Economy

Jaitley introduces Bill on GST compensation cess in Lok Sabha

Our Bureau New Delhi | Updated on January 27, 2018 Published on December 22, 2017

Finance Minister Arun Jaitley at Parliament House on FridayKAMAL NARANG   -  Kamal Narang

Currently, motor vehicles (except electric vehicles) attract 28 per cent GST. Electric vehicles attract concessional 12 per cent GST rate. In addition, certain specified motor vehicles attract GST compensation cess at different rates.

To replace the ordinance that seeks to compensate States for loss of revenue under Goods and Services Tax

Finance Minister Arun Jaitley on Friday introduced in the Lok Sabha a new Bill that seeks to replace the recent GST compensation cess hike ordinance on certain motor vehicles.

It may be recalled that an ordinance — Goods and Services Tax (Compensation to States) Amendment Ordinance 2017 — was promulgated on September 2 this year to peg the maximum rate for compensation cess at 25 per cent for motor vehicles falling under heading 8702 and 8703 of the Customs Tariff Act. The maximum compensation cess for such vehicles was earlier pegged at 15 per cent.

Currently, motor vehicles (except electric vehicles) attract 28 per cent GST. Electric vehicles attract concessional 12 per cent GST rate. In addition, certain specified motor vehicles attract GST compensation cess at different rates.

The Goods and Services Tax Council had at its 20th meeting on August 5 recommended an increase of 10 percentage points (from 15 per cent to 25 per cent) in the maximum rate at which compensation cess may be collected on motor vehicles falling under heading 8702 and 8703 of the Customs Tariff Act.

As Parliament was not in session, considering the extraordinary urgency of the situation, an ordinance was promulgated by the President.

The Goods and Services Tax (Compensation to States) Act 2017 was enacted to provide for compensation to the States for the loss of revenue arising on account of implementation of Goods and Services Tax.

This law provides for imposition of compensation cess on intra-State as well as inter-State supplies of goods and services specified in the Schedule to this Act at the rate, not exceeding the rate specified in the said Schedule.

Anti-profiteering complaints

Meanwhile, sources said that as many as 70 complaints have reached the newly set up National Anti-profiteering Authority. Interestingly, as many as 45 complaints came from Haryana.

The NAA has been set up to ensure that the full benefits of input tax credit and reduced GST rates on supply of goods or services flow to the consumers.

Call centres

Two call centres have so far been opened to answer the questions related to GST.

One is a HelpDesk set up by GSTN and is functional for 16 hours from 8 a.m. till 12 p.m. There is also a national call centre set up by the Central Board of Excise and Customs which is available to the taxpayers 24 hours a day. While the GSTN Helpdesk is operating for five years, the CBEC call centre is operational from December 2016 under a contract for seven years. The call centres have to continue for expeditious resolution of taxpayers’ day-to-day issues.

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Published on December 22, 2017
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