GoM mandated to review items under inverted duty structure to help reduce refund payments and GST exemption list with an aim to widen the tax base and break the Input Tax Credit (ITC) chain has gone.
The meeting of the GST Council, chaired by Finance Minister Nirmala Sitharaman, will be held in Srinagar on June 28 and 29.
“The 47th meeting of the GST Council will be held on June 28-29, 2022 (Tuesday and Wednesday) in Srinagar,” the Finance Minister’s office tweeted.
This is the second time that the meeting of the GST Council is being held in Srinagar. The 14th meeting of the council was held in the city on May 18 and 19, before the launch of the Goods and Services Tax (GST) on July 1, 2017. The GST rates on 1,211 items were approved in the two-day meeting.
The 47th GST Council meeting is significant as it is expected to discuss the report of the Panel of State Ministers on rate rationalization and also the tax rate on casinos, race courses and online gaming.
The GST Council, chaired by the Union Finance Minister and chaired by state counterparts, is also expected to discuss some simplification in procedures.
Sources said that before the council meeting, a meeting of the panel of ministers of state on GST rate rationalization is to be held on June 17, in which a possible change in tax rates will be discussed.
The Group of Ministers (GoM) may discuss possible changes in tax slabs, sources said, adding that the final report of the panel will take some more time.
The council had last year constituted a seven-member panel of state ministers, headed by Karnataka Chief Minister Basavaraj Bommai, to suggest ways to increase revenue by rationalizing tax rates. The last meeting of the GoM was held in November 2021.
GoM mandated to review items under inverted duty structure to help reduce refund payments and GST exemption list with an aim to widen the tax base and break the Input Tax Credit (ITC) chain has gone.
Under GST, a four-tier structure exempts or levies a lower tax rate of 5 percent on essential goods and a top rate of 28 percent on cars and demerit items. The other slabs of tax are 12 and 18 per cent.
In addition, cess is levied on the highest slab of 28 per cent on luxury, demerit and sin items.
The Council will also consider a report of the Panel of Ministers on the applicability of GST on casinos, race courses and online gaming.
The State Group of Ministers unanimously decided to increase the tax rate on these services to 28 percent, besides working out a method of assessment of these services for the purpose of levying this tax. Currently, 18 per cent GST is levied on casino, horse racing and online gaming services.
The Council may also consider certain amendments in summary return and monthly tax payment Form GSTR-3B to check fake input tax credit claims and expedite settlement of genuine ones.
According to sources, the revised form will provide clarity with respect to the gross input tax credit payable to the taxpayer, the amount claimed in a particular month and the net balance in the taxpayer’s ledger.
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