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Two months of GST: Key decisions taken by govt for smooth roll-out

On August 30, the cabinet cleared ordinance to increase cess on luxury cars, SUVs up to 25% from 15%

Indivjal Dhasmana  |  New Delhi 

GST, tax receipt, cess

Photo: Dalip Kumar

The goods and services (GST) regime was rolled out on July 1 to replace multiple slabs across the country and ease trade. Indivjal Dhasmana takes a look at the several decisions the took after the introduction of the indirect regime to ensure the roll-out was as smooth as possible:

July 18

Council holds out-of-turn meeting via video conferencing; raises on cigarettes. Earlier, cigarettes were taxed at the peak rate of 28%, along with a of 5%. This was lower than what was levied in the pre-era. The additional will give Rs 5,000 crore extra revenue to the exchequer that will be used to compensate the states.

August 2 

The Central Board of Excise and Customs (CBEC) clarifies integrated (IGST) will be levied only when goods are cleared by the Customs, in case of high-sea transactions; this clears ambiguity whether being levied for each leg of a transaction.

August 5

GST
The Council cuts rate on job works for the textile sector to 5% from 18%, approves e-way bill without revising a threshold of Rs 50,000 and allows setting up of screening panels under the anti-profiteering measure. Rates on inputs specific to tractors cut to 18% from 28%, on works contract cut to 12% from 18%. Rates on other services — including rent-a-car, job work in newspaper printing, entry to planetariums — reduced. Council recommends the Centre come out with an amendment in the compensation Bill to increase the ceiling on on luxury cars from 15% to 25%.

August 30 

Cabinet clears ordinance to increase ceiling on on luxury cars, SUVs up to 25% from 15%. notifies e-way bill; exempts items of mass consumption such as vegetables, fruits, foodgrain, meat, bread, curd, books, jewellery, judicial and non-judicial stamp papers, newspapers, khadi, raw silk, Indian flag, cheques, municipal waste, liquefied petroleum gas for cooking, kerosene, heating aids and currency.

Registrations

July 31
6 mn, excluding those under composition

Morning of Aug 29
9.1 mn, including those under composition

New assessees1.9 mn

Return filers
 
Morning of Aug 29 
3.8 million or 64.4% of assessees (for July) filed returns
collections for July
 
Collections under GST 
Rs 92,283 cr against target of Rs 91,000 cr
Composition scheme
 
July 21
Only 100,000 assessees, about 1.25% of registrations then, opts for composition scheme by this deadline; govt extends scheme by a month

Till August 20
Composition scheme takes off; 938,165 assessees or 11% of registrations sign up


Sources: Finance ministry, Council 

First Published: Fri, September 01 2017. 02:13 IST
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