Key highlights:

  • Ministerial panel has recommended the lowering of GST rates for SMEs
  • The ministerial panel proposes a 1% GST for traders, manufacturers and restaurants
  • The GST Council will be meeting on November 9-10 and could accept the changes

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There may be some good news for small and medium businesses as a ministerial panel has recommended the lowering of the goods and service tax (GST) rates for them. It is also looking to extend the benefits to more such units in an attempt to reduce their tax burden and improve compliance.

The GST Council will be meeting on November 9-10 and could accept the changes in order to provide relief to small enterprises, eateries and traders.

The ministerial panel proposes a 1% GST for traders, manufacturers and restaurants, instead of the 1%, 2% and 5%, respectively, according to a Live Mint report.

Govt says GST rates may be rejigged to reduce burden on SMEs

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