Big Bang GST Changes Will Be Announced Before Budget; Rate Cuts Likely!
The GST Council is likely to announce some big GST changes before the Union Budget for 2018 is presented.
On 1st February, Finance Minister Arun Jaitley will present Modi Govt.’s 5th Union Budget, and the mood and temperament have been set for some massive changes.
Goods and Services Tax or GST can undergo some big changes before budget announcement, and we are already receiving vibes that 2018 shall be different.
Some important changes in GST filing rules are expected, besides tax rate cut across 60-70 items is likely to happen.
Let’s explore what all can change before budget:
GST Rate Cut For 60-70 Items
GST Council would be meeting tomorrow, and the Finance Minister Arun Jaitley will be heading it. Insider reports claim that the meeting would finalize the list of 60-70 items, which can receive some major tax cuts.
Considering that general elections are due next year, this GST Council meeting is significant indeed.
Items and products such as electric vehicles, irrigation equipment and handicrafts can receive GST tax cuts, as per experts.
Ever since GST regime officially came into place, Govt. had been reducing GST slabs for various products and services, as per demand and requests. The biggest reduction in GST slabs came in the month of November, when 177 items were removed from the top 28% slab, bringing in a huge cheer from the business community.
However, they had to endure revenue loss of Rs 20,000 crore for that.
The retail industry is optimistic that Govt. will announce further tax rate cut, which will enable more consumers to shop more. Kumar Rajagopalan, CEO, Retailers Association of India said,
“We hope that the budget gives lots more in the hands of individual consumers for them to be able to go out there and buy. If consumption in India increases, it re-emphasises the democratic dividend that India has and this will further support the Make in India movement in the country.”
GST Changes In Rules
Besides tax rate cut, the GST Council meeting tomorrow will also announce several amendments to GST rules, which includes GST filing.
If we believe incoming reports, then the Council is considering a single stage GST return procedure, which will drastically simplify the whole process.
If that happens, then GSTR1 (outward supply), GSTR2 (inward supply) and GSTR3 (the final netted out return) would converge into one, thereby reducing the total number of GST returns to 12 per year, instead of 37.
Besides, decisions related to reverse charge mechanism (RCM), tax deducted at source (TDS) and tax collected at source (TCS) may also be taken, before the budget announcement.
We will keep you updated as we receive more information related to GST and Budget 2018.