The GST Council recently concluded its 57th meeting, bringing a long list of changes for businesses. However, the smartphone buyers who have been waiting to get some relief from the ongoing price hikes have nothing to celebrate, as the committee provided no relief. The council during the meeting focused largely on making GST registration, refunds, input tax credit, enforcement and compliance simpler. Not only that, but the Council also did not take up any decision on Merchant Discount Rate (MDR), another issue that had drawn attention ahead of the meeting. Here are the key takeaways from the GST Council meeting.
The Council recommended removing GST arrest powers while raising the prosecution threshold from Rs 1 crore to Rs 5 crore. It also recommended reducing the maximum general penalty from Rs 25,000 to Rs 10,000.
Furthermore, businesses are also set to get faster refunds as the council proposes a system-based process for several categories. Registration and cancellation are also being made simpler, while small sellers on e-commerce platforms will get an easier route to register in other states. The Council also proposed common standards for GST notices and proceedings and measures to facilitate the export of services.
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Other than that, the Council also proposed wider access to input tax credit and refunds in several areas and measures to make the movement of goods between states smoother, including intelligence-based and authorised interception of goods. It also approved in principle an optional scheme for small consumer-facing businesses with a turnover of up to Rs 5 crore.
Rumours about GST reductions were circulating for a while that provided the consumers a flicker of hope that they may get relief from the ongoing price hike, but that appears not to be happening, as during the 57th GST Council meeting, the committee did not recommend any change to the current 18 per cent GST on mobile phones. This means that the smartphone prices in India will remain the same.
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Furthermore, the meeting did not announce any decision on the Merchant Discount Rate (MDR), which was another issue reportedly expected to be discussed during the meeting. However, earlier reports suggested that the NPCI and the Finance Ministry were in talks to delay the MDR fees and could potentially come to a conclusion within two days.