GST Council News
Responding to the representations of the industry, revenue secretary Tarun Bajaj also rejected the demand for zero-rating for healthcare industry saying such "carve-outs" may generate similar demands from other sectors, like education, and put upward pressure on taxation of other items in the GST net.
Centre has front loaded the release of assistance under the back-to-back loan facility with more than 72 per cent of the total estimated shortfall for the entire year of Rs 1.59 lakh crore being released so far The 43rd GST Council meeting on May 28, 2021 had decided that the central government would borrow Rs 1.59 lakh crore in 2021-22 and release it to states and UTs All eligible states and UTs (with legislature) have agreed to the arrangements of funding of the compensation shortfall under the back-to-back loan facility.
These moves would help prevent revenue leakage due to evasion of Goods and Services Tax (GST), which was launched on July 1, 2017. The Council decided to amend Rule 59(6) of the Central GST Rules with effect from January 1, 2022, to provide that a registered person shall not be allowed to furnish Form GSTR-1. The Central Board of Indirect Taxes and Customs (CBIC) had notified Aadhaar authentication for GST registration with effect from August 21, 2020.
Many important decisions were taken in the meeting of the GST Council held in Delhi on Friday. After the meeting, the government announced to make many costly life-saving medicines GST free. At the same time, there was no consensus in the meeting on the issue of making petrol and diesel GST-free. Union Finance Minister Nirmala Sitharaman held a press conference after the GST Council meeting.
The council could also discuss bringing fuel prices under the ambit of GST taxation. There’s also a proposal to put additional taxes on online food delivery services offered by companies such as Zomato and Swiggy. The council is also going to review and also clarify regarding GST rates 32 goods and 29 services.
Diesel could be priced as low as Rs 68 per litre if GST becomes applicable on the fuel. The total loss of bringing petrol and diesel prices under GST will stand at about Rs 1 lakh crore or 0.4 % of GDP. In Delhi, petrol and diesel are currently retailing at Rs 101.19 and Rs 88.62 per litre, respectively.
A nationwide GST, which subsumed 17 local levies like excise duty, service tax and VAT and 13 cesses, was rolled out on July 1, 2017. Under GST, businesses with an annual turnover of up to Rs 40 lakh are exempt from the tax. Those with a turnover up to Rs 1.5 crore can opt for the Composition Scheme and pay only 1 per cent tax.