Before the general budget, the meeting of the GST (commodity and service tax) council is scheduled to be held on June 20, in which the business-to-business (B2B) sale will be for a company of 500 million or more, on a centralized portal. -Insuffing will be discussed when necessary.
Advancing the term of GST’s non-discriminatory body is also on the agenda of the Council. A senior official said here, “The work is going on to finalize the GST Council’s agenda. Increasing the threshold of business and enhancing the tenure of nonprofit body will definitely be discussed.
The forthcoming meeting of the GST Council is very important, because this will be the first meeting of the Council after the Modi government returned to power last month. The Modi government has returned to power with a huge majority for the second time.
At the council meeting, there will be discussion on the sluggish economy and less GST collection than expected in May. Union Finance Minister Nirmala Sitharaman will chair the meeting for the first time, in which all the finance ministers of the states will be included.
B2B is for curbing theft by proposing to decide the business boundary to generate e-invoices for sale. Official analysis has found that GST payments make an annual turnover of 30 crores of B-2B invoice, while the taxpayer’s annual turnover of 50 crores or more is 1.02 percent.
To make e-invoices for the B2B sale from the proposed step, all major businesses will be required effectively. Centralized system is expected to be implemented till September by uploading invoices.
As a result, these firms will be exempt from the double procedural work to file returns and upload invoices. From the government’s perspective, this will help in the prevention of invoicing and tax evasion.
At the same time, different industries have the expectations of cutting rates in the highest tax bracket of GST, especially the auto sector, which is expected to accelerate sales.