Taxation

GST Council Meeting to be Held Tomorrow: What’s on the Board?

GST Council Meeting to be Held Tomorrow: What’s on the Board?

It’s been three months since the implementation of GST and the GST council is set to review the proceedings in these three months. There are issues on tax slab, ITC, tax refund for MSMEs and Export Issues.

Issue of Tax Slab and Filling Returns

It is very likely that the GST council will discuss the issues of four tax slabs. Dealers have conveyed their displeasure on the four tax slabs that are creating trouble in their businesses. It is possible that the council will issue some statements regarding the tax slabs. The government is mulling to reduce tax slabs and tax rates to ease businesses. What also has worried the government is decrease in filling of returns for the month of August. 68.2 lakh registered users were to file returns for August but only 37.63 lakh returns were filed till 25th September which is even less than the returns filed in July.

Keeping this is mind, the council may come up with ease in filling process, especially for the MSMEs and other small businesses. It is likely that the government may increase the time limit for filing returns and also extend the deadline for registering with composition scheme till March, 2018. Also, there are reports which say that various states has proposed 3 month returns cycle for regular dealers. However, the council will decide on criteria that will define small business to give relaxation.

Tax Refunds for Exporters

The council headed by the Finance Minister will also decide the issues of exporters. Exporters have been complaining about the delay in tax refunds that is causing damage to their business. It is possible that the government will allow refunds without waiting for the invoice of goods. It is likely that the refund will be based on the summary of transactions made on exports. Export accounts to 20% of India’s GDP and glitches in GST has resulted in slowdown of trade resulting in decline of the GDP growth rate to 5.7% this quarter. It is the first time in 14 years that the share of exports in GDP is all time low of 19.4%.

There are also issues related to the glitches in GSTN Network, ITC refunds and other complexions that the dealers are facing which will be considered in the meeting on October 06, 2017. The Prime Minister on Tuesday assured that the government will ensure the welfare of the businesses while dealing with GST. It is likely that the council’s meeting will solve some of the most urgent issues of the dealers.

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