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Tag: GST Council meeting

  • GST Council decides to defer price hike on textiles from 5% to 12%

    The GST Council on Friday determined to defer the hike within the price of products and companies tax (GST) on textiles from 5 per cent to 12 per cent, Finance Minister Nirmala Sitharaman introduced.
    The GST price hike on textiles from 5 per cent to 12 per cent was to return into impact from January 1, 2022.
    The assembly was referred to as underneath emergency provision, the minister knowledgeable within the press convention.

    Sitharaman mentioned that the assembly was referred to as after the finance minister of Gujarat requested for deferment of the choice taken within the Council’s assembly in September 2021 on the inversion of tax construction.
    “The September 2021 decision was taken more in the process of correcting inversion in the tax structure,” she mentioned.
    Since 2019, GST Council has thought of such correction within the inverted responsibility construction in roughly 10 gadgets, Sitharaman mentioned.
    The transfer by the GST Council comes after some states and trade our bodies opposed the rise in tax from 5 per cent.
    Last week, Amit Mitra, the Principal Chief Advisor to West Bengal Chief Minister, had urged Union FM Nirmala Sitharaman to roll again the proposed hike. He mentioned the brand new price construction would trigger closure of round 1 lakh textile models and losses of 15 lakh jobs nationally.

  • GST GoM meet on Nov 27: Rate tweak plan worries some states

    The Group of Ministers (GoM) constituted to evaluate the present price slab construction underneath the Goods and Services Tax (GST) regime will meet on November 27 to debate numerous proposals for price rationalisation and measures to shore up revenues. While an officer-level fitment committee is learnt to have really helpful elevating of tax charges from 5 per cent to 7 per cent and 18 per cent to twenty per cent, some state finance ministers have flagged potential issues over the impression of such main price modifications and indications are that the entire suggestions made the officer-level panel are unlikely to be accepted by the GoM.
    This additionally comes within the backdrop of states citing issues concerning the inflationary impression of any such main price hikes, particularly within the aftermath of the pandemic. “There will be discussions on November 27, which will be the third meeting of the GoM. Some proposals about inverted duty and other measures have already been discussed. One has to be careful about any such major rate change, especially the 5 per cent slab which has many common-use items. Price rise will be an issue if rates are changed without proper studies. So, many things have to be looked into before taking a final view, which is anyway going to be taken up by the GST Council,” a state finance minister instructed The Indian Express.
    The subsequent GST Council assembly, going to be held in December, whereby the GoM will current its report on price rationalisation.

    “The GoM consists of seven states. The priority is correction of inverted duty structure. It has already been done for textiles and footwear. Many other items have to be considered for which we will have to see sense of the GST Council in total,” one other state authorities official mentioned.
    After the earlier GST Council assembly in September, two ministerial panels had been constituted for spelling out a blueprint for GST reforms. The panels’ transient incorporates an overarching mandate: an analysis of “special rates” throughout the tax construction, rationalisation measures that embrace “a merger of tax rate slabs for simplifying the rate structure”, alongside a evaluate of situations of inverted responsibility construction and an identification of potential sources of evasion to shore up revenues.
    The Finance Ministry has constituted a seven-member Group of Ministers (GoM) underneath Karnataka Chief Minister Basavaraj S Bommai for “rate rationalisation” and one other eight-member GoM underneath Maharashtra Deputy Chief Minister Ajit Pawar for “GST system reforms”.

    Queries despatched by The Indian Express to the Finance Ministry on the proposed price modifications didn’t elicit a response.
    Though GST income collections have been excessive in current months, even recording the second-highest stage in October since its July 2017 rollout, issues of income buoyancy underneath GST had been raised within the earlier Council assembly, following which the GoMs had been assigned to reassess the present tax slabs together with a doable merger of some tax slabs. Rate modifications are additionally being thought of because the compensation to states for income losses underneath GST will come to an finish in June 2022.
    The GST has 5 key tax slabs: zero, 5 per cent, 12 per cent, 18 per cent and 28 per cent. A compensation cess, ranging between 1 per cent to 290 per cent, is levied on demerit and luxurious items over and above the topmost price of 28 per cent. While most meals gadgets appeal to zero GST, many edible and processed meals gadgets equivalent to cane sugar, tea, spices are underneath the 5 per cent slab.

