No New Tax Increase: GST Council Meeting

Union Finance Minister Nirmala Sitharaman chaired the 48th GST Council meeting through virtual mode in Delhi. After the meeting, Finance Minister Nirmala Sitharaman said that 8 points of the agenda were completed during the GST Council meeting. The GoM had two issues that needed to be discussed but could not be considered, namely capacity-based taxation on tobacco and gutkha and setting up of GST tribunals.

Amount limit raised from Rs 1 crore to Rs 2 crore

On the other hand, the Revenue Secretary told after the meeting that the decisions taken during the GST Council meeting include decriminalizing certain cases including preventing any officer from discharging his duties and initiating prosecution in any case under GST laws. Amount limit raised from Rs 1 crore to Rs 2 crore. After the GST Council meeting, the Revenue Secretary said that the rate of tax on husk of pulses has been reduced from 5 percent to nil. In the meeting, ethanol blending with petrol has been allowed for refineries at a concessional rate of 5%.

Decriminalization of offenses under the GST law, setting up of appellate tribunals and creating a mechanism to check tax evasion in pan masala and gutkha business were discussed during the GST Council meeting that began on Saturday.

Earlier it was told that during this meeting issues related to GST on online gaming and casino can also be discussed. The Group of Ministers (GoM), constituted last year on the issue under the chairmanship of Meghalaya Chief Minister Conrad Sangma, submitted its report to Finance Minister Nirmala Sitharaman on Thursday.

Ahead of the meeting, there were speculations that clarity on rate applicability to certain goods and services would be given during the meeting. The Finance Ministry tweeted, "Union Finance Minister Smt @nsitharaman chaired the 48th GST Council meeting through virtual mode in New Delhi today."

The Law Committee of the GST Council had suggested increasing the monetary limit for initiating prosecution.

With regard to decriminalization of offenses under the GST laws, the Law Committee of the GST Council, consisting of tax officers from the Center and States, had suggested to the Council an increase in the monetary threshold for initiating prosecution for GST offences.

The Law Committee had also suggested that the fee payable by the taxpayer for compounding of GST offenses should be reduced to 25 per cent of the tax amount. It is currently up to 150 per cent. The committee has said this with a view to improve the ease of doing business.

Sources said the GOM report on tax evasion by pan masala and gutkha companies was to be discussed in the council meeting. With regard to setting up of Goods and Services Tax Appellate Tribunals (GSTATs), the GoM has suggested that the tribunals have a retired Supreme Court judge as chairperson, apart from two judicial members and one technical member each from the Center and states, according to sources. should be included. The GoM on GSTATS was constituted in July under the chairmanship of Haryana Deputy Chief Minister Dushyant Chautala.

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