two days GST Council Sources told CNBC-TV18 that the meeting, which began on Tuesday, has so far decided to accept the recommendations of three Groups of Ministers (GoMs) constituted on rate rationalization, reforms in the GST system and movement of gold and precious stones. has done. council Various GoMs were constituted to study various issues and submit reports to it for final decision.
GOM on Rate Rationalization
GST Council has accepted GoM’s interim report rate rationalization, according to sources. The Group of Ministers was constituted in September last year and was headed by Karnataka Chief Minister Basavaraj S Bommai.
Its interim report included recommendations on reforms in the inverted duty structure. It recommended that refund of Input Tax Credit (ITC) should not be allowed on account of inverse rates for edible oils. Inverted duty correction is expected to increase the printing, writing/ink from 12 per cent to 18 per cent. It also recommended the inverted duty structure on LED lights, fixtures and LED lamps from 12 per cent to 18 per cent, sources said.
He said rate reforms have also been proposed on solar water heaters and systems, finished leather and composition leather, works contract supply, and tailoring for textiles and other job work, from 5 per cent to 12 per cent.
The council has also accepted GoM’s idea of withdrawing GST exemption on packaged curd, lassi, buttermilk, puffed rice, puffed rice, papad, paneer, honey, cereals, cereals, jaggery and certain vegetables.
The council has accepted the recommendations of the GoM to revise the GST exemptions and re-fit the items based on suitable rates, such as unroasted coffee beans, unprocessed green leaves of tea, wheat bran, unprocessed oil Rice bran containing 5 percent. The GoM proposed to withdraw exemption from check, defeat or book form and levy 18 per cent tax. This also includes increasing the reduced rate exemption for e-waste from 5 per cent to 18 per cent.
The report also includes withdrawal of the reduced rate exemption of 5 per cent on petroleum/coal bed methane related goods.
Other exemptions accepted for withdrawal include reinsurance of exempted insurance plans, transportation of passengers in business class from airports located in North East states, newspapers, magazines, railway equipment by rail/ship/road, services by RBI, IRDAI Including services by. Services provided by Insurer, SEBI, Services through registration/license supplied by FSSAI to Food Business Operators, Services by GSTN to Govt.
These include tax equivalent to 12 per cent on hotel accommodation less than Rs 1,000 per unit, excluding hospital rooms, ICU, 5 per cent tax on daily rent of Rs 5,000 without ITC, exemption to cord blood banks. The rent of a religious place for the general public, if the daily rent is more than Rs.5,000 per day and the rent of the shops is more than Rs.2,500 per month.
GoM’s report on GST system reforms
Sources told CNBC-TV18 that the GST Council has agreed and accepted to adopt the GoM’s report on GST system reforms. The GoM was formed in September last year under the chairmanship of Maharashtra Deputy Chief Minister Ajit Pawar.
The recommendations of the GoM were: to use mandatory biometric authentication for high-risk applicants to register under GST; and to identify risky behavior of new registrants/applicants using Artificial Intelligence and keep the information at the back office for the field officers to conduct mandatory physical verification of these taxpayers.
They also included AI-based interventions to generate reports for authorities to take post-registration verification and other necessary actions for high-risk taxpayers; Geo-coding and online/site verification for officials to do physical verification of high risk taxpayers or to get the correct address entered by the taxpayers; Inclusion of Electricity Bill Meta Data (CA Number) as a data field during registration by new taxpayers.
The GoM report also said that the CA number will be verified to improve the quality of the addresses registered in the GST system. It also suggested real time verification of bank accounts through integration of GST system with NPCI. Sources said she said the result of the verification would be made available to the tax authorities.
GST Network, the IT backbone of the GST regime, will take necessary steps to provide information relating to: all bank accounts against a particular PAN; and for development of feedback mechanism to capture the response of the system generated lead to alert the tax authorities.
GoM on movement of gold and precious stones
Sources said the GST Council has also accepted the recommendations of the GoM constituted on generation of e-way bills for gold/gold jewelery and precious stones. It was formed in February this year with Kerala Finance Minister KN Balagopal as its convener.
This includes allowing states to implement the requirement of e-way bill for intra-state movement of gold/precious stones, if they so desire.
The GoM also recommended a minimum limit of Rs 2 lakh, above which states can fix any amount as the limit for generating e-way bills for inter-state movement of gold/precious stones.
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