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The GST Council has approved changes in the tax rate on certain goods and services. Apart from this, states have also been allowed to issue e-way bills for inter-state movement of gold and precious stones.

Many important decisions were taken on Tuesday, the first day of the GST Council meeting that lasted for two days. The GST Council has approved changes in the tax rate on certain goods and services. Apart from this, states have also been allowed to issue e-way bills for inter-state movement of gold and precious stones.

At the same time, on the first day of the meeting of the GST Council, the report of the Group of Ministers (GoM) on prevention of tax evasion was also approved. In the meeting, the council accepted the interim report submitted by the group of finance ministers of the states.

What is in the report of the GoM: The report of the GoM, headed by Karnataka Chief Minister Basavaraj S Bommai, has made recommendations related to rationalization of slabs, including the abolition of tax exemption on certain items.

What suggestions were given: The GoM has suggested the abolition of GST exemption on many services. This includes a suggestion to levy tax at the rate of 12 per cent on hotel rooms renting less than Rs 1,000 per day. There is currently no tax on it. Along with this, 5 percent GST has also been recommended for hospitalized patients on rooms rented above Rs 5,000 (excluding ICU).

The GoM has suggested levying tax on postal services other than postcards and inland letters, ‘book posts’ and envelopes weighing less than 10 grams.

Many decisions will be taken on the second day: At the same time, during the meeting on the second day of the meeting i.e. on Wednesday, important issues of extension of GST compensation compensation to the states and levying 28 percent GST on online gaming, horse racing, besides casinos, will be discussed on Wednesday.

States made this demand: Meanwhile, many opposition-ruled states, troubled by the possibility of reduction in revenue, have demanded that the revenue sharing formula under the GST system should be changed or the compensation system should be extended for the next five years.After the implementation of GST, the compensation system to compensate the states for revenue loss from the Center was implemented for five years. This deadline expires on June 30. In such a situation, the states are apprehensive that they may lose revenue


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By udaen

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