Bookmark Kaumudi Online  Bookmark this site  Editor@Kaumudi  |  Marketing  Print Advt rates  |  Calendar 2012        Go!    
 
 
April 24, Monday 2017 8:52 AM       

       HEADLINES: Woman, three daughters mowed down by train                                              Vengara bypolls will decide who is ‘right’, says Joy Mathew                                              Money power and Power Mani behind Munnar encroachment, says Kummanam                                              KRK says sorry for comparing Mohanlal to ‘Chota Bheem’                                              M M Mani is shame for state, says Sudheeran                                              TN CM meets protesting farmers in Delhi                                              ISRO to increase launch frequency to 12 per year                                              Mega defence deals likely during PM's trip to Israel                                              Modi to address all BJP CMs today                                              TN farmers suspend protest after CM's assurance                                              Pakistani man eats leaves for 25 years, never falls ill: Report                                              PPP to launch movement for Sharif's resignation                                              US accuses TCS, Infosys of violating H-1B visa norms                                              It is sad that India is no. 3 in doping: Mary Kom                                              Dhoni seals 6-wkt victory for Pune against Hyderabad                                              Bowlers deliver win for Mumbai                                              No required rate too high if you keep calm: Dhoni                                              Bopanna-Cuevas pair wins Monte Carlo Masters                                              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
Thailand expects 12 lakh tourists from India in 2017  
GST great illustration of cooperative federalism: Modi  
Niti Aayog lists promoting digi-payments as achievement  
Hero Cycles eyes setting up Rs 400 cr project  
Impact of demonetisation abated: IMF  
Mistry appeals against NCLT rejecting waiver plea in Tata case  
Air India lowers age limit for elderly travel concession  
SEBI court quashes non-bailable warrant against Sahara chief  
India needs to accelerate investment in children, education:WB  
Sensex extends gains, up 86 pts on bargain hunting  
Jaitley may take up H-1B visa issue with US authorities  
'India moving forward to become major destination for FDI'  
Sensex surrenders early gains, falls 95 pts  
Apple, Coke, Airtel among cos pulled up for 143 misleading ads  
Inflation cools to 5.7%, food prices heat up  
Nifty regains 9,200-level in early trade  
SC orders auction of Sahara's Amby Valley  
Railways to export locos, train sets worth Rs. 680 cr to Lanka  
Sensex edges lower by 88 pts on global weakness  
Netizens uninstall Snapdeal app instead of Snapchat  
Petrol price hiked by Rs 1.39 per litre, diesel up by Rs 1.04  
CBEC sanctions Rs 1 cr to each zone for GST outreach  
Markets feel Infosys heat, Sensex dives 182 pts  
Infosys plans Rs 13,000 cr pay-out via buyback, dividend  
Rupee sinks 17 paise to 64.67 on global woes  
 
Do you think Chief Minister Pinarayi Vijayan triggered holy cross row?
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