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How to Register an IT Company in Bangalore, India

How to Register an IT Company in Bangalore, India

You can form a private limited IT company in Bangalore rather easily. All you need is two members. You can have more than this number but it should never exceed 200 members. It is also important that your company has at least a couple of directors and 15 at the most. In most cases there are three kinds of programmes that service providers in this domain have for such clients. The basic plans normally offer the following facilities:

  • Digital signatures
  • MOA (memorandum of association) and AOA (articles of association) drafting
  • Director identification number (DIN)
  • Certificate of incorporation
  • Name reservation
  • TAN (tax deduction and collection account number) and PAN (permanent account number) for your company

How to form a limited liability partnership (LLP) in Bangalore?

If you wish to form your IT company in Bangalore as an LLP you need at least two designated partners. In these cases however there is no upper limit on the number of partners that may be there. Here too the service providers offer three levels of services – basic, standard, and professional. The basic plans normally offer the following services:

  • Digital signatures
  • MOA and AOA drafting
  • DIN
  • Certificate of incorporation
  • Name reservation
  • TAN and PAN for your company

The standard plans give you all the facilities of the basic plans alongwith professional tax enrollment, and commercial and shop establishment. In the standard plans you have facilities such as Registrar of Companies (ROC) yearly filing for the first year alongwith all the facilities of the basic plans.

How to form a one person company in Bangalore?

You can form your IT company in Bangalore as a one person company too. It is a lot like a private limited company but you can operate it just by yourself. After operating it as such for a couple of years you can change it to a private limited company. This can also be done if your company’s annual turnover exceeds INR 2 crore. Here too the services are divided into three categories – basic, standard, and professional. The basic plans offer the following services:

  • Digital signatures
  • MOA and AOA drafting
  • DIN
  • Certificate of incorporation
  • Name reservation
  • TAN and PAN for your company

How to form a partnership firm in Bangalore?

You can always form your IT company as a partnership firm in Bangalore. In fact, such a company can be formed by one or more people. A partnership firm can be created when all the interested parties sign on the partnership deed. At the basic level these service providers would provide services such as partnership deed, stamp duty, registration certificate, and PAN and TAN for an LLP. In the standard plans you would get services such as shops and commercial establishment, professional tax enrollment, and all the services provided in the basic plans.

How to form a foreign subsidiary in Bangalore?

If your IT company in Bangalore is actually a subsidiary of an international enterprise then you would need at least a couple of directors as well as shareholders. The same also applies to foreign nationals who wish to set up such a company in the city. However, at least one of your directors should be a resident of India. Both the shareholders can be non resident Indians (NRIs) or foreign nationals. In the basic plans for such work you get the following services:

  •  Digital signatures
  • MOA and AOA drafting
  • DIN
  • Certificate of incorporation
  • Name reservation
  • TAN and PAN for your company

The standard plans for such incorporations include all the facilities of the basic plans and more such as the following:

  • Share certificates
  • Minutes of first board meeting
  • Statutory register
  • Service tax

Know Which Items Could Get Cheaper Under GST

Know Which Items Could Get Cheaper Under GST

The Modi government has changed the tax system of India which has been pending from last 10 years long residency rule and finally GST is rolled out for number of goods and services. This is the biggest tax reformation since Independence will hold the key role of nation’s growth, development and integration if it is implemented properly, will bring transparency in taxation system and put efforts to stand a nation in a good position.

GST is applicable for supply of goods and services to traders, businessman, taxpayer, restaurants, service sectors, etc. and even if to end consumers. So people are thinking which items/product’s tax got hiked under GST regime or decreased their tax as compared to the earlier tax system.

Most of us looking for which products and services get cheaper in recently rolled out GST. Apart from certain items/things/services are exempted from tax base completely here, we are discussing about the diminished tax rate of GST for certain products and services. Items that will have cost low from now days onwards.

Below is a comprehensive list of the goods and services which have become cheaper than the earlier tax rate.

