PM Modi Reviews Progress Of GST Rollout: 10 Things To Know
PM Modi says GST rollout 'a turning point' in economy One-nation, one-market, one-tax system to benefit common man, he adds GST Council has month decided rates for over 1,200 goods, 500 services
Prime Minister Narendra Modi on Monday reviewed the status of the planned rollout of the new indirect tax regime - Goods and Services Tax (GST) - from July 1. Terming GST implementation as "a turning point" in the economy, PM Modi said the creation of the one-nation, one-market and one-tax system would greatly benefit the common man. PM Modi took stock of various elements involved in GST rollout and also directed the officials that maximum attention be paid to cyber-security in IT systems linked to the GST, according to an official statement.
Here are 10 things to know:
PM Modi was informed that GST systems such as IT infra, training of officials, integration with banks and enrolment of existing taxpayers would be in readiness well in time for the July 1 rollout, an official statement said. It also said the information security systems were discussed in detail.
The Prime Minister asserted that the implementation of GST from July 1st will be the culmination of the concerted efforts of all stakeholders, including political parties, trade and industry bodies.
The government announced a Twitter handle - @askGst_GOI - and an all-India toll-free phone - 1800-1200-232 - for queries.
In its June 3 meeting, the GST Council decided to tax packaged and branded food items at 5 per cent, tendu leaves - used to wrap bidi - at 18 per cent and bidi at the highest rate of 28 per cent. Unlike cigarettes, there will be no cess on bidi.
The Goods and Services Tax or GST Council, chaired by Finance Minister Arun Jaitley and comprising state counterparts, had last month decided rates for over 1,200 goods and 500 services, placing them in four tax slabs of 5, 12, 18 and 28 per cent.
An analysis of the rates has shown that daily use items like soap and toothpaste will cost less while fresh fruits, vegetables, pulses, bread and fresh milk will continue to be exempt from any tax, according to news agency Press Trust of India.
Food grains may become cheaper as they have been put in the zero-rated commodities list. Currently, some states levy a purchase tax of 2-5 per cent on food grains, which will be abolished under GST. Among the goods, mass consumption items like fresh fruits, vegetables, pulses, bread and milk have been exempt from any taxes, besides health and education services.
Apparel up to Rs. 1,000, footwear up to Rs. 500 and biscuits are set to get cheaper with the July 1 rollout of GST. Tax experts say that the rate of 3 per cent on gold decided under GST won't be significantly different from the current tax regime on the yellow metal and this would be welcomed by the jewellers.
The Goods and Services Tax will be an exciting development from data point of view and help provide a more complete description of the economic activity, Chief Statistician TCA Anant has said.
Economy-class air travel will be slightly cheaper and so will be hiring a taxi as tax on such travel has been brought down to 5 per cent in the Goods and Service Tax (GST) regime from the current service tax of 6 per cent.