GST Council Meet Highlights | The GST Council has accepted the recommendations of a group of ministers (GoM) on correcting the so-called inverted duty structure and pruning the list of exemptions, said Finance Minister Nirmala Sitharaman. The council has given the GoM more time to decide on rate rationalization measures, Nirmala Sitharaman told reporters after the two-day GST Council meeting ended in Chandigarh on June 29. The council also considered tax on online gaming, casinos and horse racing and has given the GoM more time until July 15 to firm up its report after speaking to stakeholders.
The live blog session has concluded. For more news, views and updates, stay tuned with Moneycontrol.com.
The GST Council has accepted the recommendations of a group of ministers (GoM) on correcting the so-called inverted duty structure and pruning the list of exemptions, while giving the panel three more months to decide on rate rationalization measures, officials said on June 29. Read full report.
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GST Council gives in-principal approval for relaxation in provisions for suppliers making supplies through e-commerce operators. The Council has also clarified thatservices provided by the guest anchors to TV channels in lieu of honorarium attract GST.
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GST Council recommends that hotel accommodation priced up to Rs 1000 per day shall be taxed at 12 percent. It has also recommended thathospital room rent exceeding Rs 5000 per day per patient shouldbe taxed to extent of amount charged for room at 5 percent without ITC.
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GST Council clarifies electric vehicles, whether or not fitted with a battery pack, are eligible for the concessional GST rate of 5 percent,
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The following tax rate cuts have been recommended by the GST Council:
- Slashing rate on ostomy, certain orthopedic appliances to 5 percent from 12 percent.
- Lowering rate on transport of goods and passengers by ropeways to 5 percent from 18 percent.
- Cutting rate on renting of truck/goods carriage where cost of fuel is included to 12 percent from 18 percent.
- Slashing rate on ostomy, certain orthopedic appliances to 5 percent from 12 percent.
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The following increase in tax rates has been recommended by the GST Council:
- Hike in rate on printing, writing or drawing ink to 18 percent from 12 percent.
- Hike in rate on LED Lamps, lights and fixture, their metal printed circuits board to 18 percent from 12 percent.
-Hike in rate on Solar Water Heater and system to 12 percent from 5 percent.
-Hike in rate on job work in relation to manufacture of leather goods and footwear to 12 percent from 5 percent.
- Hike in rate on works contract for roads, bridges, railways, metro, effluent treatment plant, crematorium to 18 percent from 12 percent.
- Raising rate on Tetra Pak to 18 percent from 12 percent.
- Raising rate on cut and polished diamonds to 1.5 percent from 0.25 percent.
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"On the invitation of the Tamil Nadu finance minister, the next GST Council meeting will be held in Maduraim," Finance Minister Sitharaman said, as the press briefing concluded. The meeting will be held either on August 1 or in the first week of August, she had earlier said.
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There was no opposition to tweaking rates at current GST Council meeting, FM Sitharaman said during the press briefing.
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The Council has discussed the issue of tribunals, FM Sitharaman said in response to a media query, adding that a Group of Ministers (GoM) will be set up on the issue in a couple of days.
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The Council did not discuss the issue of inclusion of petroleum products, Finance Minister Sitharaman said, in response to a media queries. Speculations related to the inclusion of petroleum products under the GST regime had gained momentum a couple of months ago, after the Russia-Ukraine war had triggered the prices to unprecedented high levels.
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There was no discussion held over cryptocurrency assets during the GST Council meeting over the past two days, FM Sitharaman said, while responding to a media query.
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Change in tax rates from correction of inversion will result in some revenue change but it would notbe significant, Revenue Secretary Tarun Bajaj said.
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GST Council considered suggestions of fitment committee, and most of them have been accepted, Finance Minister Nirmala Sitharaman said. She further added that theGST revenue neutral rate requires a correction.
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Finance Minister Sitharaman said 16 states spoke on the issue of GST compensation during the Council's meeting, adding thatthree to fourof those said states must garner own resources.
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GST Council decisions on exemptions, correction of inversion will come into effect from July 18, Revenue Secretary Tarun Bajaj said. Before Bajaj's statement, Finance Minister Sitharaman told reporters that the GoM's recommendation on exemptions and correction of inversion has been accepted by the Council.
