New Delhi [India], Jan 18 (NT): GST Council meets for the last time on Thursday, before the declaration of the Union Budget 2018 on February 1, various important changes are on cards. Earlier reports suggested that there will be added focus on tax rate rationalization for several items.
GST Council Head Arun Jaitley, said earlier that “one of his major goals for this year's budget will be to reduce the issues related to GST and optimize the rates”.As mentioned earlier, rate alteration for minimum 70 items can be expected today, as it will set the delivery the upcoming Union Budget.
A report yesterday highlighted that the biodiesel industry is demanding a decrease in GST rate from 18% to 5%. According to the source rates for biodiesel will be slashed.Similarly, taxation on electric transport (12%) might be decreased as well, amid demands from the auto industry.Equipment for agriculture (12%), online services (12%), handicraft industry (12%), and a few others are expected receive rate cuts.Reports suggested that the rate of GST on digital cameras might be reduced from 28 percent to 18 percent.
One of the major decisions that can be expected is bringing real estate to the realm of GST. Rules, laws to be changed
As many as 70 changes and amendments pertaining to GST rules and regulations might be altered at today's meet.
- Some restrictions related to input tax credit may be eliminated.
- Definition of supply under the regime.
- Billing can be done in 3 months instead of taking the bill every month.
- Centralised registration can be provided for the bank, insurance and financial institutions.
Apart from the aforementioned changes and reliefs, the GST Council may also approve a new definition for handicrafts to provide a boost to the sector, Handmade paper, handmade envelopes, letter cards, postcards, handmade boxes, pouches, wallets, handmade fragrance sticks, handmade fabric to be categorised under handicrafts.
At today's meeting, the GST Council, headed by Finance Minister Arun Jaitley, is also expected to ease compliance for filing returns.
- Service providers will have to file single returns.
- The merger of regular forms of GSTR 1,2 and 3 is also on cards.