GST Council continues discussions on rate rationalisation

The first day of the Commodity and Services Tax Council meeting continued on Wednesday late at night with the center and the states that discuss rationalizing the proposed rate under the indirect tax tax as well as concerns about compensation.

According to the sources, several states, including the state of Karnataka, the Western Bengal state, and Tillanga, raised the issue of possible revenue losses while rationalizing prices under the tax and services tax, and has sought estimates of the loss of potential revenue from the proposal.

Eight countries met by the opposition earlier in the day before the day before the commodity and services tax council had previously met to discuss the proposals.

His state will lose about 2000 rupees from the center’s proposal.

He said, “If the center agrees to compensate us for any loss we will bear, then we have no problems in approving the agenda before the council.”

However, countries support the proposal to rationalize prices because they aim to benefit from the general public.

Countries have also raised concerns about the existence of a mechanism to ensure the transfer of the benefits of price discounts to the final consumers.

The Commodity and Services Tax Board meeting is likely to meet on Thursday again for further discussion.

As part of the following GEN repairs for GST, the center suggested a 5 % dual and 18 % average structure along with 40 % higher tax on sin and luxury goods along with registration and recovery repairs faster.

Experts and industry are closely waiting for the decisions of the Commodity and Services Tax Council, which are expected to give a large boost to consumption through low prices in the holiday season, as well as help in ease of doing business.

Surab Agarawal, the tax partner, pointed out that the concerns of states, especially the manufacturing states, regarding the shortest possible revenue under the framework of commodity tax and services.

“The cooperative and balanced approach is the key to enhancing our financial federation. Rationalizing commodity and services tax rates, especially the low tax burden on food, basic commodities, insurance, etc., will put more money in the hands of consumers.