  • Odisha seeks justifiable share in divisible pool of funds

    By Express News Service

    BHUBANESWAR: The Odisha authorities on Friday, September 17, 2021, demanded that the divisible pool of funds be shared by the Centre and states needs to be elevated in order that states like Odisha get a justifiable share.Attending the primary bodily assembly of the GST Council in 20 months at Lucknow, Finance Minister Niranjan Pujari is reported to have expressed concern over the rise in cess or surcharge imposed by the Centre. He mentioned this has not benefited the states in any method as they don’t get any share from them. On the opposite hand, the income goes to the Centre, he said.

    The Finance Minister prompt {that a} mechanism needs to be labored out in order that the states are additionally benefited. Sources mentioned Odisha authorities’s view on bringing petrol and diesel below the purview of GST was that the State collects much less income from petrol and diesel in comparison with the Centre. 

    Official sources mentioned the Centre collects Rs 32.9 from one litre of petrol whereas the State authorities collects Rs 21.4 per litre by imposing 40 per cent (computer) value-added tax (VAT). Similarly, the Centre collects Rs 31.8 from a litre of diesel whereas the State authorities will get Rs 18.9 by imposing 28 computer VAT. The State authorities raises between Rs 5,500 to Rs 6,000 crore from VAT on petrol and diesel yearly.

  • GST Council meet begins: fee evaluate of fifty gadgets, petrol and diesel on the agenda

    Finance Minister Nirmala Sitharaman is chairing the forty fifth Goods and Services Tax (GST) Council assembly right now in Lucknow. The essential assembly is anticipated to evaluate over 50 gadgets within the type of fee modifications and clarifications.
    This, together with discussions to increase the compensation mechanism for states past the prevailing authorized mandate until June 2022 are a few of the key points on the agenda of right now’s GST Council assembly.

    Finance Minister Smt. @nsitharaman chairing the forty fifth GST Council assembly in Lucknow right now. MOS Shri @mppchaudhary , Finance Ministers of States & UTs and Senior officers from Union Government & States are additionally current within the assembly@PibLucknow pic.twitter.com/olefqxnMff
    — Ministry of Finance (@FinMinIndia) September 17, 2021
    The GST Council will focus on enacting taxing of petroleum merchandise together with petrol, diesel, and aviation turbine gas underneath the ambit of GST.
    In June, the Kerala High Court, primarily based on a writ petition, had requested the GST Council to determine on bringing petrol and diesel inside the ambit of the oblique tax regime. The resolution to start dialogue on placing a timeline for enforcement of taxing petrol and diesel inside GST has been taken in context of the courtroom ruling, sources mentioned.
    Apart from this, the Council will have a look at a proposal to deal with meals supply apps reminiscent of Zomato and Swiggy as eating places. The transfer for meals apps is anticipated to shift the compliance burden to them as a substitute of eating places and can assist in curbing tax evasion.
    With near-record excessive petrol and diesel charges within the nation, GST on petroleum merchandise would finish the cascading impact of tax-on-tax (state VAT being levied not solely on price of manufacturing but additionally excise obligation charged by the Centre on such output).
    The jugglery of taxability of petroleum merchandise underneath GST might be carefully watched as bringing it underneath its ambit would suggest Centre dropping its share of income from cesses on such merchandise. A majority of the Rs 32.80 per litre excise obligation on petrol and Rs 31.80 on diesel is manufactured from cesses, which isn’t shared with states.
    The forty fifth GST Council assembly chaired by finance minister and comprising of the state finance ministers, is the primary bodily assembly because the outbreak of Covid-19. The final such assembly occurred 20 months in the past on December 18, 2019. Since then the GST Council has been assembly by means of video-conferencing.
    Friday’s assembly doesn’t have the availability of video conferencing and virtually all state finance ministers, besides Gujarat, are attending the assembly.

