New Delhi: The GST (Goods and Services Tax) Council is all set to meet on June 21 to decide on crucial matters on taxation, with Auto and Cement sector expecting major overhaul in tax slabs for the respective sectors.
This will be the first GST Council meeting after Modi 2.0 took charge last month and will be held just two weeks before the presentation of Union Budget 2019.
Among several discussions that is going to be on the GST Council agenda, the auto sector expects that government will reduce the GST tax rates from 28 percent to 18 percent, considering the lull in the domestic automobile industry.
The Auto industry believes that reduction in GST tax rates will induce a fresh leash of life into the sector.
Similarly, the Cement industry also expects that the government will lower GST tax rates from 28 percent to 18 percent. This move will benefit the real estate sector which currently needs a push.
However sources told Zee Media that the lowering of GST tax slab for the cement sector may not be positive for government revenue. The government may have to bear a loss of Rs 12,000-14,000 crore due to this.
Another important matter before GST Council that is expected to come up is the proposal for generation of compulsory e-invoicing by big companies to check tax evasion. The proposal is to generate such e-invoices for transaction above Rs 50 crore.
Finance Minister Nirmala Sitharaman will chair the meeting of the GST Council which among other things will also consider reducing number of items under 28 percent tax slab, which is the highest in the GST tax bracket, sources had earlier told Zee Media.
Several states have been demanding that more items be reduced under GST tax slab. The lull in auto, manufacturing and construction sector has is also keeping a constant pressure on reduction of GST rates.
The GST Council on December 22 decided to cut tax rates on 23 goods and services, including movie tickets, TV and monitor screens and power banks and exempted frozen and preserved vegetables from the levy. The Council had rationalised the 28 percent slab and restricted the highest slab to luxury, demerit, and sin goods, besides cement, large screen TV, Air Conditioners and dishwashers.