GST Meet Highlights: Now Goods and Service Tax (GST) will be levied on canned and labeled food items like curd, cheese, honey, meat and fish. Along with this, GST will also have to be paid on the charges taken by the banks in lieu of issuance of cheques.
Officials said the GST Council, the apex decision-making body on issues related to Goods and Services Tax, has accepted most of the recommendations of the Group of Finance Ministers of states to withdraw exemptions for the purpose of rationalization of rates. The council, headed by Union Finance Minister Nirmala Sitharaman, includes the finance ministers of the states.
GST will be levied on wheat and other grains
On Tuesday, the first day of the two-day meeting, the Council accepted the recommendations of the Group of Ministers (GoM) to review the exemption from GST. This exemption is currently available to packaged and labeled food items.
With this, products like canned meat (except frozen), fish, curd, cheese, honey, dry makhana, soybean, peas, wheat and other cereals, wheat flour, muri, jaggery, all commodities and organic manure are now five percent. GST will be applicable.
GST will also start issuing checks
Similarly, 18 per cent GS will be levied on the charges levied by banks on issuance of cheques. Maps and charts including atlas will attract 12 percent GT. At the same time, GST exemption will continue on unbranded products sold in the open.
Apart from this, it has been said to levy tax at the rate of 12 percent on hotel rooms renting less than Rs 1,000 per day. At present there is no tax on it. Rationalization of rates is important to increase the weighted average GS. The weighted average GT has come down to 11.6 per cent from 14.4 per cent at the time of implementation of this tax regime.
Online gaming also likely to attract GST
The GST Council also recommended reforms in the inverse duty structure (higher taxes on finished products than on raw materials and intermediates) on several products, including edible oil, coal, LED lamps, ‘printing/drawing ink’, finished leather and solar electric heaters. is of.
The council may consider on Wednesday the demand to continue the compensation system even after June 2022 to compensate for the revenue loss to the states. Apart from this, important issues like levying 28 percent GT on casinos, online gaming and horse racing are likely to be discussed.
Opposition-ruled states like Chhattisgarh have been demanding an extension of the GT compensation system for five years or increasing the states’ share of revenue from the current 50 per cent to 70-80 per cent. The report of the state finance ministers on reforms in the GST system was also approved. It suggests real-time verification of bank accounts along with biometric verification of high-risk taxpayers.
As per the revenue growth data, out of 31 states/UTs, only five states….Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim… have increased the revenue protected revenue rate for states under GST in 2021-22. has been more than