GST council meets to discuss rate change, compensation scheme

Compensation scheme for states had ended on June 30; states have been asking to extend it

Published: 28th June 2022 07:50 AM  |   Last Updated: 28th June 2022 07:50 AM   |  A+A-

GST

Image used for representational purpose only. (File Photo)

Express News Service

NEW DELHI: The GST Council in its two-day meeting starting June 28 will discuss rate rationalisation of some items, extension of compensation scheme for states, and relaxation in online registration rules for business players, among others, according to sources. 

The compensation scheme for states had ended on June 30 but states have been asking to extend it.
Meanwhile, the Council under the chairmanship of Finance Minister Nirmala Sitharaman in its 47th meeting will also discuss the Group of Ministers (GoM) report on levying 28% tax on online games, casinos and horse racing in place of the current rate of 18%. The panel will also submit the interim report recommending abolition of GST exemption for religious institutions where the booking is more than Rs 5,000. It has also recommended removing the exemption of tax on railway equipment and discounts on items like curd, and paneer.

“ The GoM has made recommendations to exempt the Reserve Bank of India (RBI), and Securities and Exchange Board of India (SEBI) services, and airports in the NorthEast from GST.  Products related to petroleum/coalbed methane (CBM)can be excluded from the 5% slab,” the source said. He further added that option to pay 1% tax annually on turnover up to Rs 1.5 crore as recommended by fitment committee will also be assessed in the meeting.

“There are various proposals to reduce GST on sewage-treated water from 18% to zero categories, give input tax credits (ITC) benefit to Gencos on the export of additional power under the IGST Act,” the source stated while further adding that the Council may also decide to hike GST on Tetra Pack to 18% from 12%.

Further, the panel in the two-day-long meeting may also discuss taking a uniform 5% GST on all types of renewable energy equipment. Also, GST on artificial limbs and orthopaedic implants may be fixed at 5%, as per sources. In addition, on artificial limbs, and orthopaedic implants, GST may be fixed at 5%.

GST on donations to religious institutions
Panel will also submit the interim report recommending abolition of GST exemption for religious institutions where the booking is more than Rs 5,000



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