Tax Experts react to 37th Council Meeting announcements on rate revisions and procedural simplification

Last Friday witnessed unprecedented revamp in the Indian direct taxation regime with reduction in corporate tax rate and other announcements made by Union Finance Minister, Nirmala Sitharaman just before the commencement of 37th GST Council meeting, which set the tone and agenda of this meeting. Amidst request for rate cut by various industries, GST Council meeting on September 20th in Goa was a crucial one with deliberations on tax moderation, keeping in mind the revenue position and the need to address the economic slowdown.

Plethora of changes as introduced by the Council including making Annual Returns optional for small taxpayers, postponement of the new return filing system, rationalization of rates on several goods/services would certainly fuel the economy and give it the necessary boost. The Government’s inclusive approach could also be observed from its decision of withdrawal of Circular No.105/24/2019-GST on treatment of Post Sales Discount and reduction of tax rates for hotels and outdoor catering.

Tax experts react on these decisions aimed primarily at rationalization of tax rates and procedural simplification.