From taxpayers to policy makers, all eyes are on the two-day meeting goods and services Tax (GST) council is starting from Tuesday. Many important issues are likely to be discussed in the GST Council meeting chaired by Finance Minister Nirmala Sitharaman. GST compensation to states, revision of GST rate of certain goods and services, and easier compliance norms for taxpayers are on the top of the 47th agenda. gst council meeting,
Extension of GST compensation to states
Introducing GST in 2017, the Center had assured states to compensate them for five years (base year 2015-16) for increasing revenue loss from the implementation of the new regime. Compensation to the states will end on June 30, 2022. However, the cess on many sins and luxury items will continue till March 2026. This move will help the central government to borrow to meet the revenue shortfall of the states. In the last two financial years, the Finance Ministry said in a notification last week.
Ahead of the GST Council meeting, Kerala Finance Minister KN Balagopal told CNBC TV-18, “We will request for extension of the compensation window by five years. Not just Kerala, even other states will demand an extension as revenue growth is not as promised.
According to reports, the Center is not in favor of extending the compensation cess for another five years.
GST Rate Revision
The fitment committee has recommended revision of GST rates on certain items. The committee proposed a uniform rate of 5 per cent GST on prostheses (prostheses) and orthopedic implants (trauma, spine and arthroplasty implants). It also recommended 5 per cent GST rate for various types of orthoses such as splints, braces, belts and calipers. GST rates on ostomy instruments (including pouches or flanges, stoma adhesive paste, barrier cream, irrigator kits, sleeves, belts, micro-pore tapes) to be reduced to 5 per cent from the present 12 per cent, advises Fitment Committee has been given. other measures.
The GST Council may also discuss suggestions to issue clarifications on changes in rates and classification of other items.
28% GST on Online Gaming, Casino, Race Course
As suggested by the Group of Ministers (GoM), a uniform rate of 28 per cent GST may be applied to popular online gaming, casinos and horse racing. In May 2021, the central government had set up a panel of state ministers to examine the valuation of several services related to casinos, online gaming portals and race courses for levying GST. GoM is in favor of imposing flat 28 per cent GST on various services of fantasy gaming, casino and horse racing. The GST Council can take a decision on this during its meeting on June 28-29.
Amendment in GSTR Return
Mahesh Jaisingh, Partner and Indirect Tax Leader, Deloitte India, said, “As always, compliance can be expected to further ease, including allowing amendments or corrections in GSTR returns.”
In view of the outbreak of COVID-19, the GST Council may reduce the requirement of filing refund claims between March 1, 2020 and February 28, 2022. The deadline for filing GSTR 4 for FY22 is likely to be extended without late fee. 28 July with the prior deadline of 30 June 2022.
Recovery of input tax credit
In the case of inverted duty structure, the most pressing issue has been the return of input services as well as differential treatment of inputs. “This accumulates credit and increases the cost to the customer. The industry expects the refund provisions in case of inverted duty structure to be extended to cover input services as well,” explained Jaisingh.
The GST Council is likely to discuss the issue during the two-day meeting. “There are further expectations that the restriction in various types of credit does not ensure smooth credit as envisaged under GST. The same needs to be revisited and rested. One Time Amnesty Scheme should be explored to enable the business to rectify the errors committed at the time of GST implementation,” said Parag Mehta, Partner, NA Shah Associates,
read all breaking news , today’s fresh news watch top videos And live TV Here.