The GST Council, headed by the finance minister Nirmala Sitharman, is discussing several key issues at its two-day meeting which began on Tuesday.
These include GST compensation to states, GST rate revisions of certain items and services, and easier compliance norms for taxpayers and others.
While introducing GST in 2017, the Centre had assured the states to compensate them for five years (base year 2015-16) for the revenue losses rising from the implementation of the new regime. The compensation to states will cease on June 30, 2022. However, the cess will continue on a host of sin and luxury items, till March 2026. This move will help the central government to repay for the borrowings to meet the states’ revenue shortfall over the last two financial years, the finance ministry said a in notification last week.
The Centre, however, is not in favour to extend the compensation cess for another five years, according to reports.
The Fitment Committee has recommended to revise the GST rates on a handful of items. The committee proposed a uniform rate of 5 per cent GST on prostheses (artificial limbs) and orthopaedic implants (trauma, spine, and arthoplasty implants). It also recommended 5 per cent GST rate for several kind of orthoses such splints, braces, belts and calipers. GST rates on ostomy appliances (including pouch or flange, stoma adhesive paste, barrier cream, irrigator kit, sleeves, belt, micro-pore tapes) should be reduced to 5 per cent, from 12 per cent at present, advised Fitment Committee, among other measures.
A flat rate of 28 per cent GST may be applied on popular online gaming, casinos and horse racing as suggested the group of ministers (GoM). In May 2021, the Union government had set up a panel of state ministers to examine the valuations of several services related to casinos, online gaming portal and race courses for levying GST. The GoM are in the favour of imposing flat 28 per cent GST on various services of the fantasy gaming, casinos and horse racing. The GST Council is likely to take a decision on this during June 28-29 meeting.
With inputs from News18