Midnight Parliament central hall event to mark GST rollout

Builders urge govt for abatement of land value in GST to avoid rise in home prices

After the GSTN authority, which will work on the tax filings, informed the council it was not ready with the current deadline, the council agreed to push back the dates for the filings but stuck to the July start-date. Companies will have to file sale invoice for August with the GST Network by September 20 instead of September 10 earlier. The Council also raised the ceiling on room rent for AC hotels in the 28 per cent tax bracket from Rs5,000 to Rs7,500. The GST on restaurants in these hotels will be 18 per cent - at par with other air-conditioned restaurants.

The GST Council has also reiterated that the GST Network (GSTN) would re-open the registration portal from June 25 for seeking new registrations, thus ensuring the business are all on-board for GST. "GST is the most significant indirect tax reform introduced in the country since Independence", Confederation of Indian Industry Director-General Chandrajit Banerjee said in a statement, adding, "GST has been finalised after a collaborative and consultative approach and we look forward to its introduction". The Council claimed the relaxation was given to avoid any grievances or lack of preparedness.

"The issue of how the central excise duty refund now eligible for industries set up pursuant to the NEIPP policy would continue under the GST regime is still not clear as there was no mechanism for it", he said. "The official launch will be on June 30 midnight".

"Relaxation for filing transaction-wise returns in July, August. will provide relief to the industry", said Harishanker Subramaniam, head of indirect tax at EY India.

Only 12% expect GST implementation to negatively impact their businesses, with the remainder neutral. "It is a major challenge and government should devise a way through which traders can make digital compliance as required under GST", CAIT National President B.C.Bhartia and Secretary General Praveen Khandelwal said.

But what is GST and how will it reform the current tax structure? Rooms with higher charges will be taxed at 28 per cent.

It has also said that builders are expected to pass on the benefits of lower tax burden under the GST regime to the buyers of property by way of reduced prices or lower installments. Even after the introduction of e-way, the cameras at the check posts will continue scanning e-way bills.

The English daily also reported Customs director-general Subromaniam Tholasy as saying that the tax was only for a few items "not consumed by the masses". On the issue of e-way bill, the GST Council has stated that in the absence of consensus on the same, no decision was taken and the said topic would be taken up in the subsequent meetings. "However, since Maharashtra does not have a e-way bill facility, the state will not be implementing it", he said.

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