32nd GST Council Meeting

Expectations from the 32nd GST Council Meeting :

• To decide whether or not to include the supply of residential properties and supply of services by small service providers, under Composition scheme. A group of ministers(GoM) is looking into the same. As far as the taxability of the residential properties is concerned, there are two proposals tabled before the council. One, where a tax rate of 5% will be levied on the supply of residential properties (under construction) without Input tax credit (by the option of composition scheme). The other, where the tax rate levied will be 8% to keep it at par with the tax rate on affordable housing.

• To deliberate whether or not the tax rates on Lotteries must be 12% or 28% GST Slab for private schemes respectively.

• To take a call on the threshold limit of exemption for MSMEs.

• A committee by Shri Sushil Kumar Modi was set up in the 30th GST Council Meeting. The committee studied the implication of setting up a fund in case of exigencies such as natural disasters, the recent one being the floods in Kerala. They have proposed to introduce ‘Revenue Mobility scheme’ to address the issues. The 32nd GST Council Meeting will be an important one, as it will take a final call on funding natural calamities that have been a serious point of consideration by many Council members for quite some time.\