Who will benefit and who will be harmed

If this decision is implemented, on one hand some people will get a big benefit from it, while on the other hand many people will have to bear the loss. Consumers associated with the goods and services that come in the 12 percent slab will get a big benefit from this. On the other hand, consumers associated with the goods and services that come in the 18 percent slab will have to pay more than before.

Who will take the final decision on GST slab

Officials and experts advising the Group of Ministers (GoM) on rationalisation of GST rates have reached a “near consensus” that the current 12 per cent GST slab is no longer relevant and items falling under it can be shifted to 5 per cent or 18 per cent slabs. It said the proposal to remove the 12 per cent tax slab has been supported by most central and state government officials, experts and GoM representatives. However, the GST Council has to take a final decision on this.

Which items fall under 12% GST slab?

India currently has 4 GST slabs of 5%, 12%, 18% and 28%. The 12% GST slab includes condensed milk, drinking water packaged in 20-litre bottles, walkie talkies, tanks and other armoured fighting vehicles, contact lenses, cheese, dates, dry fruits, pasta, jam, packaged fruit juices, namkeen, feeding bottles, carpets, umbrellas, hats, bicycles, wooden furniture, pencils, handbags made of jute or cotton, shopping bags, shoes priced below Rs 1000, diagnostic kits and many more. Let us tell you that the next meeting of the GST Council is expected to be held in late June or early July.

The post GST Council may abolish 12% slab, things will be shifted to these different slabs – know details first appeared on Rightsofemployees.com.

The GST Council has decided to increase the rate of Goods and Services Tax (GST) applicable on the sale of old cars from 12% to 18%. Earlier, it was levied at different rates according to the type of vehicle. People have many questions in their minds about the new GST rules (Used Car GST Rates) imposed on old or second-hand cars. Like, how much GST has been imposed on it? Will GST have to be paid on selling the car? If the car is sold at a loss, will tax still have to be paid? And to whom will these rules apply? Let us tell you the answers to all these questions one by one.

To whom will the new GST rules apply?

This new GST rule will apply to those who are GST registered and deal in old cars. The government has clarified that this rule will apply only to those who do business of buying and selling old or used cars, such as companies like Spinny, Car Dekho, Cars24. GST registration is mandatory for these businessmen, and they will have to pay 18% GST.

According to the new rules, a registered dealer will have to pay GST on the sale of an old or used car only if he earns a margin on selling the vehicle. This means that when the selling price is more than the depreciation adjusted cost of the vehicle, only then will he have to pay GST as per the new rules.

What impact will it have on the common man?

If you are a common citizen and want to sell your old car, then there is relief for you. This new GST rule will not have any effect on the common man. If you sell your old car, then you will not have to pay GST. This rule applies only to those who buy and sell old cars for business.

Will GST have to be paid even if the sale is sold at a loss?

If a GST registered businessman sells an old car and incurs a loss, he will not have to pay GST. GST will be applicable only in the case when the businessman makes a profit on the sale of the car, that is, GST will have to be paid on the profit, but in case of loss, no tax will be levied.

Tax on used car sales

Currently, all old and used automobiles including EVs are eligible for 12% GST. Old and used petrol cars with engine capacity of 1200 cc or more and length of 4000 mm or more, diesel vehicles and SUVs with engine capacity of 1500 cc or more and length of 4000 mm are eligible for 18%. Now the GST Council has imposed 18% GST on all cars including EVs.

According to the Finance Minister, the Council has decided to increase the tax rate on the sale of all used EVs from 12% to 18%, just like non-electric vehicles. And this will apply only on the margin value.

The new GST rule has no significant impact on the common man

The increase in GST will have the biggest impact on those businesses that claim input tax credit (ITC) on the purchase of vehicles. For consumers, this rule will depend on whether they bought the vehicle from a registered seller or an unregistered seller. The new GST rules are applicable only to GST registered businessmen and it will not have any significant impact on the common man. Apart from this, businessmen will not have to pay GST on sales at a loss. This rule has been brought with the aim of ensuring transparency and tax collection in the business of buying and selling old cars.

The post GST on selling old cars: 18% GST will have to be paid on selling old car, new rule will apply to these people first appeared on Rightsofemployees.com.

This meeting of the GST Council was considered special because in this the government would give a discount in GST rates on the premium of term life insurance, health insurance and health insurance of senior citizens, but this issue has been postponed for the time being in this meeting of the GST Council.

There was no consensus among the group of ministers

The GST Council on Saturday deferred the decision to reduce the tax rate on the premium of life and health insurance policies. Officials gave this information. In the 55th meeting of the GST Council, it was decided that some more technical aspects need to be resolved in this regard. The work was assigned to the GoM for further discussions in this regard.

