Gold, silver under new tax slab of 3%

[email protected] (News Network)
June 4, 2017

New Delhi, Jun 4: Gold and silver will be taxed at 3% under the Goods and Services Tax regime, Finance Ministry Arun Jaitley announced after a meeting of the GST Council on Saturday.gold

The GST Council also decided to tax footwear below Rs 500 at 5% and biscuits at 18% under the GST, which will be rolled out from July 1.

Jaitley said footwear costing above Rs 500 will attract an 18% levy. At present, footwear priced from Rs 500-Rs 1,000 attracts 23% tax, including excise duty, and VAT levied by states.

Jaitley announced that all natural fibres, including cotton and cotton yarn, fabrics and readymade garments valued below Rs 1,000 have been classified under 5% GST rate, garments valued above Rs 1,000 under 12%, synthetic or man-made fibres and synthetic yarn under 18%, while the fabric, irrespective of fibre, has been classified under 5% GST rate. The 5% GST on readymade garments below Rs 1,000 would benefit the public, being a mass consumption item, Jaitley said.

Packaged food items sold under a registered trademark will be taxed at 5%. The GST rate on agricultural machinery for all categories was also fixed at 5 %.

While beedis will be taxed at 28% and will not attract any cess, tendu leaves will be taxed at 18%. The GST on cigarettes is likely to be decided at the next council meeting on June 11. Solar panels will be taxed at 5% under GST.

Addressing the press, Jaitley said a nominal rate of 0.25% would be imposed on a rough diamond. He said the rate for gold was fixed after intense discussion and a consensus was reached fixing the rate at 3%, which is lower than the lowest slab of 5% under the new regime that will be implemented from July 1. The new rate for gold is closer to the current tax incidence of around 2 % -1 % excise and 1% VAT. But some states charge a higher VAT, leading to even 5 % tax. “There was an extensive debate on gold, and fixing the rate between 2% and 5%. But there was almost a vertical division. A consensus has been finally reached at 3%,” he said.

Officials said the GST Council took into account the concern of several states, particularly from the south, and market experts who had warned that a higher tax rate on gold will increase smuggling, with most traders choosing to evade taxation altogether. There is already a high proportion of cash transactions on the metal. Jewellers had wanted the levy on the precious metal at close to a concessional rate of 1%.

Jaitley declared that the Central government was “confident of sticking to the target date of July 1”. “All states have agreed on the rollout of GST from that date,” Jaitley said. West Bengal Chief Minister Mamata Banerjee had earlier said her state would not rollout the new indirect tax regime in its present form.

Commodities Present rate of tax GST

Gold 1% excise duty & 1% VAT 3%

Biscuits 6% excise duty on products cost- 18%

ing below Rs 100 & 14.5% VAT

Readymade 5.5% VAT 12% & yarn

garments & fabric cotton 5%

Footwear Up to Rs 500 exempted 5% on products

Above Rs 500 14.5% VAT upto Rs 500

18% on products

above Rs 500

Jute 2% VAT Exempted

Beedi Exempted 28%

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News Network
April 6,2020

Bengaluru, Apr 6: Karnataka State Board for Auqaf on Monday suspended mass prayers and visit to the Qabrasthans (graveyards) and dargahs on the occasion of Shab-e-Barat on April 9 due to the coronavirus pandemic.

"It is hereby directed to all not to hold congregational prayer in the Masjid and the management of the Qabrasthans/Dargahs throughout the State should suspend the visit of public on the occasion of Shab-e-Barat on Thursday, April 9," according to a statement here on Monday.

It said, no public shall be allowed to perform religious rituals in the Qabrasthans/Dargahs and all the gates shall be kept closed.

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News Network
April 29,2020

Washington, Apr 29: A US government panel on Tuesday called for India to be put on a religious freedom blacklist over a "drastic" downturn under Prime Minister Narendra Modi, triggering a sharp rebuttal from New Delhi.

The US Commission on International Religious Freedom recommends but does not set policy, and there is virtually no chance the State Department will follow its lead on India, an increasingly close US ally.

In an annual report, the bipartisan panel narrowly agreed that India should join the ranks of "countries of particular concern" that would be subject to sanctions if they do not improve their records.

"In 2019, religious freedom conditions in India experienced a drastic turn downward, with religious minorities under increasing assault," the report said.

It called on the United States to impose punitive measures, including visa bans, on Indian officials believed responsible and grant funding to civil society groups that monitor hate speech.

The commission said that Modi's Hindu nationalist government, which won a convincing election victory last year, "allowed violence against minorities and their houses of worship to continue with impunity, and also engaged in and tolerated hate speech and incitement to violence."

It pointed to comments by Home Minister Amit Shah, who notoriously referred to mostly Muslim migrants as "termites," and to a citizenship law that has triggered nationwide protests.

It also highlighted the revocation of the autonomy of Kashmir, which was India's only Muslim-majority state, and allegations that Delhi police turned a blind eye to mobs who attacked Muslim neighborhoods in February this year.

Coronavirus state-wise India update: Total number of confirmed cases, deaths on April 29

The Indian government, long irritated by the commission's comments, quickly rejected the report.

"Its biased and tendentious comments against India are not new. But on this occasion, its misrepresentation has reached new levels," foreign ministry spokesman Anurag Srivastava said.

"We regard it as an organization of particular concern and will treat it accordingly," he said in a statement.

The State Department designates nine "countries of particular concern" on religious freedom -- China, Eritrea, Iran, Myanmar, North Korea, Pakistan, Saudi Arabia, Tajikistan and Turkmenistan.

The commission asked that all nine countries remain on the list. In addition to India, it sought the inclusion of four more -- Nigeria, Russia, Syria and Vietnam.

Pakistan, India's historic rival, was added by the State Department in 2018 after years of appeals by the commission.

In its latest report, the commission said that Pakistan "continued to trend negatively," voicing alarm at forced conversions of Hindus and other minorities, abuse of blasphemy prosecutions and a ban on the Ahmadi sect calling itself Muslim.

India's citizenship law fast-tracks naturalization for minorities from neighbouring countries -- but not if they are Muslim.

Modi's government says it is not targeting Muslims but rather providing refuge to persecuted people and should be commended.

But critics consider it a watershed move by Modi to define the world's largest democracy as a Hindu nation and chip away at independent India's founding principle of secularism.

Tony Perkins, the commission's chair, called the law a "tipping point" and voiced concern about a registry in the northeastern state of Assam, under which 1.9 million people failed to produce documentation to prove that they were Indian citizens before 1971 when mostly Muslim migrants flowed in during Bangladesh's bloody war of independence.

"The intentions of the national leaders are to bring this about throughout the entire country," Perkins told an online news conference.

"You could potentially have 100 million people, mostly Muslims, left stateless because of their religion. That would be, obviously, an international issue," said Perkins, a Christian activist known for his opposition to gay rights who is close to President Donald Trump's administration.

Three of the nine commissioners dissented -- including another prominent Christian conservative, Gary Bauer, who voiced alarm about India's direction but said the ally could not be likened to non-democracies such as China.

"I am deeply concerned that this public denunciation risks exactly the opposite outcome than the one we all desire," Bauer said.

Trump, who called for a ban on Muslim immigration to the US when he ran for president, hailed Modi on a February visit to New Delhi.

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July 4,2020

Mangaluru, Jul 4: In the wake of mounting coronavirus cases in Dakshina Kannada, all jewellery shops district will be closed for five days from July 5 to July 9.

The decision was taken by the Dakshina Kannada district unit of Jewellers’ Association.

All the jewellery shops including corporate jewellery shops in Manglauru and other parts of district will remain closed for five days, a media release said.

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