CHENNAI: Tamil Nadu Finance Minister Thangam Thennarasu on Thursday welcomed the GST rate rationalisation reforms, including the exemption of individual life insurance and individual health insurance services. However, he expressed concerns for the protection of the State's revenue.
"The Minister suggested either to continue the present dispensation of Cess provision through Constitutional amendment or to increase the bound rate of tax only for sin and luxury goods through the GST Act amendment," an official release here said.
During the meeting, Thennarasu emphasised that the report of the Committee of Officers on Integrated Goods and Services Tax Settlement needs to be implemented in its entirety for streamlining the IGST settlement process, and the GST Council agreed to implement it by December.
The Minister welcomed the automated mechanism for sanctioning provisional refunds for exports and the inverted duty structure. The Minister supported the simplified registration mechanism for small and low-risk businesses to enable ease of doing business.
Since the Council has recommended extending the period of levy of compensation cess on sin goods for two to three months beginning October 31, Thennarasu expressed hope that the GST Council should examine the suggestions of the Tamil Nadu government in the near future.