SL. No

Items - Things

Old Tax Rates (%)

GST Rates (%)

1

Soyabean, Groundnut, Sunflower Seeds

6

5

2

Coffee, Tea

6

5

3

Frozen Vegetables

6

5

4

Sweetmeats

12

5

5

Bakery Mixes, Dough’s, Pizza Bread

12

5

6

Vegetables Fat & Oils

12

5

7

Tea Concentrates, Soups

12

5

8

Handmade Safety Matches

18.5

5

9

Broomsticks

18

5

10

Beet Sugar, Cane Sugar

26

5

11

Steel Utensils

18.5

5

12

LPG for Domestic Supply

17

5

13

Household Copper Articles

18.5

5

14

Copper Utensils

18.5

5

15

Iron / Steel / Household Articles

18.5

5

16

Iron / Steel / Kerosene Stoves

18.5

5

17

Sand Lime Bricks

6

5

18

Peat

19.5

5

19

All Ores and Concentrates

18.5

5

20

Kerosene PDS

17

5

21

Tar

12

5

22

Coal

12

5

23

Lignite

12

5

24

Braille Typewriters

13.5

5

25

Animal or Human Blood Vaccines

6

5

26

Sand Lime Bricks, Fly Ash Bricks

6

5

27

Geometry Box

18.5

5

28

Pencil Sharpeners, Knives

18.5

12

29

Meat & Fish Preparations

19.5

12

30

Candles

26

12

31

Tooth Powder

26

12

32

LED Lights

26

12

33

Milk Beverages

26

12

34

Ready to Eat Namkeen/Bhujia

26

12

35

Sports Goods

18.5

12

36

Bicycles

18.5

12

37

Spectacle Lens

18.5

12

38

Aluminium Utensils

18.5

12

39

Power Driven Water Pumps

12.5

12

40

Fertilizers

18.5

12

41

Tractors

18.5

12

42

Sewing / Knitting Needles

18.5

12

43

Works Contracts

15

12

44

Non AC / Alcohol Serving Restaurants

13-14

12

45

Aluminium Foil

18.5

18

46

Infant Use Preparations

19.5

18

47

Pasta, Corn Flakes and Cakes

19.5

18

48

Condensed Milk

18.5

18

49

Toilet Paper

18.5

18

50

Hot Water Bottles

18.5

18

51

Petroleum Jelly, Paraffin Wax

20

18

52

Ice cream, Instant Food Mixes, Sharbet

26

18

53

Refined Sugar

26

18

54

Soap

26

18

55

Dentrifices - Toothpaste

26

18

56

Hair Oil

26

18

57

Whey Proteins & Fitness Supplements

26

18

58

Hat and Other Headgears

26

18

59

Printers

26

18

60

Petroleum Coke, Petroleum Bitumen

27.5

18

61

Copper Bars, Rods, Wires

18.5

18

62

Copper Screws, Nuts, Bolts

18.5

18

63

Nickel Bars, Rods, Wires

18.5

18

64

Nickel Screw, Nuts, Bolts

18.5

18

65

Nickel Tubes, Pipes, Netting

18.5

18

66

Aluminium Ingots, Rods, Wires

18.5

18

67

Lead Plates, Sheets, Strips

18.5

18

68

Zinc Goods

18.5

18

69

Tin Bars, Rods

18.5

18

70

Padlocks, Locks

18.5

18

71

Helmets

18.5

18

72

Plastic Products

18.5

18

73

AC, Alcohol Serving Restaurants

22

18

74

Cement

30

28

 

You can have also check out our previous article based on which products and services have become costlier after GST roll out.

What Became Costlier After GST Roll-Out

What Became Costlier After GST Roll-Out

You know that GST Council has finalized 4 categories of tax rate under GST regime i.e. 5 percent, 12 percent, 18 percent and 28 percent. Apart from this tax rate for Gold, Silver, Precious Stone and Processed Diamond is 3 percent and uncut rough Diamond would be taxed on 0.25 percent. GST Council has already rolled out different tax slab rate for 1211 items / things relating to consuming products and services. There are also certain items that have been completely tax exempted from GST regime; it is a boon for common man to run their livelihood easily. Huge products and services are came under 12% - 18% tax rate and out of that luxury and sin goods are comes under 28% tax rate. Yes, it will create a positive growth and development of a nation like India.