  • Lined up for GST Council meet: Rate evaluation of fifty objects

    A evaluation of over 50 objects within the type of price adjustments and clarifications together with discussions to increase the compensation mechanism for states past the prevailing authorized mandate until June 2022 are a few of the key points on the agenda of the Goods and Services Tax (GST) Council in its forty fifth assembly to be held in Lucknow on Friday.
    States are assured compensation beneath GST for the income hole between precise collections and the protected quantity primarily based on 14 per cent compounded price from base 12 months 2015-16 for 5 years of GST rollout until June 2022. Last 12 months, the federal government had determined to borrow to fulfill compensation cess deficit via back-to-back loans to states.
    The first batch of Rs 75,000 crore to fulfill the compensation shortfall for states was launched in July. To pay again these borrowed quantities via back-to-back loans and pending compensation fee via cess collections, the compensation association is estimated to stretch for two.5-3 years past June 2022.
    The Council can be going to take up evaluation of charges for 32 items and 29 companies. The fitment panel beneath the Council has advisable adjustments for objects akin to together with photo voltaic PV initiatives, recent fruits and nuts, coconut oil, carbonated drinks, fortified rice kernel, indoor amusement parks. The fitment panel has additionally advisable no price adjustments for ceiling fan, air cooler, rubber, cotton, metallic scrap, lithium ion battery and no enter tax credit score for sanitary napkins.
    The Council is anticipated to increase tax concessions to 11 medicine utilized in Covid therapy. Also, dialogue to tax petrol and diesel beneath GST will probably be initiated together with a proposal to deal with meals supply apps akin to Zomato and Swiggy as eating places could be taken up by the Council.

  • GST Council to take up gas inclusion, meals supply apps

    A dialogue to enact taxing of petroleum merchandise together with petrol, diesel, and aviation turbine gas beneath the ambit of Goods and Services Tax (GST) is prone to happen within the forty fifth GST Council assembly on Friday. While this transfer is predicted to usher in uniformity for taxing petroleum merchandise, it could additionally entail a loss within the income share of taxes levied by the states and cesses by the Centre.
    The Council in its assembly scheduled in Lucknow is prone to think about extending the time for responsibility reduction on Covid necessities together with risk of inclusion of meals supply apps like Swiggy and Zomato as restaurant companies, sources mentioned. The transfer for meals apps is predicted to shift the compliance burden to them as a substitute of eating places and can assist in curbing tax evasion. It will focus on the modalities of continuation of compensation cess past June 2022.
    In June, the Kerala High Court, based mostly on a writ petition, had requested the GST Council to resolve on bringing petrol and diesel inside the ambit of the oblique tax regime. The determination to start dialogue on placing a timeline for enforcement of taxing petrol and diesel inside GST has been taken in context of the courtroom ruling, sources mentioned.
    At the time of the introduction of GST, the Constitutional modification had included petroleum merchandise beneath GST with the caveat of the Council recommending a date for its enforcement, each time it’s relevant.

    With near-record excessive petrol and diesel charges within the nation, GST on petroleum merchandise would finish the cascading impact of tax-on-tax (state VAT being levied not solely on value of manufacturing but additionally excise responsibility charged by the Centre on such output). The jugglery of taxability of petroleum merchandise beneath GST shall be carefully watched as bringing it beneath its ambit would indicate Centre shedding its share of income from cesses on such merchandise. A majority of the Rs 32.80 per litre excise responsibility on petrol and Rs 31.80 on diesel is made from cesses, which isn’t shared with states.

  • forty fifth GST Council meet scheduled for September 17

    The GST Council will meet on September 17 at Lucknow, the Finance Ministry stated on Wednesday. The Council is anticipated to assessment concessional charges on Covid-related important objects and talk about the compensation construction going forward.
    “Finance Minister Smt @nsitharaman will chair the 45th meeting of the GST COUNCIL on 17th September at Lucknow,” the ministry tweeted Wednesday. The earlier Council assembly was held by way of video conferencing on June 12, throughout which tax charges on numerous Covid necessities have been diminished until September 30.
    Goods and Services Tax (GST) charges have been slashed on Covid medication reminiscent of Remdesivir and Tocilizumab in addition to on medical oxygen, and oxygen concentrators different Covid necessities.
    States are assured compensation beneath GST for the income hole between precise collections and the protected quantity based mostly on 14 per cent compounded fee from base 12 months 2015-16 for 5 years of GST rollout until June 2022.
    The states and Centre had opted for back-to-back loans to borrow funds to satisfy the compensation requirement.

  • GoM report, fee minimize for Covid necessities on GST Council desk

    After consensus eluded the choice relating to lowering taxes on Covid-related reduction supplies within the forty third Goods and Services Tax (GST) Council assembly, the subsequent one is now slated to be held on Saturday.
    The Council will take a last determination relating to the report submitted by a Group of Ministers (GoM) to resolve on a GST fee minimize for Covid vaccines, reduction supplies and medication for black fungus.
    In the earlier assembly on May 28, the Council, a GoM was set as much as suggest tax reduction on Covid necessities, together with PPE kits, masks and vaccines, to the GST Council. The GoM, headed by Meghalaya Chief Minister Conrad Sangma, submitted its report on June 7.
    The GoM is learnt to have supported a fee minimize on some Covid necessities to five per cent and no change in tax fee on vaccines. Uttar Pradesh Finance Minister Suresh Kumar Khanna, who can be a member of the GoM, on Wednesday stated the state is in favour of reducing taxes on Covid necessities to facilitate sufferers, however will settle for the choice of the GST Council on tax charges.

