At the midnight of June 30, GST was extended in India at a grand event within the historic Central Hall of the Parliament. At the event, Prime Minister Narendra Modi had said that only can GST help us create One Nation, One Tax, however, will help in bringing a lot of transparency and end corruption. a week into the implementation of the Goods and Services Tax, traders in India have already found some way to avoid tax and save money.
Businesses are already developing with innovative ways that to confirm that their products stay exempt or at lower rates under the goods and services tax (GST). however, are they making it possible?
Here’s a look:
Under the GST regime, footwear below the value of Rs 500 is being taxed at 5% whereas higher than that at 18. therefore to save lots of the tax, shopkeepers have started to build a separate bill for every shoe of the pair, as per the report.
Similarly, in clothing, apparel under the value of Rs 1000 is taxed at 5% whereas higher than it’ll be charged at 12-tone music.
So, the sellers have set to sell different|completely different} parts of a garment on different bills. So, if a shopkeeper offers you separate bills for your shirt and pants, don’t be shocked.
Another loophole is that branded rice is taxed at 5% whereas unbranded rice is exempted from it. India Gate, that is that the largest selling rice brand within the country is already trying its best to exempt from paying goods and services tax (GST) because it didn’t get its brand registered under the Trade Marks Act 1999.
“This is to further clarify, declare and certify that ‘India Gate, Indian Farm, Lotus and Unity’ brands are owned by KRBL Ltd however since they’re not registered in class thirty under ‘Trade Marks Act, 1999’ hence ‘NIL’ GST rate is applicable on it,” KRBL Ltd, that sells India Gate packaged rice, said in an internal communication dated 3 July, as per a report by Livemint.
This scope of avoiding tax or paying fewer rates became possible as a result of the govt. decided multiple rates under GST. whereas few products are exempt from tax, others are charged at 5%, 12%, 18%, 28th and 28th and cess. Also, the tax will be divided between the state and the Central governments.
The great Indian jugaad
Source: – IE