This decision was taken by the council chaired by Union Finance Minister Nirmala Sitharaman and attended by her counterparts from the states. Bihar Deputy Chief Minister Samrat Choudhary said that another meeting of the GoM on insurance will be held to decide on taxation on group, individual, senior citizen policies.

This will be discussed again in January

Chaudhary told reporters, “Some members said that more discussion is needed. We (GoM) will meet again in January.” The Council has constituted a Group of Ministers (GoM) on Insurance under the chairmanship of Chaudhary, which in its meeting in November agreed to exempt the insurance premium of term life insurance policies from GST.

Also, it has been proposed to exempt the premium paid by senior citizens for health insurance cover from tax. It is also proposed to exempt from GST the premium paid for health insurance up to Rs 5 lakh for persons other than senior citizens. However, 18 percent GST will continue on the premium paid for policies with health insurance cover of more than Rs 5 lakh.

Related Articles:_

Kejriwal announces Ambedkar scholarship for free foreign education of Dalit students in Delhi

Holiday List 2025: Govt Employees will Get 41 Holidays in Addition to Weekly Holidays Next Year, See List Here

School Time Change: Due to sudden increase in cold weather, timings of all schools changed, notification issued

The post GST Council postpones decision on lowering GST health, life insurance first appeared on Rightsofemployees.com.

A decision is to be taken on reducing the rate of 18 percent GST on the premium of both the insurances. Along with this, a big decision is also likely to be taken regarding rationalizing the current rates of GST.

Experts related to the matter say that the meeting will mainly focus on topics like health and life insurance. The group of ministers has submitted its report on reducing the GST rate on both insurances. Sources say that the group has decided to remove GST rates on insurance up to Rs 5 lakh, but experts say that a decision can be taken to reduce GST rates on insurance of more than Rs 5 lakh from the current level. At present, 18 percent GST is levied, but the GST Council can also decide to reduce it to 12 percent or less.

consensus among states

Many states are in favour of the fact that common citizens buy health and life insurance to ensure their future security, for which the government should not levy taxes on people. But some states argue that if GST is completely removed, the states will lose revenue. It is estimated that if GST is removed on insurance up to Rs 5 lakh, revenue of about Rs 2100 crore will be affected. In such a situation, a middle path can be found and GST rates can be reduced on insurance above Rs 5 lakh.

The government gets huge revenue

A huge amount of money goes to the treasury of the central and state governments in the form of GST through health and life insurance. According to the data, the total health insurance premium in the financial year 2022-23 was around Rs 90,032 crore, in which the contribution of individual health insurance premium was Rs 35,300 crore. Now if the current 18 percent GST rate is added to this, then tax of Rs 6,354 crore was collected from individual premiums. Therefore, all the situations will be studied before taking a final decision.

There will also be discussion on making GST rates rational

The Group of Ministers (GoM) is also working on rationalizing the existing rates of GST. Currently, there are four common tax rates or slabs of GST across the country, which include 5, 12, 18 and 28 percent. Last month, a meeting of the newly formed Group of Ministers chaired by Bihar Deputy Chief Minister Samrat Chaudhary was held, in which he said that additional discussions would be held before taking a final decision on rationalizing the GST rate. The group has received many suggestions, which are being considered. The final decision will be taken based on the suggestions of all the parties.

Related Articles:-

Petrol Pump Free Facilities: You can use these facilities for free at petrol pumps, see the full list

Credit Card New Rules: New rules are being implemented from December 1, if you also have one then know it

Indian Railways to begin trials of India’s first hydrogen train in Dec 2024 – Know the speed & routes

The post GST on Insurance: Big relief can be provided on GST of insurance premium first appeared on Rightsofemployees.com.

There may be a change in the GST rate of some items. The Group of Ministers on GST may gradually eliminate the 12 percent slab by putting some items in the 5 percent slab and some in the 18 percent slab. Its purpose is to simplify the tax framework and reduce tax compliance for businesses. People associated with this matter told Moneycontrol this. After removing the items from the 12 percent slab, this slab ended. Then instead of four, there will be only 3 slabs of GST – 5 percent, 18 percent and 28 percent.

Focus on simplifying the GST system

A person aware of the matter said on the condition of anonymity that this could be another option instead of merging the 12% and 18% slabs. The proposal to merge the two slabs has been under consideration for a long time. Another source said that the 12% slab is expected to cease to exist. It has been 7 years since the GST system was implemented. In such a situation, the pressure on the GST Council to rationalize the slabs has increased.

The burden of compliance on businesses will be reduced

Experts say that simplifying the GST system and reducing the number of slabs will reduce the compliance burden on businesses. Rajat Mohan, executive director of consultancy firm Mor Singhi, said that by putting things falling in 12% slab in 5% or 18% slab, the need for 12% slab will end. This can be a big step towards simplifying the tax structure.

