TIL Desk/Business/New Delhi/ Two days into the GST regime, Revenue Secretary Hasmukh Adhia today took to Twitter to bust “seven myths” that were doing the rounds about the new tax regime. Adhia, the architect behind the country’s largest tax reform, sought to dispel concerns that if a person makes payment of utility bills by credit cards, the he/she will be paying GST twice.
“This is completely untrue. Please do not recirculate such message without checking it with authority,” Adhia said. India ushered in the Goods and Services Tax (GST) regime on the intervening night of June 30 and July 1.
A four-tier tax slab — 5, 12, 18 and 28 per cent — has been decided with essential items like salt, unpacked food grains, healthcare services being kept zero rated. People have been posting in social media pictures of receipts issued in grocery stores or eateries showing tax deductions as GST, instead of VAT/Service tax earlier.
Busting the myth that GST rates are higher than VAT, Adhia said, “It appears higher because excise duty and other taxes which were invisible earlier are now subsumed in GST and so visible now.”
He reiterated that businesses can continue to do business under GST with provisional ID number and need not wait for Goods and Services Taxpayer identification number(GSTIN). “Provisional ID will be your final GSTIN number. Start business,” Adhia said.
