May 29, 2017
Yesterday government had started two twitter handles to take queries on Goods and Services Tax (GST). In a way it is a good medium to resolve ambiguity on GST.
Five key clarifications issued via twitter handle are:
1. Cess under GST – CESS applicable under GST on luxury/ demerit items will be applied on base value and not on value inclusive of GST. i.e. An item with 28% GST and 15% Cess will have effective tax rate of 43% and not 47.2%
2. Registration window opening from June 1 is only for migration purposes. New registration would not be possible.
3. GST Return forms are likely to be finalized in the 15th GST Council meeting scheduled to be held on 3 June 2017.
4. Rate of GST on purchase of flat before completion is 12% of value including value of land.
5. GST Rate for readymade garments and apparels are yet to be finalized by the GST Council.