Expectations from 38th GST Council Meeting to be held on 18th December, 2019, Rate cuts on agenda
Expectations from 38th GST Council Meeting to be held on 18th December, 2019, Rate cuts on agenda
The 38th GST Council meeting is going to be held on 18th December,2019. The said meeting will be chaired by Hon’ble UnionFinance Minister Smt. Nirmala Sitharaman.
Top Expectations from 38th GST Council meeting:
GST Annual Return filing date may get extend further as the revised format changes are still awaited.GST Council is likely to extend the due date for filing the GSTR 9 & GSTR 9C for FY 2017-18 & FY 2018-19 till 31st January 2020. The due date for GSTR 9 & 9C for both the fiscals is 31 December, 2019.
New and Simplified GST returns system may get further simplified as per the suggestions given by stakeholders which are supposed to get applicable from 1st April, 2020. Till then the old system of filing GSTR 1 and GSTR 3B will be Continued. It may also allow blocking of E-WAY Bill for taxpayers with two-consecutive non-filing of GSTR1 & GSTR 3B.
Centre may propose to increase the existing 5% slab anywhere between 6% to 8%. It is expected that the five slab structure will be brought down to three slabs by a rise in rates. Moreover, certain items that were exempted or nil rated may make a comeback under the tax net.
The GST Council may take note of the revenue position in this meeting. There is a continuous drop in revenue over the last few months of the present fiscal year.
In the same meeting, rate assessment to pitch into an inverted tax system, measures to boost compliance and revenue other than the measures currently under-enforcement, will also be reviewed. The Government may restrict claiming of ITC of not more than 10% in case of seller not uploading invoices. Currently, the Government allows a claim upto 20%.
The GST Council is expected to correct the inverted tax structure on a long list of items in the upcoming 38th GST Council meeting. It includes fabric bags, solar modules, railway locomotives, fertilisers, steel utensils (output tax rate ranging between 5-12%) in whose cases the inputs are taxes usually at 18%.
While there is a lot of chaos is going on in the country right now, It would be interesting to know the final outcome of the Coming 38th GST Council meeting. Let’s hope for a good time coming up for the taxpayers.
Have a look on how many of our expected decisions matches the actual decisions of 38th GST Council meeting
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