Sept. 19, 2021

The GST Council’s 45th meeting was held in Lucknow under the chairmanship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman.

Recommendations of 45th GST Council Meeting

  • The Goods and Services Tax (GST) Council has decided to keep petroleum products out of the GST regime, while consumers will have to keep paying the Compensation Cess levied on products like automobiles till March 2026 instead of July 2022 as originally envisaged at the time of rolling out the indirect tax regime.

  • To shore up GST revenues, the Council has decided to form two groups of ministers (GoMs) that have to recommend measures within two months.

  • The first one has been tasked with reviewing tax rate rationalisation issues to correct anomalies in the rate structure, while the other will look to tap technology to improve compliance and monitoring.

  • The Compensation Cess levied on automobiles, tobacco products and aerated water, over and above the basic GST rate, was to be tapped for covering the gap between States’ actual revenues and the 14% annual revenue growth for five years they were assured for adopting GST.

  • The GST Council effected several long-pending tweaks in tax rates, including an increase in the GST levied on footwear costing less than ₹1,000 as well as readymade garments and fabrics to 12% from 5%. The new rates will take effect from January 1.

  • The Council approved a special composition scheme for brick kilns with a turnover threshold of ₹20 lakh, from April 1, 2022. Bricks would attract GST at the rate of 6% without input tax credits under the scheme, or 12% with input credits.

Source : The Hindu