Group of ministers may submit report this month

The chairman of the group of ministers formed to simplify GST rates is Bihar’s Deputy Chief Minister Samrat Chaudhary. It is expected that this group will submit its report this month. After this, this report can be considered in the GST Council meeting next month. The source who gave information about this said that the proposal to remove items from the 12 percent slab is being worked on. But it will take time, because the states will give their consent only after understanding its impact on revenue.

Related Articles:-

Pensioners DA-DR- Bonus! DA-DR may increase by 3%, salary and bonus will be given before Diwali, govt has made preparations

Petrol Diesel Price: New prices of petrol and diesel released early in the morning, know the rate

EPFO’s new system: Now you will get an SMS alert as soon as your PF is deposited

The post GST tax slab: 12% GST tax slab may be abolished, know what is the plan of GST Council first appeared on Rightsofemployees.com.

If this decision is taken, then they may have to pay GST even on payments of less than Rs 2000 through debit and credit cards. At present, they have been given exemption on small transactions. The GST Fitment Panel believes that these companies cannot be placed in the category of banks.

80% of digital payments are worth less than Rs 2,000

A report by CNBC TV18 claims that the GST fitment panel believes that GST should be imposed on payment aggregator companies. This will prove to be a big blow to all payment aggregator companies because currently more than 80 percent of the total digital payment transactions in the country are worth less than Rs 2000. According to a government notification issued during demonetisation in 2016, payment aggregators were barred from levying tax on services provided to merchants on small transactions.

At present, fees ranging from 0.5% to 2% are charged

Payment aggregators currently charge 0.5% to 2% on every transaction from merchants. If GST is implemented, they can pass on the additional cost to merchants. Currently, payment aggregators do not pay GST on transactions less than Rs 2000. They provide payment facilities through many digital payment systems like QR code, POS machine and net banking. If this happens, it will have a bad impact on small businessmen. Most of their payments are less than Rs 2000. If a businessman currently has to pay a fee of Rs 10 along with 1% gateway fee on a payment of Rs 1000, then after GST, he will have to pay Rs 11.80.

Also Read: 7th Pay Commission: Govt employees da hike issued order to increase by 9%, Salary…

GST will be applicable only on payments made through debit and credit cards

Currently, UPI has become the most popular method of digital payment. In the financial year 2024, UPI transactions have increased by 57 percent on an annual basis and have crossed 131 billion. UPI’s share in digital payments has exceeded 80 percent. GST is applicable only on digital transactions done through debit and credit cards. Merchant Discount Rate (MDR) is not applicable on UPI transactions, so there will be no impact on them even after GST is imposed.

Related Articles:-

IRDAI issued master circular: Insurance company will have to issue the policy within 15 days, policyholders get many rights

Old Pension Scheme: Govt has given the policemen the option to opt for the Old Pension Scheme

Govt’s contribution: Now the central government will give 18.5% of your basic salary, check all details

The post GST Council: You may have to pay 18% GST on payments up to Rs 2000. See Details Here first appeared on Rightsofemployees.com.

This GST will be collected from the payment aggregator. Payment aggregators are third party platforms that help a merchant accept payments. With their help, a merchant does not need to create his own payment gateway. Razorpay, Paytm and Googlepay are examples of payment aggregates.

When the government demonetised Rs 2000 notes, it stopped charging service tax from aggregators on transactions of less than Rs 2000 to promote digital transactions. Now, tax can be levied on it again. However, the government does not charge tax on the entire transaction amount.

Also Read: Income Tax Refund did not come after filing ITR, know step by step what…

What is the whole matter?

Actually, payment aggregators charge some money from merchants for providing their services. This is 0.5-2 percent of every transaction. Most aggregators keep it at 1 percent. The government charges service tax on this 0.5-2 percent amount. Therefore, it will not have a direct impact on common people. But it will create problems for small shopkeepers.

Online transactions will be affected.

If the government starts levying service tax on every transaction of less than Rs 2000, then the aggregators will put this burden on the shopkeepers. It is possible that to reduce this burden, shopkeepers may stop accepting online payments for small transactions or start collecting it from the customers.

Related Articles:

Senior Citizens FD Rates: These 5 banks are giving the highest interest on FD to senior citizens, check interest rates here

EPS Pensioners: Good news! You will be able to take pension from any bank anywhere in the country from January 1, 2025, know update…

IMPS Charges: What are the charges of banks for IMPS money transfer, Check charges details here

The post Will 18% GST be levied on transactions through debit and credit cards? What will be its impact on you? first appeared on Rightsofemployees.com.