But we are talking about the things or goods that were less taxed earlier as compared to today’s tax rate under GST for the same items / products. So which products and services are became costly after GST rollout?

Let’s have a look on certain products and services that have increased their tax rate. Below is a comprehensive list of goods and services which would be costlier after GST implementation.

SL. No.

Items-Things

Old Tax Rate (%)

GST Rate (%)

1

Agarbatti

0

5

2

Branded Paneer

0

5

3

Branded Cereals

0

5

4

Nuclear Fuel

0

5

5

Heavy Water and Other Nuclear Fuels

0

5

6

Compressed Air

0

5

7

Solar Water Heater

0

5

8

Renewable Energy Devices

0

5

9

Butter, Ghee, Cheese

6

12

10

Dry Fruits

6

12

11

Jam, Jellies

12

12

12

Frozen Meat

6

12

13

Steam

0

12

14

Children’s Drawing Books

0

12

15

Fly Ash Bricks

6

12

16

Preserve Vegetables

0

18

17

Cell phones

6

18

18

Telecom

15

18

19

Coca Butter, Oils Chocolates

26

28

20

Instant, Aroma Coffee

26

28

21

Coffee Concentrates, Custard Powder

26

28

22

Protein Concentrates, Sugar Syrups

26

28

23

Razors

26

28

24

Dental Floss

26

28

25

Toothpaste

26

28

26

Deodorants

26

28

27

Aftershave

26

28

28

Shaving Cream

26

28

29

Leather Bags

6

28

30

Yachts

18.5

28

31

Air Conditioners

26

28

32

Refrigerators

26

28

33

Storage Water Heaters

26

28

34

Dish Washing Machines

26

28

35

Photo Copier, FAX Machines

26

28

36

Wrist Watches

26

28

37

Furniture

26

28

38

Video Game Consoles

26

28

39

Exercise Equipment

26

28

40

Manicure, Pedicure Sets

26

28

41

Perfumes

26

28

42

Beauty or Makeup Preparations

26

28

43

Skincare Items Including Sunscreen

26

28

44

Shampoos, Hair Cream, Hair Dyes

26

28

45

Wigs, False Beards, Eyelashes

26

28

46

Stoves (Except Kerosene, LPG)

18.5

28

47

Electrical Hot Plates

18.5

28

48

Wall Paper

18.5

28

49

Paints and Varnishes

26

28

50

Putty, Wall Fillings

26

28

51

Plaster

26

28

52

Ceramic Tiles

26

28

53

Tempered Glass

26

28

54

Rubber Tyres

18.5

28

55

Plastics Products

18.5

28

56

Calcerous Stone

18.5

28

57

Artists’ Students’ or Signboard Colours

18.5

28

58

Pianos

26

28

59

Revolvers

26

28

60

Artificial Flowers

26

28

61

Five Star Restaurants

18

28

 

You can have also check out our another article based on which items/products and services could get cheaper after GST rollout.

Claim Income Tax Refund: A Step by Step Guide

Claim Income Tax Refund: A Step by Step Guide

One of the first things that you need to do in order to claim your tax returns is file your income tax returns (ITR) for the year. Normally, the last date for filing tax returns in a year is July 31 and here you file the tax returns for the previous year. For example, in this financial year 2017-18 you will be filing the tax returns for 2016-17, which will be regarded as the assessment year. A financial year is normally taken as April 1 of one year to March 31 of the next. It is always better to avoid filing at the last time since there can always be mistakes with such an approach. Always file your returns several days before your deadline so that you do not have to face any undue issues.

