The Prices of more than 200 commodities can be cheaper; the all-powerful GST Council is meeting in Guwahati today and it is expected that the GST Council headed by Finance Minister Arun Jaitley will cut taxes on many common uses for the benefit of consumers and businesses, Can be approved. In its 23rd meeting today, The GST Council can decide on reducing rates by serving in the restaurant. The GST Council is also hoping to provide more relief to small and medium enterprises (SMEs) in the case of compliance.
Expectations from Today’s GST Council Meeting:
The Tax rates on more than 200 daily commodities can be reduced from 28 per cent to 18 per cent as the council can produce 28 per cent of the highest GST rate.
The items include handmade furniture, shampoo, sanitary ware, suitcases, wallpapers, plywood, stationery articles, watches, and play equipment. The panel can also decide to reduce the rate of tax on the food served in the restaurant, which can be served at a cheaper price.
The committee by the Assam Finance Minister has suggested removing the tax rate difference between the AC and non-AC restaurants, which are not covered under the structure scheme. It offers a similar tax rate of 12 percent. At present, GST is imposed at 12% in non-AC restaurant, while 18% is for air-conditioned people.
The Committee, headed by the Finance Minister of Assam, also suggested that at the hotel, about Rs. 7,500 should attract an equal 18 percent rate instead of any different category for a 5-star hotel, which currently falls under 28 percent bracket.
The panel has also recommended reducing the tax rates for manufacturers and restaurants under the composition scheme.
Currently, while manufacturers have paid 2 percent GST, the rate for the restaurant is 5 percent. Currently the traders pay 1 percent
For annual turnover of Rupees One Crore can opt for the structure plan, which allows them to pay taxes at flat rates without input credit. The purpose of the Alternative Composition Plan is to bring simplicity and reduce compliance costs for small businesses.
To reduce the burden of compliance for small businesses, the GST Council is also going to review the requirement to file three returns every month under the GST set-up.
Since the beginning of the new indirect tax regime on July 1, 2017, the GST Council meets every month. The GST Council, which meets the representatives of all the states, has already made tax rates rational for more than 100 items. Under GST, various goods and services are placed in the bracket of 5, 12, 18 and 28 percent.
