[ad_1]
The Central Board of Indirect Taxes and Customs on Wednesday issued clarifications on the goods and services tax (GST) levied on a host of goods and services.
The indirect tax body through multiple circulars addressed key issues around liquidated damages, penalty on cheque bouncing, delayed payment charges, recovery from employees towards bond payment/forfeiture of salary, etc.
It clarified that electric vehicles without batteries would attract 5 per cent GST. Mangoes — except fresh, sliced, and dried — would invite 12 per cent GST.
It also clarified that treated sewage water is not purified and hence, would not see any levy.
Cattle feed would be taxed at 5 per cent. Notably, for the past period where exemption is claimed, no action will be taken by department due to interpretational issue.
“With the intent to avoid litigations in some of the interpretational issues, the circular also clarifies that no actions should be taken by the department for the past period (viz., sale of ice cream by ice cream parlour, GST on churi, khandi and like items used as cattle feed, etc). The pro-active step taken by the CBIC by issuance of present clarifications are likely to be beneficial to industries across various sectors,” said Saurabh Agarwal, tax Partner, EY.
In many of these cases, the circular would now bring certainty of taxes and would help in avoiding litigation between the department and the taxpayers, Agarwal added.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
[ad_2]
Source link