Keeping all the necessary papers close by

Before you start the process of filing reports it is important that you have your important papers with you. This would items such as the following:

  • salary statements
  • bank statements
  • business income statements
  • Form 16 from your employers
  • Form 16 from your banks where you have made investments
  • certificates of interest that you have paid
  • proofs of investment and related documents
  • insurance documents that may be relevant
  • 26AS tax credit extract

The business income statements are however applicable only if you have a business as such.   

Filing the income tax

The next step is filing the ITR. You can do this by filing either ITR-1 or ITR-4 form. The form contains a number of fields that are important for this purpose. Some of them may be mentioned as below:

  • name
  • address
  • your complete income
  • the income that is liable to be taxed
  • taxes deducted at source (TDS) if any
  • total dues
  • refund due

This form would contain all your financial data for an assessment year. You can fill this form by yourself or take the help of a tax lawyer or chartered accountant if you wish to. The form basically explains itself and this is why you can easily fill it.

Identifying the amount to be refunded to you

Once you have submitted the form you will be able to see the refund in the refund column. This would happen only in case you have paid more taxes than you are supposed to. If you wish to identify this sum you would need to click on the button named validate, which is there on the sheet named taxes paid and verification. Over there, you would need to note the refund amount and also keep a copy of the ITR form thus generated.

Sending the form to the income tax office

If a figure is actually shown in the refunds column then it means that you have actually paid more taxes than your actual liability. In order to claim the refund you would need to take a print out of that form and then sign at the place where you are supposed to. The form also has the address of the income tax office – it is there where you would have to send the form. The form can be sent through ordinary post or speed post. After this you need to enclose the form, put it in an envelope and then send it to the specified address.

Waiting for the refund to be processed

This is the final stage. After the Income Tax Department gets the signed form it would inform you by way of SMS (short message service). It would definitely verify the figure in case it finds something wrong with it. However, as soon as they are okay with the data that you have furnished the application would be processed and the extra taxes that you have paid would be refunded to you. Throughout the entire process you would keep receiving communication from the Income Tax Department by way of SMS or e-mail. Normally it can take anywhere between one month to four months for the refund to be processed. In any case you can be sure that if you follow these steps properly you would get the refund and that too on time.

Why Bangalore is a good place for business?

Why Bangalore is a good place for business?

There are some good reasons as to why investors are so keen on putting their money in Bangalore. This district with a population of 9.6 million people has a glorious history of technological innovations. The city has a fantastic network of support for entrepreneurs, who are willing to become parts of the growth story that is Bangalore. The ecosystem over here is throbbing with life and presents everyone a chance to do well. Bangalore has had a rich history of being a tech capital even long before internet and companies working with such technology came along. It was at the capital city of Karnataka that the first-ever Indian Institute of Science was established more than a century back – in 1909.

Contributions made by Bangalore

Ever since, Bangalore has made sterling contributions in domains such as advanced computing, nuclear technologies, and space. This means that when as an investor you try and set up shop in Bangalore you can be sure that you will have enough local talent willing to work productively to make your dream a reality. As has been said already, there is more-than-enough support for business entrepreneurship in this capital city of Karnataka. There are bodies such as the UK Indian Business Council (UKIBC) that have been pumping in significant amounts of money in the city’s business ecosystem.

Utilization of funds

The money derived from the programme is expected to be used for support services such as the following:

  • mentoring
  • policy insight
  • training
  • expertise in market entry
  • networking events
  • market research

There are certain areas such as Koramangala where the business infrastructure in Bangalore is really strong. Here you will find that the ecosystem for small businesses is really good. Here they can get all the help that they need in order to fulfill their true potential and also gain exposure to markets around the world.

Help coming in from other countries

Countries such as the United Kingdom have been making the most of the potential on offer in the startup scenario in Bangalore. They are associating with the state government of Karnataka to provide funding for new business enterprises by way of the Karnataka Information Technology Venture Capital Fund (KITVEN Fund). Other investors such as incubators, angel investors, and venture capital funds are also coming to the city in droves to partake in the growth of the city’s economy. They are all looking for the best investment opportunities – ones that the city is known to provide.

