The GST division could quickly concern a number of clarifications on sure vexed points in tax charges, together with exemptions to assisted reproductive know-how (ART) or in vitro fertilization (IVF) in addition to applicability of GST on cost of honorarium to visitor anchors.
A committee of tax officers from the Centre and states, known as the Fitment Committee, has knowledgeable the GST Council that healthcare companies offered by a scientific institution, an authorised medical practitioner or para-medics are exempt beneath Goods and Services Tax regime and a clarification be issued relating to GST exemptions to ART/IVFs.
GST legislation defines healthcare companies as any service by means of analysis or remedy or take care of sickness, harm, deformity, abnormality or being pregnant in any recognised system of medicines in India.
It additionally contains companies by means of transportation of the affected person to and from a scientific institution, however doesn’t embrace hair transplant or beauty or cosmetic surgery, besides when undertaken to revive or to reconstruct anatomy or features of physique affected attributable to congenital defects, developmental abnormalities, harm or trauma.
The ailment of infertility is handled utilizing ART process resembling IVF. Such companies are coated beneath the definition of healthcare companies for the aim of above exemption notification, the fitment committee mentioned including a clarification could accordingly be issued by means of a round.
The suggestions of the committee which will probably be positioned earlier than the GST Council assembly on June 28-29 additionally embrace a clarification on the problem of applicability of GST on cost of honorarium to the visitor anchors.
The committee provides its suggestion relating to tax charges, after analysing calls for from stakeholders, in each assembly of the Council.
The panel has obtained requests for a clarification since a number of the visitor anchors have requested cost of GST on the charge of 18 per cent on the honorarium paid to them for such appearances.
It has noticed that offer of all items and companies are taxable until exempt or declared as ‘no supply’.
Services offered by the visitor anchors in lieu of honorarium would entice GST legal responsibility.
“However, the threshold exemption limit on aggregate turnover of the service provider would apply. Liability would arise in case threshold exemption limit for services is crossed,” it mentioned including a clarification could accordingly be issued.
Currently, entities offering companies must register beneath GST if their combination turnover exceeds Rs 20 lakh (for regular class states) and Rs 10 lakh (for particular class states).
Further, the committee has additionally recommended a clarification on whether or not the exercise of promoting of house for commercial in souvenirs would entice a 5 per cent or 18 per cent tax charge.
The fitment committee mentioned the promoting of house for commercial in print media attracts tax at 5 per cent. The actions carried out by completely different establishments/ organizations in the direction of promoting of house for commercial in souvenirs would entice 5 per cent tax and the said place in GST legislation be clarified accordingly, it mentioned.
The panel, whereas recommending established order in GST charges on 113 items and 102 companies, additionally made a case for discount in taxes on Ostomy Appliances to five per cent, from 12 per cent.
It additionally recommended that tax charges for orthopaedic implants (Trauma, Spine, and Arthoplasty Implants in physique); Orthoses (Splints, braces, belts & calipers); Prostheses (synthetic limbs) be minimize to a uniform 5 per cent, from the present differential charge of 12 and 5 per cent.
The committee additionally beneficial discount in GST on ropeway journey from 18 per cent to five per cent, with ITC, Himachal Pradesh putting this request earlier than the GST Council in September final yr.
Also, a clarification could be issued on GST charges on electrical automobiles, to state that EVs, whether or not fitted with battery or not, would entice 5 per cent tax.
The committee has recommended to the GST Council to defer a call on taxability of cryptocurrency and different digital digital property. It recommended {that a} legislation on regulation of cryptocurrency is awaited and it will be important to determine all related provides related to the crypto ecosystem, in addition to classification on whether or not they’re items or companies.
The committee felt {that a} deeper examine was wanted on the problems concerned in crypto ecosystem. It was determined that Haryana and Karnataka shall examine all points and submit a paper earlier than the fitment committee in the end.
Fintech gamers search a minimum of 1 yr sundown clause on RBI directive on credit score strains by PPI issuers.
With the RBI cracking down on credit score amenities offered by non-bank pay as you go cost instrument issuers, business gamers are in search of a reprieve by a sundown clause of a minimum of a yr, business sources mentioned on Friday.
Earlier this week, the RBI directed the non-bank pay as you go cost instrument (PPI) issuers to cease offering credit score strains on such PPI playing cards and requested them to cease the follow instantly.
“A bunch of fintech players have come out with these PPI cards, and it really boomed during the last two years, especially post-Covid. So, a number of people were brought to the new-to-credit and the Buy Now Pay Later (BNPL) proposition of business, the regulator had red flags, saying it is uncontrolled,” a supply mentioned.
“The lending business has some norms for underwriting a credit, however, here it was like one can get the prepaid credit card just in time. So, the regulator came down heavily to stop this practice,” the supply mentioned.
Industry associations just like the Digital Lenders Association of India (DLAI), Fintech Association for Consumer Empowerment (FACE) and others, concern that their buyer base could be affected by the RBI directive.
“So they want to have some sort of grandfather or sunset clause. They are of the view that they should at least be given a year to allow the transition, or that they can evolve into the credit business. They want the Finance Ministry and the RBI to allow them a little bit of a sunset clause,” one other supply mentioned.
Sunset clauses are particular provisions in legal guidelines they usually expire after a set timeline.
According to RBI instructions on PPIs issued by non-banks, such devices are allowed to be loaded or reloaded by money, debit to a checking account, credit score and debit playing cards and shall be in Indian rupees solely.
“The PPI-MD (Master Directions) does not permit loading of PPIs from credit lines. Such practice, if followed, should be stopped immediately. Any non-compliance in this regard may attract penal action under provisions contained in the Payment and Settlement Systems Act, 2007,” RBI has directed the non-bank PPI issuers.
The fintech gamers engaged within the PPI-based enterprise mannequin raised funds to broaden their enterprise within the latest previous, nevertheless, it’s extra like an extension of credit score. The regulator is of the view that in case you are not treating such credit score strains as a private mortgage and if there’s a loss on it, then there’s a case of First Loss Default Guarantee (FLDG).
FLDG is an association whereby a 3rd celebration compensates lenders if a borrower defaults.
“The regulator is saying that there is no control as there is no regulation over it. Whereas if an NBFC or a bank does it, the RBI will have control over it. So, the issue is about how to bring about transparency and how to bring it under the ambit of the regulator,” the sources mentioned.
Raman Kumar, Founder Chairman of AI-based credit score enabled fintech platform CASHe, mentioned his firm doesn’t provide PPI playing cards to its clients, including that the corporate stayed away from this product because the laws weren’t clear.
“RBI has already announced that they will allow a select group of NBFCs to issue credit cards just like banks. We are awaiting the detailed rules to be announced before we file our application with the RBI,” Kumar mentioned.
CASHe affords client mortgage merchandise resembling fast private loans in addition to partnership primarily based BNPL credit score strains to the salaried millennials.
Since its launch in 2017, the fintech platform has registered over 20 million (2 crore) app downloads and has disbursed loans of over Rs 4,000 crore to greater than 4 lakh debtors.
Source: www.financialexpress.com”