“The objective was to maintain equivalence to the existing taxation level and, in some cases, the fitment committee’s recommendation went beyond the equivalence principle. So, after considering the recommendations, the GST Council has reduced the tax levels in 66 out of 133 cases.” Arun Jaitley said
The Council, with representatives of states and Centre, also agreed on the July 1 rollout for the indirect tax regime. West Bengal was the exception — its Finance Minister Amit Mitra said the rollout of GST from July 1 would have “serious problems”
Services such as those of tour operators, leasing of aircrafts, economy class air travel, transport of goods by rail, rail travel other than sleeper class and radio taxi travel will attract a 5 per cent levy under GST.
In February, the Finance Ministry had sought clarifications from the Labour Ministry, mainly pertaining to the EPFO’s ability to pay an interest rate of 8.65 per cent and the payouts to be made in case of inoperative accounts.
The Centre has reiterated that rates will be closer to existing tax incidence, but industry says early knowledge of structure will help it undertake pricing of products commensurate with new taxation system
Centre’s move to bring in 40 amendments as part of the Finance Bill, like quoting Aadhaar to file ITR and removal of cap for firms for contributions to political parties, among others, has come under Opposition fire.