The 29th GST Council meeting was held on August 4, 2018, in New Delhi. The main agenda of the meeting was to address the concerns of MSMEs and digital transactions. Here are the key takeaways from the meeting.
To promote digital economy by increasing the user base of digital transactions, the GST Council has recommended a cashback program. The council has proposed that users making transactions through BHIM application and RuPay cards should get 20% of GST paid as cashback (capped up to Rs 100). It is expected that the government will incur a loss of approximately Rs 980 crore due to this program.
To address the problems being faced by MSMEs regarding GST compliance, the council has decided to create a sub-committee consisting of ministers. This group of ministers will be responsible for evaluating all the proposals meant to give relief to MSMEs with a turnover up to Rs 1.5 crore.
The council did not make any proposal regarding revision of tax rate against the expectation. The revenue from GST was estimated to be Rs 3.36 lakh crore. However, the actual revenue was considerably lower at Rs 2.86 lakh crore. Hence, no rate cuts were proposed.
The next GST Council meeting will be held on September 28, 2018, and September 29, 2018, in Goa.
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