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GST Set For The Biggest Tweak In 2 Years With Possible Rate Rejig

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Amid falling GST revenue collection, the Centre is likely to come up with the biggest review of GST and possibly with GST rate tweaks two years after its launch.

GST Set For The Biggest Tweak In 2 Years With Possible Rate Rejig
 

The panel has been set up with 12 members from the state and central government for augmenting GST collection and administration. The point of reference highlight that systemic changes should be suggested for preventing misuse, augmenting voluntary compliance, monitoring as well as putting forward anti-evasion measures.

The PMO is scheduled to lead consultations with state chief secretaries where states would be prompted for upping collections.

As per the TOI report, the inverted duty model as in the case of restaurants is resulting in GST leakages which shall be reviewed by the panel. Also, there can be a case of fitting some of the goods in other GST slabs.

Loopholes exists in a number of sectors such that as in the case of restaurant wherein the withdrawal of tax credit on payment for goods and services including rent has led many of the industry players to redraft the lease agreement such that the rent is lowered and GST payment is got away with.

In the first half of FY 2019-20, as against the targeted 13%, GST collection has stood below 5% level.

When rolled out GST had 4 slabs and the intention was to later merge 12% and 18% slab rate and reduce the rate for goods placed in the highest 28% slab rate.

GoodReturns.in

Read more about: gst
Story first published: Friday, October 11, 2019, 15:05 [IST]
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