    The GoM on GST concessions on Covid reduction objects was mandated to look at whether or not a GST fee minimize or exemption is required for medical-grade oxygen, pulse oximeters, hand sanitizers, oxygen remedy tools like concentrators, ventilators, PPE kits, N-95 and surgical masks and temperature checking tools. It additionally seemed into Covid vaccines, medicine, and medicines for Covid remedy and testing kits for Covid detection.
    Currently, 5 per cent GST is levied on domestically manufactured vaccines, whereas it’s 12 per cent for Covid medicine and oxygen concentrators.

    The states and Centre had differing views on the discount in tax charges for these things within the forty third GST Council assembly held on May 28. However, GST was exempted on import of Amphotericin B — a drugs used for remedy of black fungus.
    Congress and different Opposition dominated states have been demanding a discount in taxes and 0 ranking for these things however the central authorities felt the transfer might not lead to the advantages being handed on to the top customers of sufferers and residents.

  • GoM tables report on GST waiver for Covid necessities

    A bunch of ministers (GOM) led by Meghalaya chief minister Conrad Sangma is learnt to have advisable no change within the 5 per cent items and repair tax (GST) price for Covid-19 vaccines, whereas suggesting discount of the GST price quickly to five per cent for each business imports and home provide of most different Covid medicines and supplies.
    It additionally advised exemption from GST for the black fungus drug Amphotericin B for 3 months.
    The GoM, which had time until Tuesday to submit its report, gave it to the Council on Monday itself, a state authorities official stated.
    The Council’s fitment committee had earlier advisable retaining a 5 per cent GST on each business import and home provide of vaccines.

    At current oxygen concentrators, medical grade oxygen, pulse oximeters and Covid testing kits appeal to 12 per cent GST on business imports and home provides. Ventilators and Covid medicines appeal to 12 per cent GST. It is eighteen per cent on RT-PCR kits, protecting clothes, and many others. —FE

  • 1st GST GoM meet: Talks on ‘tax cuts for benefit of people’

    Meghalaya Chief Minister Conrad Sangma on Thursday chaired the primary assembly of the Group of Ministers (GoM) fashioned to look at GST concessions and exemptions on Covid aid supplies like vaccines, medication, hand sanitisers, masks, PPE kits and oxygen-related gear.
    Sangma mentioned the GoM has beneficial the discount of charges on a lot of occasions, however the closing name could be taken by the Council.
    The GoM was fashioned after the states and Centre had differing views on the discount in tax charges for this stuff within the forty third GST Council assembly on May 28. The GoM has to submit its report by June 8. “I will not be able to share the details right now because these are only recommendations. Ultimately, these will be put into a proper report and submitted to the Council. Then the Council will ultimately take a decision,” he mentioned.
    Sangma mentioned the GoM went into an in depth dialogue of virtually all of the objects that have been beneficial by Fitment Committee.
    He described that the “basic principle” that was adopted within the dialogue was, firstly, “to see the benefits and the tax reductions that would give the benefit directly to the people”.
    “Therefore, items that were very much personal oriented that people or patients would have to directly buy, we made sure that we could bring down the concessions and the rates to the maximum amount possible so that in these difficult times maximum relief can be given,” mentioned Sangma.

    Chief Ministers of Congress-ruled Rajasthan and Chhattisgarh had earlier this week hit out on the Union authorities for not together with Finance Ministers from party-ruled states within the GoM. Congress and different Opposition-ruled states have been demanding a discount in taxes and nil price for this stuff, however the Central authorities felt the transfer might not lead to the advantages being handed on to the top customers of sufferers and residents.
    The different GoM members are Gujarat Deputy Chief Minister Nitinbhai Patel, Maharashtra Deputy Chief Minister Ajit Pawar, Goa Transport Minister Mauvin Godinho, Kerala Finance Ministers Okay N Balagopal, Odisha FM Niranjan Pujari, Telangana FM T Harish Rao and Uttar Pradesh FM Suresh Kumar Khanna.