The GST Council in its 32nd meeting on Thursday could provide huge relief to MSMEs and small business. Favourable announcements for the service sector is also expected. Sources told Zee Media Breau that the council might increase the threashold limit of Rs 20 lkah to Rs 50 lakh.
The increased limit would benefit small businesses and micro-small and medium enterprises (MSMEs) with turnover Rs 20-50 lakh.
Besides, the GoM could also allowed disaster management cess for Kerala. The GoM has proposed 1% tax for initial two years.
Home buyers and real estate sector could also get massive boost in the GST Council meet tomorrow.
According to sources, sin googs can attract more tax, however, not all states are on the same page over this.
The GST Council in its meeting on January 10 will discuss the recommendations of the two ministerial panels.
The council, in its previous meeting on December 22, 2018, had rationalised the 28 per cent tax slab and reduced rates on 23 goods and services (GST).
Briefing reporters after the recent council meeting, Jaitley had said that the next meeting would consider rationalisation of tax rates on residential properties and raising the threshold limit for MSMEs from the current Rs 20 lakh.
Also, the council would consider a composition scheme for small suppliers, apart from discussing levying a calamity cess as well as GST rates on the lottery.
The GST Council is likely to consider lowering GST on under-construction flats and houses to 5 per cent, PTI reported.
Currently, the Goods and Services Tax (GST) is levied at 12 per cent on payments made for under-construction property or ready-to-move-in flats where completion certificate has not been issued at the time of sale.
However, GST is not levied on buyers of real estate properties for which completion certificate has been issued at the time of sale.