News shortcuts: From the Courts | Top Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | Professional Updates | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Service Tax »
 Finance Bill 2020 changes rules on TDS, NRIs and dividends
  Why you should file belated ITR, correct ITR errors before March 31
 How can I set off losses from share trading against income tax liability in current FY?
 Why you should file belated ITR, correct ITR errors before March 31
 Last date for filing ITR for FY 2018-19 extended but late filing fee stays at Rs 10,000
 India Relaxes Income Tax Deadlines And Penalties For Taxpayers Coronavirus Impact
 Income tax department may extend March 31 deadline due to coronavirus
 RBI issues guidelines on regulation of Payment Aggregators and Gateways Read more at: https://www.taxscan.in/rbi-directs-guidelines-regulation-payment-aggregators-gateways/52961/
 Service Tax Audit under GST is permissible: Delhi HC
 Will fewer people save if tax exemptions are phased out?
 What are the income tax exemptions and other monetary benefits available to women?

How Goods and Services Tax (GST) brings a certain order to India's complex taxation process
June, 03rd 2017

The government is touting it as the biggest tax reform since Independence. Its critics (and there are a few) call it a good idea that has been mangled beyond recognition. The final iteration of the Goods and Services Tax (GST), after rates were determined for all goods and services on May 19, answers to both descriptions equally.

There is no doubt the GST is a giant step forward in simplifying the tax regime. By prescribing a single tax rate for a good/ service irrespective of the state it originates in, or the state it gets consumed in, GST brings a certain order to taxation. But we didn't go the whole hog. Other countries that implemented GST went with a single tax rate (or at best two).

Here, the Centre and states have agreed on four basic rates (set at 5, 12, 18 and 28 per cent) apart from a list of items that will attract zero tax. This was already bad enough without the added confusion of surcharge, which can vary from 3 per cent to 290 per cent! Even services have been carefully divided into four categories attracting different tax rates.

A reading of the GST rates for different items also raises some queries about the government's priorities. For example, coal will be taxed at 5 per cent (from 11.7 per cent earlier) and solar modules at 18 per cent (from near zero earlier). Likewise, hybrid cars will be taxed at the same rate as petrol and diesel cars, with big hybrid cars attracting as much as 43 per cent (28 per cent + 15 per cent surcharge). If the government is keen on reducing pollution and promoting clean renewable energy, the GST rates give no indication of this.

Bureaucrats have done their damnedest to list taxable products and services and it makes for some entertaining reading. One example: all live horses attract 12 per cent tax, while other live animals (including asses, mules, hinnies, bovines, swine, sheep, goat, birds and insects) attract zero tax. The meat of all these animals (bovine, horse or ass) will attract zero tax as long as it is considered 'fresh and chilled' but is taxed at 12 per cent once frozen and put in unit containers.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2020 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting