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- Tax Evasion Of Up To Rs 2 Crore To Traders In GST Council Meeting, No Criminal Case, 22% Cess On SUV Vehicles
new DelhiOne hour ago
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In the meeting of the Goods and Service Tax (GST) Council, the tax on any goods has not been increased. Along with this, the GST Council has relaxed criminal action to facilitate the business. The 48th meeting of the Council was held online on Saturday under the chairmanship of Union Finance Minister Nirmala Sitharaman.
Relief given in tax evasion case
Nirmala Sitharaman said, due to paucity of time, a decision could be taken only on 8 out of 15 issues included in the agenda of the GST Council. Earlier there was a system of registering criminal cases in case of tax evasion of more than Rs 1 crore. Now it has been increased to Rs 2 crore.
In cases of fake invoices, this criminal action will start only after Rs 1 crore. Fake invoices would include cases where the supply of goods was limited to paper only. The issue of preventing tax evasion in Pan Masala and Gutkha business could not be discussed. The discussion on levying GST on online gaming and casinos could not be held.
Criminal case will not be made in these
- Obstructing an officer in the discharge of his duties or preventing him from doing his duty.
- Willful tampering with physical evidence.
- Failure to give notice.
Clarification in case of SUVs and hirers The definition of SUV vehicles has been decided in the GST Council meeting. According to this, vehicles with a capacity of more than 1500CC, length of more than 4000 mm and ground clearance of more than 170 mm are called SUV. It has been told in the meeting that SUV will attract 28% GST and 22% cess. In this case, the effective tax rate on this will be 50%.
The council also issued some clarifications for a uniform system across all states. For example, 22% cess will be considered applicable only on those vehicles which will come under these 4 conditions-
- The car should be an SUV.
- Engine capacity more than 1500 cc.
- Vehicle length should be more than 4000 mm.
- Ground clearance should be 170 mm or more.
GST on Bio fuel reduced from 18% to 5%
At the same time, GST on bio fuel was reduced from 18% to 5%. GST on pulses hulls has now been reduced from 5% to nil. Now cases of tax evasion of Rs 2 crore will not be considered as criminal. The Finance Minister said that a decision has been taken on decriminalization of the GST Act. This means that mistakes have been excluded from the category of crime.
No decision has been taken regarding GST on online gaming and casino.
No decision has been taken regarding GST on online gaming and casino. A few days ago, a report on this has been submitted by the Group of Ministers headed by Meghalaya Chief Minister Conrad Sangma. The report has also not been circulated among the people of the Council.