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Published: Sat, April 15, 2017
Medical | By Garry George

Centre to issue advisory against service charge on food bills

Centre to issue advisory against service charge on food bills

Post-GST, indirect tax collection would see a growth of 10 per cent as per government target, he said.

In addition, a cess will be levied on luxury and sin goods as well. The GST Council had chosen to force impose at four piece rates of 5 percent, 12 percent, 18 percent and 28 percent, aside from the zero duty level.

Others point out that the GST will be serviced by state-of-the-art technology and an electronic portal where taxpayers can register, eliminating the conventional and discretionary role of tax authorities.

Currently, there are about 60 services which are exempt from service tax, including education, healthcare and religious pilgrimage. But depending on whether the goods are put in the higher slab or the lower slab, the taxes may increase in a few cases. "Every year, the Council will meet and revise rates", he said.

The government plans to issue an advisory to states asking them to crack down against unfair imposition of service charge on food and drink bills, food and consumer affairs minister Ram Vilas Paswan said on Friday. The council will also take decisions on inclusion of petroleum products and alcohol in the GST network, one by one.

He also informed that the live testing of GST is scheduled to begin from first week of May.

Himanta Biswa Sharma the Finance Minister of Assam said that the state has witnessed a tax revenue jump of 20.57 percent during 2016-17.

Despite the shortfalls, Srivastava says that "given the complications of the size of the Indian economy, it might be useful to start off with a functioning model and then go on reforming it as matters progress".

The presentation cited six major benefits of GST, including an overall reduction in prices for customers, reduction in multiplicity of taxes as well as cascading and double taxation and a uniform rate of tax and common national market.

With company owners using their personal tax numbers to comply with the GST, Adhia expects income tax dodgers to have to come clean.

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