A relief to customers who prefer high-value cars and jewellery.
The Income Tax Act has levied at 1 percent of tax collection on the purchase of vehicles above ₹10 lakh, jewelry exceeding to ₹5 lakh and bullion over ₹2 lakh.
TCS will be included and the GST responsibility is where TCS will be under IT Act.
A relief to customers who prefer high-value cars and jewellery, the CBIC had said the TCS would be excluded from the goods value for computing GST liability.
The Income Tax Act has levied at 1 percent of tax collection on the purchase of vehicles above ₹10 lakh, jewellery exceeding to ₹5 lakh and bullion over ₹2 lakh.
The value of goods will be excluded from TCS and computation of Goods and Service Tax (GST) will be imposed as per decided by the Central Board of inDirect Taxes and Customs (CBIC).
Earlier it was decided that TCS will be included and the GST responsibility is where TCS will be under IT Act.
After consultation with various stakeholders and Central Board of Direct Taxes (CBDT), CBIC decided to remove TCS for the purpose to levy GST.
Rajat Mohan, AMRG & Associates Partner described that CBIC had made the mechanism of calculating GST complicated whereas the supplier collected TCS Income Tax.