Networking opportunities

As may be gauged from a business ecosystem as busy as the one in Bangalore there are plenty of networking opportunities to be had. The business culture in this city is also second to none as can be understood from the words of Ian Felton, the Deputy High Commissioner of Great Britain in Bangalore, the city in future is going to be one of the faces of the country. It has a high-tech society that is truly cosmopolitan and has a global outlook to boot.

GST Return: Types of Forms in GST Returns and their Due Date

GST Return: Types of Forms in GST Returns and their Due Date

GST (Goods and Services Tax) return is a record of invoices for supply and receives of goods and services during the business process. Under the Indian GST law, a normal taxpayers, composition taxpayers, casual taxpayers, non-resident taxpayers, TDS Deductors, Input Service Distributors (ISDs) have to file certain returns electronically by different class of persons with different cut-off dates. The return mechanism is designed to assist taxpayers to file returns and avail Input Tax Credit (ITC).

ITC (Input Tax Credit) can available only on provisional basis for a period of two months until payment of tax and filing of valid return by the supplier. Credit of returns can available from supplier to recipient, in case of matching information at invoice level otherwise ITC to be reverse in case of mismatch. Receiving credit will help to fight for huge evasion of taxes.

Under GST, a regular taxpayer needs to furnish monthly returns and one annual return. For composition taxpayer should have to file Quarterly returns. Likewise, there are separate returns for a taxpayer who is registered under GST as non-resident taxpayer, taxpayer registered as Input Service Distributors (ISDs), a person liable to deduct or collect the tax (TDS/TCS) and a person granted Unique Identification Number. A taxpayer need not file all the types of returns. As a matter of fact, they are required to file returns according to the activities of their business.

All the GST matters are to be filed through online. If you need our assistance on GST registration in Bangalore, Karnataka we will be glad to complete all your GST return process to avoid penalties relating to returns and get tax benefit or GST Returns can be done by filing anyone of the following methods:

  1. By GSTN Portal (www.gst.gov.in)
  2. By Offline utilities provided by GSTN
  3. By GST Suvidha Providers (GSPs) – If you are already using the services of ERP providers such as Tally, SAP, Oracle etc., there is a high likelihood that these ERP providers would provide inbuilt solutions in the existing ERP systems

Here you can follow the table list on various types of returns, due date and forms under GST Law:

Returns Form

Description

Who Liable to File

Due Date for Filing

GSTR-1

Monthly Statement of Outward supplies of Goods or Services

Registered Person

10th of the next month

GSTR-2

Monthly Statement of Inward supplies of Goods or Services

Registered Person

15th of the next month

GSTR-3

Monthly Return for a normal taxpayer

Registered Person

20th of the next month

GSTR-4

Quarterly Return

Taxable Person opting for Composition Levy

8th of the month succeeding the quarter

GSTR-5

Monthly Return for a non-resident taxpayer

Non-resident taxpayer

20th of the month

GSTR-6

Monthly Return for an Input Service

Input Service Distributor

13th of the next month

GSTR-7

Monthly Return for authorities deducting tax at source

Tax Deductor

10th of the next month

GSTR-8

Monthly Statement for E-Commerce Operator depicting supplies effecting through it

E-Commerce Operator

10th of the next month

GSTR-9

Annual Return

Registered Person other than an ISD, TDS/TCS Taxpayer, Casual Taxable Person and Non-resident Taxpayer

31st December of next financial year

GSTR-10

Final Return

Taxable Person whose registration has been surrendered or cancelled

Within 3 months of the date of cancellation or date of order of cancellation whichever is later

 

GST Filing Process

GST filing is easy and simple process but have to through proper way. A normal taxpayer has to file the following returns:

GSTR-1 (Statement of Outward Supplies):

  1. This return signifies the tax liability of the supplier for the supplies effected during the previous month.
  2. It needs to be filed by the 10th of every month in relation to supplies effected during the previous month. For example, a statement of all the outward supplies made during the month of July 2017 needs to be filed by 10th August, 2017.

