GST Council Meeting assumes significance ahead of Feb. 1 Budget, which would still be used to announce policy changes relating to the new indirect tax.
Procedural issues thrown up by the new GST regime has meant that they have been unable to exchange old drugs for new as they used to under the previous VAT regime.
In this meeting the GST Council is expected to revise rates of about 25 goods and another 45-55 services. Total 70-80 items' rates could be revised downward.
An IT company representative said its clients were questioning it for not passing on GST benefits. “The issue is, how to compute these benefits?” he asked.
Mess facility provided to students and staff will attract 5 per cent GST irrespective of whether it is provided by the educational institution or outside contractor.
The Goods and Services Tax (GST) has hit Kerala’s tourism industry with the growth rate of tourist arrivals going down last year.
According to officials, the January meeting will not discuss rate reduction and the focus will be on stabilising GST revenue collection.
This will heighten the Centre’s fiscal concerns ahead of the Union Budget, dashing hopes of any further reduction in GST rates in the near future.
Earlier this month, the GST Council, the federal indirect tax body, decided to bring forward the implementation of the e-way bill system.
Now it appears that the central government and the state governments have reason to believe that goods are being sold at one state and invoiced in another
When India moved to GST, many companies faced a situation where they had paid tax on old stock and availed credit but had to now set it off against the GST liability.
After slashing GST rates of over 200 items last month, the government on Saturday hinted at reviewing levies on the items in the top 28 percent tax bracket.
The GST Council reduced the tax on diesel engines to 12%, while that on petrol/kerosene engines was kept the same, at 28% .
Post-GST, “zero business”, the practice of conducting sales without issuing bills to customers, has gained ground in the city's markets.
The GST Council also drastically reduced the tax rate on more than 200 goods, including most of the items in the highest 28% tax bracket.
The proposed discount would be capped at ₹100 per transaction, thus making all retail purchases up to ₹5,000 eligible for the GST discount.
States may have got less than what they should have in the distribution of taxes under the GST and the next finance commission or the GST council will examine the issue.
He said the new system is a bit "complicated" as states have different IT systems and these issues are being addressed by the GST Council.
The letter was sent a week after the GST Council went for a massive trimming of items in the 28 per cent bracket, besides reducing rates on items in the 18 per cent and 12 per cent categories.
According to Adhia, he does not foresees any further changes in GST rate structure in the near future after the latest changes.