New Delhi: The all powerful Goods and Services Tax (GST) Council is all set to meet on Friday to take up issues by several sectors related to reduction in the taxation.
All eyes will be on the all powerful GST Council's decision on the automobile sector which has long been pressing for reducing GST on the sector. The industry has demanded that the GST should be brought down to 18 percent from 28 percent to reverse the consumption slowdown. Though sources told Zee Media that they are unlikely to get any respite this time as well.
The fitment committee is not in favour of reduction of GST on auto sector as it believes that this will lead to severe revenue loss for the government, sources said. Though it is possible that the committee may decide to change the compensation cess in certain segments.
Another sector which is awaiting the decision of GST Council on rate reduction is the hotel sector. The fitment panel has suggested the following GST rates for the hotel sector.
GST on Rs 7500 per night tariff be reduced from 28% to 18%
Levy 28% GST on Rs 10000 per night tariff
Reduce GST on outdoor catering to 5% from 18%
Currently there is no GST on Rs 1,000 per night tariff, 12 percent GST on Rs 1,000-Rs 2,499 per night tariff, 18% GST on Rs 2,500- Rs 7,499 per night tariff and 28% GST on Rs 7,500 per night tariff
Another sector which could get some respite is the diamond industry. The fitment committee has recommended for reduction of tax from 5 percent to 1.5 % on job work service. On semi precious stones the committee has recommended for reduction of GST from 3% to 0.25% . While the committee has suggested for doing away of GST on silver and platinum from 3% to 0%.
The fitment committee has also accepted the demand of Railways Rolling stock industry.
In the 36 GST Council Meeting held in August 2019 under the chairmanship of Finance Minister Nirmala Sitharaman, the Council recommended reduction of GST rate on all electric vehicles from 12 percent to 5 percent. It also said GST rate on charger or charging stations for Electric vehicles will be reduced from 18 percent to 5 percent and Hiring of electric buses (of carrying capacity of more than 12 passengers) by local authorities was being exempted from GST.
Meanwhile, GST revenue collected in the month of August stood at Rs Rs 98,202 crore. The total gross GST revenue collected in the month of August, 2019 is Rs 98,202 crore of which CGST is Rs 17,733 crore, SGST is Rs 24,239 crore, IGST is Rs 48,958 crore (including Rs 24,818 crore collected on imports) and Cess is Rs 7,273 crore (including Rs 841crore collected on imports).