GST council meet today, rejig in tax rates expected

NEW DELHI: Just two weeks before the Budget, GST Council is expected to consider a reduction in tax rates for some items, about 80 going by some reports, and the inclusion of real estate in its 24th meeting on Thursday.
The meeting comes amid continuous dip in GST revenue collection in the last two months. The collection registered a sharp dip to Rs 80,808 crore in November, from Rs 94,063 crore in the
launch month in July last year.
The council is also expected to majorly hold discussions over Prime Minister Narendra Modi's mission for having a digital-based economy, with a focus on incentivisation of digital payment of taxes under the Goods and Services Tax (GST) regime.
In addition, the Council is likely to make changes in the Goods and Services Tax (GST) Law to facilitate the release of locked input tax credit in tourism and hotel industry.
GST Council is likely to review the report of Handicraft Committee, Law Review Committee and Returns Committee.
The handicraft committee has worked on the definition of handicraft and has included 142 items under the definition. Currently, handicraft is exempted from GST. The Returns Committee report to simplify the process of filing GST returns is also likely to be on the Council's agenda tomorrow.
Stamp duty on property before registration might also come under the ambit of the Goods and Services Tax regime, sources have disclosed. This was revealed on Tuesday, two days ahead of the last GST Council meeting before the Union Budget.
Sources have indicated rate cuts in irrigation related products from 18 percent to 12 percent. The Council is likely to discuss rates cuts for diesel and electric buses.
With the Union Budget just two weeks away, Finance Minister Arun Jaitley will also hold a pre budget meeting with the state finance ministers.