Burden of tax on Heena Manufacturers and Traders under GST
By: – Pradeep Jain
Goods and Services Tax – GST
Dated:- 9-6-2017
The GST Council at its meeting on May 18, 19 has evolved a consensus on GST rates for goods and services, leading us closer to July 1 implementation. The underlying objective of rate declaration was clear for some time, which is to maintain the current effective indirect tax burden to control inflation and avoid surprises. The government has kept a large number of items under 18% tax slab. The government categorised 1211 items under various tax slabs.
The products falling under tariff heading chapter 3305 will be charged at maximum rate of 28%. These are cosmetics items and covers hair dyes also. The r
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a powder and paste cleared from 01.01.2007 to 01.03.2013. Apart from the exemption from levy of central excise duty, the heena products also enjoy exemption from levy of taxes levied by the State Government.
This levy of tax on Heena powder and Paste under GST contradicts the underlying objective of rate fitment i.e. to maintain current effective indirect tax burden under GST. Though Government Officials always gave intimation that there will be curtailment in present exemptions and abatements applied on goods and services but this is a very harsh provision on Heena Manufactures and Traders as their product is very low priced and ultimately paying such large amount of tax under GST will make it difficult to survive under new indirect taxat
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