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The Group of Ministers (GoM), which is tasked to submit the report on rate rationalisation, has been given three more months, said Tarun Bajaj, the Revenue Secretary, during the Finance Ministry's press briefing.
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Few states have said they would like compensation to continue for some time, Finance Minister Sitharaman said. Her remarks came shortly after Tamil Nadu Finance Minister told reporters that all states, including those ruled by theBJP, have sought an extension in the compensation.
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GST Council will meet on limited agenda on August 1 or in first week of August, Finance Minister Nirmala Sitharaman said, during the press briefing.
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TheGoM, headed by Meghalaya CM Conrad Sangma,will submit its report on tax on casinos andonline gaming on July 15, the finance minister said, adding thatthe report will be discussed by the GST Council at its next meeting.
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GST Council has accepted the report submitted by the Group of Minister (GoM), headed by Karnataka CM Basavaraj Bommai,on tax exemptions and correction of inversion.
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Finance Minister Nirmala Sitharaman said that the GST Council took up GoM recommendations on tax exemptions andcorrection of inversion. The GoM's final reporton casinos, online gaming, horse racing was discussed during the meeting, she added.
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GST Council has not yet taken up rate rationalidation, Sitharaman said, adding that the GoM has been given more time for it.
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GST Council decided on four GoM reports, which were part of the core agenda of this meeting, Sitharaman told reporters.
GST Council Meet LIVE Updates | FM Nirmala Sitharaman begins briefing the press
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The discussion on cryptocurrencywas not part of GST Council's agenda for this meeting, sources said.
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Finance Minister Nirmala Sitharaman will brief the press shortly, at 4 pm, on the decisions taken by the GST Council at the meeting held in Chandigarh over the past two days. Stay tuned here for the latest updates.
GST Council Meet LIVE Updates | 'GST Council to meet next in August'
The next meeting of the GST Council will be held in August, said Puducherry minister K Lakshminarayan. The council is currently meeting for the second consecutive day in Chandigarh.
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"Every state has asked for 5-year extension to compensation after it ends on June 30. The Centre has passionately heard the states, but we haven't received a response on compensation,"Puducherryminister KLakshminarayanansaid.
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"Every state has asked for an extension to GST compensation, including BJP-ruled states,"TamilNaduFinance MinisterPalanivelThiagaRajan said.
GST Council Meet Live Updates | 47th Council Meeting ends on its second day
GST Council Meet Live Updates | State Asked for 5-year Extension for GST Compensation, No Response From Centre: Shanti Dhariwal
- Rajasthan Minister Shanti Dhariwal says state asked for 5-year extension for GST compensation. Adds, Centre did not say anything in response.
- Rajasthan Minister Dhariwal said thatstate against GST rate hike proposed on various consumer items as it is likely to have an inflationary impact.
- Rajasthan Minister Dhariwal also added,revised GST rates likely to come into effect from July 18.
GST Council Meet Live Updates | GST Council Deferred Proposal to Levy 28% GST on Casinos, Online Gaming, Casinos & Lottery: CM of Karnataka
GST council deferred proposal to levy 28% GST on casinos, online gaming, casinos & lottery, said Karnataka CM, Basavaraj Somappa Bommai
GoM given 15 more days to iron out the issue of the valuation mechanism and submit the report, he added. (CNBC-TV18)
GST Council Meet Live Updates | Online Gaming Should be Taxed at Full Value of the Consideration: Meghalaya CM Conrad Sangma
While suggesting a uniform tax rate and valuation method for these activists, the Group of Ministers, headed by Meghalaya Chief Minister Conrad Sangma, said for the purpose of levy of GST, no distinction should be made in these activities merely on the ground that an activity is a game of skill or of chance or both.
The GoM has recommended that online gaming should be taxed at full value of the consideration, including contest entry fee paid by the player on participating in the game. (PTI)
GST Council Meet Live Updates | Council provides relief to Transportation Industry
The Goods and Services Tax (GST) council gave some relief to the transportation industry on June 29, cutting GST on ropeways, renting goods carriages that include fuel cost, and exempting foreign components of tour packages from GST, the ET reported.
