1 hr ago
GST Council Sets Annual Rate Reviews, Changes From April 1
India’s GST Council plans to consider tax-rate changes only once each year.
Any changes would begin on April 1, when the new fiscal year starts.
Officials say rate changes are not planned for the Council’s October 8 meeting.
That meeting is expected to focus on a smaller set of other tax issues.
One proposal could set a 5% GST rate for deliveries through online shopping platforms, without input tax credit.
The proposal has not been confirmed as approved.
Last year, the GST system’s four rates were changed to two main rates: 5% and 18%.
Finance Ministry sources say the changes helped consumption and GST revenue grew, including double-digit monthly growth since June.
Finance Ministry sources say the GST Council will consider tax-rate change proposals only once a year.
Future GST rate changes are to take effect on April 1, the start of the fiscal year.
Rate changes are not on the agenda for the 57th Council meeting scheduled for October 8.
The meeting is expected to address a limited set of rationalisation and clarification issues.
The Council may consider a single 5% GST rate without input tax credit for e-commerce deliveries.
- Who
- The GST Council, chaired by Union Finance Minister Nirmala Sitharaman and including state counterparts.
- What
- The Council will consider GST rate-change proposals once a year, with future changes taking effect from April 1.
- Where
- New Delhi, India.
- When
- The policy was reported on October 6; the next Council meeting is scheduled for October 8. Future rate changes are to start April 1.
- Why
- Finance Ministry sources said a stable rate structure helps businesses price contracts and plan capital spending, while the meeting will address rationalisation and clarify issues.
Key facts
- Rate-change review
- Proposals to be considered once a year, according to Finance Ministry sources.
- Effective date
- April 1, the beginning of the fiscal year.
- Upcoming meeting
- 57th GST Council meeting scheduled for October 8.
- Rate changes on meeting agenda
- No, according to Finance Ministry sources.
- Previous rate structure
- Four slabs of 5%, 12%, 18% and 28% were rejigged to a two-tier structure of 5% and 18%.
- E-commerce delivery proposal
- A single 5% GST rate without input tax credit may apply to deliveries through e-commerce platforms.
- Revenue trend reported
- Sources said monthly GST revenues had grown at double-digit rates since June.
Quotes
A Finance Ministry source
An unnamed source cited by the report on the benefits of stable GST rates.
“Stability is worth more to most businesses than any single concession.”
theprint.in
freepressjournal.in
deccanchronicle.com
Sources
Related news
GST Rate Changes May Shift to Annual Process
GST Council Meeting Rescheduled to Thursday for Process Reforms
GST Council Meeting Rescheduled to 7 October Amid BRICS Summit
October GST Council to Prioritise Process Reforms, FM Says
GST Council to Consider Major Process and Compliance Reforms
GST 2.0 Shifts Focus to Simpler Rules and Faster Refunds
Insurance Brokers Ask Sitharaman to Halt Proposed Commission Caps
Cabinet May Approve ₹10,000 Crore SME Growth Fund
