GST COUNCIL MEETING TODAY: RELIEF ON COVID DRUGS MAY BE EXTENDED
Some states may oppose any move to bring petrol, diesel under GST regime
LUCKNOW : The GST Council, chaired by Union finance minister Nirmala Sitharaman, will hold its 45th meeting in Lucknow on Friday with some states, including Kerala, likely to oppose any move to bring petrol and diesel under the Goods and Services Tax (GST) regime.
The Council, among other things, may review the tax rate of over four-dozen items and extend till December 31 the tax concessions on 11 Covid drugs.
The Council may also take up for discussion the issue of compensation to states for making up the Goods and Services Tax shortfall and GST relaxation or zero tax on certain items, besides bringing petrol and diesel under the GST regime.
“Yes, the Kerala government will oppose the move to bring petrol and diesel under GST regime. We will also ask to extend the GST compensation for another five years,” Kerala finance minister KN Balagopal said on the eve of the meeting.
LUCKNOW: The GST Council, chaired by Union finance minister Nirmala Sitharaman, will hold its 45th meeting in Lucknow on Friday with some states, including Kerala, likely to oppose any move to bring petrol and diesel under the Goods and Services Tax (GST) regime.
The Council, among other things, may review the tax rate of over four-dozen items and extend till December 31 the tax concessions on 11 Covid drugs.
The Council may also take up for discussion the issue of compensation to states for making up the Goods and Services Tax shortfall and GST relaxation or zero tax on certain items, besides bringing petrol and diesel under the GST regime.
“Yes, the Kerala government will oppose the move to bring petrol and diesel under GST regime. We will also ask to extend the GST compensation for another five years,” Kerala finance minister KN Balagopal said on the eve of the meeting.
A preparatory meeting of senior officers of the Central government and different states was held here on Thursday to hold preliminary discussions to assist the GST Council on key issues. A person aware of the developments about the GST Council meeting said, “We understand the GST Council is going to discuss the issue of bringing petrol and diesel under the GST regime in view of Kerala high court’s directives to it in this regard. Some states want discussion on compensation for making up for GST shortfall beyond June 2022. The GST relaxation on certain items, including health related items, may also come up for discussions at the meeting.”
Maharashtra deputy chief minister Ajit Pawar, who holds charge of his state’s finance department, on Thursday said the state government was against any move to encroach upon the state’s rights to levy taxes and would put forth its view in the GST Council meeting on Friday, according to a news agency report.
Replying to questions on the petrol-diesel issue, Pawar said to reporters the Centre was free to levy taxes, but “what is under the state’s jurisdiction should not be touched”. For its part, the Union finance ministry tweeted. “Finance Minister Smt @nsitharaman will chair the 45th GST Council meeting at 11 AM in Lucknow tomorrow. The meeting will be attended by MOS Shri @mppchaudhary besides Finance Ministers of States & UTs and Senior officers from Union Government & States.”
To curb tax evasion, the proposal to make the food delivery platforms liable to pay GST on restaurant services supplied through them may also be considered by the Council.
Once approved by the GST Council, food delivery apps will have to collect and deposit GST with the government, in place of restaurants, for deliveries made by them. There would be no extra tax burden on the end consumer.
Asked about the discussions at the GST Council meeting, two senior officers from different states said the issues on which a consensus had been evolved may be raised at the meeting.
Another person aware of the development said the issue of automatic GST refund facility and allowing PAN-based authentication may also come up for discussion.
Meanwhile, Samajwadi Party Vyapar Sabha vice president Pawan Manocha, in a press statement, said Goods and Services Tax that was introduced as one nation one tax should be strictly implemented and Mandi Tax being imposed by many states should be abolished while the petrol and diesel should be brought under the purview of GST regime.