IN PARLIAMENT
press trust of india
New Delhi, Jan 2: The government Tuesday ruled out having a single rate for all commodities under the Goods and Services Tax (GST) saying items like food products have been placed at minimum taxation levels while luxury goods were in the higher categories.
During the Question Hour in Rajya Sabha, Finance Minister Arun Jaitley said there were countries which had applied a uniform tax rate on all commodities but these were nations where the entire population was above the poverty line.
In India, food items have been placed in zero or the minimum slab while luxury items get taxed more, he said.
While the question of a single slab in India does not arise, the process of rationalisation would continue, he said.
Many items which were earlier in the 28 per cent bracket were brought into the 18 per cent bracket and this process of rationalisation would continue, the minister said.
He also said the GST council had formed a committee under the convenorship A B Pandey, chairman GSTN, to look into issues relating to the filing of returns and suggest a simpler mechanism to mitigate the compliance requirements for taxpayers.
“The committee shall recommend changes to be made in the process of filing of returns in GST, including the threshold, if any, for quarterly filing,” he said.
The report of the committee will be placed before the GST council for making recommendations on this issue, Jaitley said.
Not legal tender
Bitcoins or such crypto-currencies are not legal tender and those indulging in such transactions are doing it at their own risk, Finance Minister Arun Jaitley said Tuesday as several members expressed concerns over trading on these platforms.
During the Question Hour in Rajya Sabha, DMK member Kanimozhi wanted to know whether the government was considering regulating crypto-currencies such as bitcoin and ethereum, as India “accounts for more than 11 per cent” of such trade globally.
Jaitley emphasised that the Centre’s consistent position was that such currencies were not legal tender. “The government is examining the matter. A committee under the chairmanship of secretary, department of economic affairs, is deliberating over all issues related to cryptocurrencies to propose specific actions to be taken,” he said.
Banks not accepting coins
The government Tuesday said there have been complaints against banks that they do not accept coins for transactions at their branches. “The Reserve Bank of India (RBI) has informed that it has been receiving general complaints from the public against banks for non-accepting coins,” Minister of State for Finance Shiv Pratap Shukla said in a written reply in the Rajya Sabha. However, there are no specific complaints that have been received against any bank, the minister added. Also, the RBI has already advised the banks to accept coins for transactions and exchange at all their branches. Shukla further said that the RBI’s regional offices (ROs) have been instructed to advise controllers of banks in their jurisdiction to accept coins at all their branches. RBI’s ROs have also been advised to open counters to accept coins from public, he said.