NEW DELHI: Some leading producers, which have been passing off rainy baby wipes as non-woven textile material or napkins utilized by youngsters and charging 12 according to cent items and services and products tax (GST), may have to cough up upper tax with passion after the government clarified that crucial items in baby baggage will attract 18 according to cent levy.
A rationalization issued by the revenue division has finally ended a tax dispute.
Tax attorney R S Sharma said many providers had been evading GST by paying 12 according to cent by misclassifying rainy baby wipes under other GST codes, when this is a cosmetics preparation and producers are operating under a cosmetics production licence. “Such providers will face GST demand and passion,” he said, including that the Uttarakhand Authority of Advance Ruling has already ruled that rainy baby wipes are topic to 18 according to cent tax.
But baby wipes weren't the one bone of rivalry. There had been other problems as well and the revenue division has said fortified toned milk must be handled on a par with contemporary and pasteurised milk and face zero GST. Similarly, a housewife would possibly favor handled (modified) tamarind kernel powder over plain or unmodified tamarind kernel powder but the tax division has ruled that the GST fee would be the same at five according to cent.
And, a taxpayer asked the government, what concerning the levy on cotton quilts if the cover is not made from cotton? With cotton cover getting its persona from the filling material, the revenue division is of the view that regardless of the fabric used for the cover, the tax fee will likely be five according to cent if the cover prices lower than Rs 1,000 and 12 according to cent whether it is above the brink.
“These clarifications must address rate-related ambiguities faced by some primary industries like car, fertilizers, oil refineries, and so forth, and likewise support in bringing uniformity in rates. Today, quite a lot of players had been charging other rates at the basis in their interpretation,” said Abhishek Jain, tax partner at consulting company EY.
A rationalization issued by the revenue division has finally ended a tax dispute.
Tax attorney R S Sharma said many providers had been evading GST by paying 12 according to cent by misclassifying rainy baby wipes under other GST codes, when this is a cosmetics preparation and producers are operating under a cosmetics production licence. “Such providers will face GST demand and passion,” he said, including that the Uttarakhand Authority of Advance Ruling has already ruled that rainy baby wipes are topic to 18 according to cent tax.
But baby wipes weren't the one bone of rivalry. There had been other problems as well and the revenue division has said fortified toned milk must be handled on a par with contemporary and pasteurised milk and face zero GST. Similarly, a housewife would possibly favor handled (modified) tamarind kernel powder over plain or unmodified tamarind kernel powder but the tax division has ruled that the GST fee would be the same at five according to cent.
And, a taxpayer asked the government, what concerning the levy on cotton quilts if the cover is not made from cotton? With cotton cover getting its persona from the filling material, the revenue division is of the view that regardless of the fabric used for the cover, the tax fee will likely be five according to cent if the cover prices lower than Rs 1,000 and 12 according to cent whether it is above the brink.
“These clarifications must address rate-related ambiguities faced by some primary industries like car, fertilizers, oil refineries, and so forth, and likewise support in bringing uniformity in rates. Today, quite a lot of players had been charging other rates at the basis in their interpretation,” said Abhishek Jain, tax partner at consulting company EY.
Companies need to pay higher 18% GST on wet baby wipes
![Companies need to pay higher 18% GST on wet baby wipes]()
Reviewed by Kailash
on
August 12, 2018
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