With the GST Council meeting being held on Friday in Guwahati, former finance minister P Chidambaram has said that he is expecting a "shower of changes" as the government has no option.
The tax rates on over 200 daily-use items are expected to come down from 28 per cent to 18 per cent as the Council is likely to prune the items in the highest tax slab.
Expect a shower of changes in GST rates from GST Council meeting today. Panic-stricken govt has no option but to concede demands for change.— P. Chidambaram (@PChidambaram_IN) November 10, 2017
Congress FMs letter exposes the structural flaws in the design and implementation of GST. Govt can no longer duck these issues.— P. Chidambaram (@PChidambaram_IN) November 10, 2017
Congress FMs letter to Mr Jaitley will set the tone for discussions in the GST Council today.— P. Chidambaram (@PChidambaram_IN) November 10, 2017
The GST Council is also expected to offer more relief to small and medium enterprises (SMEs) in terms of compliance burden.
A slew of products such as ceiling fans, cement, automobile components, electrical fittings, sanitary fittings, shaving cream, cases for spectacles, goggles could move to lower brackets, said an ET report.
The two-day GST Council meeting is underway at Guwahati to review the progress of the new tax regime three months after it was rolled out. The 23rd meeting of the GST Council will be deliberating on the impact on the small scale industry, exemption to small traders and issues related to maximum retail price (MRP), said reports.