The GST Council has decided to revise rates of 29 goods and 53 services and to introduce anti-evasion measures. It will also take a final decision on simplification of the return filing process in the next meeting through video conferencing.

Rates of goods like bio-diesel, packaged drinking water, drip irrigation system, bio-pesticides, among others have been brought down to 12% from 18%. Diamond and precious stones will now have 0.25% GST instead of 3%, while vibhuti and de-oiled brown rice will have no tax. The decision to include real estate in GST has been postponed. Likewise, rates of 53 categories of services will now have lower tax.

The changes in rates will be applicable from January 25,overall, the rationalization excercise will have an impact of Rs.1,000-1,200 crore annually.

It was also indicated by the finance minister that in future a single stage return filing will be introduced to help reduce compliance burden and also ease procedure for businesses. This means that the 3 key return forms : GSTR1 (outward supply), GSTR2 (inward supply) and GSTR3 (the final netted out return) will be consolidated into a single form.

However, businesses will continue to file GSTR3B and GSTR1 till the new mechanism is announced and similar changes are made in the software.

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