Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

for gst tax rate

Drg Mahesh (STUDENT) (4 Points)

13 June 2017

what is the tax rate for sale of sanitary

Reply
Follow
Share

4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177949 Points)
Replied 13 June 2017

Do you mean Sanitary ware?

6910 Ceramic sinks, wash basins, wash basin pedestals, baths, bidets, water closet pans, flushing cisterns, urinals and similar sanitary fixtures.............28%

Upgrade to CAclubindia Pro. Subscribe Now!

Shivam Chomal (498 Points)
Replied 13 June 2017

@ dhirajral rambhia sir,sir can you please highlight the relevant section from Acts of GST which says electricity is outside of purview of GST?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177949 Points)
Replied 13 June 2017

@ Shivam Chomal: There are different stages on which elecricity gets charged like elecricity as a goods, as distribution services, as trading over exchange, as clean energy cess, etc.

At present service tax charged over power supply service at 15% will be increased to 18% under GST.

But to charge GST over elecricity itself is not decided yet. some reference quoted as below:

"The power to levy taxes on consumption or sale of electricity has been provided to the State Government vide entry 53 of List II of Seventh Schedule of Constitution. However, such entry is not subsumed and accordingly taxes on consumption or sale of electricity have been proposed to be kept outside GST. Therefore, the electricity would continue to be outside the GST regime and the State Government would have the power to continue to tax the same.

However, Entry 54 which empowers the States to levy tax on sale of goods has been subsumed as part of GST. The term ‘goods’ has been defined in the Constitution as ‘goods include all materials, commodities, and articles’. Given the wide definition of the term ‘goods’, it may be
argued that electricity qualifies as ‘good’. This is also supported by judicial precedents and the fact that in various State VAT laws, electricity has been included in the category of ‘exempted goods’. Also, electricity has been mentioned in the Excise Tariff. In light of the discussions, it is
possible to consider electricity as goods and accordingly, technically possible to tax electricity under GST (as sale of goods).
Currently, tax on electricity is levied only under Entry 53 and it’s specifically exempted/ excluded from levy under Entry 54.
It may assumed that the same dispensation would continue (i.e., States would continue to tax electricity as presently under Entry 53 as this Entry has not been subsumed in GST) and that there would be no levy under GST on output electricity although Entry 54 has been subsumed in GST."

Courtesy: National Seminar by NLC India Ltd on 20th and 21st January 2017 Page 68.

Shree Piyush Goyal, the minister for power, coal, renewable energy and mines, had asked states to simplify the process of granting electricity connections. He said electricity bills would not be proof of ownership and states had been urged to give power connections without the requirement of land ownership. .............he said no clear exemption has been prescribed as yet for taxation of electricity under GST

Shivam Chomal (498 Points)
Replied 13 June 2017

@ dhirajlal rambhia sir, first thank you sir,it somewhat clear to me now. Discussing a bit more with you sir : Suppose i have given to XYZ contractors a works contract and as per the agreement between the two of us "i will supply electricity to XYZ contractors electricity required in performing his job and will also charge for this electricity supplied at rate which will we will agree" .So, what can be said about taxability of electricity in this case