The Central Board of Indirect Taxes and Customs (CBIC) will look into the suggestions of hiking import duty on consumer durable items to protect the domestic industry. The industry has represented to the government seeking increase in customs duty to shield it from cheap imports.
“The domestic industry has said it needs protection. We are looking into all the proposals that have come in,” CBIC chairman S Ramesh said when asked if the government is considering hiking import duty on consumer durable items.
The GST Council had last week decided to cut tax rates on white good like small screen TVs, fridges and washing machines to 18 percent, from 28 percent. The new rate will take effect tomorrow.
Importers pay Integrated GST (IGST) on top of customs duty at the time of importing goods. With cut in GST rate, the IGST rate for importers too would come down.
Addressing a CII industry meet, Ramesh said the GST council in its last meeting cut rates on a host of items, which was decided on the basis on revenue neutrality and reduction of additional burden on taxpayers.
The decisions taken recently reflect the firm resolve of the government to enhance the ease of doing business, reduce cost of compliance, he said.
“By easing the burden of return filing, we hope that tax compliance would be better and sustained in the long run,” Ramesh said.
The GST Council has been rationalising rates and procedures are being made comfortable.
"The signal, intent and resolve of the government is to ensure tax rate, procedure and compliance burden are gradually made comfortable. At the same time, the government expects the industry also to ensure that compliance is a top priority,” he said.
Ramesh said during the ongoing special refund fortnight, the tax officers are reaching out to the trade and industry to their offices to handhold them for expeditious refund clearance.
“We are not only collect taxes but ensure refunds pro-actively,” he said.
Source: moneycontrol.com