All About GST Council Meeting
The 47th GST Council meeting chaired by Finance Minister Nirmala Sitharaman is going to be held from the 28th of June 2022, at Chandigarh. This GST Council meeting is crucial for the very future of GST as it comes against the backdrop of the much-debated recent Supreme Court decision on the Goods and Services Tax (GST). There is a possibility of revising the tax rates of certain goods and services and the tax slabs. Here we’ll talk about the expected decisions that are most likely to be taken at the council meet.
➤ Extension of the GST compensation cess will be in the limelight among the many items on the key agendas . In India, several opposition-rules states have urged the government to extend the five-year compensation period under the GST law before it ends in July 2022. The Central government has already promised such states facing a revenue shortfall by compensating them twice a month following the GST implementation.
➤ The Group of Ministers (GoM) are requested to review the GST levy on casinos, race courses and online gaming has finalized its report and has unanimously decided on hiking the tax rate on these services to 28 percent. At present, services of casinos, horse racing and online gaming attract 18 percent GST.
➤ The GoM is likely to discuss the proposal to shift rate slabs from the current 5% to 7 % or 8 % and the 18 % slab to 20%.”
➤ In the meeting, compensation issues will likely be taken up as many non-BJP ruling states are urging for the extension of the GST compensation mechanism for beyond five years ending in June 2022.
Stand of States
Many opposition ruled states are pressuring the government to extend a programme to continue compensation for losses from a GST or risk a deadlock in attempts to further simplify the structure. It gives rise to the biggest challenge yet to the country’s most significant tax reform in decades.
States are also now encouraged to take on the federal administration after the ruling of supreme court last month that the decisions of the GST Council are non-binding. If the Council, doesn’t agree, the states could unilaterally raise revenue with other taxes that goes against a push to standardize such duties across the countries.
Finance ministers from the opposition-led Kerala, West Bengaland Chhattisgarh have said they will raise the issue at a meeting of the GST Council this month. Whereas Tamil Nadu and Bihar, a state governed by PM Modi’s ally, will also support the push, as per the Bloomberg report.