“Is service charge in restaurants included in the Goods and Services Tax?” “What tax has been fixed on vegetables?” “Can we continue to use credit cards for payments or will banks charge GST on it?” “Can I continue my business even though I have not received the final GSTN registration?”
These are some of the queries that the Finance Ministry and State government officials have been trying to respond to over the last few days following the rollout of the Goods and Services Tax.
While some are genuine queries by common people and businesses concerned about how the new levy will impact their lives, social media like Twitter, Facebook and WhatsApp too has been flooded with questions, jokes and rumours about GST.
“Like it was seen at the time of demonetisation, even now there are new rumours floating everyday about GST. Keeping these under control has been key to ensure the smooth roll out of the tax,” said a senior government official.
Sources said that the issue of creating more awareness on the new tax was also flagged at the review meeting called by Cabinet Secretary PK Sinha on Monday.
‘Disability tax’On Tuesday, the Finance Ministry again refuted concernabout a “disability tax” or that assistive devices and rehabilitation aids for physically challenged persons have become more expensive under GST.
“The five concessional GST rate on such devices and equipment will result in a win-win situation for both the users of such devices, the disabled persons, as well as the domestic manufacturers of such goods,” it said, adding that the prices of such equipment will also decrease,” it said in a statement.
Late on Monday evening too, it denied rumours that GST was being levied on temple trusts while churches and mosques were exempt. “This is completely untrue because no distinction is made in the GST law on any provision based on religion,” it said, urging people not to circulate rumours on social media.
Earlier, Revenue Secretary Hasmukh Adhia also busted seven misconceptions regarding GST.
Officials said that as part of their outreach programme, the Central Board of Excise and Customs and State tax officials have also been creating awareness about GST.
“It is not only businesses and companies that have queries but many individuals have also been posting comments as they are worried about higher prices,” said an official.
To dispel myths about inflation under GST, the government has also released the new tax incidence on items of common use such as groceries, hair oil, toothpaste and LPG stoves.
Till now, CBEC has also conducted over 4,800 awareness programmes on GST across the country. Private agencies and firms such as the Confederation of All India Traders and Tally Solutions have also been conducting such camps.