Rate Cut On Up To 80 Good And Services On The Cards For GST Council Meeting On Thursday

The GST Council is expected to cut rates on up to 80 goods and services and may simplify the process of registration, returns filing and claiming input tax credit in a meeting scheduled for Thursday, NDTV has reported.

"In this meeting the Council is expected to revise rates of about 25 goods and another 45-55 services. Total 70-80 items' rates could be revised downward," the channel quoted an official, who is part of the rate fitment committee, as saying.

The council may lower rates on 5-6 irrigation equipment from 18 per cent to 12 per cent, and on bio-diesel and electric buses from 28 per cent to 18 per cent.

The council will discuss the recommendations of the Law Review Committee, such as allowing single registration for large service providers who have a turnover of over Rs 5 crore and are present in 10 states or more, during its meeting.

"Several changes in the law have been suggested by the Law Review Committee. These changes would ensure easing the compliance burden of the taxpayers and in turn improve the collections under GST," an official said.

The council is expected to merge GSTR-1, GSTR-2 and GSTR-3 into a single form, reducing the number of forms to be filed every month to one.

"The simplification process might take about 6-8 months as changes will have to be done to the software. New format will have to be put in place so till that time extensions will be given for filings through GSTR-3B," the official added.