Tax Proposals Rajasthan Budget-2018-19
VAT related relief
- Considering the challenges faced by the dealers, the dates for filling returns in Forms VAT-10, VAT-11 and VAT-10A for the year 2016-17 and 2017-18 extended up to 31.03.2018. (Notification Issue Dated-19.02.2018)
- For speedy disposal of remaining ITC mismatch cases under VAT, camps would be organized with simplified verification norms.
- Around 2 lacs cases have been disposed from year 2015 to 2017 under various amnesty schemes relating to VAT, Entry Tax, Entertainment Tax, Luxury Tax and Entry Tax on Motor Vehicles demands pending against the dealers.
- An Amnesty Scheme would be brought for disposal of outstanding demands of repealed Acts, after required amendment in the relevant Acts.
- 1,81,000 new taxpayers have registered under The tax base of the State has increased by more than 35% as compared to the VAT regime.
- Tax rates of approximately 90% of the commodities used by the common man and farmers have decreased in the GST regime as compared to the pre-GST tax burden (RVAT+ Central Excise).
- In addition to the decrease in the tax burden of the common man, the revenue of the State under GST has increased. The State has received compensation of 1911 Crores upto the month of October, 2017, at an estimated growth rate of 14% of VAT revenue, taking 2015-16 as the base year. Further an amount of Rs. 751 Crores is expected to be received, shortly, as compensation for the months of November- December, 2017.
Decrease in rates under GST regime
- GST rates on commodities like Marble and Granite, Gems and Jewellery, Handicraft, Textiles, Hotels/ Tourism etc. were reduced by the GST Council due to efforts made by the State Government. For example, Marble and Granite slabs and tiles from 28% to 18%, Precious Stones (Worked) from 3% to 0.25% Worked Coral from 28% to 5%, Sprinklers Stones (including nozzles) drip irrigation system and mechanical sprayer from 18% to 12% Tractor Parts 28% to 18% Chemical Fertilizers 12% to 5%, Synthetic Yarn from 18% to 12%, Hotel tariff in the category Rs. 5000 to Rs. 7500 from 28% to 18%, Job working in respect of Handicrafts and Textiles from 18% to 5%.
- There was ambiguity in the tax rate of some commodities such as Mehandi paste in cones. The matter was clarified by the GST Council, due to the efforts of the State Government, by notifying the rate of 5%.
- Similarly in the case of affordable housing schemes like the Mukhyamantri Jan Awas Yojna there was a lack of clarity in the valuation of land for the purpose of calculation of GST. This was clarified by the GST Council due to the efforts of the State so as to bring the effective rate of GST on all such schemes to 8% allowing 1/3rd deduction in valuation, on account of land.
- The State is further making efforts for reduction in GST rates of Kota Stone tiles & Idols made of Marble.
- Amendments in GST Law and Procedures
- The threshold limit for composition levy was increased from Rs. 50 lacs to Rs. 1 Crore. The GST Council has further decided to increase the threshold limit for composition dealers from 1 Crores to Rs. 1.5 Croces after appropriate amendment in GST Law. This would help the MSME sector of the State immensely.
- Facility of filing quarterly return has been provided to dealers having annual turnover less than Rs. 1.5 Crores, to ease return filing by small taxpayers.
- The due dates for filing of return have been extended from time to time. Further penalty and late fees on such return filing has been waived off keeping in view that GST Network is a new system.
- The Government of Rajasthan has taken a unique initiative for providing online access to GSTN related facilities such as, return filing, registration, consultancy etc. to small dealers at very nominal rate by setting up more than 500 GST-Mitra Kendras at Tehsil level. GSTN related facilities, as mentioned above, shall start functioning from 1st April, 2018.
LAst date for filing annual return Vat-10A for FY 2017-18 is extended to 31 august 2018