GST Council Meet Likely To Discuss Rate Changes on 14 Items & Ease Compliance for Taxpayers

In order to make it easier for taxpayers to comply with the law, the GST Council, which will meet in Chandigarh next week, is expected to debate a number of modifications, including a change in the rate of the goods and services tax (GST) for a variety of items.

It was previously reported that the Council had asked states for their opinions before raising prices on 143 different products, including walnuts, chocolate, chewing gum, handbags, perfumes/deodorants, and clothing and clothing accessories made of leather.

The report stated that the Fitment Committee, which consists of revenue officials from the Centre and States, rejected rate changes for 113 commodities, deferred rate changes for two items, and recommended rate changes for 22 services.

Given the inconvenience brought on by the COVID-19 pandemic, the GST Council is likely to waive the obligation for submitting refund claims by tolerating the two-year period between March 1, 2020, and February 28, 2022. The two-year COVID period might not be taken into account, which might allow tax authorities to dispute incorrect returns, according to sources.

The Council is also likely to extend the deadline for composition dealers to file GSTR 4 for FY22 without incurring late fees from the scheduled deadline of June 30, 2022, to July 28. It may also extend the due date of filing of FORM GST CMP-08 for composition taxpayers for the first quarter of FY23 from July 18 to July 30, 2022.

At their upcoming meeting, the GST Group of Ministers are scheduled to submit an interim report on rate rationalisation.

According to anonymous sources, it might also clarify the matter of the repayment of accrued input tax credits to duty-free shops at international airports. The Kerala High Court permitted a return of the accrued input tax credit in 2020.

According to a report, the fitment panel, which comprises officers from the Centre and states, has proposed raising the GST rate on cut and polished diamonds from 0.25 percent to 1.5 percent because the lower rate was leading to duty inversion. The group of ministers (GoM) on the rate rationalisation was given ultimate authority to consider the choice.

Also as per report, the fitment panel also suggested lowering the GST rates on ostomy appliances from the existing 12 percent to 5 percent.

The 47th meeting of the GST Council will take place in Chandigarh on June 28 and 29. Basavaraj Bommai, the chief minister of Karnataka, chairs the Council-appointed group on ministers (GoM), which has already held its first meeting to address a variety of topics, including adjustments to tax slabs and rates. Before the GST Council meeting, the GoM will turn in its report.