The GST Council’s meeting has started on the second and the last day at Chandigarh. On the first day, the Council is said to have approved the tax rates on some goods and services with a view to correcting inverted duty levies even as non-BJP ruled states set the stage for a possible confrontation with the Centre over the issue of GST compensation beyond the June 30 deadline. GST Council on the first day also removed tax exemptions on some items. Today, it will decide on putting online gaming, horse racing, and casinos under the 28 per cent tax slab.JUNE 29, 2022 / 01:04 PM IST
GST Council Meet Live Updates | Council provides relief to Transportation Industry
The Goods and Services Tax (GST) council gave some relief to the transportation industry on June 29, cutting GST on ropeways, renting goods carriages that include fuel cost, and exempting foreign components of tour packages from GST, the ET reported.
In addition, the council waived the registration requirement for small businesses with an annual turnover of up to Rs 40 lakh and Rs 20 lakh for goods and services respectively, using e-commerce platforms to sell products and allowing them to opt for composite scheme, benefitting about 1.2 lakhs small taxpayers, as per the report.GST Council Meet Live Updates | Central Government has Delivered on Promise to give GST Compensation: Madhya Pradesh FM
Madhya Pradesh Finance Minister Jagdish Devda says central government has delivered on promise to give GST compensation for 5 years. Adds, MP is taking steps to augment revenues as compensation ends.GST Council Meet Live Updates | Have asked for extension of GST compensation in the past: Tamil Nadu FM Palanivel Thiaga Rajan
- Tamil Nadu Finance Minister Palanivel Thiaga Rajan says have asked for extension of GST compensation in the past, will ask for it today as well.
- Tamil Nadu Finance Minister Palanivel Thiaga Rajan saidthey can’t come up with alternative mechanism two days before expiry of compensation scheme.
- GST compensation to states ends on June 30 as five years of GST implementation end.GST Council Meet Live Updates | States that go against GST Council will be isolated: Sushil Kumar Modi
States that seek to deviate from resolutions of the GST Council, India’s apex decision-making body under the Goods and Services Tax (GST) regime, will be isolated as other provinces will find it tough to do business with them, Sushil Kumar Modi, senior leader of the ruling Bharatiya Janata Party (BJP) and member of Parliament’s Upper House,GST Council Meet Live Updates | Why states need the funds and the Centre cannot pay
Several states are likely to find their finances in dire straits as the GST compensation ends. It stands to reason they would want the compensation to continue. After all, it was the promise of the compensation — 14 per cent year-on-year (YoY) growth — that had brought them on board with the GST regime in the first place.
The stressed balance sheets of several states have worsened since the pandemic hit, leaving them reliant on the GST compensation funds.
At an aggregate level, states stand to face a shortfall of over Rs 1 lakh crore in revenue per year after the compensation ends.
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