GST Council Meet: GST Rates Revised on 29 Items & 53 Services
In its last meeting ahead of the 2018-2019 Budget, the GST Council will meet to discuss changes in the GST Law.
Rate Revisions, Discussions On Real Estate Likely
Here are the other issues that the GST Council may consider:
- Lowering tax rates on buses run on biodiesel, agricultural equipments, and inclusion of natural gas under GST.
- Rate on packaged drinking water would be brought done from 18 percent.
- The GST rates on tools and implements applicable to drip irrigation would be brought down to popularise and propagate the drip irrigation in the country, Minister of State for Parliamentary Affairs, Water Resources, River Development and Ganga Rejuvenation, Arjun Ram Meghwal was quoted as saying in release by industry body PHD Chamber. GST rates on equipment and tools pertaining to drip irrigation currently attract 18 percent GST.
- A presentation will be made on the contours of including real estate under the new indirect tax regime. This was the unfinished agenda in the last GST Council's meeting in Guwahati.
The council will meet for the last time before the nationwide implementation of e-way bill mechanism. It is, therefore, expected to take stock of the preparedness before the e-way bill system is implemented. E-way bill mechanism would be rolled out countrywide for inter-state transfer of goods from 1 February 2018.
(With inputs from PTI and BloombergQuint)
Simplification Of GST Returns Filing
The council is considering several options to simplify the GST returns filing process, include merging GSTR-1 and GSTR-3B by including additional tables in GSTR-1, the first official quoted above said. If this happens, taxpayers will have to file just one return, he added. This will not require much changes in the system, and can will be implemented from the next financial year, the official said.
Matching of invoices to check evasion would be done by the system, and taxpayers will be questioned if their purchase and sale details do not match, he said.
Other option, according to the second official, is to consolidate GSTR-2 and GSTR-3. But he assured that if this proposal goes through, enough time would be given to taxpayers as they will have to change their systems.
Centralised Registration?
The council will also take up the Law Review Committee’s suggestion of centralised registration for banks, financial institutions and airlines which have a turnover of Rs 500 crore and are present in 10 or more states, an official told BloombergQuint. Currently, such businesses have to register in every state where they are present.
Centralised registration and return filing for service companies will bring a lot of relief in terms of ease of compliance for the services sector, Abhishek Jain, an indirect tax partner at EY India told BloombergQuint.
And even if states agree, “service companies may still have to maintain state wise records,” Sumit Lunker, an indirect tax partner at PwC India, said.
Widening the Composition Scheme
The council, in its previous meeting, had decided to include certain taxpayers who provide some services along with the sale of goods under the composition scheme which allows small businesses to pay taxes at a lower rate without getting any input tax credits. As per the changes decided by the council, businesses which sell goods and provide allied services such as maintenance of equipments, and whose turnover from the services business is either 10 percent of the turnover from sale of goods or Rs 5 lakh, whichever is lower, can now avail the scheme. This would require amendments in the GST law which the council will discuss in Thursday’s meeting.
Job-works, currently treated as services, may be allowed to be a part of composition scheme, an official told BloombergQuint.
Currently, the composition scheme can be availed by taxpayers with a turnover of Rs 1.5 crore.
Arun Jaitley Commences Last GST Council Meeting Ahead of the Union Budget
Finance Minister Arun Jaitley commenced the 25th GST Council meeting, the last one before the Union Budget rolls out on 1 February.
The meeting is being held in New Delhi where the council is expected to make a few reforms to the GST bill ahead of the 2018-19 budget.
Nandan Nilekani Makes Presentation on Compliance Simplification: Sources
Nandan Nilekani, former UIDAI chairman and current chairman of Infosys, makes a presentation on compliance simplification, CNBC-TV18 reports, citing sources.
GST Council Press Conference at 6.30 p.m.
The GST Council is likely to address a press conference at 6.30 p.m, reports ET Now.
There are also expectations that the GST Council might consider a host of proposals to simplify the procedure for filing of returns, registration of large entities, and lower tax on some items. The council is also expected to look at GSTN's readiness for e-way bill rollout from 1 February.
GST Council Meet Will Address Difficulties Faced by Exporters: Venkaiah Naidu
Vice-President M Venkaiah Naidu said that various decisions of the central government, including demonetisation and GST, are likely to have a positive impact in the coming years.
Naidu was speaking at a function here to present the fourth and fifth set of Federation of Indian Export Organisations (FIEO) Southern Region Export Excellence Awards.
The GST council would be addressing the concerns of the exporters, he said, advising them to focus on new markets and new products, including "sunrise products".
GST Video Conference on Simplifying Tax Returns to be Held in 10 Days
The GST Council is likely to hold a video conference in 10 days to explain a simplified method to file GST returns, BloombergQuint reported.
GST Rates on 29 Items Cut to Zero Percent
BloombergQuint quoted the Uttarakhand Finance Minister Prakash Pant as confirming a reduction of GST rates on 49 items. The report adds that the GST rate on 29 items has been cut to zero percent, mainly handicrafts.
No decisions have been made on real estate.
GST Council Meet Ends
The GST Council meet comes to an end.
GST Council Meet Ends, Jaitley Addresses Media: Highlights of GST Council Meet
New rates on 29 goods & 53 categories of services to come into effect from 25 January, says Finance Minister Arun Jaitley. The GST Council also decided to continue 3B return filing.
The Key Highlights:
- GST Council revised tax rates on 29 items and 54 categories of services, the finance minister said.
- Next meeting of GST Council will approve a simpler GST return filing process, he added.
- Rs 35,000 crore of Integrated GST will be provisionally divided between the Centre and states, Jaitley said. The division of IGST credit will boost the indirect tax position of both the central and state governments, he added.
- Provision of carrying e-way bill, when moving goods between states, will be implemented from 1 February. 15 states will implement intra-state e-way bills, Jaitley added.
- Next meeting of GST Council may consider bringing petroleum and other exempt items within the purview of GST, Jaitley said.
In its last meeting ahead of the Union Budget 2018-19, the Goods and Services Tax (GST) Council met on 18 January to discuss a slew of changes in the GST law along with some tweaks in the tax rates. The apex decision-making body of the new indirect tax regime put 29 handicraft-related items in the zero percent tax bracket. GST rates on 54 items have also been reduced. However, no decision on petroleum products or real estate has been made, Finance Minister Arun Jaitley said. GST Panel also decided to divide Rs 35,000 crore IGST collections between centre, states: FM Arun Jaitley after the 25 th GST Council meet.
The Key Highlights:
- GST Council revised tax rates on 29 items and 54 categories of services, the finance minister said.
- Next meeting of GST Council will approve a simpler GST return filing process, he added.
- Rs 35,000 crore of Integrated GST will be provisionally divided between the Centre and states, Jaitley said. The division of IGST credit will boost the indirect tax position of both the central and state governments, he added.
- Provision of carrying e-way bill, when moving goods between states, will be implemented from 1 February. 15 states will implement intra-state e-way bills, Jaitley added.
- Next meeting of GST Council may consider bringing petroleum and other exempt items within the purview of GST, Jaitley said.
- 3B Return Filing will continue finance minister Arun Jaitley said.
- GST rates on 29 goods & 53 categories of services have been revised.
- The GST Council will hold a video conference in 10 days to explain simplified filing of returns.
- No decision made on real estate.
- No decision made on petroleum products.
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