Hasmukh Adhia said, “Yes, for the services sector the standard rate may move to 18%”
but the good thing is that upper limit of income has been increased from 10 lakh to 20 lakh for paying service tax. It means those who are earning above Rs 20 lakh will be required to pay service tax. However,those agriculturalists, who are either working themselves or have hired their family members for managing the operations, will be exempted from paying tax even if their earning is above Rs 20 lakh. In case any agriculturalist has hired employees and earning more than Rs 20 lakh, then they will need to register under GST.
Hasmukh Adhia said, ” we have not yet decided on the exemption list. That will be decided separately by the Council. I don’t think it will want to tax many agricultural products”
he further said,” Those who are dealing with anything except what we have defined as ‘agriculturalists’ will have to register under GST. But whether their products are taxable or not will have to be decided by the Council”