Following the economic slowdown, the Government witnessed a decline in GST collection. In fact, the Government hasn’t even been able to pay state GST (SGST) quota back due to the country’s revenue crisis. It is important for business owners to note that the Government might revise GST rates in the upcoming budget, in order to meet this revenue deficit.
Certain sectors may, however, be spared a GST slab or rate hike. A number of sectors facing the brunt of the economic slump are calling for relief, in order to stimulate growth. The automobile sector is expecting a reduction in the GST rate from 2% to 18%. The healthcare industry, too, is gunning for the zero-rating of healthcare services. On the other side of the spectrum, lithium batteries may just get their big tax break, with an exemption on customs duty (currently levied at 5%). Moreover, a single window GST return filing system is expected to be introduced soon to sanction new returns. Although such expectations are high, it remains to be seen whether the Budget 2020 meets these needs of its GST taxpayers.