As the GST compensation cess issue still remains unresolved with around 10 opposition-ruled states and Union Territories not agreeing with the Centre's borrowing proposals, the GST Council, consisting of all state Finance Ministers and headed by the Union Finance Minister, will meet today to discuss and try to reach to a consensus on the matter.
The GST Council on Monday decided to extend the surcharge on taxes over luxury goods such as cars, and tobacco products beyond June 2022.
Finance Secretary Ajay Bhushan Pandey who attended the 41st GST Council Meet on the agenda of making up for shortfall in states’ revenues amid the pandemic, said that the Attorney General's clear opinion was that compensation gap cannot be met from India's consolidated fund and provided two options.
Sources said the 41st meeting of the Goods and Services Tax (GST) Council would be a single agenda meeting on states' compensation to be held via video conferencing.
Under the GST law, states are guaranteed full compensation for any revenue loss for the first five years after the introduction of the goods and services tax (GST) in July 2017.
The GST Council on Saturday discussed the impact of coronavirus on the economy, Finance Minister Nirmala Sitharaman said.
The GST Council on Wednesday fixed a uniform tax rate of 28 per cent on both state and private lottery. Briefing reporters after the 38th meeting of the Council, Revenue Secretary Ajay Bhushan Pandey said the new rate for lottery will come into effect from March 2020.
The Goods and Services Tax Council chaired by Union Finance Minister Nirmala Sitharaman on Friday took an in-principle decision to link Aadhaar with registration of taxpayers under the GST and examine the possibility of making Aadhaar mandatory for claiming refunds.
The all-powerful GST Council will at its Goa meeting next week consider demands for reducing taxes on products ranging from cars to biscuits keeping in mind the revenue position as any cut will have a direct impact on earnings of states, a senior government official has said.
GST Council meet concluded on Saturday with a decision to reduce GST rates on electric vehicles and charges. The GST Council has decided to reduce GST rate on electrical vehicles from 12 per cent to 5 per cent. The council has also approved an exemption from GST on hiring of electric buses by the local authorities.
The 36th meeting of the Council, which will happen through video conferencing, is also likely to decide the valuation of goods and services in solar power generating systems and wind turbine projects for the purposes of levying GST.
Finance Commission Chairman N K Singh Tuesday stressed the need for a dialogue between the commission and Goods and Services Tax (GST) council to address various concerns on the taxation regime.
"The matter has been placed before the GST Council and will be considered. As of now, it is pending before the council," Anurag Thakur said.
Briefing reporters after the 35th meeting of the Council, Revenue Secretary A B Pandey said it has been decided to allow the use of Aadhaar by businesses to register with GST-Network.
In an interview to ANI, Modi emphasised that GST is a new system that is bringing about a "big transformation" and is driven technologically.
Chattisgarh and Rajasthan, where the Congress came to power earlier this month, sent only officers to attend the GST Council meeting, Madhya Pradesh did not send any representative, PTI reported quoting sources.
The study would include the underlying reasons for deviation from revenue collection targets vis-a-vis original assumptions discussed during the design of the GST system, its implementation and related structural issues, he said.
Traders' body Confederation of All India Traders (CAIT) also welcomed the reduction in GST tax rates on various items and said it is a progressive step in rationalising and simplifying the tax structure.
Talking to media persons, Finance Minister Arun Jaitley said that six items have been removed from the 28 per cent tax bracket under the GST regime.
The new GST rates will be effective from 1st January 2019
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