The GST Council is good to go to meet for the 37th time on September 20, 2019 in Goa under the chairmanship of the finance minister, Smt. Nirmala Sitharaman. The Goa meeting has been pending for a year (because of weakness in health of the previous executive and union finance minister, lt. Arun Jaitley). The GST council is probably going to concentrate on improving income position, ITC for the Healthcare division, Reviewing Return Filings and GST Rate Reductions.
What to anticipate?
The 37th GST council is probably going to discuss about the accompanying issues in the up and coming meeting:
Decrease of GST Rates in Auto Sector
The automobile industry has mentioned a GST rate cut from 28% to 18%, in a prospect of pulling in clients in the up and coming festive season. While the government is excited about the same, this may bring about tremendous income loss.
The Fitment Committee, a board of authorities of the GST council that inspected the implications of a GST rate cut recommends that decrease in tax rate will cut down accumulations by over Rs 20,000 crore. Citing one of the senior finance ministry, “that it (GST rate cut) is accomplished for one segment, it can open floodgates. We ought not overlook the income circumstance.” This presumably brings down the opportunities of bringing GST rate related talks in the up and coming council meeting.
Review return filings
The 37th GST Council Meet is relied upon to survey the present and new return filings as well as spotlight on the phased presentation of new return forms. Moreover, the committee may likewise review penal proviso against non-filers, including suspending of Eway Bill issuance.
According to the insights till now, on an average 20 percent assessees don’t file the return inside the given due date which influences overall income collection.
ITC treatment in the health division
By the absence of input tax credit (ITC), a few medical clinics have claimed an approx. 8% drop in their yearly revenue margin. As these medical clinics (barring cosmetic surgeries and hair transplants) are excluded from GST charges, they can’t claim ITC, which in the long run prompts to an expansion in the cost of internal supplies. Hence, these medicinal services units have asked the finance ministry for a yield GST of 5% on such taxable services without ITC. GST council may think about the same for a discussion in the up and coming GST council meet.
Review present Revenue Position
In spite of the fact that the finance ministry has reduced the GST accumulation target from Rs 7.61 lakh crores to 6.63 lakh crores, (in like manner, with the State GST combined, for example from 1.14 lakh crores to 1 lakh crores, based on the interim budget plan). The ministry intends to build income gathering and maintain a strategic distance from a financial deficiency. Hence, the Council is probably going to consider the same for the discussion as well as start extra steps to cut down tax evasion.
Single Authority Mechanism for Export Refunds
The up and coming GST meet is probably going to approve a solitary expert system for exporters to authorize and process GST discounts for exporters in a quicker and easier way. Till now, state and central officials independently settle SGST and CGST refund claims, making the technique complex, which has additionally prompted piling of Refunds of around Rs 10,000 crore.
Same GST rates for Lottery Tickets
The lottery business has been requesting for a uniform GST rate of 12 percent and expulsion of tax on the prize money as the duel rate (12% for lotteries sold inside state and 28% for the ones sold outside) is hampering the development of the business. The Council in its July meeting had likewise chosen to look for legal opinion from the Attorney General on the issue and the same may be considered for a discussion in the upcoming GST Council meeting.
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