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Merit-based GST rate rationalisation possible in next council meet: Goyal

Press Trust of India  |  New Delhi 

The may look at rationalising rates on some items on the basis of merit after ensuring right balance with revenue mop up, said today.

The council, in its next meeting on July 21, will also discuss ease of filing returns as well as ease of assessment, he added.

has already reduced rates on 328 items, so you may possibly find some chance (of rate reduction) where there is a meritorious reason. It has to be in balance with revenue consideration, Goyal said.

When asked whether the could consider lowering rates in its next meeting, Goyal said the council had been very responsive to industry demands, and whenever there were inverted duty cases or any case that merited attention, rates were reduced to ensure ease of doing business.

Under the GST regime, there are four rates -- 5 per cent, 12 per cent, 18 per cent and 28 per cent. Rolled out on July 1, 2017, GST had subsumed over a dozen local levies and transformed into a single market with seamless flow of goods.

In the first year of GST in 2017-18, the government earned Rs 7.41 lakh crore from the since its roll out in July. The average monthly collection was Rs 89,885 crore.

In the current fiscal, the collections in April touched a record Rs 1.03 lakh crore, followed by Rs 94,016 crore in May and Rs 95,610 crore in June.

Also, the council is likely to finalise the form for simplified return filing as was approved by the council in its last meeting on May 4.

It was decided that the current system of filing summary returns (GSTR-3B) and final sales returns (GSTR-1) would continue for six months.

Post that, a new would be ready; and in second phase, the new return would have the facility for invoice-wise data upload and for claiming input credit on self-declaration basis, as in the case of GSTR-3B now.

During this stage 2, the will be informed about the gap between credit available to them as per invoices uploaded by their sellers and the provisional credit being claimed by them.

After six months of this phase 2, the facility of provisional credit will get withdrawn and input tax credit will only be limited to the invoices uploaded by the sellers from whom the has purchased goods.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, July 12 2018. 16:15 IST