Currently, GST has a complex multi-price structure with 5 tax slabs (1%, 5%, 12%, 18%, and 28%). In November 2017, GST rate turned into slashed from 28% to 18% on over 170 objects, followed via a reducing of the list further in July 2018 and then in January 2019.
Government is Trying to Slash the Tax Rate to 18%:
While there are still a few products such as cement, except those pondered, first of all, it’s most effective a count of time that fee on these gadgets may also come all the way down to 18%.
Structurally, this has to moreover cover the way for simplification of the fee structure, possibly from five slabs to in all likelihood three over the next couple of years, with the probable junction of 12% and an 18% fee to a preferred fee of 15% to 16%. Will conveying Real Estate Under GST decrease the costs for Home Buyers?
Real estate may be the simplest primary zone where a powerful rate of tax has arguably gone up in GST. To address this issue, the government is outwardly thinking to reduce the GST fee to 5% or around 8% for property below production. While discount of rate without proscribing input credit could honestly be higher from a policy viewpoint, in either case, domestic buyers are probable to be benefited.
The New Return Filing System will be executed in April 2019:
The government has planned to set up a new return filling system with the aid of April 2019. Under the brand new system, the enter tax credit score to be had to agencies could most effectively be limited to the volume it’s far pondered on the GST portal. Further, handiest one monthly return would be required, as against three month-to-month returns envisaged in advance.
Experts agree with that the new return filing system will be extra green, and agencies might be furnished right time to undertake essential IT related customizations without any disruption of their enterprise operations.
A Major Challenge for the Central Government:
In its first 18 months, GST has witnessed a fair bit of litigations already. Companies have approached courts on the diffusion of problems, such as transitional issues, enter credit and enhance rulings issued through diverse states.
There had been times in which extraordinary states have taken varying positions at the same trouble earlier ruling issued. In the current GST council assembly, a decision became taken to create a centralized frame to cope with a situation where this sort of scenario arises. This technique is probably to maintain. However, it’s miles vital for the GST council to ensure that laws must be consistent across the states and exceptions along with allowing a country to impose a cess or to have an exclusive threshold from others are averted.
What is the Deadline?
The Finance Ministry has prolonged the due date for submitting annual returns via 3 more months to March 2019. The cutoff date set earlier changed on 31 December 2018. Various trade and industry bodies had demanded that the due date must be expanded.
CII disappointed with GST Filing procedure:
The Confederation of All India Traders (CAIT) stated that the idea continues to be unsure to a massive number of traders and maximum of them aren’t even privy to the duty of submitting annual GST returns.
Pressure on Big Corporate Houses:
The GST collections have not been as buoyant as the government anticipated. Substantial price cuts and alleviation to small taxpayers mean that there might be pressure at the exchequer. This might mean that larger businesses can be scrutinized with more rigor and the wealth of facts, that is to be had to the government, may be used to test tax evasion.