New Delhi: The regular rail commuters might have to shell out extra from their pockets if the Central government approves the amendment in negative list of the Services Tax for Goods and Services Tax (GST). (JPN/ Bureau)
The Ministry of Finance has proposed to roll out rail travel from the negative list and to bring it under the GST cover following which it will come under tax net.
Besides, the government also mulling over the proposal to bring the capitation fees for admission to educational institutions and donation amount under the GST cover, along with few such services.
In this regard, the revenue department of the Ministry of Finance has proposed a vision document. The Ministry has also put the document in the website of the Central Board of Customs and Excise (CBEC) and invited suggestions from people.
However, the use of agricultural land by the farmer has been kept out of this cover.
In the negative list of the government, there are at least 27 services which do not come under the service tax net. Mortuary or funeral service, interest on deposits in banks, the services offered by independent journalists and the return on investment in public transport are included in this list.
The Finance Ministry, to bring the services under the GST, would welcome the suggestions till September 30. As many as 119 services currently fall under the purview of service tax for which the government charges ten percent tax. The government has given the proposal to include most of the services under GST.
The government has even proposed to include all those services in the negative list of the service tax which are extended to the government on an individual basis. Under this category come those services which are provided by the government representatives in any council, theatre and art related work and the services of political parties recognized by Election Commission.
According to the background note of the vision papers, the service sector of the country holds 63 percent of the GDP.
New Delhi: The regular rail commuters might have to shell out extra from their pockets if the Central government approves the amendment in negative list of the Services Tax for Goods and Services Tax (GST).