 
Home Kerala India World Business Sports Sci&Tech Education Automobile CityNews Movies Environment Letters 
© Copyright keralakaumudi Online 2011  |  Reproduction in whole or in part without written permission is prohibited.
Head Office Address: Kaumudi Buildings, Pettah P.O, Trivandrum - 695024, India.
Online queries talk to Deepu Sasidharan, + 91 98472 38959 or Email deepu[at]kaumudi.com
Customer Service -Advertisement Disclaimer Statement   |  Copyright Policy