The GST council will meet tomorrow for the first time after the lock down. Since, the businesses are expecting rate cuts amid economic slowdown. It is unlikely that the council will announce any major rate cut tomorrow. However, the council is expected to discuss the revenue shortfall. As well as the compensation to states. “Given a high level of uncertainty about revenue flow in the current financial year. The major rate cut will have to be considered. Also, keeping in mind that revenue also needs to be protected.” An official told The Indian Express. Nevertheless, some relief such as a late fee waiver can be given to the taxpayers, the official added.
GST Council Meeting Discussion Agenda
The 40th Goods and Services Tax Council meeting is scheduled via video conferencing on Friday. Also, it is expected that the council may discuss the following. Firstly, the option of borrowing from the market. In order to meet the compensation requirements. Arising due to low compensation collections. Secondly, the major issue related to the inverted duty structure. Since, the output has a lower tax rate than inputs. It is also expected to take a front seat in tomorrow’s discussion. Lastly, as it has been discussed in the GST council for a long time now. GST stabilization is required. However, given the uncertain economic conditions, the state government officials said. Now is not a suitable time to undertake any such rate tweaks.
“Among others, it is expected. GST council would waive the late filing fees till September 2020. Substantially reducing the rate of interest from 18 per cent and 24 per cent. Because the tax rate on health care services needs to be rationalized. As well as on COVID items like sanitisers, PPE kits, etc. Also, allow tax relief in case of bad debts and post supply discounts.” Rajat Mohan, Senior partner, AMRG & Associates stated. “The council may also release priority of budgetary support claims on priority basis to the industrial units. Directions to tax officers for limiting the use of coercion during COVID period. Moreover, an immediate suspension on non-essential departmental audits.” Rajat Mohan added.
