GST Council Slashes Tax For 29 Items, 53 Services And To Simplify Filing Procedure

News World India | 0
| January 19 , 2018 , 10:40 IST

GST council has been making significant changes to the Good and Services Tax ever since its implementation every now and then. Ahead of the annual government budgetary meeting, the government provided further relief to the citizens by slashing the tax rates on 54 services and 29 items.

A panel of federal and state finance ministers headed by Finance Minister Arun Jaitley revised several GST rates including drinking water, biodiesel, diamonds and precious stones, sugar candies, tailoring services, amusement parks and low-cost housing construction services. 

The slashed rates which come into effect from January 25 will affect the revenue and may lead to the loss of 10 billion rupees ($156.6 million) to 12 billion rupees. During the 25th meeting held in the Capital on Thursday, Finance Minister hinted at bringing items like petroleum and real estate under GST purview.

Taxes applicable to second-hand medium and large cars and SUVs will be slashed from 28 percent to 18 percent whereas the other old and used motor vehicles would be brought under the GST slab of 12 percent. The council has also recommended reducing taxes on diamond and precious stones to 0.25 percent from 3 percent.

ALSO READ: GST Moved In Lok Sabha Amid Stiff Opposition Resistance

As per the statement released by the government, the rate on the 20-litre bottle of packaged drinking water, bio-diesel has been reduced to 12 percent from 18 percent while the GST for public transport buses running on environment-friendly bio-fuels has been slashed to 18 percent from previous 28 percent.

The services for providing information under RTI Act, legal services provided to government, local authority, governmental authority and government entity, transportation of goods from India to outside by air and sea have been exempted from the GST along with other things.

The government has exempted other services pertaining to admission or conduct of examinations provided to all educational institutions, entrance fees for the entrance examination and for transportation of students up to higher secondary schools from taxation.

The entry into the theme parks, water parks, joy rides, merry-go-rounds, go-carting and ballet will now be taxed at 18 percent instead of 28 percent. The government has also taken efforts to simplify the tax return filing procedure and will soon relieve the taxpayers from confusion caused during filing returns.