GST Council sets tax rates for lotteries, hotels

Builders urge govt for abatement of land value in GST to avoid rise in home prices

Builders urge govt for abatement of land value in GST to avoid rise in home prices

No late fees and penalty will be levied for the interim period and the returns will have to filed by businesses with self-declaration, stating the input credit claimed and the tax liability pursuant to that.

"This is meant to provide a sense of comfort to taxpayers and give them elbow room to attune themselves with the requirement of the changed system", an official statement said.

Companies would be able to file simplified, aggregate returns in July and August, with a deadline of the 20th of the following month, said Hasmukh Adhia, a finance ministry official steering the launch of the tax.

Addressing the media, Jaitley said hotel rooms costing Rs 2500-Rs 7500 will be taxed at 18% while those above Rs 7500 will attract levy of 28%.

The latest announcement comes almost a week after the GST Council revised downwards tax rates for 66 items, including movie tickets of Rs 100 and below, incense sticks, insulin, school bags and computer printers.

The lotteries from the northeastern states are likely to have a tough time surviving with a 28 percent tax rate as a lot of them are sold in other states through agents.

Pratik Jain, Partner and Leader Indirect Tax, at PwC India, said: "Relaxation of time for filing initial invoice-wise returns is a welcome move which, to some extent, allays fears of readiness both from Goods and Services Tax Network (GSTN) and industry's point of view". He said a number of companies and trades have been raising the issue of the lack of their own preparedness.

"We have been urging the government for 12 per cent GST as fans are products of mass consumption and not of luxury".

Briefing reporters about the meeting, Jaitley said six sets of rules were approved relating to advance ruling, appeal and revision, assessment, anti-profiteering and funds settlement. "I hope we are not compelled to use it (anti- profiteering)", Jaitley added.

There have been calls from some quarters for it to be postponed, as some businesses say they are not ready for its implementation. A three-tier structure will ensure compliance with the anti-profiteering clause. The final decision will be taken by a five-member committee with a retired Secretary as its chairman.

Among a series of efforts to educate people on the Goods and Services Tax (GST), the Central government on Monday launched a video where actor Amitabh Bachchan is speaking about the much talked about tax.

The Council lowered the annual turnover limit for the composition scheme to Rs 50 lakh for the north-eastern and some other hilly states, at their request.

Further, eBay pointed out that the proposed legislation bears a striking resemblance to the Government's so-called "Netflix Tax" - the Tax and Superannuation Laws Amendment (2016 Measures No. 1) Bill 2016 - which sees the GST applied consistently to all supplies of digital products, such as software, and other imported services to Australian consumers.

In the last meeting held on June 11, tax rates on 66 items, including agarbatti, packaged food and insulin, were lowered.