Tax Experts react to 28th GST Council meeting announcements of July 21

The first GST Council meeting chaired by the pro tem Finance Minister Piyush Goyal and the 28th since its constitution, showered a monsoon bonanza for the consumers by cutting tax rates on several general use items such as TV, washing machine and refrigerators. The Council announced a 10% reduction in GST rates for various items; thus, leaving just 35 items, including AC, digital camera, video recorders, dish washing machine and automobiles, in the highest tax bracket.

This is not all. The Council also provided a huge relief to the hotel industry by taxing the services on actual tariff basis instead of the declared tariff. It approved the simpler GST returns with an option of quarterly filing for small taxpayers having turnover upto Rs. 5 Cr, while also accepting changes proposed to the GST laws. These amendments seek to bring clarity in respect of several vexatious issues, thus allaying the concerns raised by India Inc.

With the rate changes set to take effect from July 27th and the GST law amendments would be taken up in the monsoon session of Parliament, the Who’s Who of the Tax World reacts to the decisions taken by the GST Council.