Finance Minister Arun Jaitley along with other senior leaders and representatives of all the states held the GST Council meeting in Guwahati on Thursday evening to decide the next array of reforms following feedback after indirect tax scheme Goods and Services Tax was implemented in the country from July 1, 2017. GST in India, divide indirect tax rates into slabs of 5%, 12%, 18% and 28%. After the new tax regime was implemented in the nation, many traders union, small businesses have protested and raised their voice asking the government to reduce tax as they were unsatisfied with the tax slabs they were put in. The new measures taken in the meeting which may be announced today can bring relief to businessmen, consumers as it is expected that a wide variety of goods and services may get cheaper. Here are 10 points you need to know.
Here are 10 points to consider while 23rd GST Council meet is underway
- Tax rates on 80% of 227 items falling in the top slab is likely to be reduced from 28% to 18%.
- Prices of daily use such as shampoo, manually made furniture, sanitary ware, stationary, etc may get cheaper as tax rates on these times may be reduced.
- It is expected that several items which currently comes under 28% slab may be transferred to 18%.
- Tax rate of 12% may be implied to all restaurants (AC and non-AC) to bring uniformity.
- Presently AC restaurants have been put under the 18% slab while non-AC restaurants are under 12% slab.
- There can be new development in terms of prices while having meals in hotels which have tariffs of more than Rs 7,500 in comparison to 5-star hotels.
- Finance Ministers of around 24 states will be meeting on Friday (today). Finance Minister Arun Jaitley will lead the meeting.
- The meeting will also focus on procedure to fill three returns every month in order to bring ease of some burden for small traders and businesses.
- The GST panel may also recommend having a uniform rate of 1% for manufacturers, restaurants.
- Outcomes from today’s meeting may be fruitful for SMEs (Small and Medium Enterprises) who since the implementation of the new indirect tax regime have expressed their dissatisfaction.