The verdict upholds cooperative federalism and is welcome.
Due to improper planning and inaccurate policies, the GST has not yielded expected results over the years.
SC ruling unlikely to alter GST regime; power to reject Council's recos never used: Revenue Secretary
The recommendations of the GST Council, as per the Constitutional amendment, were always a guidance and never a mandatory compliance, Revenue Secretary Tarun Bajaj said.
The bench made the observation while upholding a Gujarat High Court order to revoke Integrated GST (IGST) on ocean freight from Indian importers.
The GoM’s recommendations are generally accepted by the GST Council, which is likely to hold its meeting later this May or in June first week.
The Group of Ministers (GoM) constituted by the Centre to study the proposed GST slabs on online gaming is set to hold its second meeting of May 18.
According to various reports, the GST Council is mulling a 28% tax on cryptos, and the industry says it is open to dialogue with the council on this issue.
The chamber noted that following the third wave of Covid-19, the trade and industrial sector, especially the micro, small, and medium enterprises, is now on a gradual recovery path.
Stating that views have not been sought from states on hiking rates on 143 items, sources said, there is also no proposal to shift more than half of items to the highest tax GST slab of 28 per cent.
The Group of Ministers will deliberate and finalise recommendations which will be sent to the GST Council, headed by Finance Minister Nirmala Sitharaman and comprising state finance ministers.
Sources said in order to augment revenue the Council may decide to prune the list of exempt items by moving some of the non-food items to 3 per cent slab.
Earlier, the meeting was scheduled for this month but due to FM’s other commitments, the meeting had to be postponed to next month.
In an ideal GST, all goods and services would be part of it, in addition to a single rate. This will reduce compliance costs and curbs classification disputes and litigation.
Sitharaman said the Council is a body which decides on how this works out and disbursements happen.
The minister while replying to a question in Rajya Sabha said the states, which earn high revenue from sale of petroleum products are reluctant to do so.