Currently, 12 per cent GST on food bill is levied in non-AC restaurants and 18 per cent in air-conditioned ones. All these got input tax credit, a facility to set off tax paid on inputs with final tax.
Earlier in the day, the GST Council decided to reduce tax rate on a wide range of mass use items - from chewing gums to detergents -- to 18 per cent from current 28 per cent.
For the week, the Sensex recorded a fall of 371 points, or 1.10 per cent, and the NSE Nifty 130.75 points, or 1.25 per cent.
Sushil Modi, who also holds the finance portfolio, was interacting with representatives of associations formed by traders involved in businesses like food, textiles, consumer goods, real estate etc.
GST Council may consider lowering tax rates on a host of goods such as handmade furniture, plastic products and daily use items like shampoo, and simplify return filing rules in its meeting this week.
The GST Council had announced several measures to ease problems faced by businesses last month.
The CAIT has also sought a third party audit into technical and other issues related to the GSTN portal.
According to media reports, a proposal to fix the GST rate at a flat 12 per cent on all restaurants will be presented before the Council when it meets on November 9 and 10 in Guwahati.
The changes were made three months after rollout of the new indirect tax regime.
Arun Jaitley made the announcements after a day-long 22nd meeting of the GST Council that took note of the difficulties faced by various businesses.
The GST Council, headed by FM Arun Jaitley, also allowed traders with turnover less than Rs 1.5 crore to file return quarterly.
The Rs 1 crore threshold in the Composition Scheme has been approved also by the GST Council members, sources said here on the sidelines of its ongoing meeting.
Positive global cues tracking another record close on Wall Street on account of buoyant US data and hopes for tax reform too helped the domestic rally.
GST Council raised the threshold limit for Composition Scheme to Rs 1 cr from the current Rs 75 lakh to ease tax filing for small traders. Under the Composition Scheme, traders have to pay a fixed tax rate between 1-5%.
The 22nd meeting of the Council comes on the back of promises made by PM Narendra Modi to remove glitches in the GST.
The all powerful GST Council in its meeting today is likely to provide some relief to exporters in terms of faster refunds as well as compliance
As regards the GSTR-3B returns for July, a total of 46.4 lakh taxpayers filed them, representing about 78 per cent of all taxpayers registered on the GST portal and eligible to file GSTR-3B for July.
The GST Council had earlier this month decided to set up a GoM to sort out the issues faced by businesses while filing returns and paying taxes on GSTN portal.
The Finance Ministry late last night notified the hike in quantum of cess to be levied on cars, following which the new rates came into effect.
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