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Yet another milestone for success of new tax system and boost to trade and revenue: CII
Jul 22, 2018

Confederation of Indian Industry (CII) welcomed the landmark decisions taken by the GST Council at its 28th Meeting, stating that these were in line with industry submissions. The Government and GST Council have been responsive and proactive to the requirements of trade and industry since the very roll out of GST, which has made its implementation the shortest period of adjustment as compared to other countries.

Earlier also, GST rates on more than 200 items were tweaked and rationalized and laws and procedures were simplified, in alignment with CII submissions and industry appreciates the stand of the Council to work towards a facilitative GST regime.

Trade and industry will benefit greatly from the decisions taken at the 28th Meeting of GST Council held on 21st July 2018. Raising the limit for composition scheme from Rs. 1 crore to Rs. 1.5 crore, permitting composition dealers to supply services (other than restaurants) for up to a value not exceeding 10% of turnover in preceding financial year or up to Rs 5 lakh and other decisions shall particularly benefit the SME sector, said CII.

CII welcomed the approval of simpler return filing process that will benefit 93% traders and small businesses. With GST rates on more than 100 mass-use items reduced and 17 consumer /white goods moved from 28% to 18%, the needs of a growing class of consumers have been addressed by the Council. This will provide relief to consumers and boost consumption and employment

Reduction of GST rates form 28% to 12% on Fuel cell vehicles along with exemption for compensation cess shall add to the clean environment and promote manufacturing of clean energy vehicles, added CII. Ethanol for oil companies have also been put under 5%.

The expansion of footwear price applicability to Rs 1,000 is aimed at strengthening the leather industry and incentivizing employment, according to CII.

CII particularly appreciates the positive response of the GST Council for the hotel industry where tax will now be applicable on the actual bill of hotel instead of declared tariff. This shall be a great relief to the hotel industry and greatly boost tourism.

The provision of exemption from GST for mercantile trade where supply of goods is from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India and other decisions will assist exporters, noted CII. Exporters making exports to select countries where exports proceeds are received in Indian currency shall be benefited as their supply of services shall qualify as exports, even if payment is received in Indian Rupees, where permitted by the RBI.

The attention to reducing rates and simplification of filing of returns as well as widening of input tax credit shall certainly increase the compliance rate and add to revenue buoyancy. 

22 July 2018 

New Delhi 

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