GST Council to meet on Sep 20 : Expectations from GST Council

GST Council will meet next on 20th September 2019. Here are some of the decisions that have been accepted and rejected by GST Fitment Committee that may impact the decision of GST Council.

1. The committee has expressed its reservations on slashing GST rates for automobiles to 18% from the current 28%. The committee is of the view that a cut in GST rate would lead to a revenue loss of around 50,000 cr annually.
2. GST Rate Fitment Committee proposes cut from 28% to 18% on hotel tariff of Rs 7500 & above, Or to hike threshold tariff to Rs 10,000 with 28% GST rate
3. The Committee has rejected the proposal of rate cut on motor vehicles, hybrid vehicles & auto spare parts; As per Committee overall, present tax incidence on motor vehicles is lower than pre-GST tax incidence.
4. Also the committee has rejected GST cut on 3rd party motor insurance to 5%, cut on pure term life insurance to 5% & cut on health insurance premium to 5%
5. GST Fitment Committee has rejected the Telecom Ministry’s proposal to reduce the standard rate of GST applicable for telecom services from the present 18% to 12%

Please note that the Fitment Committees recommendations are not binding on the GST Council. The final call on rates will rest with the GST Council when it meets on September 20th.

Some other matters on Cart:

1. Reduction of rate from 18 to 12% on machine made matches.
2. Reduction on rate of outdoor catering from 18 to 5%
3. Waiver of annual return for 2 years for small taxpayers upto 2 cr turnover.

Source – media

Click Here to Buy CA Final Pendrive Classes at Discounted Rate

You May Also Refer :

MOF decides not to levy 2% TDS on cash payments above Rs 1 cr. made through APMCs

Additional 15% depreciation proposed on motor vehicles by MOF