Discuss the various sectoral impacts of recent Goods and Services Tax council’s decisions. (200 Words)
Refer - Business Line
Enrich the answer from other sources, if the question demands.
IAS Parliament 2 years
KEY POINTS
The GST Council also rationalised several exemptions in the service sector and has suggested an increase in tax rates on specified goods.
Automobiles
· The GST rate on electric vehicles whether fitted with batteries or not shall be 5 per cent.
· This will bring certainty to GST rates in the case of electric vehicles where the space is evolving in terms of battery swapping technology.
Agriculture
· The rate on various machinery used in agriculture operations is rationalised to correct the inverted duty structure.
Construction
· The rate on works contract service provided to government is rationalised to correct inverted duty structure and bring it at par with construction services provided to other than government.
Defence
· GST exemption is provided to specified defence items imported by private entities to make products cheaper for defence forces.
E-commerce
· Small traders (turnover lower than Rs40 lakh) have been allowed to make an online sale through e-commerce platforms without the need for mandatory registrations.
Healthcare
· GST rate on orthopaedic and other appliances is reduced from 12 per cent to 5 per cent.
· GST exemption on service by the cord blood bank by way of preservation of stem cells is withdrawn.
· The service of common bio-waste treatment facilities shall be taxed at 12 per cent with ITC.
Manish 2 years
Please Review !
IAS Parliament 2 years
Good answer. Keep Writing.
K. V. A 2 years
Kindly review
IAS Parliament 2 years
Good attempt. Keep Writing.
