After the 31st GST Council Meeting held on December 22, 2018 the Council is set to have another meeting on 10th of January, 2019 to discuss rate rationalization of various items under GST, with Finance Minister Mr. Arun Jaitley chairing the meeting.
Mentioned below are some of the major points that are expected to be discussed in the 32nd GST Council Meeting:
1. Rate rationalization of under-construction buildings
The government may bring good news for property buyers in 2019 as the rate of GST on under-construction and constructed buildings could be reduced in the upcoming GST Council Meet. Presently, GST is charged at 12% on the under-construction buildings and ready-to-move flats for which completion certificate is not issued at the time of sale. This may be slashed down to a mere 5% in the meeting to come.
2. Lowering of GST rate on cement
The 32nd GST Council Meeting could also result in a possible reduction in the GST rate presently levied on cement which is a staggering 28%.
3. Increasing the threshold for MSMEs
Currently, businesses with an annual turnover of less than INR 20 lakhs are exempted from GST. The Council may consider increasing the exemption threshold for MSMEs.
4. Composition schemes
The GST Council may decide on introducing composition schemes for the real estate sector and small service providers.
5. Amendments in the GST rates for lotteries
At this moment, state-organized lotteries attract GST @ 12%, while the rate is 28% for state-authorized lotteries. The Council, in its 32nd Meeting to be held on January 10th, may consider reducing the GST rates on lotteries.
6. Levy of a Calamity Cess
The 32nd GST Council Meeting could also take a final call on the introduction of a “Calamity Cess” for setting up a fund in case of natural calamities. A committee was set up in the 30th GST Council Meeting by Mr. Sushil Kumar Modi and the subject has always been a serious point of consideration by many members of the Council.
In addition to all the aspects talked about above, the GST Council may also discuss bringing down the number of GST rate slabs to 2 or 3 slabs from the current four. The topic of having a single GST registration across the country could also make it to the discussion on the 32nd GST Council Meeting on January 10.