GST Latest News – Expectations from 10th January GST Council Meeting
As promised in the 31st GST Council Meeting held on 22nd December 2018, the 32nd GST Council is all set to be held tomorrow i.e. the 10th of January 2019. Here’s presenting the GST latest news on what to expect from the same.
GST Latest News – What to expect from the 32nd GST Council Meeting
As per the GST latest news, the 32nd GST Council meeting may decide on bringing under – construction residential properties under the 5% GST slab. Currently, properties which have got the completion certificates do not attract GST on purchase. On the other hand, under-construction flats, houses and ready to move-in flats (where completion certificate is not issued at the time of sale) are taxable at 12% GST. As per the input tax credit rules, the final applicable GST rate on such flats were around 5-6%, but the benefits of the same were not being passed on the end consumer. Out of the many proposals doing the round is also to offer the lower rate of 5% only to those builders or developers who purchase 80% of their inputs from registered dealers.
Exemption Threshold for Small Businesses
One aspect which has been in the GST latest news for quite some time now, is an increased threshold limit for small and medium enterprises, by virtue of which more of such businesses can enjoy the benefit of GST tax exemption. At the 32nd GST Council meeting, members are likely to discuss increasing the threshold from the current INR 20 lakh to INR 75 lakh, for MSME players, which is bound to provide a lot of relief.
In the light of the recent floods in Kerala and parts of Tamil Nadu, the government has been brooding over forming a calamity cess. The GST Council had in September, decided to set-up a 7-member GoM to consider a cess for the Kerala flood rehabilitation programme. The group led by Bihar Deputy Chief Minister Sushil Modi had decided to seek the states’ views on whether a state-specific cess or a nationwide ‘disaster tax’ should be levied under GST. As per the GST latest news, the 32nd GST Council meet will take a call on such a cess, which will serve the purpose of an exigency fund in case of any national emergencies.
The composition scheme has been in the centre of the GST latest news for quite some time, as the government has attempted to extend its benefits to more businesses across the nation. At the 32nd GST Council meeting, a call is expected to be taken on extending the composition scheme for small service providers as well, and to introduce the same for the real estate sector as well.
GST on Lottery
The 32nd GST Council meeting may consider amending GST rates on lottery tickets. Currently, state-organised lotteries attract 12% GST, while state-authorised lotteries attract 28% GST. A final view will be taken on whether the status quo should continue, or whether some standardisation needs to be brought in.
Concerns of MSME Sector in GST
The 32nd GST Council meeting may investigate the concerns of the MSME Sector under the GST regime. In connection with the same, the report of the MSME committee formed at the 29th GST Council meeting may be presented and discussed upon.
Cement & Auto Parts
The 32nd GST Council may finally take a decision on the rates of cement and auto parts as they both attract the highest GST rate of 28%, despite being used regularly by the common man.
Don’t forget to read our blog tomorrow to catch the notifications and updates of the 32nd GST Council Meeting. Stay tuned!
Are you GST ready yet?
Get ready for GST with Tally.ERP 9 Release 6
134,630 total views, 1 views today
Author: Pramit Pratim GhoshPramit, who has been with Tally since May 2012, is an integral part of the digital content team. As a member of Tally’s GST centre of excellence, he has written blogs on GST law, impact and opinions - for customer, tax practitioner and student audiences, as well as on generic themes such as - automation, accounting, inventory, business efficiency - for business owners.
Pramit Pratim Ghosh
Subscribe to our newsletter
- 38th GST Council Meeting: Updates and Highlights
- How Automation of Sales and Purchase Register Has Helped Businesses
- Ratio Analysis: How it Helps Determine A Company’s Financial Health
- Stock Summary Report & its Advantages
- How Re-order Level of Stock Helps Keep Your Company’s Financial Health Stable
- For Business Owners (32)
- For Tax Practitioners (6)
- GST: All you need to know (328)
- MSME Zone (14)
- Opinions (26)
- Uncategorized (1)