GST Meeting News: The meeting of the GST Council is starting from tomorrow i.e. from Tuesday. The tax rates of some items can be changed in the meeting to be held in Chandigarh. Apart from this, issues like compensation system to the states and relief in the registration rules of small e-commerce suppliers will also be discussed during the meeting. The 47th meeting of the GST Council, chaired by Union Finance Minister Nirmala Sitharaman and comprising representatives of all states and union territories, is scheduled to be held on June 28-29. Let us tell you that the meeting of the council is being held after six months.
demand for reduction in tax rate
Let us tell you that apart from rationalizing the rates in the meeting, the opposition ruled states can discuss the payment of compensation. The rates proposed by the Committee of Officers or the Fitment Committee will be considered on the tax rates. The committee has recommended a uniform 5% GST rate on artificial limbs and orthopedic implants. The committee has also recommended reduction of the GST rate on ropeway travel to five per cent from the present 18 per cent.
Demand to reduce GST on electric vehicles
Apart from this, a clarification can be issued on GST rates for electric vehicles, according to which EVs, whether equipped with batteries or not, will be taxed at the rate of five percent. Two reports of the Group of Finance Ministers of the states will also be presented in the GST Council.
Loan taken to meet the shortfall of compensation fund
In the meeting of the GST Council, the opposition ruled states will strongly advocate for continuation of compensation of revenue deficit. On the other hand, the Center would like to stop any such move citing tight fiscal conditions. To meet the shortfall in the GST Compensation Fund, the Center took a loan of Rs 1.1 lakh crore in 2020-21 and Rs 1.59 lakh crore in 2021-22 and released it to the states. This has been done because of shortfall in cess collection.
45th meeting was held in Lucknow
After the 45th meeting of the GST Council in Lucknow, Union Finance Minister Nirmala Sitharaman had said that the system of paying compensation to states for shortfall in revenue will end in June next year. The Goods and Services Tax was implemented in the country from July 1, 2017 and states were assured compensation for a period of five years against any loss of revenue due to the implementation of GST.
Online gaming may attract 28% GST
A proposal to levy 28 per cent GST on the gross revenue of online gaming, casinos and horse racing is likely to be discussed in the meeting. The report submitted by the Group of Ministers headed by Meghalaya Chief Minister Conrad Sangma may be considered in the meeting of the GST Council. The GOM has recommended in its report that the entire value of online gaming should be taxed, including the entry fee paid by the player to participate in the game. At the same time, in the case of horse racing, the GoM has suggested that GST should be levied on the entire amount deposited for placing bets.
Considering making e-way bill and e-challan mandatory
The council will also consider making e-way bill and e-challan mandatory for inter-state movement of gold/precious stones valued at Rs 2 lakh and above. This arrangement will be for companies with an annual turnover of more than Rs 20 crore. Along with this, the GST Council may exempt small businesses from the mandatory registration norms for using the e-commerce platform. Along with this, e-commerce suppliers with a turnover of up to Rs 1.5 crore will be allowed to opt for the composition scheme, which offers lower tax rates and easier compliance.
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