Rajkotupdates.News:GST-Council-No-GST-Will-Be-Charged-On-These-14-Items Info

Are you tired of paying GST? Here is some good news, as stated in rajkotupdates.news:gst-council-no-gst-will-be-charged-on-these-14-items. If you want to avail the opportunity, please read the whole article. In this article, we will discuss the list of items on which no GST will be charged and the implications of this decision.
The Finance Minister of India, Nirmala Sitharaman, has released a list of 14 items that will not attract any GST when sold loose, i.e., not pre-packaged or pre-labeled. For more information Click Here.
List of items on which no GST will be charged:
The GST Council recently announced that no GST will be charged on 14 items when sold loose. The items are as follows:
- Wheat
- Oats
- Maize
- Rice
- Rye
- Aata/Flour
- Besan
- Puffed rice
- Rawa/Suji
- Pulses/Daal
- Groundnut
- Jaggery
- Milk products
- Curd/Lassi
The decision to exempt these 14 items from GST when sold loose is expected to relieve consumers, especially those in the economically weaker sections of society. It will also help curb the misuse of the provision that reputed manufacturers and brand owners exploited.
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GST-Council-No-GST-Will-Be-Charged-On-These-14-Items
The GST Council decided to exempt these items from GST in its 47th meeting on June 28, 2022. The Council recommended reconsidering the approach for the imposition of GST on stated food items like pulses, cereals, and flour, among others.
The FM clarified that the GST rate of 5% on branded cereals, pulses, and flour was applicable when GST was rolled out. Later, it was amended to tax only items sold under registered brands or brands on which enforceable rights were not foregone by the supplier.
However, reputed manufacturers and brand owners observed rampant misuse of this provision, and gradually, GST revenue from these items fell significantly. It was resented by suppliers and industry associations who were paying taxes on branded goods. They wrote to the government to execute GST uniformly on all packaged commodities to halt such misuse.
Fitment Committee Recommends No GST on Certain Goods
The Fitment Committee consisting of officers from Rajasthan, Bihar, Uttar Pradesh, Karnataka, West Bengal, Tamil Nadu, Maharashtra, Haryana, and also, Gujarat had examined this issue over several meetings. It made its recommendations for changing the modalities to curb misuse.
For instance, when branded and packaged in a unit container, products like pulses, cereals like rice, wheat, and flour, etc., previously drew GST at 5%. These goods would only be subject to GST starting on July 18, 2022, if they were “pre-packaged and also, labelled.” It should be noted that the items on the list will not be subject to GST if they are sold loose and not packaged or labelled beforehand.
The GST Council made this choice in unanimity. At the 47th meeting of the Group of Ministers on Rate Rationalisation, held in Chandigarh on June 28, 2022, all states were present in the GST Council when this issue was raised. Punjab, Chhattisgarh, Rajasthan,West Bengal, Andhra Pradesh, Telangana, Tamil Nadu and Kerala, all of which are non-BJP states, concurred with the decision.
Introduction To Goods And Services Tax (GST)
In India, sales of goods and services are subject to the value-added tax known as the Goods and also, Services Tax (GST). On July 1, 2017, the GST went into effect, taking the place of a number of indirect taxes such excise duty, service tax, and value-added tax. The top body that advises the government on a variety of GST-related matters is the GST Council. The GST Council has declared that no GST will be applied to 14 products when sold loose.
Consumers who have been experiencing high inflation due to rising food prices may benefit from the move to exempt these commodities from GST when sold loose. The action is also anticipated to assist farmers who have been having difficulty as a result of the low pricing for their produce.
Background:
The GST Council decided to exempt these commodities from GST when sold loose at its 47th meeting on June 28, 2022. The Group of Ministers on Rate Rationalization’s suggestions served as the foundation for the decision. The central and state governments each have a representative on the GST Council, a federal organisation. The Council is tasked with recommending solutions to different GST-related problems, including as tax rates, exemptions, and procedural concerns.
The Council’s decision to simplify the GST system and make it more user-friendly is in keeping with the decision to exempt these 14 items from GST when sold loose. The Council has been attempting to rationalise tax rates and also, reduce taxpayers’ burden of compliance.
Implications Of The Decision On GST
The decision to exempt these 14 items from GST when sold individually is expected to have several implications. First, it relieves consumers who have faced high inflation due to rising food prices. The GST exemption is intended to lower the prices of these items and make them more affordable for consumers.
Second, the decision is expected to benefit farmers who are struggling with low prices for their produce. The GST exemption is expected to increase the demand for these items, which in turn will increase the prices of these items and also, benefit farmers.
Third, the decision aims to simplify and also, make the GST system more taxpayer-friendly. The GST exemption on the sale of these items is intended to relieve. The taxpayer and make it simple for them to do business.
Final Words
The GST Council’s decision to exempt these 14 commodities from GST when sold loose is a positive one that should relieve consumer stress, help farmers, and simplify the GST system. The move is consistent with the government’s goal of making the GST regime more taxpayer-friendly and is anticipated to impact the economy positively. The GST Council’s decision is a positive move, and also, it is hoped that other decisions of this kind will be made to simplify and improve the GST system.
FAQs On GST
What happens if you don’t pay GST?
Failure to pay GST can result in penalties, fines, and, in some cases, legal action. Tax authorities can initiate procedures to reclaim the unpaid GST, interest, and penalties. Not paying GST can also result in a lower credit score, affecting your ability to borrow money in the future.
Is it good to pay GST?
From an economic point of view, the GST is an excellent way to create a uniform tax structure across the country. It eliminates multiple taxes and makes the tax system simpler and more transparent. For companies, it reduces compliance burdens and eliminates the cascading effect of taxes, resulting in lower costs and increased competitiveness.
What happens if I don’t pay the GST?
Failure to pay GST can result in penalties, fines, and, in some cases, legal action. Tax authorities can initiate procedures to reclaim the unpaid GST, interest, and penalties. Not paying GST can also result in a lower credit score, affecting your ability to borrow money in the future.
Is the GST good or bad for people?
The GST is suitable for people because it eliminates the cascading effect of taxes and reduces the overall tax burden. It makes the tax system more straightforward and transparent, making it easier for people to comply with tax laws. GST also helps create a level playing field for businesses, benefiting consumers.
Is GST a success or a failure?
The GST can be considered a success as it eliminated several taxes and created a uniform tax structure across the country. It has reduced compliance burdens and eliminated the cascading effect of taxes, resulting in lower costs and also, greater competitiveness. However, there have been some implementation challenges, and the GST Council is constantly changing to address these issues.
Is GST good or bad for the Indian economy?
The GST is good for the Indian economy as it has simplified the tax system and also, reduced the compliance burden. It has eliminated various taxes and created a uniform tax structure nationwide, making it easier to do business. GST helps increase tax revenues that can be used for development and welfare programs.
Why do we have to pay GST?
We have to pay GST as it is a tax charged by the government on the supply of goods and services. GST is used to fund various government welfare and development programs. And it is also used to reduce the budget deficit and maintain macroeconomic stability.
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