Published: Thu, November 09, 2017
Research | By Raquel Erickson

Expectations from GST Council meeting

Expectations from GST Council meeting

The two-day meeting will review the impact of the new tax regime in the first quarter of its implementation. Bihar Deputy Chief Minister and GST member Sushil Kumar Modi on Wednesday said that out of 227 items falling in highest tax slab is likely to be reduced from 28 per cent to 18 per cent in the upcoming Council meet.

The GST Council will meet on November 9 and 10 in Assam's capital Guwahati.

The GST Council is likely to prune the list of items that now attract 28% GST rate. Small businesses and eateries will also get major relief as the flat GST rate they can pay under a special window called the composition scheme is likely to be cut.

"We are demanding from the GST council to reduce the GST on dry dates from 12 per cent at present to five per cent as in the case of raisins and cashew nuts", said All India Dry Dates Association, President, Anil Mehra said today. It may take crucial decisions on pruning the list of items in the 28 per cent tax category.

"We want that discussions should start on inclusion of real estate and petroleum in GST", Badal said, adding that while bringing the real estate sector within GST, the needs of autonomy of states to levy stamp duty and property taxes should be balanced and agricultural lands and old buildings should be kept out of GST.

Officials have said that items now being taxed at 28 per cent will be looked into. He suggested that over time 12 per cent and 18 per cent should converge and only few items should remain under the 28 per cent slab.

"In tomorrow's meeting with the GST Council, the Congress will demand to completely abolish the 28 per cent tax slab". According to the reports, the Council may slash taxes on certain common use items such as handmade furniture, plastic products and daily use items like shampoo.

The panel recommended a 1% tax for traders, manufacturers and restaurants, Himanta Biswa Sarma, the convener of the panel, told reporters after the 29 October GST Council meeting. The council is also likely to consider a proposal by GoM to allow all taxpayers to file their returns on a quarterly basis instead of every month with easier forms to simplify the fledgling indirect tax regime.

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