GST Council
No additional borrowing by Centre to meet GST compensation of states in FY22
Government officials said the current revenue position, where both direct and indirect tax kitty of the government had seen a sharp rise, will prevent it from additional borrowing even if it meets full GST compensation shortfall for states during FY22. The centre has pegged its gross borrowing target for FY22 at Rs 12.5 lakh crore in the Union Budget 2021-22, presented by Finance Minister Nirmala Sitharaman
Three-tier GST rate structure likely by next fiscal
Sources working on the GST rate rational said that a three rate tax structure may become a reality early next fiscal after the views of a group of ministers (GoM) set for purpose is presented before the GST Council. The idea is, sources said, to move away from the present broad five rate structure of zero, 5, 12, 18 and 28 per cent to just three of 5, 18 and 28 per cent.
Path to recovery: GST collection for Sep at over Rs 1.17 lakh cr
The gross GST revenue collected in September stood at Rs 1,17,010 crore, a growth of 23 per cent over the same month last year. It is also higher than last month's (August, 2021) collection of Rs 1,12,020 crore. The government has settled Rs 28,812 crore to CGST and Rs 24,140 crore to SGST from IGST as regular settlement.
GST Council rejigs some rates, extends cess levy, petroleum still out
It also decided to correct inverted duty structure in footwear and textile sectors while deciding to treat food delivery apps such as Zomato and Swiggy as restaurants, thereby, becoming responsible to pay 5 per cent GST on supplies made by them. However, the new system will not make meals dearer since no new tax component has been added.
Council rejigs some rates, extends cess levy, petroleum still out
It also decided to correct inverted duty structure in footwear and textile sectors while deciding to treat food delivery apps such as Zomato and Swiggy as restaurants, thereby, becoming responsible to pay 5 per cent GST on supplies made by them. However, the new system will not make meals dearer since no new tax component has been added.
Majority of Council opposed bringing petroleum products under GST: Sitharaman
Addressing the media after the conclusion of the Council's 45th meeting and the first held in a physical format after start of the Covid-19 pandemic, she said that the issue was deliberated at the meeting, after it was added to the agenda at the last moment on the back of a Kerala High Court order. The Council members did not see find the current situation appropriate to bring petroleum products under the GST.
GST Council extends period for concessional rates on Covid medicines
The duty exemption and concessional rates for Covid and related medicines was applicable till September 30. Addressing the media after the conclusion of the Council's 45th meeting, and the first in a physical format after start of the Covid-19 pandemic, she said: "We have taken a few people friendly decisions...,"
GST Council extends levy of compensation cess till March 2026
As per the GST legislation, states were to be compensated by the Centre for a period of five years till July 2022 for any shortfall in revenue due to GST implementation. But as the compensation shortfall enlarged during the pandemic, the Centre has borrowed funds to provided it to states as alternate to compensation in FY 21 and more borrowings are expected in FY22.
GST Council meet today: Covid relief, bringing oil and gas indirect tax regime on agenda
The meeting, however, is expected to announce a few more Covid relief measures particularly on compliance matters. It will also announce a few measures to correct the inverted duty while discussing the compensation cess dues arising in 2021-22. Two other important items, including lowering of GST rates for two-wheelers and bringing natural gas into the indirect tax fold may also be included in the agenda for discussion.
GST revenue collection for July at over Rs 1.16 lakh cr
Out of the total revenue collected CGST was Rs 22,197 crore, SGST was Rs 28,541 crore, IGST was Rs 57,864 crore -- including Rs 27,900 crore collected on import of goods -- and Cess was Rs 7,790 crore -- including Rs 815 crore collected on import of goods. The government has settled Rs 28,087 crore to CGST and Rs 24,100 crore to SGST from IGST as regular settlement.
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