GSTR-2 (Statement of Inward Supplies):

  1. This return signifies accumulation of ITC (Input Tax Credit) from the inputs received during the previous month.
  2. It is auto-populated from the GSTR-1s filed by the corresponding suppliers of the Taxpayer except for a few fields like imports and purchases from unregistered suppliers.
  3. It needs to be filed by the 15th of every month in relation to supplies received during the previous month. For example, a statement of all the inward supplies received during the month of July 2017 needs to be filed by 15th August, 2017.

GSTR-3: This is a consolidated return. It needs to be filed by the 20th of every month. It consolidates the following details

  1. Outward Supplies (Auto-Populated from GSTR-1)
  2. Inward Supplies (Auto-Populated from GSTR-2)
  3. ITC availed
  4. Tax Payable
  5.  Tax Paid (Using both Cash and ITC)
  6. Payment should be made on or before 20th of every month.

Annual Return:

GST annual return needs to be filed by 31st December of the next Financial Year. In this return, the taxpayer needs to furnish details of expenditure and details of income for the entire Financial Year.

GST (Goods & Services Tax) is a Boon for Household Items

GST (Goods & Services Tax) is a Boon for Household Items

Goods and Services Tax (GST) is economic freedom from cascading and complicated tax regime. GST will bring in not only transparency but also economic integration. And economic integration will strengthen the national integration. This is the larger objective of GST Council.

The goods and services tax (GST) is a radical step towards the country’s transformation into a common market. GST is applicable mainly for manufacturer, service provider and trader. In other word we can say GST is applicable for businesses and won’t affect directly to the salaried class, self-employed professionals and mostly for normal people.

So common man can take the benefits of GST, these people have no worry about the implementation of goods and services tax. It will drive their live better; GST is helpful for household items which are used regularly by common man. I think a single tax can bring down prices for most households.

Here you can see the different categories of tax rates on various items that we are using regularly in our day-to-day life.

Goods and Services Tax (GST) @ 0%

  • Unpackaged Food Grains
  • Fresh Vegetables
  • Unbranded Atta
  • Unbranded Maida
  • Unbranded Besan
  • Gur
  • Milk
  • Eggs
  • Curd
  • Lassi
  • Unpackaged Paneer
  • Unbranded Natural Honey
  • Palmyra Jaggery
  • Salt
  • Kajal
  • Phool Bhari Jhadoo
  • Children’s Drawing and Colouring Books
  • Education Services
  • Health Services

Goods and Services Tax (GST) @ 5%

  • Sugar
  • Tea
  • Roasted Coffee Beans
  • Edible Oils
  • Skimmed Milk Powder
  • Milk Food for Babies
  • Packed Paneer
  • Cashew Nuts
  • Raisin
  • PDS Kerosene
  • Domestic LPG
  • Footwear (upto Rs. 500)
  • Apparels (upto Rs. 1000)
  • Agarbatti
  • Coir Mats

Goods and Services Tax (GST) @ 12%

  • Butter
  • Ghee
  • Almonds
  • Fruits Juice
  • Packed Coconut Water
  • Preparation of Vegetables, Fruits, Nuts or other parts of Plants including Pickle, Murabba, Chuntey, Jam and Jelly
  • Umbrella
  • Mobiles

Goods and Services Tax (GST) @ 18%

  • Hair Oil
  • Toothpaste
  • Soap
  • Pasta
  • Corn Flakes
  • Soups
  • Ice-Cream
  • Toiletries
  • Computers
  • Printers

Really GST will helpful to integrate the nation’s economic growth and development by binding a single thread of tax system in all over the India.

GST Brings Benefits for All

GST Brings Benefits for All

GST becomes a reality today. Building a new India through One Nation, One Tax and One Market.

GST is a good and simple tax. It is a tax for new India, a digital India. It doesn’t just promote easy of doing business but also show the way forward as a way of doing business.

