Tax cuts and GST Reforms are closer than you think

The Council for Goods and Services (GST) will consider proposals to provide tax relief to consumers and reform the GST structure to facilitate compliance for businesses at a two-day meeting from September 3, two people informed about the development said. The council meeting in New -Delhi will be preceded by a meeting of central and civil servants. The finalization of the schedule of the council meeting a day after an important ministerial panel of the council endorsed the proposals of the central government for steep tax rate reduction and reforms in the indirect tax structure indicates the urgency by which central and civil servants prepare for the rapid changes to the tax structure intended to make a life facilitated for businesses, especially for small businesses and small businesses. “The central government is committed to implementing the reforms and the rate reduction before the FestivesSeason,” one of the two persons above quoted on the condition that they are not called. The idea is to quickly implement the proposals so that consumers plan purchases before Deepavali, which is celebrated in October, benefits. The meeting schedule is also of such a nature that an announcement can come before the big day of Onam celebrations, which fall on September 5 this year. Ganesh Chaturthi, who falls by the end of August and Onam, is the beginning of the festive season that continues around Deepavali and continues until the end of December to Christmas. Quick consumer goods and durable consumer businesses have many sales during this period. “The move indicates that policymakers are very serious about announcing the changes that are announced by the group of ministers set up by the council before Diwali, so that consumers benefit without the need to postpone purchases,” says Ms Mani, indirect tax, Deloitte India. Inquiries were sent to the Ministry of Finance and the GST Council on Friday by e -mail to comment, remained unanswered at the time of the publication. The Ministerial Panel of the GST Council, which assessed the central government proposals, dropped the 12% and 28% GST pages of the current four-values ​​structure in favor of a new two-rate structure on Thursday, Mint on Friday reported, with the Panel of Panel and Deputy Head Minister Samrat Chaudhary. According to the proposed changes, most goods in the 12% plate will be moved to 5% and many of the items in the 28% page to 18%, while some goods such as high -end cars and tobacco and their preparations are likely to go to a new 40% page. The GST compensation chess is currently being kept on some of the goods in the 28% plate, including cars and tobacco. Cars, including SUVs, are expected to receive significant tax relief. However, sins such as tobacco and aerated drinks can have a new duty, so that the tax appearance on it remains the same after the restructuring. Some of the states sought the center to compensate them for any short -term loss in the short term. The thinking in government is that an improved demand for goods and services in the economy will help compensate the loss of income. Insulin, condensed milk, preserved fish and vegetables, granite and marble, table utensils and kitchenware and certain pharmaceutical products are one of the products that will move from 12% to 5%.