GoM for 12% GST on AC eateries, composition scheme tax cut

Agencies
October 30, 2017

New Delhi, Oct 30: The ministerial panel working to make GST composition scheme more attractive today suggested slashing tax rate to 1 per cent for manufacturers and restaurants, while easier norms for traders opting for it.

Currently, manufacturers and restaurants with turnover up to Rs 1 crore pay GST under composition scheme at 2 per cent and 5 per cent respectively. The same for traders is 1 per cent.

In its second meeting, the Group of Ministers, headed by Assam Finance Minister Himanta Biswa Sarma, today also suggested doing away with the tax rate distinction between AC and non-AC restaurants, those which are not covered under composition scheme, and tax them at 12 per cent with input credit.

It also suggested that eating out at hotels, which has room tariff of more than Rs 7,500, should attract an uniform 18 per cent tax rate instead of any separate category for 5- star hotel.

The GST Council, chaired by Union Finance Minister Arun Jaitley and comprising his state counterparts, on November 10 in Guwahati is likely to take up the recommendations of the GoM, which was set up earlier this month.

With regard to traders, the GoM suggested two prongedapproach for taxation under the composition scheme.

It suggested that traders who want to exclude the sale proceeds of tax-free items from its turnover, it can pay 1 per cent GST (Goods and Services Tax). However, those traders who pay tax on total turnover, the tax rate has been proposed at 0.5 per cent.

For example, supposing a trader deals in goods which are tax exempt as well as those which are taxable under the GST and has a turnover of Rs 1 crore. Of this, Rs 40 lakh turnover is from sale of tax-exempt items and remaining Rs 60 lakh from taxable goods.

So, traders deciding to pay tax on total Rs 1 crore turnover can pay 0.5 per cent, while those wanting to pay tax on Rs 60 lakh can cough up 1 per cent GST.

"The GoM decided that tax rates under composition scheme for restaurants and manufacturers be lowered to 1 per cent. For traders the ministerial group suggested two tax rates," an official told PTI.

The GoM also recommended allowing businesses who are engaged in inter-state sale to avail the composition scheme, he added.

Around 15 lakh businesses opted for composition scheme, which allows them to pay taxes at a concessional rate and makes compliance easy under the Goods and Services Tax (GST) which rolled out from July 1. There are over 1 crore businesses registered under GST.

Composition scheme is open for manufacturers, restaurants and traders whose turnover does not exceed Rs 1 crore. This threshold was earlier Rs 75 lakh and the GST Council earlier this month raised it to Rs 1 crore from October 1.

While a regular taxpayer has to pay taxes on a monthly basis, a composition supplier is required to file only one return and pay taxes on a quarterly basis.

Also, a composition taxpayer is not required to keep detailed records that a normal taxpayer is supposed to maintain.

The GoM was tasked with revisiting the tax structure of different categories of restaurants with the aim of rationalising or reducing the rates, apart from making composition scheme more attractive for businesses.

Currently, GST is levied at 12 per cent on non-AC restaurants, while it is 18 per cent for air-conditioned ones.

The other members of the GoM are Bihar Deputy Chief Minister Sushil Modi, Jammu and Kashmir Finance Minister Haseeb Drabu, Punjab Finance Minister Manpreet Singh Badal and Chhattisgarh Minister of Commercial Taxes Amar Agrawal.

The GoM has also suggested that manufacturers engaged in job works can be allowed to opt for composition scheme, the official added.

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News Network
March 31,2020

Thiruvananthapuram, Mar 31: Kerala Chief

Minister Pinarayi Vijayan on Tuesday said the government has collected the details of those who took part from the state in recent religious congregations in Nizamuddin and Malaysia and it needs to be examined if they have any health issues.

"Police have already made detailed examination in this regard. Thelist of participants have been given through respectivedistrictcollectors. Necessary precautions will be made in the concerned districts in this regard," Vijayan told reporters here.

