GST Council meeting: main proposals to be discussed today
The GST Council, chaired by Union Finance Minister Nirmala Sitharaman, is expected to discuss several key proposals, including the extension until December 31 of tax breaks on 11 Covid drugs and compensation to states to address the deficit in the goods and services tax, at its 45th meeting. at Lucknow on Friday.
He could also consider a proposal to subject gasoline and diesel to the GST regime, but some states, including Kerala, are likely to oppose such a move.
One of the proposals that the Council could also consider for discussion is the relaxation of the GST or zero tax on certain items.
“Yes, the government of Kerala will oppose the decision to bring gasoline and diesel under the GST regime. We will also ask to extend the GST compensation for another five years,” the minister said. Kerala Finance, KN Balagopal, on the eve of the meeting.
A preparatory meeting of senior officials from central government and different states was held here on Thursday to hold preliminary discussions to assist the GST Council on key issues.
A person familiar with the developments regarding the GST Council meeting said: “We understand that the GST Council will discuss the issue of introducing gasoline and diesel under the GST regime in view of directives from the high court of Kerala in this regard. Some states want a discussion on compensation to close the GST deficit beyond June 2022. GST relaxation on certain items, including health-related items, could also be discussed. during a meeting.
Maharashtra’s Deputy Chief Minister Ajit Pawar, who heads his state’s finance department, said on Thursday the state government was against any attempt to infringe on the state’s rights to collect taxes and that he would present his point of view at the GST Council meeting on Friday, according to a news agency report.
Responding to questions about the gasoline and diesel issue, Pawar told reporters that the Center was free to levy taxes, but that “what is under state jurisdiction should not be touched.”
For its part, the Union’s finance ministry tweeted. “Finance Minister Smt @nsitharaman will chair the 45th GST Council meeting at 11 am in Lucknow tomorrow. The meeting will be assisted by MOS Shri @mppchaudhary in addition to state and UT finance ministers and senior officials from the Union and state government.
In order to combat tax evasion, the proposal to make food delivery platforms subject to the payment of GST on catering services provided through them could also be considered by the Council.
Once approved by the GST Council, food delivery applications will be required to collect and file GST with the government, in place of restaurants, for deliveries made by them. There would be no additional tax burden for the end consumer.
Asked about the discussions at the GST Council meeting, two senior officials from different states said issues on which consensus had been reached could be raised at the meeting.
Another person familiar with the development said the issue of how easy it is to automatically refund GST and allow PAN-based authentication could also be discussed. There are indications that the issue of GST on brick kilns and “paan gutkha” could also be raised at the meeting.
The Union Minister of State for Finance, Pankaj Chaudhary, and the chief deputy ministers and ministers appointed by different states as members of the GST Council by different states will participate in the meeting.
At the same time, Samajwadi Party Vice Chairman Vyapar Sabha Pawan Manocha said in a press release that the GST which was introduced as a one-nation tax should be strictly enforced and the Mandi tax. imposed by many states should be abolished while gasoline and diesel should be subject to the scope of the GST regime.