The sale returns for July will have to be filed before September 5 instead of August 10.
Kerala extracted more benefits from the upcoming Goods and Services Tax (GST) regime with the GST Council submitting to state finance minister T.M. Thomas Isaac's demand to tax private lotteries from other states on a par with gambling.
No late fees and penalty will be levied for the interim period and the returns will have to filed by businesses with self-declaration, stating the input credit claimed and the tax liability pursuant to that.
Jaitley today responded by stating, "To obviate any lack of preparedness, a slight relaxation of time for two months - July-August - has been given".
A women cover her faces with anti-Goods and Services Tax (GST) placards during a protest as they gather in front of Parliament House in Kuala Lumpur, Malaysia on October 25, 2013. He said, an 18 per cent GST will be levied on bills of 2,500 rupees to 7,500 rupees.
Under the soon-to-be-implemented GST regime, healthcare will continue to be out of the service tax net, in an effort to avoid giving any shock in the first year of the rollout by bringing in new services. The Council also decided that hotel rooms in the tariff range of Rs 2,000- Rs 7,500 a day would attract 18 per cent tax, while rooms with daily tariff above Rs 7,500 would be taxed at 28 per cent. Restaurant service in 5-star hotels would attract 18 per cent tax, Jaitley said.
Rahul Garg, a former Google executive, is positioning his e-commerce firm Moglix for the GST's launch on July 1 when, at a stroke, at least six million companies will have to start filing taxes returns online. "CAIT has also urged that since GST Council is scheduled to meet on 30th June, 2017, a re-look at 28% tax slab is much needed because various items which are neither luxury and nor demerit have been placed under this slab".More news: US Congress baseball game brings unity after shooting of Republican Steve Scalise
Isaac said that the GST is expected to lessen the tax burden by Rs 1 lakh crore and the government was taking all steps to ensure that corporates did not profit from this relief.
The council has chose to tax state-run lotteries 12%, while private ones would attract a rate of 28%.
The GST Council has approved anti-profiteering rules to form the mechanism. West Bengal has already passed an ordinance, Punjab I hope will pass it. Kerala also.
Earlier, the composition limit for all states was increased from Rs 50 lakh to Rs 75 lakh.
The council also fixed a 28 percent tax rate on beedi, adding that no cess is chargeable on the same.
"Till a consolidated rule is framed by consesnsus, the transient rule will continue", Jaitley said on the e-way bill issue. Businesses now have time till September to purchase and familiarise themselves with GST-compliant software.