“It could get further entrenched... Jobs are getting impacted.”Automobiles, for instance, are placed in the 28% GST bracket.They also face a compensation cess, depending on size and segment. A lowering of rates will reduce prices and possibly encourage consumers to spend.A final decision will depend on the revenue position. Rural growth was down to about 1.1 times urban growth against 1.3 times in the preceding quarter. Consumer goods sales have remained sluggish, experts said.Passenger vehicle sales dropped 17% in April and May was equally bad for most companies. Jain said there is a case for reduction in GST rates to spur demand, particularly for small and environment-friendly cars.The GST Council could also take up a proposal on introducing electronic invoicing at its meeting, besides changes to the law.

Source: Economic Times June 10, 2019 01:07 UTC