About 60 goods and services are likely to get cheaper, with Finance Minister Arun Jaitley expected to push for big tax rate cuts in the GST Council meeting on 6.10.2017 as part of a broader strategy to help the economy claw out of a three-year growth slump.
Prime Minister Narendra Modi brainstormed for over three hours with Jaitley and BJP president Amit Shah on Thursday, taking stock of the current state of the Indian economy that is smarting under an untidy goods and services tax (GST) rollout and the lingering effects of demonetisation.
The government also plans to introduce slew of measures to reduce compliance burden for small taxpayers struggling under the country’s new indirect tax system, GST that was rolled out from July 1.
The Council may consider relaxing return filing timeline for small and medium enterprises (SMEs), defer reverse charge mechanism, and reopen registration for composition scheme for the third time to March 31, 2018 and hasten tax refunds for exporters battling cash crunch.
The Council may also defer the reverse charge mechanism (RCM), that has been especially bothering the small tax payers.
There could be a change in return filing cycle for small tax payers. A quarterly return filing could be implemented for small businesses, However, what could be a business’ annual turnover cut off for it to be called a small taxpayer, will be decided by the Council on Friday.