GST Council to meet on Friday, may cut tax rates of over 150 items

The Council will also discuss bringing electricity and real estate within the ambit of the indirect levy.

The GST Council meeting scheduled on Friday is likely to provide a push to digital payments.  
 
A senior government official told ET that a proposal has been made in this regard.
 
The Council can consider providing incentives in the goods and services tax (GST) regime for payments that are settled electronically.
 
In order to encourage digital transactions, benefits in terms of credit or exemption could be provided within central and state GST.
 
The Council will also discuss bringing electricity and real estate within the ambit of the indirect levy.
 
It may easier compliance provisions for small businesses and propose lower tax rates for over a 150 items, which are in the 28 per cent bracket.
 
The meeting will also mull making filing simpler. Businesses may be allowed to file GSTR-3B, and do away with the requirement of three monthly returns — GSTR 1, GSTR 2 and GSTR 3.
 
The facility may be allowed for medium-sized firms.
 
The Council will also look in the suggestions made by a group of finance ministers led by Assam Finance Minister Himanta Biswa Sarma. 
 
The panel has called for a GST rate of 12 per cent for AC and non-AC restaurants. 
 
As per it, there should be higher threshold and lower tax for the composition scheme.
 
It has also suggested bringing businesses with an annual turnover of up to Rs 1.5 crore under the scheme, which allows for quarterly filing of returns.
 
Source: Media reports

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