PROBIZ International - Vol-1 Probiz File final | Page 20

BUDGET
GST makeover after a year
GST rates isolated to boost the sales for marketers
A
fter a year
long struggle
and see-saw
of GST implications,
government revised the
GST structure with a
complete makeover that
saw drastic reduction in
many sectors and total
elimination of GST in
some of the deserving
products.
The consumer
durable makers, in
particular, welcomed
the smart move by
the government to
cut off the GST rates
on white goods like
air conditioners,
washing machines,
refrigerators, water
coolers, vacuum
cleaners and others
not only this, the
council has also put
the sanitary napkins
under exempted
category. This strategy
contrived by the GST
council will lead to
generate employment
opportunities and
certainly improve the
products penetration.
The devaluation of
GST slab on television
sets of up to 27 inches
from 28% to 18 % will
boost the affordability
in small towns across
the country.
In this master
stroke played by the
government 17 items
out of 49 have been
reduced to the rate of
18% from 28% which
is considered being the
highest rate in GST. The
broad level reductions
may cause lower tax
collections but gradually
lead to the expansion
in volume which will
more than make up the
reductions specifically
when we are heading
towards the festive
season.
The administration is
hopeful that the revised
rates of GST especially
in white goods would
allow the sellers to
reduce their price in
order to make them
more effective.
In addition to this
new policy, government
has also planned
some relaxation in
GST filing procedure
for businessmen with
annual turnover up to
5 crore. Earlier these
businessmen have filed
their GST returns on a
monthly basis but now
after the amendment
they can file it
quarterly.
The Council also
gave a major relief to
the hotel industry by
explaining that the tax
rates will be based
on transaction value
instead of declared
tariff. However it
often happens that
hotels offer discounts
and hence the actual
transaction cost would
be much lower than the
declared cost, but tax
would still be charged
at the declared cost.
Exempt from GST:
u Fortified milk
u Sanitary pads
u Raw material used in brooms
u Commemorative coins circulated

by the RBI or government
u Sal leaves
u Deities made of stone, marbles or
wood
u Rakhis
20
August 2018