Political News

Services to fall under more than one slab in GST, says Government

Dated 27th April, 2017

Services to fall under more than one slab in GST, says GovernmentThe government has clarified that all services cannot fit into one standard slab of 18%. Some services which face effective service tax (incorporating impact of abatement and credits) lower than standard rate of 15% would be classified at lower slab rate of 12%.

“The abatement rate has to be factored in and there can be more than one rate,” Adhia told reporters

For instance, when it comes to goods transport, service tax is levied on 30% of the bill. Currently, service tax is pegged at 15% but the actual levy in several categories is much lower.

The revenue secretary, Hasmukh Adhia, also stressed on pace with which government is moving to ensure July roll out.

“Trade and industry should not be complacent. There will be no change for small traders and the ERP software of the large players are being upgraded.” He also sought to allay fears over a possible price rise following GST given that cascading effect of taxes will go away. “Almost 60% income of the Centre and the states comes from items that attract 14% VAT and 12.5% excise duty. There will be a likely decrease in the tax on each of these items under GST,” Adhia said.

Source: www.business-standard.com