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News: GST Council meeting was held recently. There are many takeaways from this meeting.
GST Council meet, held recently, was its first ‘regular’ meeting after a nine-month break. It discussed recommendations of four ministerial groups’ to fix various aspects of the indirect tax regime. The council ratified 3 out of 4 reports by the groups.
What were the key takeaways from the meeting?
First, a ministerial panel has been tasked with resolving the long-pending issue of constitution of an appellate tribunal for GST disputes.
Second, based on the recommendations by the panel, to rationalise tax rates, exemptions have been scrapped on several items. It may result in increase in the price pf many goods and services.
Third, the rules for registering new firms have been tightened to close tax evasion loopholes.
Fourth, no council member brought up the issue of imposition of decisions by the center, even after the Supreme Court’s recent judgment.
Fifth, various state government asked for the continuance of GST Compensation. It was a positive development, as governments of the ruling party also raised this demand, and center kept the issue open for further discussions. It proves the effectiveness of GST Council as a platform for critical deliberations and discussions.
Source: This post is created based on the article “Reset mode”, published in The Hindu on 2nd July 2022.
