GST in India: Tax Rates Has Been Revised For 40 Goods

Implying GST in India was another major step taken by the government after demonetization. But it also came up with a lot of anomalies in its implementation. However, Arun Jaitley is continually trying to make the GST implication flawless. Another step was taken soon by the finance minister to make the GST working effective at market. The changes enacted recently on GST structure brought a relief to automobile industry.

GST in India

The Goods & Service tax council has made significant changes in the cess rate for vehicles. The council has imposed just a part of the proposed 10% increased tax on motor vehicles.  The council felt the proper gradation of in cess imposition rate thus they came up with a well defined cess imposition rate structure.

According to this, the cess rate for mid-size cars will be increased upto 17% from the prior rate of 15%. This brings the total tax incidence for this category to 47% from the prior tax incidence of 43%.  Similarly, for the luxury cars the cess rate has been increased to 20% from 15%. The total tax incidence will be now 48%, the prior total tax incidence was 43%. The SUVs will witness the increase in total tax incidence by 7%.

GST on about 30 items have been lowered after anomalies in the fixation of rates were pointed out.
.  It is expected that the taxes will be lower for the products like idly batter, custard powder, dried tamarind, Dhoop agarbatti, raincoats, rubber bands etc.

The tax rate has been also lowered for the goods like rice rubber rolls for paddy de-husking, computer monitors and kitchen gas lighters and brooms and brushes.

Finance Minister has also come up with a new framework for imposing GST effectively on branded processed foods.  Earlier, brand registered on May 20, 2015 irrespective of the fact that if they have de-registered later will have to pay 5% tax.  The Unbranded food items are tax free. Thus a lot of brands deregistered themselves to avoid the 5% of the tax.

Thus the finance minister & council came up with a little amendment in the rule. Jaitley said “If you fall in either of two categories, you will pay 5 per cent tax — one, if on May 15, 2017, you had a registered trade mark you have to pay 5 per cent GST. Two, if you have a mark or a name on which you are entitled to maintain an actionable claim or exclusivity, then you have to pay 5 per cent”
Government is consistently trying to imply the GST to every sector flawlessly. Overall, Finance Minister is really working hard with their associates & government is quite hopeful that the taxation structure in India will definitely going to be better with time.