The Council could decide on only 8 out of the 15 agenda items due to time crunch at the 48th GST Council meeting
The Goods and Services Tax (GST) Council on Saturday recommended that the rate of GST on ethyl alcohol supplied to refineries for blending with petrol be reduced to 5 per cent from the existing 18 per cent rate. GST on husk of pulses was reduced to nil from 5 per cent.
It also recommended issuing of a circular that would clarify the treatment of statutory dues under GST law for taxpayers for whom the proceedings have been finalised under Insolvency and Bankruptcy Code, 2016. Further, the Council recommended to increase the minimum threshold of tax amount for initiating prosecution under GST from the earlier Rs 1 crore to Rs 2 crore, except for the offence of issuance of invoices without supply of goods or services or both.
The Council could deliberate on only 8 out of the 15 agenda items because of time crunch, Finance Minister Nirmala Sitharaman said, adding the items not considered included one pertaining to setting up of appellate tribunals for GST.
The issue of mechanism to curb tax evasion in pan masala and gutkha businesses also could not be taken up. Sitharaman said that no new taxes have been levied at the 48th GST Council meeting.
The Council also clarified that a higher compensation cess of 22 per cent would be applicable to automobiles that constitute as SUV, has engine capacity exceeding 1500 cc, length exceeding 4000 mm and a ground clearance of 170 mm or above.
It was further informed that rab (rab-salawat) is classifiable under CTH 1702 and attracts GST at the rate of 18 per cent while fryums manufactured using the process of extrusion is specifically covered under CTH 19059030 and attracts GST at the rate of 18 per cent.
A decision on GST on online gaming and casinos could not be taken as the report of a Group of Ministers (GoM), chaired by Meghalaya Chief Minister Conrad Sangma, submitted its report only a couple of days back. The report of the GoM was not even circulated to GST Council members.
GST Council is the highest decision making body of the one-nation, one-tax Goods and Services Tax (GST) regime. It is headed by the Union Finance Minister and all states and UT are represented in the body.