13th May 2017
GST rates have been structured in four tax slabs, Most of the traders have estimated their tax rate, but for some items coming within the range of 1 to 2% of the VAT, a special rate is yet to be decided. The market of speculation about this is hot and business is also affected. Also, many items of the same type, which vary in VAT, but different types of speculations are being made regarding GST rates.
Experts say that in the forthcoming meetings of GST Council, there is less chance of getting the item-wise rates curtailed and the government will declare it in the last moments. Currently, under GST, four rates have come up as 5, 12, 18 and 28%. The government has already made it clear that VAT will not be included on most of the tax-free items coming under VAT. They have many important things for food and common use.
At present, most states, including Delhi, have 1% VAT on gold and silver jewelery and accessories, precious stones, bullion articles. Under GST, there is talk of fixing a special rate of between 3 and 5% for them.
A bullion dealer at Chandni Chowk in Delhi told that due to lack of accurate estimation till now, traders are not able to make any decision regarding the stock and futures deal till June 30 and it is getting rumors in the market.
At present, there is no VAT on cheaper bikes of Rs. 3,500, while tax is 5%. Traders who sell cheap cycling and tricycle, do not understand that they will come in the tax free slab or within the limits of GST. There are currently 5 to 12.5% tax on many items of the same type. The stoves of kerosene oil are tax-free, while the gas stove takes on VAT.
2017 © Monetic Corp Consultants Private Limited - U74999DL2013PTC261819
Download GST E-book, An introductory guide for Goods and Service Tax by Registrationwala.
Like every GST liable business, you'll also need a GST software. Registrationwala has come up with a return preparing and filing software GST Tool.
To schedule a online demo, submit your details.