The Goods and Services Tax Council has a big agenda lined up today(18/01/2018) as it considers more changes to further improve the country...
The Goods and Services Tax Council has a big agenda lined up today(18/01/2018) as it considers more changes to further improve the country's most comprehensive indirect tax reform since Independence.
ET takes a look at what is on the agenda of the 25th meeting of the council:
- Rejig in Rates
The GST Council may take up revision in tax rates on number of items. Rates are likely to be lowered for:
- Bio diesel : 18%
- Agri Equipment : 12%
- Electric Vehicle : 12%
- Online services : 18%
- Jobwork service for handicraft : 12 %
- Some other services : 18%
- Revamp of law, rules and procedure
The law review committee has suggested slew of changes. The council will consider as many as 70 changes and amendments to schedule.
- Change to definition of supply.
- A more liberal input tax credit regime.
- Reverse charge mechanism simplification.
- Single registration for services providers
- Defining Handicrafts:
GST Council may approve a new definition for handicrafts to give a leg up to the sector.
- Handmade paper, handmade envelopes, letter cards, postcards, handmade boxes, pouches, wallets, handmade agarbattis, handmade fabric to be designated as handicrafts
- Return Simplication
The GST Council is expected to simplify and ease compliance.
- Single return for service providers
- Merger of regular forms GSTR 1, 2 and 3
- Limited invoice matching
- Presentation on real estate
The GST Council will take up a presentation on what can be possible regime for the sector if it is included within the tax regime