The largest Indirect Tax Reform in the country will be applicable from July 1st. The GST Council, the top unit for Goods and Services Tax, stamped the deadline already fixed.In the meeting held on Sunday, some major decisions taken by council are as under-
Relaxation in Return filing
It was decided to relax the rules of filing of returns till September so that in the process of adoption of new tax system.By the end of September, the relaxation of filing of returns means that there will be no late fees or penalties.
By allowing exemption from filing returns under GST for July and August will give them the flexibility to adapt themselves to the system requirements. The traders will have tax payment by July 20 on the basis of simple returns, while Invoice details will be filed from July 15. The registration window will open for new people and units from 25th June.
Change in Rate
The council also approved the creation of an anti-profit authority, which will continue for two years. The council has fixed a tax rate of 28% on lotteries run by state governments, 12% on the lotteries run by the state governments and the lotteries run by private units with the approval of state governments. Standard rates of GST for restaurants within five star hotels were changed from 28% to 18%.
Apart from this, hotels with room tariffs of more than 7500 rupees will now be charged only 28% tax. Earlier, having a tariff of more than Rs 5,000 was a matter of tax. Tax rates for hotels with room tariff ranging from Rs 2500 to Rs 7500 will be 18%.
The rules of the disputed e-way bill were discussed in detail, but the rules could not be finalized as consensus could not be reached in the states. The E-Way Draft Bill states that there will be an e-way permit for the transfer of more than 50000 rupees within or outside the state of the state.That unless a decision is made about this, the existing provisions will be valid.