All eyes would be on the outcome of the goods and services tax (GST) council meeting in Goa on Friday, which may bring much-needed relief for various industrial sectors. The meeting would be headed by finance minister Nirmala Sitharaman and would reportedly deliberate upon more than 20 agenda items this time.
Here’s a look at what can be expected from today’s GST Council meet:
— The biggest expectation is that GST on the automobile sector might be reduced from 28% to 18%. Reports suggested that reduction in GST rate for auto is unlikely due to the expected sharp revenue loss for the government, but experts still feel the council is expected to give priority to pushing demand and consumption over a shortfall in tax revenue.
— Experts believe the council might also reduce tax rates on cement, steel, ceramic tiles and sanitary wares to promote affordable housing and giving a boost to the real estate sector.
— GST rate on Rs 100 per kg biscuits might be reduced from the current 18% to 12%.
— For the hotel industry, the tariff ceiling for 18% GST rate may be raised to Rs 12,000 per night than the current Rs 7,500 per night.
— The telecom ministry’s proposal to reduce GST rate for telecom services from the present 18% to 12% would also be considered.
— The council will consider the introduction of a special composition scheme for taxpayers supplying brick kilns, sand mining activities and stone crushers with an increased rate. Reportedly, the council will consider increasing the rate from the current rate 5% to 12%.
— GST laws may be amended to accommodate creation of Jammu and Kashmir and Ladakh as union territories.
— A proposal moved by Kerala on introducing an e-way bill system for movement of gold and precious stones would be considered.
— The GST council will consider a proposal to tax supply of Mentha oil to be paid on reverse charge by the recipient.
— The council will also take up the proposal of linking new GST Registration with Aadhar and is expected to approve it.