GST On Common Use Goods Will Be Lowered; Note Ban Caused Cancellation of 2.2 Lakh Companies!
GST implementation, the biggest tax reform in the country since Independence, is an evolving process.
GST Council has indicated that tax slab on common use goods such as shampoos and plastic products can be lowered in the coming days, thereby to provide relief for the common man.
This clearly showcases that GST implementation, the biggest tax reform in the country since Independence, is an evolving process, and Govt. is willing to be flexible to accommodate everyone.
Besides, Govt. of India has released some interesting numbers related with currency ban, which was executed last year in the month of November.
Both GST and note ban were revolutionary actions, and it is interesting to observe how it shapes our economy and markets.
GST On Shampoo, Plastic To Be Lowered
Some of the essential, common use products have been placed in the 28% tax bracket, and this is causing a steep rise in the overall costs and budget of the the common man.
After receiving requests to lower tax bracket on these common use items, the GST Council has said that the tax slab would be lowered.
An official said,
“A rationalisation of items in the 28% tax bracket is expected. Most of the daily use items could be lowered to 18%.”
Products such as furniture, plastic goods like plastic pipes, shampoo, electric switches can be lowered from 28% to 18% or even less.
If we talk about plastic, then most of the products are attracting 18% tax, but some common use products such as shower baths, sinks, wash basins, bidets, lavatory pans, seats and covers, flushing cisterns and similar sanitary ware of plastics are in the 28% slab, which will soon change.
When it comes to wooden furniture, then it attracts 28%, which has been hotly debated because most of the artisans are from economically poor background, and the consumers are middle class citizens. Hence, 28% is too much for both of these entities.
Besides, GST on weighing machines, compressors can also be lowered.
The next meeting of GST Council would take place on November 10th, and decision would be taken by then.
2.2 Lakh Companies De-listed Due To Note-Ban
1st anniversary of the currency ban is falling on November 8th, and Govt. has started sharing some interesting numbers on that.
In a statement issued by the Corporate Affairs Ministry, it was revealed that 2.24 lakh companies have been de-registered till date, ever since demonetization kicked in. Besides, around 3 lakh directors have also been identified, and action would be taken against them.
These companies were either involved in shady currency exchanges, and/or have been inactive since last two years. The information has already been shared with Central Board of Direct Taxes, Financial Intelligence Unit, Department of Financial Services and Reserve Bank of India, and further actions are being taken.
As per the data shared, 56 banks forwarded complaints related with 58,000 bank accounts involving 35,000 companies; wherein Rs 17,000 crore were either deposited or withdrawn post demonetization.
The statement said,
“Apart from the restrictions on bank accounts, action has also been taken to restrict sale and transfer of movable and immovable properties of struck-off companies until they are restored. The state governments have been advised to take necessary action in this regard by disallowing registration of such transactions,”
We will keep you updated as we receive more information.