India’s 6-moths old GST system will have one more change. Before Union Budget 2018, GST Council may go for some simplification of return filing process and changes in laws and rules to simplify procedures.
There will be also rate cuts of approx. 70 goods and services. Led by Finance Minister Arun Jaitley, GST Council to consider all states’ recommendation in the next meeting. Next meeting will be held on Thursday.
With GTS implementation, Union Government received Rs 80,808 crores in GST revenues. Before the presentation of Budget 2018, this will be the last meet.
Indian agriculture and rural economy is struggling to get up. With the GST revision, it will boost clean energy as well.
A government official said, “Around 40 to 50 services will be taken up for a rate revision in the Council meeting. These are services that were earlier exempt but were taxed under the GST regime. They are facing issues,”
Agriculture products are under 18 per cent tax base and now it may come under 12 per cent or 5 per cent tax bracket.
In the Union Budget 2017, government measures to boost the rural and small enterprise sectors. Bio-diesel buses may see less tax bracket than its current 28 per cent GST. Karnataka is one of the states to have given a big push to bio-diesel buses that are environment friendly. Karnataka State Road Transport Corporation (KSRTC) has inducted a slew of buses that run on bio-diesel.
Job works may be allowed as part of the composition scheme. Service provider aggregators such as UrbanClap, Housejoy and Quikr that provide e-platforms to carpenters, housekeepers, and plumbers could also find relief.
Service providers of up to Rs 500,000 a year may also be allowed to opt for composition scheme.
The rate cuts may be confined to a few items that were either taxed at a lower rate in the past or are socially necessary, such as electric cars and their parts.
Earlier the council had reduced the tax rates of 200 items in November. With the reduction, revenue collections touched the lowest in November at Rs 808 billion.
Rates for 176 items, including detergents, shampoos, and beauty products, were reduced from 28 per cent to 18 per cent, while for a few others to 12 per cent. Now there are only 50 items in the 28 per cent tax bracket.
Also, the council may allow a single return filing for small and medium businesses. The three GST return forms — GSTR1 (sales supply), GSTR2 (purchase supply), and GSTR3 (the final netted out return) — may be consolidated into a single form.
The Confederation of Indian Industry (CII) has asked to include Petroleum and natural gas under GST.
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