GST Council meeting today: Discussion on taxing non-essential items, revenue, compensation mechanism for states likely

The 40th GST council meeting is being held on Friday under the chairmanship of Finance Minister Nirmala Sitharaman. Others attending the meeting were MoS Finance Anurag Thakur, Finance Ministers of States and Union Territories and Senior officers from Union Government and States.

As per reports, the government may discuss on issues relating to increasing goods and services tax rates on non-essential items in the next month's meeting of the GST Council, despite depressed revenue collections due to the nationwide lockdown to contain the spread of COVID-19.

An ANI report had said that the Council may also discuss on downward revision of late fee for not filed old returns would be considered in the meeting. GST Council is expected to consider revising late filing fee for returns from July 2017 to January 2020. GST council may discuss ways to garner funds for compensation to states. said that rate tweaks are unlikely to be discussed in this meeting.

As the GST Council meeting is still underway and the virtual media commence after the GST Council meeting gets over, a finance ministry statement said.

The 39th meeting of GST Council was held in March, which proposed rationalisation of taxes on many items. The nationwide lockdown was announced by Prime Minister Narendra Modi on March 24 for 21 days in the first leg in a bid to contain the spread of novel coronavirus. It was then extended till May 3 and then again till May 17. The fourth phase of lockdown is in place till May 31.

With Agency Inputs