The GST Council in its meeting on September 20 is set to discuss a proposal to exempt small businesses with annual turnover of less than Rs 2 crore from filing annual returns. So far, only 25-27% of registered assesses have filed their annual returns despite extension of deadlines three times. The Council will decide if the mandatory return filing requirement be suspended for only 2017-18 or for subsequent financial years as well. As per official data, out of about 1.39 crore total assessees, nearly 85% have an annual turnover of Rs 2 crore or less.
The GST Council could lower levies for sectors such as automobiles, biscuits and other fast-moving consumer goods (FMCG) at its September 20 meeting. The automobile sector wants GST rates on passenger vehicles to be cut to 18% from 28% now. The auto sector, in addition to GST, also faces a compensation cess that ranges from 1% to 22%. The Council could also discuss raising the lowest slab of 5% to as much as 8%.