New Delhi: The Reserve Bank of India (RBI) has decided to end GST collection for 2014-15. anti profiteering clausewhich allows sellers to pass on the profits Tax cuts, GST Council on Saturday signalled his intention to move to the next stage. RationalizationVarious issues, including a possible reduction in slabs, as well as a roadmap for compensation on products such as cars, coal, cola and tobacco, will be discussed at its next meeting scheduled to be held in August-end.
The panel of finance ministers headed by Union Finance Minister Nirmala Sitharaman has decided to do away with the anti-profiteering provision from April, which means that from the next fiscal year, sellers or service providers will not be penalised for not passing on the benefit of tax cuts to consumers. The existing cases will be settled by the principal bench of the GST Appellate Tribunal, an official statement said.
Sitharaman also said that some of the group of ministers has been reconstituted as 11 new finance ministers have joined the council, including one headed by Bihar Deputy Chief Minister Samrat Choudhary, who has been asked to make a presentation at the next meeting of the all-powerful body, which is likely after a few months. “When the GST Council meets next, the GoM will make a presentation and discussions on rationalisation will begin,” the finance minister said, adding that a decision may not be taken during the meeting itself. It is unlikely that ministers will rush to take a decision given the crucial assembly elections later this year.
Karnataka demanded discussion on the issue in Saturday's meeting. compensation cess It is levied on a number of products to cover the “revenue deficit” of the states. Though the cess was for five years, it had to be extended till March 2026 after the Covid-19 outbreak as the state had to borrow from the market to meet the shortfall in collections. With the borrowing likely to be repaid only in 2025-26, the GST Council will deliberate on the future of the levy and the sharing formula in case some amount remains in the kitty after repaying the loan.
When asked about including petrol and diesel under the ambit of GST, the Finance Minister said that there is a provision in the law to include them, but first the states have to decide on it and then decide the tax rate. Responding to another question, Revenue Secretary Sanjay Malhotra said that the issue of GST exemption for fertilizer has also been referred to the Group of Ministers.
The panel of finance ministers headed by Union Finance Minister Nirmala Sitharaman has decided to do away with the anti-profiteering provision from April, which means that from the next fiscal year, sellers or service providers will not be penalised for not passing on the benefit of tax cuts to consumers. The existing cases will be settled by the principal bench of the GST Appellate Tribunal, an official statement said.
Sitharaman also said that some of the group of ministers has been reconstituted as 11 new finance ministers have joined the council, including one headed by Bihar Deputy Chief Minister Samrat Choudhary, who has been asked to make a presentation at the next meeting of the all-powerful body, which is likely after a few months. “When the GST Council meets next, the GoM will make a presentation and discussions on rationalisation will begin,” the finance minister said, adding that a decision may not be taken during the meeting itself. It is unlikely that ministers will rush to take a decision given the crucial assembly elections later this year.
Karnataka demanded discussion on the issue in Saturday's meeting. compensation cess It is levied on a number of products to cover the “revenue deficit” of the states. Though the cess was for five years, it had to be extended till March 2026 after the Covid-19 outbreak as the state had to borrow from the market to meet the shortfall in collections. With the borrowing likely to be repaid only in 2025-26, the GST Council will deliberate on the future of the levy and the sharing formula in case some amount remains in the kitty after repaying the loan.
When asked about including petrol and diesel under the ambit of GST, the Finance Minister said that there is a provision in the law to include them, but first the states have to decide on it and then decide the tax rate. Responding to another question, Revenue Secretary Sanjay Malhotra said that the issue of GST exemption for fertilizer has also been referred to the Group of Ministers.