{"id":263972,"date":"2023-10-12T19:23:26","date_gmt":"2023-10-12T13:53:26","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=263972"},"modified":"2023-10-12T19:23:26","modified_gmt":"2023-10-12T13:53:26","slug":"spring-cleaning-fixing-grey-areas-is-good-but-the-gst-regime-needs-a-broader-reform-plan","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/spring-cleaning-fixing-grey-areas-is-good-but-the-gst-regime-needs-a-broader-reform-plan\/","title":{"rendered":"Spring cleaning \u2013 Fixing grey areas is good, but the GST regime needs a broader reform plan"},"content":{"rendered":"\n

Source<\/strong>: The post is based on the article \u201cSpring cleaning \u2013 Fixing grey areas is good, but the GST regime needs a broader reform plan<\/strong>\u201d published in The Hindu <\/strong>on 12th<\/sup> October 2023<\/strong>.<\/p>\n

Syllabus: GS 3 \u2013 Indian Economy \u2013 Fiscal Policy<\/strong><\/p>\n

Relevance: <\/strong>About the recent decision of the GST Council and associated challenges.<\/p>\n

News: <\/strong>In a recent meeting, the GST Council clarified the tax status of various goods and services.<\/p>\n

What decision were taken by the GST Council?<\/strong><\/h2>\n

The Council reduced the GST on molasses<\/strong> from 28% to 5% to lower cattle feed costs and improve cash flows for sugar mills.<\/p>\n

The Council also decided not to tax extra neutral alcohol (ENA)<\/strong> used for alcoholic liquor.<\/p>\n

Moreover, the GST Council has met more often this year and cleared up a number of tax issues, including harmonizing age requirements for the president and members of the GST Appellate Tribunals.<\/p>\n

What are the concerns present with the GST Council?<\/strong><\/h2>\n

The major concern for consumers and producers is the Council’s plan to discuss the future of the GST Compensation Cess and its replacement with a surcharge<\/strong>.<\/p>\n

This cess was originally introduced to compensate states for revenue losses during the first five years of GST.<\/p>\n

However, it was extended on items like aerated drinks, tobacco products, and automobiles until March 2026 as a response to the revenue loss<\/strong> caused by the COVID-19 pandemic.<\/p>\n

Must Read: <\/strong>Recommendations of 52nd GST Council Meeting<\/strong><\/a><\/p>\n

What steps can the GST Council take to address the concern?<\/strong><\/h2>\n

Although it is good to discourage consumption of certain harmful goods by levying a cess, introducing a new cess should be part of a larger plan to simplify the complex GST system.<\/p>\n

This simplification plan was started two years ago, but it has not made progress, even though the government has been collecting a lot of tax revenue from the GST.<\/p>\n

Hence, the Council should think about simplifying the complex multiple-rate structure of the GST and bringing excluded items like<\/strong> electricity, petroleum, and alcohol under the GST.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article \u201cSpring cleaning \u2013 Fixing grey areas is good, but the GST regime needs a broader reform plan\u201d published in The Hindu on 12th October 2023. Syllabus: GS 3 \u2013 Indian Economy \u2013 Fiscal Policy Relevance: About the recent decision of the GST Council and associated challenges. News:… Continue reading Spring cleaning \u2013 Fixing grey areas is good, but the GST regime needs a broader reform plan<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,8184,10498],"class_list":["post-263972","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-economy","tag-the-hindu","entry"],"jetpack_featured_media_url":"","views":{"total":27,"cached_at":"","cached_date":1698458822},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/263972","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=263972"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/263972\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=263972"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=263972"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=263972"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}