NEW DELHI: The GST Council on Saturday recommended a reduction in the levy on pencil sharpeners, while exempting the National Testing Agency that conducts entrance exams for central and other universities, and engineering and medical colleges from the ambit of the levy.
The twin moves will offer relief to students as they had to pay 18% GST on the fees for writing the tests conducted by NTA and state testing agencies. The levy on pencil sharpeners will be cut from 18% to 12%, finance minister Nirmala Sitharaman told reporters.
The all-powerful panel comprising finance ministers from the states and UTs with legislature, which is headed by the finance minister, also decided to tighten the regime for pan masalas, gutka and chewing tobacco. Based on a recommendation by a group of ministers, the GST Council decided to a specific rate for compensation cess instead of the current ad valorem structure, which is a percentage of the price of the product. While the proposal to move to a capacity linked structure was not accepted, there is a move introduce tracking of shipments, on the lines of the mechanism for alcohol, to plug leakage, revenue secretary Sanjay Malhotra said.
The council also agreed to lower the tax rate for liquid jaggery or raab from 18% to 5% if packaged and labelled and to zero if sold otherwise, the FM said.
There was, however, no decision on a lower levy on millet-based food products as well as a reduction in the tax on cement, which is yet to be discussed by the fitment committee comprising officers from the Centre and the states. Similarly, a decision on multi-utility vehicles is pending with the panel of officers.
The GST Council, however, issued certain clarifications including those related to some of the commercial services offered by courts and tribunals.
The FM also announced an amnesty scheme for those who have not filed some of their returns as well as those related to cancellation of registration. Further, there has been rationalisation in the late fees for some of the late filers.
The twin moves will offer relief to students as they had to pay 18% GST on the fees for writing the tests conducted by NTA and state testing agencies. The levy on pencil sharpeners will be cut from 18% to 12%, finance minister Nirmala Sitharaman told reporters.
The twin moves will offer relief to students as they had to pay 18% GST on the fees for writing the tests conducted by NTA and state testing agencies. The levy on pencil sharpeners will be cut from 18% to 12%, finance minister Nirmala Sitharaman told reporters.
The all-powerful panel comprising finance ministers from the states and UTs with legislature, which is headed by the finance minister, also decided to tighten the regime for pan masalas, gutka and chewing tobacco. Based on a recommendation by a group of ministers, the GST Council decided to a specific rate for compensation cess instead of the current ad valorem structure, which is a percentage of the price of the product. While the proposal to move to a capacity linked structure was not accepted, there is a move introduce tracking of shipments, on the lines of the mechanism for alcohol, to plug leakage, revenue secretary Sanjay Malhotra said.
The council also agreed to lower the tax rate for liquid jaggery or raab from 18% to 5% if packaged and labelled and to zero if sold otherwise, the FM said.
There was, however, no decision on a lower levy on millet-based food products as well as a reduction in the tax on cement, which is yet to be discussed by the fitment committee comprising officers from the Centre and the states. Similarly, a decision on multi-utility vehicles is pending with the panel of officers.
The GST Council, however, issued certain clarifications including those related to some of the commercial services offered by courts and tribunals.
The FM also announced an amnesty scheme for those who have not filed some of their returns as well as those related to cancellation of registration. Further, there has been rationalisation in the late fees for some of the late filers.
The twin moves will offer relief to students as they had to pay 18% GST on the fees for writing the tests conducted by NTA and state testing agencies. The levy on pencil sharpeners will be cut from 18% to 12%, finance minister Nirmala Sitharaman told reporters.
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