The government has the exact number of participants and thedetails of the districts they are hailing from, he said.

Meanwhile, Pathananthitta police said they have identified 6 persons in the district in connection with the Nizamuddin congregation.

"Three persons had taken part in the congregation, of them one hadalready died. One person is in quarantine in the district while theother is located now in Thiruvananrhapuram," a senior police officialtold PTI.

The others are not participants but had travelled to Delhi along with them, he said.

In the nearby Alappuzha district, three persons have been identified in connection with the congregation, police said.

"They have been in quarantine and under the surveillance of thehealth department since they have reached back the state from Delhi," another official said.

Several people, who had attended the religious congregation at Nizamuddin in the national capital are suspected to be having symptoms of Covid19, even as at least 24 have tested positive.

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News Network
June 20,2020

Hyderabad, Jun 20: IAF Chief Air Chief Marshal RKS Bhadauria on Saturday said that the force is well prepared and suitably deployed to respond to any contingency and it will never let the sacrifice of the bravehearts of Galwan go in vain.

"It should be very clear that we are well prepared and suitably deployed to respond to any contingency. I assure the nation that we are determined to deliver and will never let the sacrifice of the braves of Galwan go in vain," IAF Chief Air Chief Marshal Bhadauria said here.

Bhadauria was speaking at the Combined Graduation Parade (CGP) at Air Force Academy in Hyderabad.

His remarks come days after 20 Indian soldiers lost their lives in the violent face-off on June 15-16 during an attempt by the Chinese troops to unilaterally change the status quo during the de-escalation in eastern Ladakh.

Speaking about the current border situation with China, he said: "We are aware of the situation, be it on LAC or beyond, be it their air deployments, their posture and kind of deployments. We've full analysis and we have taken necessary action that we need to take to handle any contingency that may come up."

"We are monitoring all the moments and we are aware of the full situation," he added.

He further said that in spite of the "unacceptable Chinese action" at Galwan Valley in eastern Ladakh, which claimed lives of 20 Indian Army personnel, efforts are underway to ensure that the current situation at the Line of Actual Control (LAC) is resolved peacefully.

He asserted that the IAF is determined to deliver and the development at the LAC in Ladakh is a small snapshot of what the force is required to handle at short notice.

The IAF Chief further appealed to people to join him in paying tribute Colonel Santosh Babu and his brave men who made the sacrifice while defending the LAC in Galwan valley.

"The gallant actions in a highly-challenging situation have demonstrated our resolve to protect India's sovereignty at any cost," the Indian Air Force (IAF) chief said.

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Agencies
March 14,2020

New Delhi, Mar 14: The central government on Saturday declared COVID-19 as a national 'disaster' and announced to provide ex-gratia relief of Rs 4 lakh to the families who died of the virus.

The Ministry of Home Affairs in a letter to states and union territories stated: "Keeping in view that spread of COVID-19 virus in India the declaration of it as pandemic by World Health Organisation, the Central government has decided to treat it as a notified disaster and announced to provide assistance under State Disaster Response Fund (SDRF)."

The Centre said that cost of hospitalization for managing COVID-19 patient would be at the rates fixed by the state governments. The state government can use SDRF found for providing temporary accommodation, food, clothing and medical care for people affected and sheltered in quarantine camps, other than home quarantine, or for cluster containment operations.

The state executive committee will decide the number of quarantine camps, their duration and the number of persons in such camps. "Period can be extended by the committee beyond the prescribed limit subject to condition that expenditure on this account should not exceed 25 percent of SDRF allocation for the year," the Ministry of Home Affairs notification stated.

The cost of consumables for sample collection would be taken from the funds which can be sued to support for checking, screening and contact tracing.

Further, funds can also be withdrawn for setting up additional testing laboratories within the government set up. The state has also to bear the cost of personal protection equipment for healthcare, municipal, police and fire authorities. Further SDRF money can also be used for procuring thermal scanners and ventilation and other necessary equipment.

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