GST Council 45th Meeting – Key matters may be discussed on 17.09.2021
The 45th GST Council meeting is scheduled to be held on September 17, 2021 at Lucknow. This will be a significant meeting. This is the first physical meeting after a long time. The previous Council meeting was held via videoconferencing on 12.06.2021.
Key matters may be discussed in the upcoming GST Council Meeting:
- The Constitution (101st) Amendment Act 2016 provides for compensation to the States for loss of revenue arising on account of implementation of the goods and services tax for a period of five years. The deadline of June 2022 is fast approaching. The States will be anxious to get clarity if their demand for extending the compensation timeline is being considered. Rate at which compensation should be calculated. the gap and delay in giving the compensation.
- The issue of bringing in some petroleum products into the GST chain needs to be brought to the table. In light of the Kerala High Court order, the Council will also discuss taxing petrol and diesel under the GST, a move that may require huge compromises by both central and state governments on the revenues they collect from taxing these products.
- Proposal to treat food delivery apps such as Zomato and Swiggy as restaurants and levy a 5 percent GST tax on supplies made by them. To curb tax evasion, the proposal to make the food delivery platforms like Swiggy and Zomato liable to pay the Goods and Services Tax on restaurant services supplied through them would also be considered by the Council.
- A review of the reduction in rates given on various products in the light of COVID on the recommendations of the 43rd and 44th GST Council meetings needs to be taken.
- The Panel has recommended a Special Composition Scheme in the Brick Kiln sector with effect from April 1, 2022, prescribing a GST rate of 6 percent, without ITC, similar to the rate in the services sector.
- The Council needs to finalize when it would like the National Bench and the Regional Benches of the GST Tribunal to start functioning.
- The Council also needs to deliberate on the need to create an apex GST advance ruling authority.
- Several State Finance Ministers have raised the issue of a bureaucratic implementation committee working independent of the Council.
- The Council should also look closely at the GST revenue performance.
Source: Media News
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