The senior Congress Party leader took to twitter and said "Expect a shower of changes in GST rates from GST Council meeting today".
The Council is also likely to discuss the proposal to do away with the distinction between air-conditioned (AC) and non-air conditioned restaurants (not under composition scheme) and tax them at 12 per cent, media reported. Jaitley informed that GST rates in respect of restaurants including both AC and non-AC categories have been reduced to uniform five per cent from the existing 18 %. As expected earlier, the all-powerful council agreed to slash GST rates on restaurant bills from 18 per cent to 5 per cent. At present, while manufacturers pay GST at 2 per cent, the rate for restaurants is 5 per cent. Traders now pay 1 per cent.
The GST Meeting also decided that there will no benefit of input tax credit for restaurants.
"The increase in the composition scheme threshold would make life much easier for the small business entities", Rawat said. The GST Council, which comprises of representatives of all states, has already rationalised tax rates for over 100 items.
Chidambaram on Friday said Congress is "vindicated" by reduction change in GST rates, and said that it was done because of the Gujarat elections. "The facility to revise Form GST TRAN-1 declaration has been introduced on the GST Portal for taxpayers who had already filed it prior to November 9, 2017", GSTN said in a statement.
Under (GST) regime implemented from July, over 1,200 products and services have been fitted into one of the 5, 12, 18 and 28 per cent tax slabs based on the principle of keeping the total tax incidence at nearly the same level as previously as well as keeping revenue collections neutral.