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GST council to review 28% tax slab: GST Meet

Another Goods and Service Tax council meeting took place on 11th November in Guwahati, Assam, where the GST council is all set to cut out some of the common use items by SMEs (Small and Medium Enterprises) from the highest tax slab i.e. 28% to a lower tax slab.

In the reconsideration of 28% tax slab, the tax rate fitment committee has decided to shift the decided items on a lower tax slab of 12% or 18% as the council wants to address the public issues regarding high tax rate i.e. 28% of certain items of common use such as ceiling fans, cement, automobile components, electrical fittings, sanitary fittings, shaving cream, cases for spectacles, goggles etc.

And also to provide some relief to the SMEs, which are labour – intensive. And according to the Ministry of micro and small and medium enterprises, India is home to nearly 56 million SMEs.

Besides, SMEs contribute only about 5% to the total indirect tax revenue. Hence giving relief to them may not hit revenue collection. The idea is to ease the pain, not to dilute GST structure.
says a member of the Ministry of Micro and Small and Medium Enterprises.

According to the revenue department 80% of the tax payers contribute only 20% of tax revenue whereas, the remaining small section of the assessee account for the big share of tax proceeds.

Regarding the matter, another official says

The same product may be manufactured by large industry players as well as SMEs. In such cases, a rate cut will affect revenue receipts from the bigger players too altogether they need no such relief.

He also added that

the eventual goal is to retain only so – called sin goods such as cigarettes, the consumption of which the state wants to discourage, in the highest tax slab. However, the pruning of the items in 28% slab may be a gradual exercise as the GST council has to also take into account revenue considerations as tax evasion is common in the country.

Ways to verify GSTIN and GST Slab rates

The much-awaited GST (Goods and Service Tax) came into force on 1st July 2017 in India. In last thirty years, it is the first significant step towards the indirect tax reform in the country.

GST is a step towards making the country one unified common market. It is a single tax on the supply of goods and services, right from the manufacturer to the consumer.

All the registered GST dealers under the GST Act are required to kit out the details of their sales and purchases of goods and services along with the tax collected and paid by them by filing returns.

They might also want to do a GST Number (GSTIN) verification before entering it in your GST Returns.

GSTIN is 15 – digit Goods & Services Taxpayer Identification Number, which is PAN-based and has been allotted to each taxpayer (business entity).

A format has been also set for this 15 digit GSTIN which are as follows:

  • The first two digit represents the State Code
  • And the next 10 digit represents the PAN number of the business entity
  • On which the thirteenth digit is based on the number of registration, the fourteenth digit is Z by default and the last digit is for check code.

The Government has also launched GST portal which enables businesses to verify their GST numbers (GSTIN). The business dealers can use this feature provided by the Government free of cost. However, they are required to have vendors GSTIN.

As technology has revolutionized our way of living, it has made our life more comfortable and easy, hence, Government has launched online method to check GST number.

How to Check GST Number (GTSIN) Online

You can check your GST number online by using three steps

  1. Have a secured internet connection and visit GST portal here and click on search Taxpayer > Search by GSTIN / UIN on the GST Portal home page
    Ways to verify GSTIN
    GST Offical Portal
  2. There you will see Search Taxpayer. And in the dropdown select Search by GSTIN / UIN.
  3. In the box enter the GST number of the dealer and click on Search.
    ways to verify GSTIN and GST Rates
    GST Portal Search Box
  4. On the resulting page if the GSTIN is correct you will be able to see the information of the dealer.
    ways to verify GSTIN and Rates 2
    Dealer Details

In case the GST number is correct you will have to provide the following details

  • Legal name of business
  • State
  • Date of registration
  • Construction of business – company, sole-proprietor or partnership
  • Taxpayer type – regular taxpayer or composition dealer

In case the GST number which the dealer has entered is incorrect, an error message will be displayed on the screen.  In this case, you will have to contact your vendor and get the correct GSTIN.

If any individual wants they can also verify if they have been provided with fake GST Bills with fake GSTIN

  • For that visit the official GST portal and go to ‘Search Page‘ option
  • You will be required to enter your business entity’s GST number to find out if it is valid or not
  • Now enter the captcha code and click on search button
  • Upon clicking on the search button, you will be provided with the result of entered GST number.

GST Rate Check

GST rates have also been unfolded which has a 4 – tier structure ranging between 5 % and 28 %. Where necessities have been set to the lowest and luxury has been set to the highest.

No Tax Items (0 %)

The Government has kept inflation in mind and kept basic requirements of a person like food grains, poultry, milk, fresh meat, curd, fish, flour, bread, cereals, salt, printed books, handloom items etc. at 0 %. Which means these items are exempted from GST.

5%, 12% and 18% Tax Items

The common man essentials such as tea and coffee, medicines, kerosene and frozen vegetables among others will be taxed at 5 %. Also, services like air and rail transport will also fall under the 5% bracket.

28% Items

However, the luxury items are not spared under this bracket. Luxury items such as personal aircraft or yachts, motorbikes, automobiles shampoo, washing machines, vacuum cleaners, dishwashers, refrigerators, air conditioners, vending machines, deodorants and more. 5-star hotels and movie theaters etc. will fall under the 28 % bracket.

Since the essentials are kept under the lowest tax brackets, the common man will not be affected too much. Among the others, this is one of the reasons behind calling GST a unified tax reform in the country.

To know more about GST tax rates and the list of products and services that falls under these tax brackets

  • download ‘Central Board of Excise & Customs – CBEC‘: GST Rate Finder (Governments official mobile App) From here and search for GST slab rates based on respective Goods & Services

Government is doing its part well in order to spread awareness amongst the people related to GST. We should also beware of the fraudulent practices adopted by some of the traders.

To know more about GST read https://rupeenomics.com/category/gst/

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