GST council to meet on Oct 24; rates of 60 items likely to be cut
GST council to meet on Oct 24; rates of 60 items likely to be cut
Sep 13, 2017

The all-powerful GST Council headed by Finance Minister Arun Jaitley is likely to discuss reducing rates of close to 60 items in its next meeting on October 24 in New Delhi.

“Around 100 items was there in the Council meeting's agenda on Saturday. Only 40 items could be taken up for discussion as we were running out of time. Remaining items will be considered in the next meeting on October 24,” a senior government official told Moneycontrol.

“Most of the remaining items are demands of individual states now,” the official said.

After brainstorming for more than eight hours, the goods and services tax (GST) Council –a body comprising state finance ministers and senior government officials—on Saturday took several crucial decisions that had affected taxpayers since the implementation of the new indirect tax system.

The Council, which met in Hyderabad, extended the deadline for filing the first set of returns, a move that will benefit millions of traders who have been struggling to upload invoices in the new tax system’s portal. Apart from discussing the liquidity crunch that the states are going through, the team also discussed the way out for technical glitches on the tax return filing portal GST Network (GSTN).

The Council also decided to constitute a group of ministers (GoM) that would look into the problems traders and taxpayers while using the GSTN portal, the information technology (I-T) backbone of the new tax system.

GSTN is a portal-driven IT backbone created to enable real-time taxpayer registration, filing returns, handle invoices, execute inter-state tax settlements, and connect states for two-way data flow.

Along with these decisions, GST rates of 40 items were brought down keeping in mind the changing time and needs for these products, which included goods such as tamarind, roasted gram, custard powder, dhoop, agarbatti, raincoats and rubber band.

“These (the rates) were in some higher category. In some cases the rates have been brought down to from 28 to 18 percent, in some cases from 18 to 12 percent and in some cases from 12 to five percent,” Jaitley had said. “Reduction in rates were required,” he had said.

According to another official, the government is mulling rate revision for items that fall in the highest tax bracket of 28 percent. “A decision towards this is yet to be taken as it would require Council's approval,” the official said.

GST has four broad slab structure – 5, 12, 18 and 28 percent – along with a cess on luxury and demerit goods such as tobacco, pan masala and aerated drinks. The states would receive provisional compensation from Centre for loss of revenue due to abolition of taxes such as VAT (value added tax), octroi and implementation of new tax system. The compensation would be met through levy of a 'GST Compensation Cess' on luxury items and sin goods like tobacco, for the first five years.

Source :  Money Control

Top Stories
Outcome of the 23rd GST Council Meeting held on 10.11.2017
The GST Council in its 23rd Meeting decided to reduce tax rate on a wide range of daily use items. T...
Nov 11, 2017
GST returns: Govt waives fine for delayed filing for August, September
The government on Tuesday waived penalty on delayed filing of initial goods and services tax (GST) r...
Oct 24, 2017
GST Network launches an offline tool to file a form detailing inputs or capital goods sent to job workers and received back
GST Network today said it has launched an offline tool for businesses to quarterly file a form detai...
Oct 24, 2017
Deadline to claim GST transition credit till 30 November
The government on Thursday extended the deadline by a month till 30 November for businesses to claim...
Oct 26, 2017
Yet another GST extension: July deadline to file GSTR-2, GSTR-3 moved to Nov 30, Dec 11
In a move to give relief to GST taxpayers, the government today extended the deadline to file return...
Oct 30, 2017
Articles on GST