GST has been implemented on 1st July 2017. The taxation system has replaced the multiple tax slabs that were active in the country. The tax system has been devised to ease the trade of the country. However, after two months it is time to take a close look at all the decision which the government has taken regarding GST implementation.
GST Council has held meetings via video conferencing. It has raised the cess on tobacco products including a cigarette. Cigarettes had been taxed at 28% before implementation of GST. Along with the tax, 5% cess had been charged for the cigarette as well. The added tax would give around ₹ 5,000 crores additional revenue. It has been decided that the amount would be used to offer compensation to the states.
Central Board of Excise has clarified that IGST would get levied only at the time when the goods get clearance from custom. At the time of high rate transaction, it would clear the confusion of whether the tax would get levied on each angle of the transaction.
The council has decided to cut off the rates on textile job works down to 5%. Earlier the rate had been 18%. It also approves the e-way bill without reviewing a cut off mark of ₹ 50,000. Additionally, the council allows the set of screening panels. The input specifics of tractors have also seen a drop in the tax rate. The current tax is 18% which is a long drop from the previously decided 28%. Similarly, the tax rates of car renting, newspaper printing and Planetarium entry have also reduced.
The cabinet decides to increase the cess rate on luxury cars. The rate would 25% rather than 18% which previously has been decided. The central board has issued notification of e-way bill. Items like vegetables, books, Indian flags have been exempted from the bill.