In its upcoming meeting, GST Council is expected to take up issues related with simplification of returns, creation of appellate tribunal, revenue position of states and laws related to the indirect tax structure.
In its upcoming meeting, GST Council is expected to take up issues related with simplification of returns, creation of appellate tribunal, revenue position of states and laws related to the indirect tax structure. The 28th GST Council meet is scheduled on Saturday. Along with this, Council may also take up with rate cuts and clarification for 40 handicraft items, 32 services and 35 goods, The Indian Express reported citing an unidentified source.
For lithium batteries, a rate cut to 18 percent from 28 percent has been recommended. For water coolers, ice cream machinery along with reduction from 28 percent to 12 percent for fuel cell vehicles; for bamboo flooring from 18 percent to 12 percent and handloom dari from 12 per cent to 5 percent, The Indian Express reported citing same source.
“There are many listed items for the meeting, so only if time permits, natural gas/ATF could be discussed. The inclusion of natural gas is not contentious, but ATF may be a tricky item given that it contributes majorly to revenues of Delhi and Mumbai,” The Indian Express reported citing sources.
“Smaller states do not earn significantly from ATF, whereas for places like Delhi and Mumbai, it is a major contributor. Allowing credit would result in the revenue stream from ATF getting split among all states instead of the current concentration in these two places. Mumbai may even recover from alternate revenue sources but for Delhi, it could mean a significant loss of revenue,” The Indian Express reported citing source.
Since taking charge of the portfolio, Finance Minister Piyush Goyal will chair the GST Council meet for the first time.
Other than this, the council may also discuss reports of six committees and ministerial panels on creation of ecosystem for seamless road transport connectivity, digital payments, imposition of sugar cess and reverse charge mechanism, the report said.