Janjivan Bureau / New Delhi : The 22nd meeting of the goods and services tax (GST) Council has begun at the Vigyan Bhawan in New Delhi on Friday Morninig. Union Finance Minister Arun Jaitley is presiding over the meeting.
Finance Minister Arun Jaitley is expected to push for a big tax rate cut, which will enable 60 goods and services to become cheaper, reports moneycontrol.com. This seems to be part of a broader strategy to help the economy claw out of a three-year growth slump. PM Narendra Modi had apparently brainstormed for over three hours with Jaitley and Amit Shah on Thursday, to understand the current state of the economy.
GST rates are likely to be cut for luxury goods in the 28% bracket. AC will get cheaper to 12% from the existing 18%, while the rate for cab lease services may be reduced to 18% from 28%. The rate on some handicraft items, unbranded cereals and artificial jewellery may be brought down to the 5% bracket from the 12% one.
The GST Council is expected to look at ways to provide relief to exporters in terms of faster refunds as well as compliance. It is also likely to focus on ways to improve the functioning of the GST Network.
The all-powerful Goods and Services Tax (GST) Council will hold its 22nd meeting today and is likely to consider relaxing the return filing cycle for small and medium enterprises. Sources told Network18 that a quarterly return filing mechanism could replace the current system of three monthly and one annual filing. Around 60 goods and services may also become cheaper after being shifted to lower slabs.
A committee headed by Revenue Secretary Hasmukh Adhia is expected to submit a preliminary report to the council on steps needed to provide relief to exporters. The council will then recommend some relaxation so that the working capital of exporters that is locked up in refunds is released.
Based on feedback received from business entities other structural changes in the new national tax regime are also expected to be considered. Friday’s review comes amid criticism over the way GST is being implemented.
Two days ago, Prime Minister Narendra Modi had promised that glitches in the GST system would be fixed. In this regard, he met Finance Minister Arun Jaitley and Bharatiya Janata Party president Amit Shah on Thursday.
Meanwhile, Bihar Deputy Chief Minister Sushil Modi has appealed to the council to consider removing some of the difficulties being faced by the small taxpayer.
Yesterday, he suggested that taxpayers with a turnover of up to 1 crore 50 lakh rupees may be permitted to file their returns on a tri-monthly basis.
The course correction comes against the backdrop of stinging attacks on the government for what the opposition and some in the BJP have alleged was a hurried and sloppy implementation of the mega tax reform.
