NEW
DELHI: In
some New Year cheer, the Goods and Services Tax Council on Thursday began
discussions on easing the compliance burden for businesses, with a single
monthly return and uploading of invoices.For consumers, it decided to cut rates
on 54 services and 29 goods, including tailoring, old cars, bio-diesel, drip
irrigation systems and cooking gas.
“The new rates will come into effect from January 25,” said Finance Minister
Arun Jaitley, after the 25th meeting of the GST Council.According to an
official release, the tax on old and used motor vehicles and buses running on
bio-diesel would be lowered to 18 per cent from the current 28 per cent;
diamonds and precious stones will be taxed at 0.25 per cent, and tailoring
services at 5 per cent.
To protect the domestic industry and boost employment, nearly 40 items have
been classified as handlooms and the Fitment Committee of Officers will now
finalise their rates.Jaitley, who chairs the GST Council, also announced that
discussions have begun on a single return system of GST 3B, and uploading of
invoices by the buyers and sellers.“At a later stage, in case of
any differences, they can be asked to explain,” he said, indicating that
essentially GSTR 1, 2 and 3 will no longer be used.
Presentations on return filing were made by Bihar Deputy Chief Minister Sushil
Kumar Modi, who heads the ministerial group on IT systems; GSTN CEO Prakash
Kumar and Infosys non-executive Chairman Nandan Nilekani.“A final decision will
be taken by the GST Council in its next meeting, which is likely to be through
video-conferencing,” Jaitley said. Inclusion of items outside GST, including
real estate, crude oil, natural gas and petroleum, will be taken up at the next
meeting.
The Council also discussed revenue collections under the new levy and possible
deterrent provisions. This would include the E-Way Bill, which will start from
February 1.As many as 15 States have
also decided to roll out intra-State Bills from next month.To ease fiscal
pressure on the finances of the Centre as well as States, the Council also
decided that ₹35,000
crore from the Integrated GST collections would be distributed among them.
“This will help ease the
indirect tax positions of the Centre and the States. The Centre is well ahead
of its direct tax target,” Jaitley stressed, indicating the commitment to
fiscal consolidation. He also expressed hope that indirect tax collections will
pick up as anti-evasion measures are put in place.The Council
discussed low collections under the composition scheme, where 17 lakh
registered dealers have paid only ₹307 crore as tax. “This will be factored in when
the CGST, SGST and IGST Act are amended,” Jaitley said, adding that amendments
will be circulated within the Council in the next meeting.It will also consider
re-introduction of the reverse charge mechanism for those under the composition
scheme.Jaitley said that the Anti-Profiteering Authority will accept ₹119 crore from
Hindustan Unilever Ltd on a provisional basis. “The matter is before the
authority,” the Finance Minister said.
Source: The Hindu, India Saturday, 20 January 2018