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Ahead of today’s GST Council meeting , here’s what you need to know
Wednesday is the 38th meeting of the GST council, which is expected to discuss various issues related to the regime, including how to raise GST revenue amidst a slowdown.
The Goods and Services Tax Council meets on Wednesday to review the tax regime, amid a spate of controversies. Union finance minister Nirmala Sitharaman will chair the meeting in New Delhi.
Here is what you need to know about the council, its mandate and agenda, and what is expected:
What is the GST council?
In July 2017, Union of India, Indian states and union territories agreed to have a unified indirect tax regime, the Goods and Services Tax (GST). The regime is governed by a federal body chaired by union finance minister. Finance ministers of states are its members. As per convention, all decisions taken by the council on unanimous basis.
Why is today’s meeting of the council significant?
Today is the 38th meeting of the council, which is expected to discuss various issues related to the regime, including how to raise GST revenue amidst a slowdown.
Why have the Centre and States been at loggerheads on GST?
There was an issue of non payment of promised compensation for four months after July. Although the Union Government paid ₹35,000 crore compensation to states after a delay of two months days before the Council’s meeting, the pending compensation for October and November could be raised in the council.
Why does the government think GST has got distorted?
At the Hindustan Time Leadership Summit, finance minister Nirmala Sitharaman said that unstructured rate reductions have created distortions in the GST regime. There are also procedural issues which have created difficulties. There is a view within the government that tax slabs have to be reviewed, and certain items need to be put in higher tax category.
Could there be a rate hike?
States will resist any rate hike move, but Centre would like to hike rates to raise falling GST revenues.
