Chennai: The state Cabinet has approved the draft Tamil Nadu Goods and Services Tax Bill, 2017, and it will be introduced in the next session of the Assembly, finance minister D. Jayakumar said.
He also said the rate of tax for supply of food and drinks in restaurants without air-conditioning has been proposed at 12 per cent. This would affect the common man as the non air-conditioned restaurants including Amma canteens would suffer a higher rate of tax. Hence, this should be brought down to 5 pe cent.
Similarly a distinction needs to be made between AC restaurants serving liquor, which have special licence and other AC restaurants that do not serve liquor. Ordinary AC restaurants that do not serve liquor should be taxed at 12 per cent instead of 18 per cent.
On gold jewellery, the government suggested that a distinction should be made between hand-made jewellery and machine-made jewellery. As hand-made jewellery is made by goldsmiths from the economically weaker sections, it should be exempted or taxed at a nominal rate. As Tamil Nadu has been exempting films made in the local language from the purview of Entertainment Tax, the levy of 28 per cent tax on all films would adversely impact the film industry in the State. “Hence, we urge that films made in the local language of the state should be subject to a lower rate of tax,” he said.
Seashells and handicraft products made by coastal people may be nil rated, the government said and called for uniform tax rate at the lowest for the entire textile chain and lower rates for the footwear in the interest of the people and to protect the livelihood prospects of those involved in these sectors.
“Cereals like rice, wheat, barley, etc. have been exempted as per the unanimous decision of the Council. However, the same items sold in unit containers and bearing a registered brand name have been brought under the 5 % category. We would reiterate that all food items whether branded or not should be nil rated.
Aata, maida, besan and other flours may also be treated similarly,” State Finance Minister D. Jayakumar said the GST Council meeting in New Delhi on Saturday.
“We strongly urge that water sold in bubble top and small plastic pouches may be exempted or taxed at a lower rate of 5%. Palmyra Jaggery (Gur) known as Karupatti and Palmyra Sugar known as Pana Kalkandu are traditional cottage industries and are also organic products. They are a source of income for the rural people who are engaged in these cottage industries. As they are not specifically mentioned in the Schedule, they are likely to be charged at 18%. We request that Karupatti may be mentioned in the Schedule along with Cane Jaggery in Chapter 17, item 1,” he said. Curry and other spices taxable at 5% may be expanded and unbranded sugar confectionaries may also be taxed at 5% instead of 18%.
Party panel to decide on Dhinakaran
Later speaking to reporters he said to a question on the assertion of T. T. V. Dhinakaran (AIADMK Amma deputy general secretary) that he would continue the party work, “The matter will be decided by a party panel that looks into such matters.”
