(PTI)
The all-powerful GST Council today cut tax rate on 29 goods, including second-hand vehicles, confectionery and bio-diesel, while veering around to simplifying return filing process for businesses. Also, tax rate on 54 categories of services, including certain job works, tailoring services and admission to theme parks, have been lowered. The panel at its next meeting may also consider bringing under the Goods and Services Tax (GST) purview items like petroleum and real estate which are currently outside the new regime, Finance Minister Arun Jaitley said. The Council cut GST rate on second-hand medium and large cars and SUVs from 28 per cent to 18 per cent and on other old and used motor vehicles to 12 per cent. Tax on diamonds and precious stones was slashed to 0.25 per cent from current 3 per cent.
While tax rate for bio-diesel was slashed to 12 per cent from 18 per cent, that for public transport buses run on environment-friendly bio-fuels has been reduced to 18 per cent from 28 per cent previously. Tax rate on irrigation equipment, sugar boiled confectionery, drinking water packed in 20-litre bottles, fertiliser grade phosphoric acid, tamarind kernel power, mehendi paste in cones, LPG supplied by private distributors, articles of straw, velvet fabric and rice bran was also cut. The new rates would be effective from January 25. The tax rate cut on 29 goods and 54 services would result in a revenue loss of around Rs 1,000 crore, sources said. The Council, in its 25th meeting today, also discussed process to make return filing simpler with just one return to be filed every month. Infosys non-executive chairman Nandan Nilekani made a presentation on simplification of the return filing process.
The Council discussed the possibility of retaining only GSTR-3B or initial sales return, while mandating sellers to upload their invoices. Jaitley said the GSTR-3B and the invoices can be matched by tax officers; and in case of difference, at a later stage businesses can be asked to explained. “It was finally culminating into filing 3B returns and supplier invoice, which would be adequate,” he said, adding that the Bihar Deputy Chief Minister Sushil Modi, GSTN chairman Ajay Bhusan Pandey and Nilekani would formalise the structure and a final decision would be taken at the next meeting of the Council. Asked if filing only one return is the way forward, he said “that seems to be the course”. Businesses at present have to file GSTR-3B as well as GSTR-1, which is the final invoice wise sales returns.
