The 54th GST Council will be meeting on 9th September at New Delhi, official social media handle of the tax body confirmed on August 13.
The upcoming meeting of the Council may take up issued relating to rate rationalisation, and also cases where Indian offices have services from foreign branch office, CNBC-TV18 has reported cited sources.
The recent tax demand notice by the Directorate General of GST Intelligence (DGGI) to Infosys for alleged evasion worth Rs 32,000 crore had created a furore within the IT industry, with Nasscom too issuing a statement on the tax demand. This notice follows the widely debated GST demand in recent months from foreign airlines and shipping lines over past dues. Industry participants, taxation firms are expected to closely track the September meeting to seek clarity around the application of GST laws on these issues.
Infosys has clarified that it has paid all dues and GST is not applicable on expenses claimed by DGGI. "Infosys has paid all its GST dues and is fully in compliance with the central and state regulations on this matter," the company said in a statement.
Tax experts have expressed fear that more notices may be in the offing for alleged GST evasion on services by the overseas offices of other major IT companies.
"Issuing such a substantial show-cause notice is likely to set a precedent, leading to similar notices being issued to other multinational companies, particularly in the IT sector," Rajat Mohan, director at accounting firm MOORE Singhi had told Reuters.
Former Infosys board member and Chief Financial Officer Mohandas Pai had slammed the Rs 32,000 crore Goods and Services Act (GST) demand to Infosys, calling it 'tax terrorism' at its worst.
It is likely that the Group of Ministers on Rate Rationalisation may present a status update on the discussions so far, added the CNBC-TV18 report.
Earlier in August, CNBC-Awaaz had reported, citing sources, that the GST rate on the premium paid on health and life insurance may also be reduced, with a proposal in this regard already before the GST rate rationalisation committee.
Finance Minister Sitharaman had said on the floor of the House that the issue of GST on health and life insurance premiums will be decided by the GST Council alone, and the matter should be left to the Council, now that all stakeholders have been heard of this.
This year’s Economic Survey and Union Budget have underscored the need for easier compliance for businesses.
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