NEW DELHI: Maximum
retail price of goods must include the GST component to effectively address
consumer complaints that some retailers charge the new indirect tax on MRP of
products, a high-level panel of state finance ministers has recommended.
The group
of ministers, headed by Assam Finance Minister Himanta Biswa Sarma, has in its
recommendation to the GST Council on easing compliance burden on small and
medium enterprises suggested that the government make it amply clear clear in the present law that MRP is the maximum price
of a product to be sold in retail and charging anything above this is an offence.
This rule, sources said, must be applicable to
establishments like restaurants, eateries and malls that sell packaged goods
such as bottled beverages which already carry an MRP, but at some places, a GST
is charged over and above that MRP.
However, businesses while uploading the invoice
to the government in filing returns and paying taxes can separately show the
GST component and the selling price of the product.
"We have suggested that when businesses
issue invoice to consumers, the MRP should be inclusive of GST. The bifurcation
in tax collection and sale price can be shown in the invoice while paying taxes
to the government," sources told .
In Guwahati on November 10, the GST Council,
chaired by Union Finance Minister Arun Jaitley and comprising his state
counterparts, is likely to take up the recommendations of the GoM, which was
set up earlier this month.
Over half a dozen MSMEs yesterday made a
presentation before the GoM yesterday, sources added.
Among other things, the GoM also suggested
lowering the fees for delayed filing of returns to Rs 50 a day from Rs
100.
Also, the panel pitched for extending the quarterly filing of returns facility
to all taxpayers.
Currently, businesses
with turnover of up to Rs 1.5 crore are allowed to file returns and pay taxes
every quarter.
It also suggested further simplification in return filing process, HSN Code and
invoice matching.
The major recommendation
of the GoM includes slashing tax rate to 1 per cent for manufacturers and
restaurants while easing norms for traders opting for it.
Manufacturers and restaurants with turnover of
up to Rs 1 crore pay GST under the composition scheme at 2 per cent and 5 per
cent, respectively. The same for traders is 1 per cent.
It also suggested doing away with the tax rate distinction between AC and
non-AC restaurants, those which are not covered under the composition scheme,
and tax them at 12 per cent with input credit.
Also,
eating out at hotels, which has room tariff of more than Rs 7,500, should
attract a uniform 18 per cent tax rate instead of any separate category for
5-star hotel, the GoM recommended.
Source : Economictimes.indiatimes.com
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