Details of the agenda for the GST Council Meeting in Chandigarh today
The two-day 47th GST (Goods and Services Tax) Council meeting, chaired by Finance Minister Nirmala Sitaraman, which started in Chandigarh today, is underway.
“GST Compensation issue is very important for us. The 14 per cent Protected Revenue Increment Protocol, which terminates on 30th June, should be extended by at least five years,” Chattisgarh Minister TS Singh Deo told NDTV on the phone.
“We are not in favour of any increase in GST rates. We are in favour of the rationalisation of GST rate slabs…Tax collection at lower GST rates will enable higher tax collection,” he added.
Important Issues likely to be discussed in the GST Council Meeting include:
a) GST Compensation Payout to States: Some opposition-ruled states want the 14 per cent Protected Revenue Increment Protocol, which terminates on 30th June, to be extended by at least five years.
The GST Compensation issue is expected to be raised by Finance Ministers of opposition-ruled states like West Bengal, Chattisgarh etc.
Last week, the centre had extended the time for levy of GST compensation cess by nearly four years until 31st March 2026 to enable states to repay the loans taken in the last two fiscal years to make up for the shortfall in their revenue collection.
b) GST Council is likely to discuss a proposal by a panel of State Finance Ministers to impose a uniform rate of 28% on all activities related to Online Games, Casinos and Horse Racing, including contest entry fee paid by the player.
c) The GoM (Group of Ministers) set up on Tax Rationalisation, headed by the Karnataka Chief Minister, will submit its interim report to the GST Council.
d) States like Chattisgarh do not favour any increase in GST rates. They are in favour of better rationalisation of tax rates.
Currently, there are 8 rates in per cent: 0, 1, 2, 5, 12, 18, 28 and 28 + cess. Some states want that the rates should be limited to just 2 to 3 tax slabs.
e) Some state Finance Ministers are likely to raise the issue of better rationalisation of Input Credit.
f) A proposal to improve tax collection by plugging the leakages is also likely to figure in the deliberations.
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