The council, chaired by Jaitley and having state finance ministers as members, has over the past 10 months ironed out various contentious issues and decided on a four-tier tax structure of 5, 12, 18 and 28 per cent.
“Departments have been asked to refloat such tenders after incorporating the decrease or increase in the contract cost owing to GST,” said a senior official. But an exception has been made for emergency work like broad repairs
In line with the new dates for GST inflows, the finance ministry has asked other ministries/departments to ensure that big releases of Rs 200-2,000 crore are kept between 21st and 25th of a month to “take advantage of GST inflows”.
According to sweet sellers, the sweets industry registers over Rs 1,000 crore turnover annually, and has about 10 lakh employees. In one day’s strike, the industry would incur a loss of Rs 10 lakh, they said. According to Ghosh, sweet sellers also plan to intensify their protest and sit for a relay hunger strike from August 24 to September 26.
The remaining Rs 22,000 crore has come in as Central-GST and State-GST, which would be split equally between the Union and state government. “Tax deposited till this morning was Rs 42,000 crore,” the official said.
“The GST will not have any adverse impact on affordable housing. To the contrary, it will help as it makes provisions to check the unscrupulous transactions and also rationalise the taxes. The tax imposed on the building material such as cement shows a decline from 31 per cent to 28 per cent,” Devendra Fadnavis said
“In order not to face any last moment technological difficulty in submission of return, all taxpayers are requested to kindly file their return well before 25th/28th of August 2017 and not wait for the last date,” read an official notification
Earlier, the cut-off for filing maiden GST returns for July was scheduled to end tomorrow, which explained the heavy traffic at ‘www.gst.gov.in’. But the portal suffered technical glitches as it was unable to take the load.
All the senior officials of the ministry and customs authorities are attending those outreach programmes being organised by Federation of Indian Export Organisations (FIEO) and different export promotion councils, the official said.
As GST return forms did not have a column for claiming transitional input credit, the government on Thursday gave some breather to such taxpayers by giving them an extra week until August 28 to file returns.
“There is a need of lesser denomination rupee note and RBI is considering a Rs. 200 note,” he said. Further stressing on this issue Gangwar said that the agencies like IT, ED and others are free to work under Prime Minister Narendra Modi’s government.
Confusion persists about branded and registered branded commodities
As per GST rules, the tax will not be applicable to packaged goods without a registered brand, but most retailers are wary of taking the risk. Brands which are officially registered will attract a 5 per cent GST.
“The government should actively consider not bracketing the capital goods in the same GST bracket as luxury goods and sin goods. A lower GST rate will help increasing share of leasing in gross capital formation,” Mahesh Thakkar said
Addressing the nation from the ramparts of the Red Fort on the occasion of 71st Independence Day, the PM said that GST has unified more than a dozen central and state levies, which is a result of cooperative federalism and its smooth rollout.