Finance Minister Nirmala Sitharaman chaired the GST Council meeting in Chandigarh on Tuesday, June 28, 2022.
Highlight
- GST Council approves changes in tax rates on certain goods and services
- There will be a discussion on Wednesday on imposition of GST on casinos, online gaming and others.
- States may decide on the limit above which electronic billing is mandatory, as recommended by the Council
The GST Council on Tuesday approved changes in tax rates on certain goods and services, while allowing states to issue e-way bills for inter-state movement of gold and precious stones, officials said. The council, chaired by Finance Minister Nirmala Sitharaman and headed by state counterparts, also approved a GoM report on high-risk taxpayers to check evasion as well as several compliance procedures for GST-registered businesses.
The important issues of extending compensation to states beyond June 2022 and levying 28 per cent GST on casinos, online gaming and horse racing will be discussed on Wednesday. Opposition-ruled states are pressing for either expanding the GST compensation system or increasing the share of states in revenue from the current 50 per cent.
In a meeting held on Tuesday, the council accepted the interim report of the state’s group of finance ministers, headed by Karnataka Chief Minister Basavaraj S Bommai, on rate rationalization to reform the reverse duty structure and simplify tax exemptions on certain items. is included. rate structure.
The GoM had suggested rolling back the GST exemption on several services, including hotel accommodation below Rs 1,000 per day, and replacing it with a 12 per cent tax. It also recommended levy of 5 per cent GST on room rent (excluding ICU) for hospitalized patients where hospital room charges exceed Rs 5,000 per day.
It wanted a tax on all post office services other than postcards and inland letters, book posts and envelopes weighing less than 10 grams. Also, cheque, loose or booked form, should be taxed at the rate of 18 per cent, as recommended by the GoM. The GoM supported the withdrawal of exemptions given for renting out residential homes by businesses for residential use.
With regard to the e-way bill on intra-state movement of gold, jewelery and precious stones within the state to prevent theft, the council had recommended that states may decide the limit above which electronic billing is to be made mandatory. A panel of state ministers had recommended raising the limit to Rs 2 lakh and above.
With regard to high-risk taxpayers, a report by a panel of state finance ministers had suggested post-registration verification for high-risk taxpayers under GST, besides electricity bill details and bank accounts to identify such taxpayers. Verification of accounts was used.
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