'Entertainment services tax to be less under GST'

Modi's biggest tax reform GST to transform India's $2 trn economy

Modi's biggest tax reform GST to transform India's $2 trn economy

The Delhi government on Wednesday approved a special, one-day session of the assembly for passing the state Goods and Services Tax (GST) Bill on May 31. Also, they have to compulsorily pay the service tax of 15%. Responding to which Goyal said that at present it was not feasible to reduce the tax slabs under the initial roll out of the GST because of the wide array of goods and services under the tax net.

Thus, while GST is a value added tax, entertainment tax, presently levied by the states is like a turnover tax, the ministry added.

"Even though the GST rate of 12 per cent.appears to be higher than the current effective tax rate of 9-11 per cent (excluding stamp duty), the cost for the home buyer should reduce in case the project developer passes on the benefit of increased input tax credit now available to him on procurements", he said.

The GST Council has fixed 28% GST rate on cinema theatres.

The GST regime will be a game changer for real estate sector and the 12 per cent GST on construction projects meant for sale to buyers will boost the sector, National Real Estate Development Council (NAREDCO) said on Wednesday.

"Entertainment services shall suffer a lower tax incidence under GST. Higher tax rate and non-availability to input tax credit defeats the whole objective of Honourable Prime Minister's vision of "One Nation, One Market, One Law", Dua said. Moreover, a big list of excluded items will result in incomplete input tax offsets, resulting in continued "tax cascading" which an ideal GST (with minimal exemptions) would have eliminated, it added.

Nearly all goods and services have been classified into groups attracting GST rates of 5 per cent, 12 per cent, 18 per cent and 28 per cent respectively.

Shrink wrapped software product (on media) will attract tax rate of 18 per cent, as will Laptops, desktops, peripherals, parts, etc. Monitors and projectors (capable of connecting to ADP) will attract a rate of 28 per cent, while the majority of networking products will attract 18 per cent.

While most OEMs welcomed the GST rates, there was some apprehension on the high rate of taxation on hybrid vehicles, which are typically seen as a pathway to going full electric. As against this, the proposed rate under GST is 12%.

Recommended News

  • Serena Williams Keeping Baby Gender a 'Surprise,' Clarifies Venus' Comments

    Serena Williams Keeping Baby Gender a 'Surprise,' Clarifies Venus' Comments

    And the sportswoman recently confessed she and Alexis aren't planning on finding out the sex of their child. The star confessed the Snapchat which revealed she was 20 weeks along was sent by mistake.
    Android Pay is now live in Canada

    Android Pay is now live in Canada

    Rumor was that Android Pay would be arriving in Canada before the end of May, and sure enough that turned out to be the case. But still two major institutions have been overlooked which are TD Canada Trust, and the Royal Bank of Canada.

    British Airways IT Systems Glitch Causes Bank Holiday Flight Chaos

    The British flag carrier has said the problem was caused by a power supply issue at one of its United Kingdom data centers. Yet the airline confirmed a "significant number of customers" were still to receive their luggage after the disruption.
  • Theresa May could LOSE General Election - shock new poll

    Theresa May could LOSE General Election - shock new poll

    But a separate survey by Kantar-TNS yesterday put the Tories on 43 points - a ten point lead over Labour. The conservatives are the right wing political party led by Theresa May .

    Unemployment Rate Drops To 16-Year Low

    The greenback fell to seven-month troughs against euro and Swiss franc, while sliding from a one-week high versus the yen. Brent crude oil, the global benchmark, is down by 2.2% at $49.52 per barrel.

    Arsenal beat Chelsea to win record 13th FA Cup

    After that loss, Wenger said he had made a decision on his future which he would announce " very soon ". I don't think they're going to be anywhere near the title.
  • Philippine airstrike kills 11 soldiers in 'friendly fire'

    Philippine airstrike kills 11 soldiers in 'friendly fire'

    In the other, it landed on Manila's own soldiers, killing eleven and injuring seven others. He estimated that about 50 to 100 of the militants remained holed up in the city.
    AMD Shows Off Threadripper and Ryzen Mobile, and Dates EPYC and Vega

    AMD Shows Off Threadripper and Ryzen Mobile, and Dates EPYC and Vega

    AMD claims that Ryzen mobile will offer 50% better CPU performance and 40% better GPU performance than the 7th Generation AMD APU. Finally, not to be outdone, AMD's 32 core & 128 PCIe lane Epyc CPU for servers has also received some news of its own.

    Economy grows at 3.7% in Q1, fuelled by household spending, business investment

    Investments in machinery and equipment were up 5.8 per cent, rebounding after declines in four of the five prior quarters. It's also at the high end of growth for large rich nations.
  • BREAKING Van 'ploughs into pedestrians' on London Bridge

    Barman Alex Martinez was forced to take shelter in a bin when a knifeman stormed the Borough restaurant in which he worked. Prime Minister Theresa May is in contact with officials and receiving updates on the incidents .
    Five Pakistani soldiers killed in retaliatory firing along LoC: Army sources

    Five Pakistani soldiers killed in retaliatory firing along LoC: Army sources

    One person was killed and four others injured in Battal sector, while one person was killed and another injured in Kotli sector. The Indian Army launched retaliatory fire and killed five Pakistani soldiers and injured six others.

    Putin talks Syria, oil with powerful Saudi prince

    "The relations between Saudi Arabia and Russian Federation are going through one of their best moments ever", Prince Mohammed told Putin.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.