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GST Council To Deliberate Tax Rate Cuts On Certain Items

The 47th meeting of the GST Council, chaired by Union Finance Minister Nirmala Sitharaman and comprising representatives of all states and union territories, will continue till June 29

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The tax rates of some items can be changed in the meeting of the GST Council which started in Chandigarh on Tuesday. Apart from this, issues like compensation to the states and relief in the registration rules of small e-commerce suppliers will also be discussed during the meeting.

The 47th meeting of the GST Council, chaired by Union Finance Minister Nirmala Sitharaman and comprising representatives of all states and union territories, will continue till June 29. The council meeting is being held after six months.

PIB Chandigarh tweeted, "The meeting was chaired by Finance Minister Nirmala Sitharaman and many important decisions are expected to be taken in the meeting." Along with Pankaj Choudhary, finance ministers and senior officials of states and union territories attended."

Apart from rationalising the rates, the opposition-ruled states can discuss the payment of compensation in the meeting. The rates proposed by the Committee of Officers or the Fitment Committee will be considered on the tax rates. The committee has recommended a uniform 5 per cent GST rate on artificial limbs and orthopedic implants.

The committee has also recommended reduction of the GST rate on ropeway travel to five percent from the present 18 per cent. Two reports of the Group of Finance Ministers of the states will also be presented in the GST Council. In the meeting of the GST Council, the opposition ruled states will strongly advocate for continuation of compensation of revenue deficit. On the other hand, the Center would like to stop any such move citing tight fiscal conditions.

To meet the shortfall in the GST compensation fund, the Center took a loan of Rs 1.1 lakh crore in 2020-21 and Rs 1.59 lakh crore in 2021-22 and released it to the states. This was done because of shortfall in cess collection.

After the 45th meeting of the GST Council in Lucknow, Union Finance Minister Nirmala Sitharaman had said that the system of paying compensation to states for revenue shortfall will end in June next year. The GST was implemented in the country with effect from July 1, 2017 and states were assured compensation for a period of five years against any loss of revenue due to the implementation of GST.

The report submitted by the Group of Ministers (GoM) headed by Meghalaya Chief Minister Conrad Sangma may be considered in the meeting of the GST Council. The council will also consider making e-way bill and e-challan mandatory for inter-state movement of gold/precious stones valued at Rs 2 lakh and above.

This arrangement will be for companies with an annual turnover of more than Rs 20 crore. Along with this, the GST Council may exempt small businesses from the mandatory registration norms for using the e-commerce platform. Additionally, e-commerce suppliers with a turnover of up to Rs 1.5 crore will be allowed to opt for the composition scheme, which offers lower tax rates and simpler compliance.


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GST Council Meet nirmala sitharaman finance ministry