GST rates for AC hotels fixed, says Jaitley

Jaitley today responded by stating, "To obviate any lack of preparedness, a slight relaxation of time for two months - July-August - has been given".

Briefing reporters here during a pause in the Council's 17th meeting, Andhra Pradesh Finance Minister Yanamala Ramakrishnudu said that he has requested that textiles and fertilisers be exempted from the GST.

BJP leader Subramanian Swamy on Sunday said that Infosys informed about its inability to complete the computer program necessary for GST roll-out by July 1.

The simplified rules for filing returns require a taxpayer to file only a simple, self-certified return -by August 20 for July and September 20 for August. Such details can be filed up to September 5 for July and September 20 for August.

The GST Council, which met here for the 17th time on Sunday, also made a decision to fix the tax rate for AC hotels at 18 per cent where the billed amount is up to Rs 7,500. For room tariffs between Rs 2,500 and Rs 7,500, the rate will be 18%.

He said state run lotteries will be taxed at 12% of the face value while the state authorised lotteries would attract a tax of 28%.

The council cleared the rules relating to anti-profiteering, advance ruling, appeals and revision, assessment and audit and funds settlement. "I hope we are not compelled to use it". It also poses a huge challenge for larger companies to remodel their business process, while many small-time traders lack the technological know-how to cope.

The official launch of the goods and services tax (GST) is slated for mid-night of June 30 and July 1. Isaac, however, said that the check posts would be still be in existence in Kerala until the e-way was functional.

According to the statement issued today, the Customs Department said the Finance Ministry had ordered the instruction to be cancelled following wide media coverage of an extension of GST to include food items.

The authority would have a sunset date of two years.

The GST Council on Sunday also decided on a two-slab structure for taxing lottery tickets, which Jaitley said proved to be a contentious issue. He said the Council will hold further consultation on e-way bills and till then alternate rule will operate which will authorise the existing system of the states to continue till a consolidated rule with consensuses is framed. "GST is not just a tax, it is an initiative to unite the Indian market", the actor is seen speaking in the video. The GST Council will meet again on 30th June on the eve of the launch.

The lotteries from the northeastern states are likely to have a tough time surviving with a 28 percent tax rate as majority are sold in other states through agents.

Vanessa Coleman