Moving a step closer to the rollout of the historic tax reform, the GST Bill was passed on Wednesday by the Lok Sabha. The Central GST Bill, the Integrated GST Bill, The GST (Compensation to States) Bill, and the Union Territory GST Bill were passed after declining the amendments proposed by the opposition parties.
GST Bill To Be Implemented From 1st July
As the entire country is set to come under a single tax net, the commodities and the services are will become slightly cheaper. A four-tier tax structure would be implemented, where a single tax would be levied at 5%, 12%, 18%, and 28% instead of the multiple taxations. Read a detailed article on what the GST rate structure means for the restaurants here.
Finance Minister Arun Jaitley said that currently the food articles are not taxed, and would continue to be rated under the GST. All other commodities would be fitted into the nearest tax bracket. Once the new tax regime would be rolled out, a businessman would have to deal with only one assessing officer, as compared to the multiple authorities.
The Bill would also ensure that the assesses get input credit of the taxes paid. This move is expected to improve the overall tax compliance.
The GST spells good news for the consumers as well as the service providers alike. Specifically for the restaurant business, where the tax was levied at multiple stages, from procurement, production, to the sale of the final item. The Restaurant Industry is currently burdened with a host of taxes at the Central Level and the State Level. Further Excise and Custom duties also add to the heavy load of levies.