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The Great GST Divide- Business News

The Great GST Divide- Business News
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Finance ministry notifies new reduced GST rates on Covid essentials

Finance ministry notifies new reduced GST rates on Covid essentials
The reduced rates, which have come into immediate effect, will remain in force till September 30, 2021
The finance ministry has notified the new reduced goods and services tax (GST) rates on Covid essentials but remained silent on the rates of the items that are with the stockists.
The reduced rates, which have come into immediate effect, will remain in force till September 30, 2021.
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“It is better that the government should clarify for no disputes. stockists should be allowed refund as they have paid higher rates of GST on stocks prior to the latest notification and will be selling at a lower rate,” Bimal Jain, tax expert, said. ....

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Indian GST and its promises: Four years on

GST in India came into effect from 1 July 2017
More than a decade ago, India inched towards reforming its indirect taxation system by looking to implement a goods and services tax (GST), a tool and system to eliminate the cascading effects of the existing duties and taxes, and to enable a continuous chain of set-offs such that all burdens of cascading effects are reduced (First Discussion Paper, November 2009).
This principle was engrafted in the Statement of Objects and Reasons appended to the Constitution (One Hundred and First) Amendment Bill, 2016, with the words “simplify and harmonise the indirect tax regime in the country” and “due to seamless transfer of input tax credit….” ....

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