The Finance Minister of West Bengal said that the GST Council has agreed to levy 28 percent GST on all three types of sports. Apart from this, consensus has been reached in the GST Council on many other issues as well.

Online gaming has been brought under the ambit of GST law in the GST Council meeting held at Vigyan Bhawan, Delhi. Finance Minister of West Bengal said that 28% GST will be imposed on online gaming, horse race and casino. Till now 18 percent GST rate was applicable, which has been increased by 10 percent. Earlier, in the last meeting of the Group of Ministers, there was a broad agreement on taxation on all three activities, which has been passed in the GST Council.

A group of top online gaming firms has urged the Central Board of Indirect Taxes and Customs (CBIC) through the FICCI gaming committee not to increase the GST rate for the sector from 18% to 28%. The companies said that this would be extremely harmful for the existence of the online gaming industry. Because no business operation can survive with such high taxation.

GST Council agreed on these matters

• It was also agreed in the GST meeting that imported medicine for cancer will be kept out of the purview of IGST.
• It was agreed to cut the GST rate on food and drink items in cinema halls.
• The council has also agreed on giving GST share to the consumer state on the registration of vehicles.
• The Central Board of Indirect Taxes and Customs (CBIC) said that in the investigation it was found that 25 percent GST accounts do not exist or have disappeared after tax evasion of 15 thousand crores.

The post GST Council Meet: GST increased by 10% on online gaming, horse race and casino, now 28% GST will be applicable first appeared on Rightsofemployees.com.

Many decisions have been taken in the 48th meeting of the GST Council. Revenue Secretary Sanjay Malhotra gave information about the decisions taken after the end of the 48th meeting of the GST Council. He told that in these, the GST Council has agreed to keep some of the irregularities being done in compliance out of the category of crime. Along with this, it has been decided to double the limit for initiating prosecution to Rs 2 crore.

In this 48th GST Council Meeting, there hasn’t been any tax increase on any item. No new taxation has been brought in. Everything that has been done is to issue clarifications where ambiguity of interpretations prevailed.

– Smt @nsitharaman. pic.twitter.com/rb3RGzaotL

— NSitharamanOffice (@nsitharamanoffc) December 17, 2022

No decision was taken on these, while no decision could be taken on making a system to prevent tax evasion in Pan Masala and Gutkha business. After the meeting, Sanjay Malhotra said that the GST on online gaming and casinos was not discussed in this meeting, because the Group of Ministers (GoM) headed by Meghalaya Chief Minister Conrad Sangma had discussed this issue a few days ago. submitted its report. Due to paucity of time, the report could not be given to the members of the GST Council.

Tax rate on husk of pulses, including chilka and concentrates, has been reduced from 5% to nil.

– Revenue Secretary Shri Sanjay Malhotra while elaborating on outcomes of 48th GST Council Meeting. pic.twitter.com/PR5tUmTfxN

— NSitharamanOffice (@nsitharamanoffc) December 17, 2022

With this, Revenue Secretary Sanjay Malhotra informed that the council has increased the limit for initiating prosecution for irregularities in compliance with the GST law and agreed to increase it from Rs 1 crore to Rs 2 crore. Is. At the same time, it was decided to abolish GST on the peel of pulses. Till now 5% GST was levied on the peel of pulses.

The post 48th GST Council Meeting Update: In this 48th GST Council Meeting, there hasn’t been any tax increase on any item, know full details first appeared on Rightsofemployees.com.

New Delhi. The Central Board of Indirect Taxes and Customs (CBIC) has extended the deadline for filing Goods and Services Tax (GST) returns for the month of September by a day to October 21. Taxpayers had to face problems due to the slow working of the GST portal on Thursday. October 20 was the last date for filing monthly GST returns for some taxpayers.

On the slow running of the portal, CBIC had said that extension of the deadline is being considered. “The GST Council has approved the extension of due date for filing GSTR-3B Return for September, 2022 from October 20, 2022 to October 21, 2022,” CBIC tweeted on Friday.

The CBIC said that Thursday was the last date for filing GST returns for some categories of businessmen, but many taxpayers complained about the slow running of the portal, forcing them to submit their monthly GST return Form GSTR 3B. Could not fill

Earlier, the CBIC had said that they had received a complaint from the GST Network (GSTN) along with a proposal. In which it has been said that due to the slow running of the GST portal, there is a problem in filing monthly returns, so its deadline should be extended. At the same time, due to this decision of CBIC, there will be no burden of late fee or interest on the taxpayers.

Explain that in different states, taxpayers file monthly return and tax payment form GSTR-3B in different ways between 20th, 22nd and 24th of every month.

The post GST Return: Good news for small businessmen, will be able to file GST return for September till October 21 first appeared on Rightsofemployees.com.