How GST will get helpful for all? See brief information is given below:

Common Man Friendly:

  • Huge number of items are either tax exempt or in 5% tax bracket.
  • Maximum benefits to the poor and the common man.
  • Will ensure that the poor get their due.
  • Level playing field for small traders in any part of the country.

Advantages for Trade and Industry:

  • Common procedures for registration, duty payment, return filing and refund of taxes.
  • Seamless flow of tax credit from manufacture / supplier to user / retailer to eliminate cascading of taxes.
  • More efficient neutralization of taxes to make our exports more competitive internationally.
  • Benefit of exemption / composition of scheme for a large segment of small scale suppliers to make their products cheaper.

Benefits to Economy:

  • To create a unified common National market.
  • To make India a manufacturing hub.
  • To boost investments and exports.
  • To generate more employment by increased economic activity.

Simplified Tax Structure:

  • Reduction in multiplicity of taxes now levied on goods & services, leading to simplification.
  • Simpler tax regime with fewer exemptions.
  • Harmonization of laws, procedures and rates of tax across the country.
  • Common system of classification of goods & services to ensure certainty in tax administration.

Creating One Economic India:

  • Freedom of movement of goods and services.
  • Consumers to benefits by increased competition.
  • Level playing field for producers and consumers across the country.
  • Strengthening the sense of nationhood and unity.

GST is not only for goods and services tax but also a good and simple tax really.

You can have check out our previous articles based on Goods and Services Tax (GST) in below

GST Council Finalizes the Rates for Goods and Services

GST Updates Proper Fitment of Tax for Products

GST Slab Rate in India

GST Council Sets New Tax Rates for Products and Services

GST Council Finalizes the Rates for Goods and Services

GST Council Finalizes the Rates for Goods and Services

The two-day GST Council meeting held in Srinagar on May 18-19, 2017, saw participation from states and union territories along with Shri Arun Jaitley and senior officials from the revenue department.

An officers’ panel over the last six weeks had been working towards the fitment and classification exercise – an exhaustive list specifying the tax rate of goods and services, which was presented at the council meeting.

The Council had earlier agreed on a four broad slab structure i.e. 5, 12, 18 and 28 percent. The GST Council meet saw final conclusion on the rates of goods and services under Goods & Services Tax regime.

Few key takeaways include:

Tax on GOODS:

  • 81% items out of 1211 items, to be taxed at below 18% under GST
  • A list of 7 per cent of the total 1,211 items has been exempted, 14 per cent of the items are in the 5% tax slab, and 17 per cent of total items are 12% tax slab. About 43 per cent of the items will attract 18% tax rate, while only 19 per cent will be in the 28% tax slab.
  • Milk, cereals (unpackaged and unbranded), food grains, fruits, vegetables and jaggery to be exempt
  • Items like “Puja Samagri” shall be subject to nil rate of GST
  • Normal sugar, tea, coffee and edible oil and coal have been placed in the 5% tax slab
  • Medical devices, smartphones to be subjects to 12% tax slab
  • Soap, toothpaste, hair oil, chemicals will be taxed at 18%
  • Consumer durables, packaged cement to attract 28%
  • Footwear under Rs. 500 will be taxed at 5% and all other types would be taxed at 18%
  • Tendu leaves will be taxed at 18% while bidis will be taxed at 28%
  • Biscuits would be taxed at 18%
  • Solar panel to be taxed at 5%
  • Gold, silver and processed diamond to be taxed at 3% while rough diamond would be at 0.25%
  • Two slab rate for agriculture equipment i.e. 5% and 12%
  • The textile industry sources to be taxed at 5% under GST

Tax on SERVICES:

  • Healthcare and education services to be exempt
  • 5 % on car aggregators like OLA and UBER as well as advertisements
  • Rail, road and air transport to be taxed at 5%
  • Telecom insurance and financial services to be taxed under 18%
  • Tax on services like 5 star hotel, race club betting and cinema to be 28%

GST Council also approved rule relating to Registration, Refund, Payment, Valuation, Composition, Invoice and Input Tax Credit.