gst-rollout-on-july-1-two-slabs-for-lottery-hotel-rooms.jpg

GST rollout on July 1; two slabs for lottery, hotel rooms

Putting to rest the speculations that the implementation of GST could be deferred, Finance Minister Arun Jaitley on Sunday said the new tax regime would be launched on the midnight of June 30 and July 1 at a function in New Delhi. Addressing the 17th GST Council meeting at Vigyan Bhawan, Jaitley said 28 percent limit in hotels will start from Rs 7,500, while a GST rate of 18 percent has been made applicable for hotel rooms between Rs 2,500 to Rs 7,500.The Goods and Service Tax (GST) Council on Sunday chose to tax state-run lotteries and state authorised lotteries at 12 and 18 percent respectively, and to tax 28 percent in hotels starting from Rs 7,500 and 18 percent below Rs. 7,500.In a letter to Finance Minister Arun Jaitley, Assocham said existing assessees have not yet migrated to the GSTN portal due to reasons like non-familiarity with IT tools as well as registration process. “Registrations are going on satisfactorily and 65.6 lakh have already taken provisional registration, which is good enough to file returns”, he said, adding that some new trades will come under the GST for the first time.The official launch of the goods and services tax (GST) is slated for mid-night of June 30 and July 1.The e-way bill will be optional under the Goods and Services Tax, as decided by the GST Council.In a relief for AC hotels, the Council chose to raise the threshold for the 28 percent tax to RS 7,500 from Rs 5,000 at present.”Relaxation for filing transaction-wise returns in July, August. will provide relief to the industry”, Harishanker Subramaniam, head of indirect tax at EY India, told Reuters.Rajeev Dimri, Leader, Indirect Tax, BMR and Associates LLP, said: “This measure should significantly help in assuaging the concerns of inadequate readiness of GSTN being faced by the industry and confirms that preparedness of GSTN will not be a roadblock for the implementation of GST as was being anticipated by the industry”. State’s Finance Minister Malaiyya said, that the tax rate of various commodities should be reduced. Sources said it might be NIC which would be entrusted with e-way bills. However, Uttarakhand will have it at Rs 75 lakh. The Council also decided that Integrated GST (IGST) on shipping vessels will be 5 per cent with input credit. “However, since Maharashtra does not have a e-way bill facility, the state will not be implementing it”, he said. Tamil Nadu has their meeting tomorrow. That only leaves Jammu and Kashmir.