November 10th 2017 came with good news for those who are planning to buy something. This happens because GST Council has slashed the indirect taxes on some of the items. In Guwahati, where the meeting held, this step was taken and brought a big relief to the consumers. Whether it is new furniture or refit electric switches, the consumers have to pay less.
Previously the items came under the 28% category, but after the introduction of new rules, around 165 items are falling into the 18% category. While 62 are still under the 28% category. All those who are in the highest category includes shaving creams, digital cameras, paints and varnishes, pan masalas, chocolates, cosmetics, refrigerators, vacuum cleaners, cigars, hair dyes and conditioners along with marble and granite. Some of the states like West Bengal demanded to gush down the rate from 18 per cent to 12 per cent. On that day only, the GST council also had a presentation on the enclosure of real estate as per the new indirect tax regime. The new agenda also minimize the compliance burden on the taxpayers.
Definitely the acceptance of any of the proposed idea could be a biggest step after the GST introduction on 1st November. Almost the common goods that make up to 75% of the highest GST will definitely become very reasonable. Undoubtedly, the proposition brings big relief to the consumers and industry as well. As per the state government official, there is a need revision and some of the rules are needed to be designed on the basis of rate reduction. In last 4-5 meetings, the GST council has reduced the rates of over 100 items and brings down to the slab of 28% to 18% and the next 18% to the 12%.
A theoretical discussion of the real estate
The presentation that has to be presented is based on the real estate. As per the law, the approval of different states is needed as a key stamp and registration fees on the property and is also helpful in amendment of the law in the Indian Constitution. The discussion of implement of real estate is at the very initial stage or rather say that on talk only. Before any implementation, both pros and cons are discussed properly. Right now, real estate is out from the GST rules, but after the meeting it was disused to consider it into the GST as this field attracts larger tax evasion and cash generation.
There is one more good news for all the taxpayers by the council that they are allowed to file quarterly returns with monthly tax payment. For all the manufacturers and restaurants, from now there will be 1% tax rate as compared to the 2% and 5%. While the traders have to pay around a lower rate of 0.5% if there is cumulative turnover of both non-exempted and exempted goods. In future, reduction of 28% slab items can also be seen and the items related to the construction and infrastructure like vitamin, cosmetics, cement, builders, hardware, plywood, electrical fittings, mineral and protein are plan to keep out from the 28% slab.