The Goods and Services Tax (GST) Council is all set to convene its first meeting ahead of the presentation of Budget 2019-20 on June 20, 2019. The Union Budget 2019-20 is scheduled to be tabled in the Lok Sabha Budget Session by the newly-elected Union Finance Minister Nirmala Sitharaman on July 5, 2019. The to be proposed changes in the 35th GST Council meeting, chaired by FM Sitharaman for the first time, will be keenly watched by the industry bodies, market participants, Micro Small and Medium Enterprises (MSMEs), traders and retail consumers.
The pre-Budget consultation exercises, reviews and meetings are likely to commence from this week under which FM Sitharaman is believed to hold meetings with banks, financial institutions, economists and industry associations. The total GST revenue collections in May 2019 stood over Rs 1 lakh crore at Rs 1,00,289. Earlier in April this year, the government collected a record high revenue of more than 1.13 lakh crore from GST. 35th GST Council meet fixed on June 20: Key things to know The finance ministry is likely to put a turnover threshold for the entities engaged in business-to-business (B2B) sales in order to curb GST evasion.
It is expected that GST Council meet may propose Rs 50 crore turnover threshold for entities to generate e-invoices for B2B sales on a centralised portal following which the entities with a turnover of more than Rs 50 crore would get a relief from double of uploading invoices and filing returns, news agency PTI reported. In the upcoming GST Council meeting, the state finance ministers are likely to extend their respective suggestions for the Budget 2019-20 to Union FM Sitharaman.
The government may extend partial benefits in the GST Council meeting which are intended to relieve the burden of middle-income groups. Further, the GST Council may propose a rate revision on the items falling under the highest tax slab of 28 per cent, which is likely to benefit retail customers. Lowering of the GST rates is highly likely to push the consumer spending which will result in increased consumption and demand for such goods and services. However, the final decision on the GST rate cut is dependent on government’s revenue position.
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