New Goods and Services Tax (GST) Regime came into existence from 1st July across the country and more than 15 days have passed as the country enters into the new tax regime. On one hand, some of the industries are enjoying the new regime, whereas, on another hand, some of the industries are protesting against the new regime. As per the Finance Minister, said organised dealers, as well as unorganised sellers of the textile industry, have not been influenced by the new indirect tax regime. The government has denied for providing relaxation to the textile industry, who has demanded the abolishment of 5% GST rate on fabrics.
Manufacturers and traders of the textile industry were demanding nil tax rate on fabrics, which has not been accepted by the Council while reviewing the taxation rates. Textile manufacturers across the country have been on strike protesting against the levy on fabric.
Read Also: Goods and Services Tax Impact on Textile Industry in India
Arun Jaitley replied to a question in written form, in the Rajya Sabha, “The main demand of the textile traders is not to put any tax on fabrics. However, the same cannot be accepted.”. Nil GST rate on fabric would not be feasible for the textile manufacturers as they will not be able to avail input tax credits on previous stages.
On Tuesday Finance Ministry also declared tariff rates of hotel accommodation. Accommodation in any hotel, who charges less than RS 7,500 per day would impose 18% GST and hotels who charges above Rs 7,500 per day would impose 28% GST rates. After the declaration of accommodation charges many doubts have erupted, one such is that – whether 5- star hotels are liable to pay 28% GST or not. Abhishek Jain Tax Partner at EY said “The government has rightly clarified that any hotel, including 5-star hotel, having the tariff of below Rs 7,500 would attract GST rate of 18%. This would put the controversy to rest.”
GST Network said it is not possible that once data mix up with another at the time of logging into GSTN portal. On Tuesday Navin Kumar, Chairman of GST Network said that there is “not even the slightest possibility” of data on the portal being mixed up, with one taxpayer’s details being shown to another. He also clarified about GST Network issues that there were enough safeguards available at GSTN portal which protects from such mix- ups.
