Press Release _ GST, dated 10th July, 2017

GOODS AND SERVICES TAX

Updates / Press releases :

Dated : 10^th July, 2017

CBEC – pib : Press Release :

1. GST on Gifts : 

Gifts from employers to employees worth up to Rs. 50,000/- will not attract the Goods and Services Tax, nor will perquisites enjoyed by employees as part of the employment contract.

Gifts of value more than Rs. 50,000/- made without consideration are subject to GST, when made in the course or furtherance of business

The finance ministry also clarified what constituted a gift. "Gift has not been defined in the GST law.”

Full press release can be access at : http://www.cbec.gov.in/resources//htdocs-cbec/press-release/pres-rls-gst-gift-dt10july.pdf OR http://pib.nic.in/newsite/erelease.aspx

2. GST Rates on Sanitary Napkins :

Sanitary napkins will attract a GST rate of 12%, a shade lower than 13.7% in the previous indirect tax regime. Sanitary napkins are classifiable under heading 9619. In pre-GST, they attracted concessional excise duty of 6% and 5% VAT.

Full press release can be access at : http://www.cbec.gov.in/resources//htdocs-cbec/press-release/CBEC%20Press%20Release%20dt.%2010.07.2017%20on%20Sanitary%20Napkins.pdf  OR http://pib.nic.in/newsite/erelease.aspx .

3. FM launches a new tax payer service module ‘Aaykar Setu’ :

It compiles various tax tools, live chat facility, dynamic updates, and important links to various processes within the Income Tax Department in a single module;

this e-initiative would not only provide better taxpayer services but would also help in reducing the direct physical interface between assesses and tax assessing authorities.

Full press release can be access at : http://pib.nic.in/newsite/erelease.aspx dated 10th July, 2017 by Ministry of Finance.

4.  GST impact on real estate:

Rental income beyond Rs 20 lakh to attract tax :

Rental income from residential property has been exempt from GST but any earning over Rs 20 lakh annually from renting or leasing for commercial purposes would attract the levy.

Revenue secretary Hasmukh Adhia said that if the house property is rent out for shop or office purpose, no GST will be levied up to Rs20 lakh. “Rental income received from residential house is exempt. But if you have given your unit to commercial enterprise, then it is taxable if you are getting more than Rs20 lakh as rent,” Adhia said at the GST Master Class.

The taxpayer earning more than the exempted threshold will have to register with the GST Network and pay taxes.

Adhia further said that the facility to amend the details of businesses provided to the GSTN portal at the time of registration will open on July 17. Also, registration for GST practioners will open on the same day. Besides, cancellation of registration can be done online.