GST council meeting News
Many important decisions were taken in the meeting of the GST Council held in Delhi on Friday. After the meeting, the government announced to make many costly life-saving medicines GST free. At the same time, there was no consensus in the meeting on the issue of making petrol and diesel GST-free. Union Finance Minister Nirmala Sitharaman held a press conference after the GST Council meeting.
The council could also discuss bringing fuel prices under the ambit of GST taxation. There’s also a proposal to put additional taxes on online food delivery services offered by companies such as Zomato and Swiggy. The council is also going to review and also clarify regarding GST rates 32 goods and 29 services.
Diesel could be priced as low as Rs 68 per litre if GST becomes applicable on the fuel. The total loss of bringing petrol and diesel prices under GST will stand at about Rs 1 lakh crore or 0.4 % of GDP. In Delhi, petrol and diesel are currently retailing at Rs 101.19 and Rs 88.62 per litre, respectively.
At the upcoming GST Council meeting, the Centre will address several compliance issues. The GST portal will then be utilised for registration, tax payment, IT returns, and computation and settlement of IGST. GST council meeting will help in facilitating the procedure for the Aadhaar authentication of existing GST users.
The Council was divided on political lines, with 10 states ruled by non-BJP and its supporting parties, opposing the Centre's proposal of states borrowing to meet the shortfall in receipts The state compensation issue appears headed for voting in the Council, with the option chosen by majority states being implemented When the GST was introduced in July 2017, states were promised a 14% incremental revenue over their last tax receipts in the first five years of GST rollout
Ajay Pandey said, "Option 1 presented to GST Council was to provide a special window to states, in consultation with RBI to provide Rs 97000 crores at a reasonable interest rate" "Option 2 presented to GST Council was that the entire GST compensation gap of Rs 2,35,000 crore of this year can be met by states, in consultation with RBI" "These options will be sent to states for a view within 7 days and will apply for this fiscal year only," the Finance Secretary added