In addition, the council waived the registration requirement for small businesses with an annual turnover of up to Rs 40 lakh and Rs 20 lakh for goods and services respectively, using e-commerce platforms to sell products and allowing them to opt for composite scheme, benefitting about 1.2 lakhs small taxpayers, as per the report.
GST Council Meet Live Updates | Central Government has Delivered on Promise to give GST Compensation: Madhya Pradesh FM
Madhya Pradesh Finance Minister Jagdish Devda says central government has delivered on promise to give GST compensation for 5 years. Adds, MP is taking steps to augment revenues as compensation ends.
GST Council Meet Live Updates | Uttrakhand FM Prem Chand Aggarwal to Demand Centre Help in Fighting Current Revenue Loss
Uttrakhand Finance Minister Prem Chand Aggarwal says will demand Centre help us fight current revenue loss. Demand to either extend compensation or help with funds in any other way.
GST Council Meet Live Updates | Have asked for extension of GST compensation in the past: Tamil Nadu FM Palanivel Thiaga Rajan
- Tamil Nadu Finance Minister Palanivel Thiaga Rajan says have asked for extension of GST compensation in the past, will ask for it today as well.
- Tamil Nadu Finance Minister Palanivel Thiaga Rajan saidthey can’t come up with alternative mechanism two days before expiry of compensation scheme.
- GST compensation to states ends on June 30 as five years of GST implementation end.
GST Council Meet Live Updates | Day 2 of the GST Council Meeting Commences
Day 2 of the GST Council Meeting is now underway and the Hon'ble Union Minister of Finance Nirmala Sitharaman shall speak to the media at the end of the meeting today (around 4pm tentatively) about the decisions taken.
GST Council Meet Live Updates | States that go against GST Council will be isolated: Sushil Kumar Modi
States that seek to deviate from resolutions of the GST Council, India’s apex decision-making body under the Goods and Services Tax (GST) regime, will be isolated as other provinces will find it tough to do business with them, Sushil Kumar Modi, senior leader of the ruling Bharatiya Janata Party (BJP) and member of Parliament’s Upper House, said. Read More
GST Council Meet Live Updates | Can states deviate from GST Council recommendations?
To endorse the principle of cooperative federalism as mandated by the Constitution of India, states must deviate in rarest of rare circumstances and any aberration must be backed by dialectical thought and pragmatism. Read More
GST Council Meet Live Updates | GST Transformed Value Taxation System
- Goods and services produced are finally consumed or get embedded in assets.
- Realising that taxation of value-added at different stages of final products and services is a more equitable, efficient, and fairer method, India embarked on a long journey which finally culminated in the GST on July 1, 2017.
- The introduction of modified value-added (MODVAT) in the 1980s in excise duties and the transformation of states’ sales taxes into value-added taxes (VAT) in 2005-06 marked the two most important stops in this journey. Read More
GST Council Meet Live Updates | Why states need the funds and the Centre cannot pay
Several states are likely to find their finances in dire straits as the GST compensation ends. It stands to reason they would want the compensation to continue. After all, it was the promise of the compensation — 14 per cent year-on-year (YoY) growth — that had brought them on board with the GST regime in the first place.
The stressed balance sheets of several states have worsened since the pandemic hit, leaving them reliant on the GST compensation funds.
At an aggregate level, states stand to face a shortfall of over Rs 1 lakh crore in revenue per year after the compensation ends. Read More
GST Council Meet Live Updates | GST Council to Discuss Compensation to States, Tax on Online Gaming Today
- The GST Council is all set to discuss today on the subject of compensation to states and what Goods and Services Tax (GST) to levy on online gaming and casinos.
- According to sources aware of the council's discussions on June 28 in Chandigarh, the Group of Ministers' interim report on rate rationalisation was accepted in full on the first day of the meeting. Read More
GST Council Meet Live Updates | Compensation to states a bone of contention on day one of 47th GST Council meeting
On the first day of the 47th GST Council meeting, one of the key issues was the compensation to states for revenue shortfall which will stop in two days. Opposition- ruled states like Chhattisgarh want the GST compensation period to be extended for another five years. For the details of the meeting in a nutshell, watch the video.
Good Morning and welcome to Moneycontrol's LIVE coverage of the 2nd day of theGST Council Meet chaired by FM Nirmala Sitharaman today, June 29, 2022. Stay tuned for the latest news, analysis and developments!
