In a major ruling, Punjab & Haryana High Court has quashed a demand by the GST Department against Genpact India on the issue of intermediary versus BPO (Business Process Outsourcing). The Court also directed refunds to be given.
GST law says intermediaries are taxable and do not qualify as exports. Refunds were accordingly rejected.
Source: Business Line
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Apparel industry players have raised concerns about the increase of GST rate on garments priced above ₹2,500 from 12 per cent to 18 per cent.
The 12 percent Goods and Services Tax (GST) slab contributes only 5 percent to India’s total GST revenue, making it the lowest revenue generator among the four primary tax slabs, according to sources. In contrast, the 18 percent slab dominates collections, accounting for a massive 73 percent of the overall revenue, while the 28 percent slab brings in 12.5 percent share of the GST revenue.
A ministerial panel on GST rate rationalisation is considering lowering GST rates on several mass-use items, including medicines and tractors, to 5%. However, the tax on products like cement is likely to remain unchanged. Tractors currently face a 12% or 28% GST, depending on their classification.
