Business News: GST Council meeting will be held today

The Goods and Services Tax Council (GST Council) is going to meet today. This time this meeting of the GST Council is important in many ways.

According to the information received so far, the cess on automobiles will not be removed, but the discrepancies in its tax structure will be discussed. It is possible that the GST on items such as mobile phones, footwear and textiles will be reduced in the GST Council meeting.

Cess on cars, tobaccos and aerated drinks can be increased. However, this increase will depend on that in states. These cess states are levied to make up for the loss from GST.

Fear of decreasing revenue due to increasing cess

A person aware of the matter said, ‘There is little scope for increase in cess. The phase of economic slowdown is going on. If the cess is increased, there is a possibility that whatever revenue is currently coming will also be closed. Also, there is no concrete reason to increase the tax rate on the items on which cess has been imposed.

Discussion on input tax on raw materials also

The important thing that will be discussed in the GST Council meeting is that the tax payable by the companies on the purchase of raw materials is much higher than the final product. In the case of mobile phones, footwear and readymade garments, this difference is huge.

Discussion on input tax credit

He also said that the fitment committee has suggested a change in it. The business input of these industries is very high. In such a situation, it will be difficult for the states to give more input tax credit.

In a media report quoting another official, it has been said that this can increase the cases of fake input tax credit. Let us know that fake input credit also remains a challenge for the tax department at the central and state level. In recent times, many important steps have also been taken regarding this.

States can raise the issue of compensation

In this meeting of the council, the compensation of the loss due to GST to the states will also be discussed. In the last few months, many states have also complained to the Central Government for not receiving this amount at the right time.

The state governments also have to understand that their losses are to be repaid only from the amount deposited through the cess under the GST rules. It will not happen that the central government creates separate funds to make up for the loss.

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