GST

Expectations from 29th GST Council Meeting

29th GST Council Meeting

GST council had concluded its 28th meeting on 21.07.2018. It was while announcing the decisions and recommendations made during that meeting date of the next meeting were announced by Shri Piyush Goyal. 29th GST council meeting will be held in New Delhi on 4th August 2018. These meetings are conducted on a regular basis with only one objective in mind i.e. to streamline this newly introduced Goods and Service Tax with the Indian market and economic situation.

In the last meeting, the Council focused on issues relating to Micro, Small and Medium-sized Enterprises. It’s expected that these topics along with other few heads will be discussed in the next meeting also. In this blog, we will discuss the prospective focus areas.

Prospective Topics to be Covered in 29th GST Council Meeting

  • Digital Payment Facilities

In the current economy, digital payment methods are catching popularity with the public at large specifically with the middle class. These facilities can be accessed on a computer, laptop as well as on phone through mobile applications. Few examples of these facilities include Paytm, Debit/Credit cards, Rupay, BHIM etc. These digital facilities have made the financial transactions much easier, efficient and faster.

Also, Read: 26th GST Council Meeting Updates

As of now GST this payment can only be done either through direct deposit or through internet banking. To make the payment system more user-friendly the Shri Sushil Kumar Modi committee put forth the proposals for Digital Payments. The committee was formed with this objective only.

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Along with digital payment facility, the committee might also discuss the submission of NIL returns through SMS. Recommendation relating to the same was made by the Committee in the last meeting.

  • Focus on MSME Sector

Indian Government is taking all the possible steps to support the Micro, Small and Medium-sized Enterprises. The GST council has taken initiatives too on its part to extend the support to the MSME sector. In the 28th meeting, many decisions were taken and recommendations were made in favour of the MSME sector. It is expected that this trend will carry on the next meeting to be conducted on the 4th of August 2018.

One of the major steps was to ease the return filing requirement. Taxpayers with annual turnover up to Rs. 5 Crore are giving an option to file quarterly returns along with monthly payment of tax through a simple summary return. Along with the changes made following are few of the recommendations relating to the MSME sector made in the 28th GST Council meeting that is to be discussed in the next meeting:

  • To increase the threshold limit of annual turnover for eligibility of composition scheme under GST from 1 Crore to 1.5 Crore.
  • To allow composition dealers to supply services of a value not exceeding Rs. 5 lakh rupees or 10% of annual turnover whichever is higher.
  • To increase the threshold limit of exemption from registration in states of Assam, Arunachal Pradesh, Himachal Pradesh, Meghalaya, Sikkim, and Uttarakhand from10 lakh to 20 lakh rupees etc.
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Main Focus on Solving MSME Sector Grievances

Along with the discussions on recommendations, the GST council[1] will focus on major concerns raised by the MSME sector. A letter was issued on 23rd July 2018 by Special Secretary & Member of GST Council, Shri, Mahendra Singh advising all the Special Secretaries to encourage the MSME Trade and Industry associations as well as general taxpayers to forward their respective concerns and grievances in relation to GST provisions. They will also be encouraged to give suggestions. The GST registration Council will ponder on the suggestions and discuss the steps that can be taken to solve such forwarded grievances and give an encouraging boost to MSME Sector.

Read our article:Rules Regarding e-Way Bill Under GST

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