dhoti and embroidery sarees will be 5 percent GST
The deadline for first GST Return, GSTR- 3B, has been extended (states are still coming up with Notifications) to August 28 from its original deadline of August 20. However, one must keep in mind that this is only for taxpayers who opt to use the opening balance of pre-GST credit in the current month. Those who do not wish to claim opening credit in the current month or those who have no credit; the deadline continues to be August 20.
The extended deadline also allows the taxpayers to file form TRAN 1 by August 28, which is a pre requisite as per the strict interpretation of law to claim the opening credit.
Core inflation rises marginally to 2.1% in July 2017
The Wholesale Price Index (WPI)-based inflation, base year 2011-12, increased to 1.9% in July 2017 rebounded from 12-month low of 0.9% in June 2017, while snapping consistent sharp moderation for last four straight months. The WPI inflation was driven up by inflation primary articles turning positive in July 2017, while the inflation for fuel and power group as well as manufactured products group have decline in June 2017.
Inflation of primary articles rebounded to 0.5% in July 2017 from (-) 3.9% in June 2017. The inflation for fuel items dipped to 4.4% in July 2017, continuing sharp moderation for fifth straight month, from 5.3% in June 2017. The inflation for manufactured products also fell to 2.2% in July 2017 from 2.3% in June 2017.
As per major commodity group-wise, inflation increased sharply vegetables, fruits, egg, meat fish, spices, fodder, flouriculture, copper concentrate, tobacco products, wearing apparel, paper and paper products, basic metals, computer and electronic products, machinery and equipment, transport equipment and furniture in July 2017. On the other hand, inflation of foodgrains, milk, fibres, oilseeds, crude petroleum, mineral oil, food products, textiles, chemical products, rubber and plastic products, electrical equipment, motor vehicles declined in July 2017.
Inflation of food items (food articles and food products) rebounded to 2.1% in July 2017 from (-) 1.2% in June 2017 level. Meanwhile, inflation of non-food items (all commodities excluding food items) was flat at 1.8% in July 2017 compared with that in June 2017.
Core inflation (manufactured products excluding foods products) rose marginally to 2.1% in July 2017 from 2.0% in June 2017.
The contribution of primary articles to the overall inflation, at 1.88%, was positive 12 basis points (bps) in July 2017, showing rebound from (-) 103 bps to 0.90% in June 2017. The contribution of fuel product group eased to 44 bps against 53 bps in June 2017, while that of manufactured products was lower at 133 bps compared with 144 bps.
The contribution of food items (food articles and food products) to inflation turned positive at 63 bps to 1.88% in July 2017 compared with (-) 37 bps to 0.90% in June 2017. Meanwhile, the contribution of non-food items (all commodities excluding food items) was nearly flat at 128 bps in July 2017 compared with 125 bps in June 2017.
The WPI inflation stood at 2.2% in April-July FY2018 against (-) 0.4% in April-July FY2017. The primary articles inflation was at (-) 1.0% in April-July FY2018 from 5.0% in April-July FY2017, while fuel products inflation increased to 9.5% from (-) 12.6%. The inflation for manufactured products bounced to 2.5% in April-July FY2018 from (-) 0.3% in April-July FY2017.
- The amount to be filled with the details of the filling amount and the amount deposited with the currency will be deposited in the GST-R-3-B August.
- All returns of August month's GST will be deposited before September 30
The Cotton Textiles Export Promotion Council (Texprocil) today welcomed the government's decision to reduce GST rate for job work in the textile sector.
The Goods and Services Tax (GST) Council, in its meeting last week, decided to cut the tax rate for job work for the entire value chain of textiles sector to 5 per cent.
Earlier, the GST for job works related to textile yarns, other than manmade fibres and textile fabrics, was 5 per cent, while for manmade fibres yarns and made ups/ garments, it was 18 per cent.
"The reduction in the GST rate for job work in the made ups and garment sectors is welcome and a positive measure which will bring down the costs for the textiles sector across the value chain," Texprocil Chairman Ujwal Lahoti said.
"A majority of the manufacturing activities in the textiles sector take place through job work and the reduction in the GST rate has come as a huge relief for the sector," he said.
With regard to exports, Lahoti said, "Merchant exporters cannot benefit from the facility of exports under bond/ Letter of Undertaking (LUT). There is no enabling document prescribed so far by the government under which goods can be cleared by a manufacturer without charging IGST meant for exports by a merchant exporter against bond/LUT."
The chairman urged the government to introduce similar facility at the earliest so that the merchant exporters exporting under Bond/LUT can get IGST-free goods from the manufacturers.
The Foreign Trade Policy allows fulfilment of export obligations under various schemes though "third party exports". Such a provision of getting exports goods without payment of IGST from the textiles manufacturers will lead to ease of doing business and also seamless flow of credits, according to Lahoti.
Further, to operate under the facility of Bond/ LUT , a bank guarantee is required to be furnished by the exporters.
Lahoti urged the government to exempt those exporters holding a valid membership with an Export Promotion Council (EPC) from furnishing bank guarantees as it increases costs for the exporters.
In the Central Excise regime, merchant exporters who were members of an EPC were exempted from furnishing bank guarantees while executing B-1 Bond, he said. AP RSY
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- Dhoti and embroidery sarees will be 5 percent GST
19 Aug 2017
- Govt extends GST return filing deadline for cos who want to claim credit for past taxes
19 Aug 2017
- WPI inflation rebounds to 1.88 percent in July 2017
14 Aug 2017
- The notice of the government to fill the return of sales Purchase from 1 to 10 September
12 Aug 2017
- Texprocil welcomes cut in GST for job work in textile sector
12 Aug 2017