The temptation to borrow beyond capacity would create an inter-generational burden and affect the fiscal soundness of the country, Nirmala Sitharaman said.
“Only after the submission of GoM reports on GSTAT and online gaming, casinos, the next GST Council meet will be organised,” said one of the sources privy to the matter.
The fact that Finance Minister Nirmala Sitharaman had to step in with a series of 14 tweets to clear the picture illustrates the state of drafting and explanatory communication.
The price of 200 ml cup of lassi, 85 gm cup of plain curd, 85 gm of Mishti doi remain unchanged. Other dairies are also expected to increase the prices of these items.
KPMG in India Partner Abhishek Jain said these procedural changes in GST rules will help the small players in undertaking compliances,
Lobby group NATHEALTH said the 5 per cent GST distorts the design of the GST and imposes an additional tax burden on the healthcare sector.
The clip was from Wednesday where at a press conference the finance minister said the GST council had deferred a decision on 28 per cent tax on casinos, online gaming, horse-racing and lottery.
The GoM, headed by Karnataka Chief Minister Basavaraj Bommai, has been given 3 months time to submit a final report on rate rationalisation and tax slab merger.
The government on Wednesday deregulated the sale of domestically-produced crude oil, giving companies autonomy to sell their produce to whomever they want.
As the GST loss due to this reason is quite huge, Harish raised the issue in the 47th GST Council meeting held in Chandigarh.
With two years being lost in the pandemic, states have sought an extension of this compensation mechanism.
The decision comes at a time when issues regarding revenue leakage due to the subjective nature of the term ‘branded’ were raised.
As the GST Council commenced here on Tuesday, the states have also cited a recent Supreme Court ruling that decisions made by the Council are not binding and states need not stick to them.
The Council also cleared a host of compliance procedures for GST-registered businesses along with a GoM report on high-risk tax payers.
Sources said the GoM has recommended that zero per cent tax rate on hotel accommodation of less than Rs 1,000 per unit per day be replaced by a 12 per cent rate as this exemption was prone to misuse.
Compensation scheme for states had ended on June 30; states have been asking to extend it
The Council in its meeting starting Tuesday is slated to discuss an array of issues, including a mechanism for compensating states for revenue loss and tax rate tweaks on some items.
The Council may see a stormy discussion around compensation payout to states with opposition-ruled states aggressively pushing for its continuation beyond the five-year period which ends in June.
In case of race courses, the GoM has suggested that GST be levied on the full value of bets pooled in the totalisators and placed with the bookmakers.
The move would help curb the menace of fake billing, whereby sellers would show higher sales in GSTR-1 to enable purchasers to claim input tax credit, but report suppressed sales in GSTR-3B.