​​​
  1. GST Council Meet today: Tax cut on 60 items on anvil; relief for exporters, SMEs on cards

GST Council Meet today: Tax cut on 60 items on anvil; relief for exporters, SMEs on cards

The GST Council may take immediate steps for a host of relief to exporters, SMEs and consumers when it meets today for the third time since the implementation of the Goods and Services Tax.

By: | Updated: October 6, 2017 2:21 PM
gst india, goods and service tax, indian gst, gst impacts bhutan, gst impacts economy, indian economy, bhutan economy, economy news The GST Council may consider reducing the tax slab to 5% from the existing 12% on the labour component in government project works when it meets for the third time today since the implementation of the Goods and Services Tax.

The GST Council may consider reducing the tax slab to 5% from the existing 12% on the labour component in government project works when it meets for the second time today. The GST Council, headed by Finance Minister Arun Jaitley, will discuss various issues related to the Goods and Services Tax via video conference call in the national capital. On the back of disruptions caused due to technical glitches, confusion over tax slabs, and higher transitional credit refund, the GST Council is likely to put these issues on priority:

Exporters’ refunds

The transitional credit refund claim by taxpayers in the first month of July was staggering Rs 65,000 crore, of which the government estimated that only Rs 12,000 crore as valid. Rest of the amount is under scrutiny, which has made exporters nervous. Exporters fear that if the GST refund of about Rs 65,000 crore does not start flowing immediately, it would get stuck and, further deteriorate their liquidity situation. The industry representatives, including exporters, who met Finance Minister Arun Jaitley last week raised this issue. The council is likely to discuss the process of refund in the meeting today and take immediate steps to speed it up.

Tax and compliance relief to small taxpayers

The GST council is also going to discuss and announce several measures to reduce the burden on small taxpayers who are struggling to adjust to the GST regime. The council may also relax return filing timeline for small and medium enterprises (SMEs). Taxpayers under the GST regime with income worth up to Rs 1.5 crore may be exempt from filing returns every month, and instead be required to file it once in a quarter. “The GST Council meeting on Friday will take important decisions on integrated GST refund and ease of doing business for small taxpayers,” GST Council Group of Ministers (GoM) head Sushil Modi said.

Technical glitches

The council is going to discuss technical glitches being faced by taxpayers on the GST Network. “Most of the IT-related glitches have been resolved and traders are finding the network easier to file their returns online. Structural changes in the GST regime will also be deliberated in the upcoming council meeting with the member states from across the country and will be announced by Union Finance Minister Arun Jaitley,” IANS quoted Sushil Modi as saying. The revamped GSTN, which can handle 80,000 returns in an hour, will be enhanced to process 130,000 returns per hour by this month-end, he added.

Tax cut on 60 items

The GST Council, in its last meeting on September 9 in Hyderabad, lowered tax on as many as 40 daily use items of the 100 items identified. The council may take up the remaining 60 items for lowering the tax today. On the other hand, the council had levied an additional 2%-7% cess on mid-sized and luxury cars in its second meeting since the implementation of GST. The council had also lowered the GST rates for a number of daily-use products ranging from idli/dosa batter to kitchen gas lighter.

First published on Thursday, 5 October 2017 on www.financialexpress.com

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

  1. No Comments.

Go to Top