25th GST Council meet today: Govt may bring down tax rate on 70 goods
Apart from this, the Council is also expected to rationalise taxes of agriculture implements and unconventional fuel buses. The report suggests that the agriculture implements that are currently taxed up to 18 per cent may come under 12 or 5 per cent bracket.
- Jan 17, 2018,
- Updated Jan 18, 2018 10:37 AM IST
The GST Council is scheduled to meet today for the 25th time. Ahead of the meet, it has been reported that the Council may bring down taxes on as many as 70 goods. According to a report in the Business Standard, the GST Council is likely to rationalise the tax rates of about 70 items, of which at least 40 are services. "Around 40 to 50 services will be taken up for a rate revision in the Council meeting. These are services that were earlier exempt but were taxed under the GST regime," the business daily quoted an official as saying.
Apart from this, the Council is also expected to rationalise taxes of agriculture implements and unconventional fuel buses. The report suggests that the agriculture implements that are currently taxed up to 18 per cent may come under 12 or 5 per cent bracket.
This will be the second biggest tax rationalisation after GST roll out. In November, the Council had brought down taxes on over 200 goods. As many as 178 items of daily use were shifted from the top tax bracket of 28 per cent to 18 per cent. The move, however, cost the exchequer dearly as following months GST collections declined.
Last year in August, the Council had slashed the tax on some tractor parts from 28 per cent to 18 per cent. In tomorrow's meeting, the Council may take up compliance issue and could come up with a single stage return filing to smoothen the procedures for small and medium enterprises. After the introduction of single form filing, the traders/firms will have to file just 12, down from 37. Currently, there are three return forms: GSTR1, GSTR2 and GSTR3.
The Council could also discuss the inclusion of real estate under GST. According to reports, the Council could put real estate sector under 12 per cent bracket and it may also subsume stamp duty and registration charges. "Discussion of real estate inclusion in GST is the key agenda of the GST Council which is scheduled to meet on January 18th," news agency ANI quoted an official as saying.
The Confederation of Indian Industry or CII in a statement issued on Tuesday urged the government to bring oil and natural gas under the GST. As of now, crude oil, natural gas, diesel, petrol and aviation turbine fuel have not been included in the new taxation system.
Last month, Finance Minister Arun Jaitley told Rajya Sabha that the Centre was ready to bring petroleum products under GST but it would want a consensus with the states before taking such a step. Days after Jaitley's statement, industry body Assocham said that the consensus with states on inclusion of petroleum would never emerge as they and the Centre were over-dependent on the sector for revenue collection.
"Realistically speaking both the Centre and States have been over-depending on petroleum sector for their revenue collection. Collectively, they impose over 100-130 per cent taxes on petrol and diesel," Assocham said in a statement.
The GST Council is scheduled to meet today for the 25th time. Ahead of the meet, it has been reported that the Council may bring down taxes on as many as 70 goods. According to a report in the Business Standard, the GST Council is likely to rationalise the tax rates of about 70 items, of which at least 40 are services. "Around 40 to 50 services will be taken up for a rate revision in the Council meeting. These are services that were earlier exempt but were taxed under the GST regime," the business daily quoted an official as saying.
Apart from this, the Council is also expected to rationalise taxes of agriculture implements and unconventional fuel buses. The report suggests that the agriculture implements that are currently taxed up to 18 per cent may come under 12 or 5 per cent bracket.
This will be the second biggest tax rationalisation after GST roll out. In November, the Council had brought down taxes on over 200 goods. As many as 178 items of daily use were shifted from the top tax bracket of 28 per cent to 18 per cent. The move, however, cost the exchequer dearly as following months GST collections declined.
Last year in August, the Council had slashed the tax on some tractor parts from 28 per cent to 18 per cent. In tomorrow's meeting, the Council may take up compliance issue and could come up with a single stage return filing to smoothen the procedures for small and medium enterprises. After the introduction of single form filing, the traders/firms will have to file just 12, down from 37. Currently, there are three return forms: GSTR1, GSTR2 and GSTR3.
The Council could also discuss the inclusion of real estate under GST. According to reports, the Council could put real estate sector under 12 per cent bracket and it may also subsume stamp duty and registration charges. "Discussion of real estate inclusion in GST is the key agenda of the GST Council which is scheduled to meet on January 18th," news agency ANI quoted an official as saying.
The Confederation of Indian Industry or CII in a statement issued on Tuesday urged the government to bring oil and natural gas under the GST. As of now, crude oil, natural gas, diesel, petrol and aviation turbine fuel have not been included in the new taxation system.
Last month, Finance Minister Arun Jaitley told Rajya Sabha that the Centre was ready to bring petroleum products under GST but it would want a consensus with the states before taking such a step. Days after Jaitley's statement, industry body Assocham said that the consensus with states on inclusion of petroleum would never emerge as they and the Centre were over-dependent on the sector for revenue collection.
"Realistically speaking both the Centre and States have been over-depending on petroleum sector for their revenue collection. Collectively, they impose over 100-130 per cent taxes on petrol and diesel," Assocham said in a statement.