Reductions of TPS prices informed by the Center, as of September 22, companies are preparing for a simplified structure
On Wednesday, the center informed the new prices of the goods and services tax (TPS), which will take effect on September 22. The notification of the Ministry of Finance comes following the recommendations of the TPS Council during its 56th meeting on September 3 and replaces the notification of June 28, 2017.
With this, the center has made a crucial step to give effect to rate drops under TPS. Each of the States will also offer separate notifications for the implementation of new rates within the framework of the state’s time in the coming days.
The TPS Council at the September 3 meeting had recommended two main rates of 5% and 18% of the rate suppression of 12% and 28% under the indirect tax. It has also recommended a higher rate of 40% for sin and luxury products and remuneration will end.
The Central Council for Indirect Taxes (CBIC) also worked with industry and stakeholders to facilitate transitional problems and provide clarifications on various issues while the government has also made the notifications required for the re -edited new prices.
Meanwhile, the industry has worked on strategies to go through tax reductions to consumers and also complies with new tax standards.
Experts note that with published rate notifications, it is imperative for industries to align their ERP systems, price decisions and supply chain.
“This strategic alignment is essential to ensure smooth implementation and, above all, to ensure that the advantages of this rationalization of rates are actually transmitted to the end consumer,” said Saurabh Agarwal, tax partner, EY.
