8 Nov 2017, 15:24 — 3 min read
GST Council is likely to cut rates on 150-200 items from 28%. Broad brush changes are set to be approved including a simpler procedure for filing of tax returns for SMEs. The meeting that is schedule for this Friday might make a single return filing form the only requirement for small firms.
When taxes were being determined for over a 1000 items prior to GST the aim was to keep tax incidence as similar to the current level at the time which ensure similar revenue collection. However, now, the Finance Minister, Arun Jaitley says some of those should never have been put on 28% list and it is this that will be remedied in the upcoming council meeting. Handmade goods, furniture, and even items like shampoo may benefit from this next spate of slab reductions.
"We have been gradually bringing them (taxes) down. The whole idea is, as your revenue collections neutralise we must prune it and that's the pattern in which the Council has so far been functioning. I see that as a future guide as far as the Council is concerned," Jaitley said at the India Today Conclave.
A quote by a Government official promised change across other tax slabs as well. “An exhaustive list is being prepared by the fitment committee (an officials’ panel that proposes GST rates for goods and services). A major overhaul in rates is expected. Changes in rates may not be restricted to moving non-sin goods out of the 28 percent bracket. It could be across other slabs tax (12 and 18 percent).”
The PMO (Prime Minister’s Office) looks to be driving these changes in a bid to reduce tax and compliance burden for crores of small traders, make the rules more manageable and help trade by reducing tax for the goods and services that fall in the highest tab of 28%.
Jaitley, will head the GST Council as it meets in Guwahati and also review the return filing process that is causing problems with the amount of paperwork in its next meeting. The aim is to make the return filing process simpler, especially for small business owners.
"There will be a review of the norms to file GSTR-1, 2 and 3. Businesses have complained of trouble in invoice matching while filing GSTR-2. It would be reviewed whether matching of invoices would be pursued in the coming months," a senior government official told PTI.
To make the process simpler, small firms may be allowed to file of only one summary return form GSTR3B, doing away with filing of GSTR1, GSTR2 and GSTR3.
Stay tuned for more as the GST Council deliberates this Friday - November 10, 2017.
Posted byGlobalLinker Staff
We are a team of experienced industry professionals committed to sharing our knowledge and skills with small & medium enterprises.
28 Oct 2022, 15:16
21 Oct 2022, 11:54
Most read this week