- 10% Quota for general category
- NITI Aayog proposes all India Judicial Service Examination
- CAG Report on government spending
- Need for Citizenship (Amendment) Bill
- Clause 6 of Assam accord : indepth analysis
- Collegium system for appointment of judges
- Fear of Executive Courts
- Tamilnadu Reservation Policy
Governance & Social Justice
- Bhasha Sangam Program : Celebration of Linguistic Diversity
- Cabinet approves revision in list of scheduled tribes of Arunachal Pradesh
- Does India need a coal commission?
- Concerns in Ayushman Bharat
- Depression at workplaces : A major health issue in India
- How to bridge Gender gap in India : Mckinsey Global Institute Report
- Government plans to rename Indian Forest Service
- IGOT Program for Competent Civil Services
- Indian Medical Council Amendment Bill 2018
- National Commission for Indian Systems of Medicine and Homoeopathy
- Government bats for National Medical Devices Promotion Council
- Parental consent for vaccination
- India Signs Agreement with OECD for PISA 2021
- Kerala’s wall of resistance
- Should an IAS officer use Social Media?
- Social media addiction
- Legal Status for SSC
- Tripal Talaq Bill 2018
- Web Wonder Women Campaign by Ministry of WCD
- West Bengal Leaves Ayushman Bharat : In-depth Analysis
- Why Asian Infrastructure Investment Bank Is Important For India
- What Is The Asia Reassurance Initiative Act
- E-Passport for Indians
- What Is G-77
- Failed Coup In Gabon
- Bagladesh Election
- Powering South Asian Integration
- ISRO’S New Station In Bhutan
- Kenya Replace Pictures Of Leaders on Coins With Animal
- Macedonia Name Change
- Why Norway Is Important For India
- Why India Need Membership Of NSG
- Pakistan Declared A Hindu Temple A Heritage Site
- Raisina Dialogue 2019
- India’s Republic Day Guest
- India To Take Over Sittwe Port Operation In Myanmar
- U.S. Mexico Border
- US Government Shutdown
- US Venezuela Crisis
- What is Angel Investment?
- Byorung Bridge
- India’s Airport Privatization Plan
- Rationalisation of GST Rates
- 1st Advance Estimates of Economic Growth by CSO
- Democracy Index 2018
- E-DRISHTI Software by Ministry of Railways
- What is GAFA tax
- Ganga Expressway to be Built in UP
- Green-Ag Project launched by India with UN FAO
- Issue of Tax Evasion under GST
- Improvements under GST Regime
- ICAT Certification for Automobilies
- What is Indian Bridge management System?
- Draft Information Technology Amendmenet Rules 2018
- Jamrani multipurpose DAM Project
- What is KALIA Scheme?
- MANDAL DAM
- Mega Merger!
- MSP for minor forest produce
- NITI Aayog suggestions on farm Economy
- India’s first vertical-lift Bridge
- Paradip Hyderabad pipeline
- Measures to address issues in Sugar industry
- Capital infusion in PSBs
- Renukaji dam
- PM Modi inaugrates Rice Research Institute
- Section 74 of the insolvency and Bankruptcy Code
- Social & Environmental Cost of Building dams
- Solar feeder Maharashtra model
- RBI Tokenisation
- Sikkim-Universal basic income
- Global Risks Report 2019
Science & Technology
- Why Beech Trees Dying
- Beat Plastic Pollution Resolve by India
- Why USA Is Killings California Sea Lions
- Carbon Tax
- China’s War On Particulate Air Pollution Is Causing More Serve Ozone Pollution
- CITES Washington Convention
- Coastal Regulation Zone
- Melting Ice Sheets And Release Of methane
- National Clean Air Programme Feature &Critical Analysis
- Oceans Are Heating Up 40% Faster Than Previous Estimates
- Revival Of Iran’s Lake Urmia
- India submitted sixth national report to Convention on Biological Diversity
- How Wild Fire Affect crop and vegetation Production
- NITI Aayog’s SDG Index
Spice of the Month
- GS 3||Economy|| Public Finance || Taxation
Why in News?
- The 32nd Goods and Services Tax Council meeting recently held and announced some tax changes.
- Exemption threshold – Doubling of the exemption threshold under GST regime to Rs 40 lakh. Those manufacturers, who have turnover of 40lakh (most of them are from MSME), need not to register with GST.
- States, however, will have the option to choose between the two exemptions thresholds of Rs 20 lakh and Rs 40 lakh.
- For the North-eastern and hilly states like Himalayan, the exemption limit has been increased from Rs 10 lakh to Rs 20 lakh.
- Composition scheme – The annual turnover limit under composition scheme will be increased to Rs. 1.5 crores from current Rs 1 crore.
- The special category states comprising of north-eastern states, J&K, HP and Uttarakhand are given one week time to decide upon the composition limit.
- Introduction of a composition scheme for the services sector as well. Of the nearly 1.17 crore businesses registered under the GST, over 18 lakh have applied for composition scheme.
- Under this, traders and manufacturers can pay taxes at a concessional rate of 1%, while for the restaurants it is pay 5%.
- While a regular taxpayer has to pay taxes on a monthly basis, a tax payer under this scheme will have to pay taxes on a quarterly basis.
- They are also not required to keep detailed records compared with a normal taxpayer under GST.
- Software – Free of cost accounting and billing software shall be made available to small taxpayers by GST Network (GSTN).
- For the Real Estate – 7 members group of ministers will be formed in this scenario in order to give boost to it.
- Kerala Cess as Disaster Cess – Kerala can levy a 1% disaster cess on intra-state sale of goods and services. This will be for a period of up to 2 years to mobilize revenues to meet the cost of rehabilitation after the recent floods.
- Lotteries – A group of ministers shall be constituted to examine the GST rate structure on lotteries.
Significance of All the Decisions
- Most benefit for the MSMEs sector which is suffering from demonetization and GST.
- Appears to be finally balancing the need for providing relief and the concern about slipping revenue collections.
- All the changes will be commenced from April 1,the next financial year.
- So the impact on revenue collections for this fiscal year has been rightfully avoided.
- The Council did no changes to the tax rates of items and allowed things to settle down.
- Confusions: Repeated interventions in the form of exemptions and other reliefs can create confusion.
- Frauds: Escalation of frauds is a concern and tax evasions in the GST.
- Real Reforms: A better idea will be to go in for real reforms by bringing petroleum, the electricity duty and real estate under the GST.
- This will cut out the cascade of taxes, raise transparency and widen the tax base.
- The GST Council should now focus more on these issues so that the process works smoothly, leading to greater revenue mobilization.