Five things to expect from GST Council
Federal secondary tax body, the Goods and Services Tax (GST) Council, is set to attend in Goa on Friday amid requests from the industry for a fiscal-stimulus. Here are the five things to expect the conference to be chaired by union finance minister Nirmala Sitharaman. Five things to expect from GST Council
1) Tax rate cut on luxury hotels
The Council is demanded to cut tax rates on hotels that price room tariff of ₹7,500 or more per night and currently draw 28% GST. With the government intends to promote the tourism industry and help create more jobs, a tax rate cut on luxury hotels is best on the agenda. PM Narendra Modi in his Independent Day lecture too had recommended promoting tourism was on the government’s plan. State finance ministers are in the maintenance of the move as a tax cut on luxury hotels is incredible to impact overall GST receipts.
2) Tax cut on outside catering services
Many experts have advised that while the GST Council has, in several rounds, decreasing the tax load on products, the same has not appeared in the case of services. The Council will consider a rate cut on outdoor catering services which employs semi-skilled or uneducated labour.
3) Single rate for lottery tickets
Taxation of lottery tickets has been a controversial issue with two rates connecting to this sector_12% on lotteries sold within the organising state and 28% on those sold outside. This, industry agents say, has hit sales.
The massive difference in the tax rate on the same commodity serves as a tax barrier for more modest states such as Goa,
Sikkim and Arunachal when their -tickets are sold in other more famous countries, including West Bengal or Kerala, they say.
4) Compliance support for small businesses
The Council is required to analyse proposals for giving compliance relief to small businesses by releasing them from recording annual returns for the first two years of GST–FY18 and FY19.
5) Discussion on an extension of GST cess
With the financial slowdown concerning GST revenue collection, countries have proposed that the central Gov borrow from
The market and pay them for their revenue loss and extend the GST cess on select products like automobiles and tobacco beyond 2022. The profits from the cess are used for making good states’ GST collection shortfall for the first five years of GST. States’ demand will be considered at the Council, but a final call may take further deliberation.