The GST Council meeting on Thursday is expected to be a significant one, ahead of the Union Budget, as it will give some more tax relief on goods and services along with simplification of the return filing process, the complexities of which, have slowed the Centre’s revenues.
Since the Union Budget cannot tinker much with indirect taxes, except customs duty, after the implementation of GST, the council is expected to roll out tax concessions on at least two dozen goods, including agriculture implements, housing sector inputs such as cement and steel, and certain household goods, which usually cheer commoners on the Budget day.
“The GST Council agenda on Thursday is a loaded one as it includes rate cuts as well as procedure simplification in the new levy”, officials said ahead of the meeting.
Taxes will also be brought down on a variety of services. Along with that the council is expected to decide on the date on which real estate could come into the ambit of GST.
Sources said that the likely date for that could be the beginning of the new financial year i.e. April 1. They said that states, including Delhi and Jammu and Kashmir are on board for the inclusion of real estate in GST.
Most likely, a 12% rate could be decided for the real estate sector. The council may also vote in favour of subsuming stamp duty and registration charges in GST itself.
Finance Minister Arun Jaitley is also meeting his counterparts from all the states on Thursday morning before going for the GST Council meeting, and is expected to ask for their wishlist for the Union Budget to be presented on February 1.
According to officials, the meeting will concentrate on improving the health of the agricultural sector in every state. This year, many states, including Uttar Pradesh and Maharashtra have given farm loan waivers, which has put a strain on their finances. The states are also expected to ask for enhanced allocation in education and health sectors.
-Deccan Herald
