13. Goods and Services Tax (GST) Council

Impact of GST Coucil

1. Rationalization of tax rates: Tax slab/rates have been rationalised and many items kept within the high tax bracket (18-28%) were reviewed and classified as necessities and not luxuries. Only around 200 items such as automobiles, pan masala, five star hotels have been kept in the highest (28%) slab.

2. Simplification of compliance burden: This has been done through steps like extending the due dates of filing tax return, introduction of simplified return filing system, nationwide E-Way bill etc.

3. Relief measures for MSME Sector: It includes steps like increase in registration threshold limit, Composition Scheme for small taxpayers etc.

4. Boost to the real estate sector: It recommended reduction in the rate of GST for under-construction properties @1% (for affordable housing) and 5% (for non-affordable segment).

5. Other measures: The Council has also recommended the formation of a Group of Ministers (GoM) to study the revenue trend, analyse the reasons for structural patterns affecting revenue collection in some states, to examine the tax rate and issues in specific sectors such as real estate, lottery, and other issues related to GST. It has also established Grievance Redressal Committees at Zonal/State levels.

It is a constitutional body (Article 279A) for making recommendations to Union & State Govt. on issues related to GST.