Next GST council meet: Structural changes, simplified procedures in agenda
New System for filing returns, rationalisation of tax slabs and legal changes of the structure of GST will top the agenda of the 28th GST council meeting which is scheduled to be held on July 21,2018 but will skip bringing natural gas under the ambit of GST.
Legal changes in the structure of GST
“There will be some legal changes in the structure of GST to facilitate the taxpayers. The government has already got an in-principle approval from the council and its draft will be presented during the council meeting on July 21,” a senior finance ministry official said without divulging any further details.
simplified GST return system
Apart from that the next council meet will focus on the simplified tax return system. The government has already hinted to launch the Single page GST filing form by the end of this year. Before the launch the GSTN will do a trial-run of the software.
The government is planning to allow zero return filers have to file on quarterly basis.
“The plan is to take such tax payers into the quarterly cycle of filing their returns, where they can submit the return by just opting for no transaction report.
Rationalisation of GST slabs rates
Rationalisation of tax slabs also features in the GST meet agenda.
“There will be many items which will be brought under the lower tax slab. Also the council is also proposing to reduce one tax slabs,” the official said. The items which is expected to be under lower tax slab is sanitary napkins, biscuits and certain handloom items. The GST Council has So far reduced rates on 328 items since launch.
No GST on natural gas
However sources have ruled out the proposal of bringing natural gas under the ambit of GST.
“Even when there are talks on bringing natural gas under GST, it is unlikely to happen in this meeting. The ministry is yet to do a proper assessment of its implication of the revenue, before going ahead with the move. I think people have to wait for some more time before it happens,” the official added.
In the first year of GST, the government earned Rs 7.41 lakh crore from the tax since its roll out in July. The average monthly collection was Rs 89,885 crore. In the current fiscal, the collections in April touched a record Rs 1.03 lakh crore, followed by Rs 94,016 crore in May and Rs 95,610 crore in June.