Tax Experts react to GST Council announcements on June 11

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During its 16th meeting yesterday, GST Council revised the rates of 69 items after considering 133 representations from the industry. It also increased the annual turnover limit from Rs. 50 lakhs to Rs. 75 lakhs for composition levy. Moreover, it has also revised the exemptions relating to IGST and for certain services.
While the Council will meet again on June 18 to discuss pending issues including Rules on E-Waybills, Tax Experts react to the announcements made yesterday. 


Harishanker Subramaniam
EY India

With 66 of the 133 industry representations addressed wrt to rates, GST Council has shown its continued willingness to reconsider which is heartening. Food items, exercise books, insulin, tractor components all saw rate reductions which will be relief to those sectors. We still need to read the fine print to see what more has changed. Raising the threshold on Composition Scheme to 75 lacs will provide relief to smaller players. E-way bill discussions are deferred to June 18 meeting, hope they defer this by 6 months and water down the provisions to avoid challenges. Anti-profiteering rules are now likely to be out post July 1 which could be a challenge from a clarity perspective. With potentially two more Council meetings we will be down to the wire for July 1 implementation.